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What impact might Cryptocurrency have on international business in the next 5 years, especially considering the aspect of exchange rate risk?

Category: International Business Paper Type: Online Exam | Quiz | Test Reference: APA Words: 550

To derive innovation across numerous industries to leverage blockchain technologies Bitcoin as well as Ethereum are two highly disruptive cryptocurrencies. For a $1000000 to develop the ideal investment strategy the objective was to analyze each Cryptocurrency without any additional trading that should be held for five years. Between each currency looking at the similarities as well as different historical performance is analyzed of each along with extrapolated values to form a projection of five years. For the demand of both currencies conversations with industry professionals helped to recognize the impactful factors of both currencies. There are many other coins in the market that give more profit (D’Alfonso, Langer, & Vandelis, 2016).

 The market for Cryptocurrency is continuously changing. Thus we have to open ears and eyes. All over the world the crypto community is constantly making waves as well as gathering enthusiasts. The value of coins is still unstable; the virtual money is only rising in popularity. The short term prediction is difficult than the long term prediction. We have to consider the temporary risks in short term prediction that is more challenging to predict the future of Cryptocurrency for example events related to geopolitical, advancement in technological, as well as failures. In the prediction of five years, this is not important. The objective of this article is to predict the next five-year prediction of the price of Bitcoin and Ether. As a digital currency Bitcoin has utility strictly. State of the global economy Bitcoin can be expected to have an inverse relationship (COVESTING, 2018).

In financial infrastructure lacking of  places or as an alternative measure for transacting highly inflated currencies are most likely to identify Bitcoin.  Due to this same factor ether should also bear an inverse relationship to the global economy, due to the wide array of uses the magnitude of this relationship should be lessened, nature of the Ethereum network is more innovative. In the same manner as commodities where Bitcoin values are likely to act, to widespread adoption of the network as well as smart contract ether value should relate more closely (Tsaklanos, 2019)

We observe that Bitcoin have a better performance than the ether. To maximize our return over the next five years, we should invest 69% into BTC as well as 31% into the ETH. With the help of fear of missed opportunity (FOMO) as well as fear, uncertainty and doubt FUD market majors control the market. For the jumps and fall in the price rate, the activity of financial giants acts as a catalyst. Someone says that “when others are greedy to be fearful, and when others are fearful be greedy.”  When the market is highly overbought or else oversold, it is really important to act independently as well as not follow the crowd always.

References of Cryptocurrency

COVESTING. (2018, Feb 10). Factors affecting the cryptocurrency market. Retrieved from https://medium.com/covesting/factors-affecting-the-cryptocurrency-market-bd791b3c72dd

D’Alfonso, A., Langer, P., & Vandelis, Z. (2016). The Future of Cryptocurrency. Ryerson University.

Tsaklanos, T. (2019, June). 5 Must-Read Cryptocurrency Predictions For 2019. Retrieved from https://investinghaven.com/crypto-blockchain/5-must-read-cryptocurrency-predictions-2019/

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