Journal of Stock & Forex Trading
Open Access

Abstract

Note on Common Risk Factors of Cryptocurrencies

Atif Sattar*

Increasingly significant financial software systems now use crypto currencies. These systems depend on a safe distributed ledger data structure, and mining is a crucial component of them. The distributed ledger known as Block chain gains records of previous transactions through mining, enabling users to form a secure, reliable consensus for each transaction. Additionally, mining creates wealth in the form of new currency units. Because they were created as peer-to-peer systems, cryptocurrencies do not have a central authority to mediate transactions. In order to validate transactions, they rely on miners. Mining algorithms need to be robust and secure for cryptocurrencies. We assess each mining strategy's advantages, disadvantages, and potential risks. The latest phenomenon of cryptocurrency is getting a lot of attention. On the one hand, it was founded on a wholly novel technology, the potential of which is still not fully appreciated.

Published Date: 2022-04-05; Received Date: 2022-03-04