Risk-Return Trade-off – Stepping Stones for Cryptocurrencies
By Aritra Banerjee MBA Core, NMIMS Mumbai For decades, government-issued currencies, or fiat money as they are popularly known, have been the cornerstones of economies around the world. Fiat money has no intrinsic value of its own and is valuable only because the government backing it pledges
to
transacting
maintain parties
its
agree
value on
its
and/or value.
the Most
currencies, including the US Dollar and the Indian
"Cryptocurrencies offer unprecedented opportunities but due to its riskiness the blockchain-based asset has still got a long way to go before being universally accepted and realizing its true potential."
National Rupee, are fiat currencies and therefore, almost all the transactions around the world are conducted using fiat money. However, a little over a decade ago on 12th January 2009, the world of finance witnessed a landmark event that challenged this status quo. It was on this day that the creator of Bitcoin, using the name Satoshi Nakamoto, sent 10 Bitcoins to cryptographer Hal Finney and thereby recorded such a transaction for the first time ever in human history.
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