Literature review of Upcoming Cryptocurrencies on the Financial Industry

        The Cryptocurrencies are considered as the silver bullet for the government of America as a society transition, and the digital record-keeping is achieving universal acceptance. Moreover, with the growing trend of blockchain related technologies, the future of legal binding is also changing considerably. Following, more transparency is required for the partnership with the American government. However, vulnerability and confusion associated with the blockchain technologies are creating a considerable impact on economic and technological validity. Many specialists, analysts, and legislative organization are conducting frequent discussions on the potential use of these technologies and their implications.

Impact on stock market of Upcoming Cryptocurrencies on the Financial Industry

    According to Lee (2015) am ong all the current financial and economic issues the Cryptocurrencies have become the most trending topic of discussion. E-Commerce has achieved rapid growth since the crisis of Dotcom. With every growing internet users, the number of online shoppers and online sale is rapidly increasing which is also transforming the retail industries. After the Dotcom bubble burst, some serious safety concerns were raised about the online shopping and the use of credit cards. However, following the growth potential of e-commerce internet retailers have made massively oversized investments in e-commerce. The financial institutes are using Cryptocurrencies as the trusted third party for manufacturing the electronic payments. However, Cryptocurrencies was working slowly because of the control of financial institutes, despite the satisfactory results of Cryptocurrencies for most of the transaction. Future prices of Cryptocurrencies are not foreseeable in an efficient market whereas the variations are random hence the number of Cryptocurrencies are following a random walk. Highly significant randomness tests are applied to test the efficiency of Bitcoin while avoiding the spurious results to capture the Bitcoin's dynamics (Lee 2015).

    For some people, the trading in the market of Cryptocurrencies fulfills the same purpose as the traditional stock market trading does. The main reasons behind the investment in the conventional stock market are motivation, ownership and profit maximization and Cryptocurrencies market also fulfills all three reasons. Therefore, investors can use Cryptocurrencies to go global.

Impact on currency of Upcoming Cryptocurrencies on the Financial Industry

        Extance (2015 has described that in the context of the crypto economy the currency could mean different things instead of the underlying meaning of serving as the payment mechanism in exchange of good and services. Moreover, in crypto-economy, the money is also referred to as something valuable that can be developed usefully in some situations. It can also be described as a value's unit that can be used and earned in specific economic systems. Cryptocurrencies are similar to the idea of app coin, currency or token that allows the access to the different financial system. The continued cultural and market presence of Bitcoin prompts the many people to ask the question about the functions and effects of Cryptocurrencies on the current monetary policies. It is expected that the digital currency has the potential to affect the central banks' abilities to manage the goals of the national system.  On the other hand, some analysts believed that the central banks could use this opportunity and gained considerable advantages if they issue their own national Cryptocurrencies. However, soon, these outcomes don't see achievable (Extance 2015).

References  of Upcoming Cryptocurrencies on the Financial Industry

Extance, Andy. 2015. "The future of cryptocurrencies: Bitcoin and beyond." Nature News 526 (7571): 21.

Lee, Larissa. 2015. "New Kids on the Blockchain: How Bitcoin's Technology Could Reinvent the Stock Market." Hastings Bus 81.