Cryptocurrency Usage Research Articles

Does Notice 2014-21 Need an Update? An Analysis of Potential Tax Classifications for Cryptocurrency

ABSTRACT The IRS issued Notice 2014-21 in which they classify cryptocurrency as property. However, the variety and usage of cryptocurrency has increased since Notice 2014-21 so that cryptocurrency has become a significant and widely accepted component of the global financial system. Cryptocurrency includes a diverse group of digital assets with different origins and uses. One type of cryptocurrency, Bitcoin, has been adopted as legal tender in two countries. Yet the IRS guidance for reporting cryptocurrency has not changed. In this paper, we examine the current regulatory framework regarding cryptocurrency. Next, we discuss alternative tax treatments for cryptocurrency and the tax effects of those potential treatments. Finally, we make policy recommendations for the tax treatment of cryptocurrency.

Ride Sharing with Privacy, Trust and Fair Payment by using Blockchain

Abstract: The idea of sharing economy provides rise to distinctive concepts and develops innovative businesses. This text aims to relate the good town concept by introducing the good transport system and explores the opportunities of adopting blockchain technology in ridesharing services. Blockchain technology could be a distributed, suburbanized public ledger that allows peer-topeer transactions in a very secure means with no third party. This proposes a blockchain-based framework from the prevailing centralized framework for a ride-sharing service and implements a similar as a suburbanized application (DApp) primarily based on good contracts on Ethereum Blockchain. exploitation good contracts facilitate the users with automated transactions, removes the intermediaries, and allows varied activities to be carried out safely and firmly. Implementation of good contracts is finished exploitation of the Solidity programming language. This DApp uses the min matching algorithmic program to match riders requesting rideshare to avoid wasting total travel distance. With the overwhelming growth in the usage of crypto currencies, good contracts usage in applications as projected during this paper will rework the sharing economy.

A study on the impact of demonetisation on cryptocurrency in India

Unaccounted wealth (UW) is a large unsolved problem in India. The demonetisation exercise in November 2016 was an attempt to address it. As regulatory measures are taken to tackle UW, criminals identify newer ways to avoid detection, e.g., cryptocurrency usage for illicit activities, as it bypasses formal banking channels. This article examines evidence of change in cryptocurrency usage in the context of demonetisation. This is done by examining four datasets viz. keyword search for bitcoin (BTC), volume of BTC traded in India, price variation between USD/BTC/INR and BTC blockchain transaction dataset. The data indicates heightened awareness of cryptocurrency, increase in volume traded and increase in price spread between BTC/USD/INR, though unable to discern deviation in blockchain dataset due to India led transactions. Increasing BTC usage, given inability to regulate these transactions, supports move by Government of India to ban its usage till the technology and its implications are understood better.

Crypto Pay: Design of Public Blockchain Platform

Blockchain is a decentralized distributed platform that allows multiple peers to exchange digital assets securely all over the globe without third party. In blockchain, blocks are connected by using hash that maintains the order of transaction. In this paper, a crypto currency transfer in Web 3.0 platform is built based on Ethereum Blockchain to implement decentralized application. This paper is also focused on the latest cutting-edge technology to transfer funds easily and very efficiently and quickly. The working model can solve issues regarding many spheres of the multiverse and can be connected to transfer real cryptocurrency anywhere across the globe. The main uniqueness of the model that it offers to its users with full trustiness and curb the wrong uses of third parties to control any transactions of Web 2.0, especially tracking or hacking sites or data servers and block any transactions and transact money into a wrong account. Here, the transaction is verified, decentralized, and secured where no third party is involved in the process actively and no personal logged data is required. Each transaction can be seen and matched by the address stored on the transaction site of Ethereum. This research paper concludes with the implemented methodology for creation, deployment on Ethereum, blockchain, and interaction of smart contract using ReactJS, EthersJS, alchemy API and hardhat. Just people need to understand the appropriate usage of Cryptocurrency transactions using virtual wallets.

Financial Institutions Readiness Towards Cryptocurrency Adoption: A Case of Banks in Tanzania

This study assessed readiness of Tanzania’s financial institutions towards adoption of cryptocurrency. Specific objectives included assessing the attitudes of bank staff on cryptocurrency, determining current readiness level of Tanzania’s banks towards adoption of cryptocurrency and examining the relationship between staff attitude and adoption readiness. The study used a mixed-method research design. Purposive and simple random sampling strategies were deployed for selecting 195 participants from both public and private banks located in Dar es Salaam. Data were collected by using structured questionnaires and semi-structured interviews and analyzed through descriptive statistics and content analysis techniques. Findings of the study revealed that staff had negative and positive attitude on perceived usefulness and perceived ease of use of cryptocurrency, respectively. Moreover, overall cryptocurrency adoption readiness was found at low level and, a weak positive significant correlation was found between attitude and adoption readiness. It was concluded in this study that a bank sector is not ready to adopt cryptocurrency. From the findings it was recommended among others that Tanzania’s banks should start to provide trainings on cryptocurrency to staff and, policy and regulations should be formulated to support cryptocurrency usage in the country.

Cryptocurrency Market and Tax Regulations in Turkey: an Analysis in the European Emerging Economy

The aim of the article: The purpose of this study is to provide a thorough review of the current state of cryptocurrency market and how governments perceive and deal with the threats and opportunities brought by the block chain technology. Cryptocurrencies were certainly the most popular investment in the last decade with a skyrocketing trading volume. However, cryptocurrency abilities in money laundering, financing terrorism and tax evasion overshadow the great opportunities and potential of this new technology. Therefore, the major economies in the world have been working on an efficient and effective strategy to control and tax the cryptocurrency market. In this study, the current state in Turkey regarding cryptocurrency taxation is analysed and a tax system is proposed. The authors claim that the Tobin tax, or in other words, low tax rates would be the best tax system to be applied in Turkey.
 Methodology: The study is based on a detailed literature review on the subject, academic papers, news releases and legal acts of the USA, Europe and Turkey. Different attitudes of varied groups are discussed and proposed solutions in the subject are being considered.
 Results of the research: Cryptocurrency market has a great potential and block-chain technology is full of opportunities. However, it is essential to control this market without harming the appeal of cryptocurrencies, yet this is not an easy task. Therefore, we argue that Turkey should extend the usage of cryptocurrencies, create a tax strategy with low tax rates and we claim that a regulation similar to the Tobin tax application would be effective here.

Ідентифікація матриці суміжності у моделі імпульсних процесів з різнотемповою дискретизацією в когнітивній карті застосування криптовалют

Застосування криптовалюти на фінансових ринках характеризується складною динамікою, яка відрізняється нестаціонарністю процесів і невизначеністю ситуації. На процеси застосування криптовалюти діють різні збурення, направлені на зменшення рівня довіри до використання криптовалюти. Тому при операціях з криптовалютою виникають ризики втрати користувачів, що призводить до зниження ціни біткоїна, що пов’язано з хибними загальними одночасними сподіваннями багатьох користувачів, які створюються маніпулюваннями трейдерів на фінансових біржах; різкого обвалу курсу криптовалюти в результаті звичайних махінацій на біржах, до яких можна віднести так званий високочастотний трейдинг, який полягає в перевазі певної групи користувачів у швидкості купівлі грошових активів раніше за більшість інвесторів і продажу їх повільним користувачам, поки інформація про купівлю дійде до повільного інвестора. Ці дії в поєднанні з алгоритмічним трейдингом, механізмом деривативів і квартальних ф’ючерсів, реалізованих на біржах, створюють реальну небезпеку значної зміни курсу від доволі незначних збурень, пов’язаних з відсутністю гарантії на збереження капіталу, вкладеного в купівлю криптовалюти, який призводить до певної істерії користувачів у процесі торгів на біржах. Для опису впливу даних ризиків розглянуто когнітивну карту (КК) застосування криптовалюти на фінансовому ринку, на основі якої описано динамічну модель імпульсних процесів КК у вигляді систем різницевих рівнянь (рівняння Робертса) з різнотемповою дискретизацією. При цьому виконана декомпозиція вихідної теоретичної моделі імпульсних процесів КК з однотемповою дискретизацією на підсистеми з швидковимірюваними і повільновимірюваними координатами вершин КК. Для цього моделі підсистем представлені з різнотемповою дискретизацією координат і взаємопов’язані між собою. Розроблені алгоритми ідентифікації коефіцієнтів матриці суміжності імпульсних процесів КК для підсистем на основі рекурентного методу найменших квадратів відповідно у швидкозмінному і повільнозмінному масштабах часу. На основі цифрового моделювання виконані експеримен­тальні дослідження швидкодії і точності оцінювання вагових коефіцієнтів матриць суміжності в моделях імпульсних процесів підсистем КК.

How and What has Influenced Cryptocurrency Prices? Economic influences or political Influences

Cryptocurrency has been prevailing gradually with repeating fluctuation in value. Cryptocurrency is not classified as a legal currency but a private financial management system that self-managed and is not managed by central banks or governments. Cryptocurrency is different from any other currency used around the world. Unlike central bank- and government-issued currency, the value of cryptocurrency is able to be inflated as the volume of it has a finite limit. The usage of cryptocurrency enables us to send or receive any amount of currency to anyone at a very cheap cost compared to other monetary instruments. Since the introduction of cryptocurrency, it has received much attention. The trading volume of cryptocurrency has been increasing rapidly although the value has crashed occasionally. Some serious incidents have occurred, however, cryptocurrency may have overcome these situations. How and what has influenced cryptocurrency value has been discussed a lot from the view of economic aspects, however, a common consensus has not yet been reached. For this issue, there is a large difference from stocks or other financial assets or financial instruments. However, there is some possibility that political influences rather than economic influences may have impacts on the prices of cryptocurrency. This study employs U.S.-China trade disputes and examines the effects on prices of cryptocurrency. The results show that political issues along with economic issues, including some asset prices, have some influence on cryptocurrency.

The Intent Behind the Usage of Cryptocurrency: An Analysis Based on the Theory of Acceptance and Use of Technology Modification Model

Introduced in 2008, blockchain technology has experienced rapid development, in its development many digital assets have been created in the form of cryptocurrencies (cryptocurrency). For some people, crypto assets are the most modern solution and alternative for carrying out transactions on the blockchain. This study aims to determine how Behavioral Intention in Conducting Cryptocurrency Transactions. The model used is Structural Equation Modeling (SEM) with 228 data respondents spread throughout Indonesia. The results of this study indicate that the Facilitating Condition, Perceived Risk and Trust variables have a significant direct influence on the Behavioral Intention in Conducting Cryptocurrency Transaction variables while the Effort Expectancy, Hedonic Motivation, Performance Expectancy, Price Value, and Social Influence does not have a significant direct effect on the Behavioral Intention in Conducting Cryptocurrency Transaction variables and for the Performance Expectancy and Price Value variables it is not able to provide a stimulus to Effort Expectancy, Hedonic Motivation, Performance Expectancy, and Perceived Risk on the Behavioral Intention in Conducting Cryptocurrency Transaction variables. Keywords: Crypto Assets; Intentions; Investments; Platform X; Transactions

Cryptocurrency and Global Practices: Lessons for Nigeria

This paper examined cryptocurrency and its global practices with particular reference to salient lessons for the Nigerian economy. The desk review methodology anchored on content analysis was used for the study. The paper identified distrust in political systems, weak domestic currency and high inflation rates as key factors fueling the growth of cryptocurrency usage in Nigeria thus motivating individuals to resort to cryptocurrencies as a tool for wealth preservation and inflation hedge. The study also found that the existence of trust deficit and challenges associated with privacy concerns, system uptime and stringent onboarding requirements were capable of derailing the success of the newly launched digital currency(‘e-naira’) issued by government to curtail cryptocurrency usage in Nigeria. The study concluded that cryptocurrencies and central bank issued digital currencies (CBDCs) are now part and parcel of the new economic order and represents the future of finance. It therefore recommended that nation states should work assiduously to develop uniformly agreed regulatory framework and global standards for the usage of cryptocurrencies.

Mining Cryptocurrency-Based Security Using Renewable Energy as Source

Cryptocurrency mining and blockchain technology using renewable energy as the main electricity source has gained attention for sustainable development in financial areas. However, very few studies have been reported concerning the power usage of cryptocurrencies using renewable energy. In this article, we report the effect of overclocking and undervolting on power usage and the hash rate for mining dogecoin with solar energy as renewable energy. The mining rig used in this work consists of different graphics processing units (GPUs) and non-LHR (lite hash rate) cards. The UnMineable software has been used for mining dogecoin as well as for wallet integration. The results indicate that mining dogecoin with solar energy as renewable energy consumes 2000 Watts power with overclocking and 1700 Watts power with undervolting technique. This work implicates the potential future of crypto-mining with renewable energy and the hardware configuration associated with it, which is expected to reduce e-waste and improve sustainable development. To reduce the e-waste and high electricity consumption, we have introduced two important techniques named GPU optimization and use of renewable energy for mining, which helps the miners to reduce the e-waste and electricity consumption significantly at the same time getting most out of the GPU by not having any impact on the environment.

Do national development factors affect cryptocurrency adoption?

The adoption of cryptocurrencies is uneven across businesses, industries, and countries. Different forces drive cryptocurrency adoption (CA) dependent on the national level of development. We empirically assess the relationship between certain macro-national developmental indicators and cryptocurrency deployment across 137 countries. Linear regressions determine specific associations with cryptocurrency adoption. We report that CA correlates positively and in decreasing order with Education, the Human Development Index, the Network Readiness Index, the Gini index, Democracy, Regulatory Quality, and Gross Domestic Product, and negatively and in decreasing order with Control of Corruption, the Corruption Perception Index, and the Economic Freedom Index. We draw on our findings to point to policy implications tied to the usage of cryptocurrencies and blockchain technologies more widely and identify further research possibilities.

Investors Behavioural Intention of Cryptocurrency Adoption – A Review based Research Agenda

Purpose: The current study investigates the behavioral intention to use cryptocurrencies. The study's major goal is to prioritize the key motivations behind it mainly Investment in cryptocurrency and to learn the investors behavioral intentions. Design/Methodology: This study examines whether different factors determine the investors towards cryptocurrency usage like Ease of use, Social Impact, Convenience, Trust, Price volatility, Individual believes, Privacy, Risk and Decision making. Findings: This research's findings are intended to provide useful information on behavioral intentions of cryptocurrency users and merchants will be able to construct a viable business strategy to stay competitive. Originality: A literature review is conducted to examine the cryptocurrency usage behavior of Investors. The goal is to review the existing cryptocurrency behavior & try classifying and provide an exhaustive analysis of the determinants influencing the cryptocurrency behavioral intention of its users. Academic references, as well as essential facts and data taken from websites, scholarly articles were used in the study. Paper Type: Review Paper

Dilemmatic dual-factor determinants of discontinuous intention in cryptocurrency usage

PurposeCryptocurrency, an important application of blockchain technology, has gradually circulated, and its use has become widespread. While cryptocurrency is growing rapidly, potential risks are simultaneously emerging. Users thus may abandon their usage behavior of cryptocurrency, hindering the future development of cryptocurrency. While prior studies focus more on the intention to use cryptocurrency in the pre-adoption phase, less studies pay attention to discontinuance usage intention in the post-adoption phase. To fill this knowledge gap, this stfudy aims to explore factors that cause discontinuance usage intention regarding cryptocurrency.Design/methodology/approachBased on the net valence framework theoretically grounded on the theory of reason action, a dilemmatic dual-factor model is proposed to figure out cryptocurrency users' discontinuance usage intention from the perceived risk and perceived benefit. This study identifies four potential risks and three potential benefits that affect perceived risk and benefit. The model with nine hypotheses were developed, and research data were collected by a survey method. A total of 343 valid responses were received, and PLS-SEM with SmartPLS was utilized to test the nine hypotheses, with seven hypotheses supported empirically.FindingsOur findings demonstrate that financial, legal and operational risks are critical to increase users' perceived risk, and perceived usefulness and seamless transactions play important roles in enhancing users' perceived benefit. Moreover, while perceived risk can increase users' discontinuance usage intention to cryptocurrency, perceived benefit can mitigate such intention.Originality/valueThis study contributes nascent knowledge to the literature by examining factors that influence discontinuous usage intention in regard to cryptocurrencies, to firms that have issued or attempted to issue cryptocurrencies and to the potential users of cryptocurrencies by adjusting the mode of operation and investment strategies and reducing user costs, achieving a win-win situation for firms and users.

Intention to adopt cryptocurrency: a robust contribution of trust and the theory of planned behavior

PurposeAt present, the adoption of cryptocurrency investment has brought consideration to the globe. The present paper attempts to investigate the intention to adopt cryptocurrency (IACR) among the potential investors of Pakistan.Design/methodology/approachThe theory of planned behavior (TPB) is applied to underpin the conceptual framework. The study uses a quantitative approach. The study collects cross-sectional data through an online survey questionnaire. In the last, the authors utilized 334 samples for outcomes.FindingsFindings of the SEM reveal a significant positive effect of attitude, subjective norms (SNs), perceived behavioral control (PBC) and trust on IACR.Practical implicationsThe outcomes of an investigation would develop further intention and trust towards cryptocurrency adoption. The results would support developing favorable policies regarding the reduction of the ban on cryptocurrency in Pakistan to make easier transactions of the investors further. Possibly, it brings several opportunities in all segments of society in making the digital transaction modes through cryptocurrency. Finally, the findings would further validate the TPB in the context of cryptocurrency.Originality/valueThe study provides a better understanding of cryptocurrency and investors IACR. The empirical evidence further develops the other individuals' intentions towards cryptocurrency usage.

An Asset Market Approach to the Conditions on the Usage of Cryptocurrencies with Fiat Currencies in a Coexistence Economy: The Land under Zero.

This study aims to construct a theoretical framework for the usage of cryptocurrencies together with fiat currencies in a coexistence economy to estimate the future effects of cryptocurrencies on the world economy. In this model, Bitcoin is used as a representative cryptocurrency, the uncertainties behind it are taken into consideration measuring by the variance of the expected returns on it. The model has three agents such as buyers, miners, and sellers. Buyers have to decide how much fraction of their initial wealth they spend either on Bitcoin or fiat money in the intention both to consume goods and services and to invest in the asset market. Buyers’ problem of choice is solved by considering their risk attitudes. Miners select the optimal mining effort to validate the transactions to have maximum gain. They gain rewards as Bitcoin and transaction fees, but they incur the cost of electricity as long as they exert effort to mine Bitcoin. Sellers sell their goods and services in the goods market to buyers and have no important effect on the usage of Bitcoin in this model. The study reveals the coexistence conditions of cryptocurrencies and fiat money based on the agents’ (buyers, miners, and sellers) optimization decisions. Overall, the “return-motive” creates the main intuition of using Bitcoin as a medium of exchange in the goods market. The uncertainties behind cryptocurrencies, the transaction and electricity fees, and people’s risk attitudes construct the main determinants of the condition of using cryptocurrencies together with the fiat currencies.

The Impact of Crypto-Asset Utilization as Payment Instrument toward Rupiah as Legal Tender in Indonesia

The utilization of Cryptocurrency increased across the globe. This phenomenon has led to varied responses from countries concerning whether this new phenomenon will affect the national monetary policy. As one of the countries where Cryptocurrency usage has flourished, Indonesia has reacted to its utilization. To this day, Indonesia has clearly stated that CryptoAsset (referring to Cryptocurrency) is considered as a tradable commodity, but not as a payment instrument. However, this policy does have not decreased the utilization of Cryptocurrency in Indonesia, proven by its market capitalization which has kept increasing over the years.This article thoroughly discusses Cryptocurrency utilization as a payment instrument, and how it will affect the legal tender (The Rupiah) in Indonesia. This article also analyzes the extent to which Cryptocurrency will affect the payment systems in Indonesia and how Bank of Indonesia will counter the Cryptocurrency’s utilization as a payment instrument within Indonesia’s jurisdiction.

ATTITUDES OF INDIVIDUALS ABOUT USING CRYPTOCURRENCIES: EVIDENCE FROM TURKEY

Purpose: The study aimed to determine why Turkish participants are voluntary or hesitant to use cryptocurrencies and to assess which factors affected cryptocurrencies usage.
 Method: Technology acceptance model (TAM) was used in the study to analyze Turkish individuals’ cryptocurrency usage behavior. Structural equation (regression) modeling (SEM) was used to test the research model. AMOS and SPSS programs were used for analysis.
 Findings: The study model showed that cryptocurrency usage was exposed to the most effect by perceived benefit. Contrary to expectations, perceived risk did not make any significant effect on usage behavior. A causality relation between perceived benefit and decentralization factor was found more than other benefit sub-factors. Perceived ease of use had no positive direct relation with usage behavior in the study. Perceived ease of use had a positive relation with perceived benefit in the study.

Cryptocurrency: usability perspective versus volatility threat

PurposeThe objective of this study is to examine the nature of cryptocurrencies, risks involved in using it due to its volatile nature, advantages, disadvantages and its functions as money.Design/methodology/approachThis is an inductive approach to a descriptive analysis (Qualitative research). In order to come to an adequate conclusion, we reviewed several studies and articles previously published in this field related to our research questions, and then explored the nature of Cryptocurrencies, their advantages and disadvantages, risks associated with cryptocurrency usage and their user-friendliness in Saudi Arabia.FindingsThe findings of this study reveal that anonymity and concealment are important aspects of cryptocurrencies. This system does not follow a transparent process that can make it parallel to conventional fiat currency.Research limitations/implicationsAlthough this study focuses on the issue of trust, it fails to recognize more technological factors hampering its transaction mechanism instead of enhancing it, owing to a lack of facts and knowledge.Practical implicationsLike conventional transaction system users must sign their crypto transactions that others must duly verify easily. Once a promise is made, one will not be able to back out of it until it is protected from revocation by the signer.Originality/valueIn comparison with reviewed literature, this study focuses more on the issue of volatility, which accounts for the fact that cryptocurrency has not been accepted as a permanent tool of monetary policy. Additionally, the study finds that the Saudi public is largely pessimistic toward such currencies.

A systematic review of enabling blockchain in healthcare system: Analysis, current status, challenges and future direction

Blockchain is a digital ledger of duplicated transactions and distributed across the complete network of computer systems. It is a system of recording information that makes it difficult or impossible to alter, hack the system. Data sharing are highly secure and truthful due to cryptographic principles. Blockchain technology has used widely used in different areas, primarily because of the usage of cryptocurrencies. The technology also supports supply chain, business, Healthcare, IoT, privacy, and data management. This review focuses on an analysis of blockchain research art within the sector of healthcare is included. Traditional health records system used to share health record data amongst healthcare contributors, criticized for centralizing ability, failures and storm in the interchange of data using a distributed ledger. Health records have problems in system requirements such as security, privacy, ethics, performance and other regulatory confinement. Access control, data integrity consistency, and provenance are the issues to be improved in the blockchain. The most fabric platforms/frameworks used in the blockchain is Ethereum and Hyperledger.