Cryptocurrency and Bitcoin: International Economy and Cybersecurity

1. Introduction

Cryptocurrency is a form of digital or virtual currency that relies on cryptography for security, making counterfeiting difficult. It operates on decentralized networks called blockchains, which are distributed ledgers that record all transactions across a global network of computers. The concept of cryptocurrency was introduced by the anonymous individual or group known as Satoshi Nakamoto, who created Bitcoin in 2009(Giudici et al., 2020)(Sah et al., 2020).

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  Key features of cryptocurrencies include:

  • 1.

    Decentralization: In the context of cryptocurrencies, decentralization means that the control, governance, and decision-making processes are distributed across a network of participants, rather than being concentrated in a single central authority like a bank or a government(Rizvi et al., 2022).

  • 2.

    Anonymity: Cryptocurrency transactions can be conducted pseudonymously, meaning that while the transaction details are public, the parties involved can remain anonymous. This feature has attracted users who value privacy, as well as those engaging in illicit activities(Alawida et al., 2022).

  • 3.

    Security: Cryptocurrencies use cryptography to secure transactions and protect users' funds. The private keys associated with each user's wallet are nearly impossible to crack, making it very difficult for hackers to steal funds(Tabar et al., 2023).

  • 4.

    Limited supply: Many cryptocurrencies, like Bitcoin, have a limited supply, which helps to maintain their value over time. This characteristic makes them similar to precious metals, like gold, in that their value is derived from their scarcity(Almeida & Gonçalves, 2023).

  • 5.

    Programmability: Some cryptocurrencies, such as Ethereum, allow the creation of self-executing smart contracts with the terms of the agreement written directly into the code. This feature enables a variety of software applications, from decentralized finance (DeFi) to decentralized application development (dApps)

  • 6.

    Popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), among others. These digital assets can be used for various purposes, such as online transactions, investments, and as a means to transfer money across borders with minimal fees(García-Monleón et al., 2023).

However, cryptocurrencies also face various challenges, including regulatory scrutiny, high price volatility, and scalability issues. Despite these challenges, the adoption of cryptocurrencies continues to grow, and they are increasingly being recognized as a legitimate and innovative financial instrument. This paper explores the relationship between cryptocurrency, the international economy, and cybercrime(Sah, Dumka, et al., 2018).

In the midst of the ongoing environment crisis and worldwide energy emergency, controllers have begun to consider their choices to restrict the power interest of these digital currency organizations. Now and again, this center has proactively brought about intense activities. European Parliament considered a possible prohibition on offering any sort of administrations connected with digital currencies utilizing the energy-concentrated mining process. The proposition was dismissed for extra natural revelation by cryptoasset administration providers, yet the European National Bank later expressed it was “profoundly far-fetched” that European specialists wouldn't seek after any further activity (counting the chance of a through and through boycott) against digital money mining. In the US, the province of New York is completing new regulation to prohibit cryptographic money excavators from getting behind-the-meter influence from non-renewable energy source influence plants(Nguyen et al., 2020).