PROJECT REPORT

OF

CRYPTOCURRENCY
Submitted in partial fulfillment of the requirement

of The Degree of

“Master of Computer Application

Contents
DECLARATION.......................................................................................................................3

ABSTRACT...............................................................................................................................4

INTRODUCTION......................................................................................................................5

OBJECTIVE...............................................................................................................................8

LITERATURE REVIEW........................................................................................................10

RESEARCH METHODOLOGY............................................................................................12

DATA INTERPRETATION...................................................................................................14

RESULTS & DISCUSSIONS................................................................................................18

RECOMMENDATIONS.........................................................................................................19

AND.........................................................................................................................................19

CONCLUSION........................................................................................................................19

BIBLIOGRAPHY AND REFERENCES..............................................................................21

 DECLARATION

I here-by declare that the project with title “Cryptocurrency” has been completed by
me in partial fulfillment of MASTER OF COMPUTER APPLICATION degree
examination as prescribed by Amity University Online, and this has not submitted for
any other examination and does not form the part of any other course undertaken by
me.
 ABSTRACT
The abstract of my cryptocurrency project investigates the impact of digital currency on the

financial sector. It explores the historical development of cryptocurrencies, focusing on

prominent examples like Bitcoin and Ethereum, while also examining their foundational

technology, blockchain. The project thoroughly analyzes the advantages and challenges

associated with the use of cryptocurrencies, emphasizing their potential for secure and

decentralized transactions. Additionally, it delves into the regulatory frameworks and legal

considerations surrounding these digital assets. Through a comprehensive study of these

elements, the project aims to offer a thorough understanding of the current and potential roles

of cryptocurrencies in today's digital economy.

The study concludes by providing insights into the future of cryptocurrencies, taking into

account potential developments, challenges, and their evolving role in shaping the future of

finance. By synthesizing historical perspectives, economic analyses, and technological

advancements, this project contributes to a holistic comprehension of the intricate and

dynamic landscape of cryptocurrencies.

 INTRODUCTION
The battle is finally over. For nearly two years the Indian courts have been fighting
to lift the ban of cryptocurrency in India. It is remarkable that on March 4, 2020, The
Supreme Court of India lifted the ban on cryptocurrency including the Bitcoins. The
RBI’s circular of April 2018 has been declared unconstitutional. The RBI’s proposed
ban has become a rallying point for multiple stakeholders in the crypto industry to
come together and push for stronger regulation rather than shunning cryptocurrency
for all its potential. The positive decision has taken the nation into a state of utter
exuberance and hope for what is to come in the future for us. With this upliftment
of the ban, India has an opportunity to draw on India’s huge population of over 300
million unbanked people. While India’s counterparts around the globe are moving into
blockchain technology, we risked giving up the potential promised by co-opting
crypto.

What is Cryptocurrency?

A cryptocurrency is a digital or virtual currency protected by cryptography which

makes counterfeiting or doublespending almost impossible. Most cryptocurrencies are
decentralized, blockchain-based networks — a public database operated by a dispersed
computing network. One distinguishing characteristic of cryptocurrencies is that they
are usually not distributed by any central agency, rendering them potentially resistant
to intervention or abuse by the government.

The term “crypto-currency” derives from the encryption methods used to

protect the network. Cryptocurrencies attract scrutiny for a variety of reasons
including their use for illicit activity, exchange rate fluctuations, and network flows
that underlie them. They were also praised for their portability, accountability and
divisibility. Cryptocurrencies are almost always intended to be free of government
influence and regulation, but this core feature of the technology has come under fire
as they have become more common. The currencies modeled after bitcoin are called
altcoins collectively and have often attempted to present themselves as modified or
improved versions of bitcoin.

The top cryptocurrencies

Here are the top cryptocurrencies in India.

1.Bitcoin(BTC)

Price today: INR 3,246,223

For Indians, Bitcoin is synonymous with cryptocurrency. And rightfully so, because
this was the first and is the highest valued crypto in the market right now. After
reaching an all-time high of about $65000 in April this year, the price started
plummeting recently, thanks to Elon Musk’s tweet about Tesla not accepting Bitcoins
anymore (initially, Tesla had decided to accept Bitcoins as a mode of payment). If you
have the budget, now is the best time to buy Bitcoin as the price dropped by almost
30%.

2. Ethereum

Price today: 158,130.49

Ether , introduced in 2015, is presently the second-biggest digital currency by market

value behind bitcoin, but it lags by a substantial margin behind the dominant
cryptocurrency. Ethereum is focused on realistic smart contracts for the digitalisation
of transactions used by several companies. Ethereum is a decentralized computing
framework that enables the construction and running of Smart Contracts and
Decentralized Applications without any third party interruption, theft, power or
intervention. On Ethereum, the programs run on the platform-specific cryptographic
token, ether.

3. Binance Coin

Price today: INR 31,390

As per market capitalization, Binance Coin is the third-largest cryptocurrency, the

first two being Bitcoin and Ethereum. In 2017, Binance Coin was launched by one of
the world’s largest cryptocurrency exchanges Binance, as a utility token. Hence, the
pricing of this crypto coin depends on its utility on the Binance platform. In simple
terms, if more people use Binance Coin to trade other cryptos, its value will increase.

4. Dogecoin(DOGE)

Price today: INR 31.605

It is baffling how a crypto coin that started out as a meme is now a leading player
in the market. Unofficially endorsed by the “Dogefather” Elon Musk, Dogecoin is a
cheaply priced cryptocurrency with immense growth expectations. Though the market
crash had stumped the price of Dogecoin, it is still the fourth-largest cryptocurrency
as per the market cap.
 OBJECTIVE
The objective of a cryptocurrency project can vary depending on the specific goals
and intentions of the project developers and stakeholders. However, common objectives
for cryptocurrency projects often include:

1. Decentralization: Many cryptocurrency projects aim to create a decentralized system,

meaning that there is no central authority or intermediary controlling the currency.
This is often achieved through the use of blockchain technology.

2. Security: Cryptocurrencies often prioritize security to ensure the integrity of

transactions and the protection of user funds. Advanced cryptographic techniques are
typically employed to secure transactions and user wallets.

3. Anonymity and Privacy: Some cryptocurrencies emphasize anonymity and privacy

features to provide users with a higher level of confidentiality in their transactions.
This is seen as a way to enhance user privacy and reduce the risk of fraud or
identity theft.

4. Financial Inclusion: Cryptocurrencies can be designed to provide financial services

to individuals who are unbanked or underbanked, offering a means of financial
inclusion for people who may not have access to traditional banking services.

5. Smart Contracts and Programmability: Ethereum, for example, introduced the

concept of smart contracts, allowing developers to create decentralized
applications(DApps) with self-executing contracts.

The objectives of this study are as follows:

 To learn the impact of cryptocurrency on Indian economy.

 To study the current status of cryptocurrency in India and the future it holds.
 To understand the significance of cryptocurrencies according to the perception of
investors.

 To analyse the perception of investors towards cryptocurrencies.

 To study the factors considered by the investors & those which ultimately influence
him while investing.

 To predict the future prospects of the cryptocurrency investment market.

 Examining the current profitability of various cryptocurrencies. Analysis helps in

finding out the earning capacity and returns of cryptocurrencies.
 LITERATURE REVIEW
(Background Study)
A. Cryptocurrency Adoption Level
B. Related research on Cryptocurrency end-user adoption
C. Cryptocurrency Adoption Factors
This section investigates the factors influence the adoption decision and
provide an in-depth analysis of every factor.

TECHNICAL FACTORS

1. Control over the System

2. Anonymity
3. Fast transfer
4. Blockchain Technology
5. System Security
6. The team behind it

ECONOMIC FACTORS

1. Investment Opportunity
2. Low transaction cost
3. Alternative Banking System
4. The Supply limit
5. Increased demand for altcoins
6. Recognized by Businesses
7. Alternative payment system

SOCIAL FACTORS

1. Subjective norms
2. Global attention
 3. Influencers involvement

PERSONAL

1. Technological Curiosity
2. High level of Control Over one’s Money
3. Privacy
 RESEARCH METHODOLOGY
TYPES OF RESEARCH USED
Research can be classified in many different ways on the basis of methodology
of the research, the knowledge it creates, the user groups, the research problem
it investigates, etc. Following is the methodology that we have used in research:

Quantitative Research:

In natural and social sciences, and sometimes in other fields, quantitative research
is the systematic empirical investigation of observable phenomena via statistical,
mathematical, or computational techniques. The objective of quantitative research
is to develop and employ mathematical models, theories, and hypotheses
pertaining to phenomena. The process of measurement is central to quantitative
research because it provides the fundamental connection between empirical
observation and mathematical expression of quantitative relationships.

Quantitative research is generally closely affiliated with ideas from 'the scientific
method', which can include:

 The generation of models, theories and hypotheses.

 The development of instruments and methods for measurement.
 Experimental control and manipulation of variables.
 Collection of empirical data.
 Modelling and analysis of data.

TYPES OF DATA USED

Types of data collection –

1. Primary data
Observation, Interviewing, Questionnaire, etc.
2. Secondary data
Government research, Earlier research, Census, Personal records, clients history, etc.
Here, we have used both Primary and Secondary Data while conducting
research.

What is primary data?

Primary data is the data collected directly by the researchers from main
sources through interviews, surveys , experiments, etc. primary data are usually
collected from the source –where the data originally originated from and are
regarded as the best kind of data in research.
In this project questionnaire method for survey is used for
collection of primary data.

What is Secondary Data?

Secondary data is the data that have been already collected by and readily
available from other sources. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data
cannot be obtained at all.
Here, various websites, books and journals are been reffered for
secondary data .
 DATA INTERPRETATION
Analysis of data is a process of inspecting, cleaning, transforming, and modeling data
with the goal of discovering useful information, suggesting conclusion, and supporting
decision making.

The process of evaluating data using analytical and logic reasoning to examine
each component of data provided. Data from various source is gathered,
reviewed and then analysed to form some sort of finding or conclusion.

Why do we analyze data?

The purpose of analyzing data is to get usable and useful information. The
analysis, irrespective of whether data is quantitative or qualitative, may:
 Describe and summarize the data.
 Identify relationship between variables.
 Compare variables.
 Identify difference between variables.
 Forecast outcomes.

The research method used was survey through questionnaire.

A sample size of 50 people was taken.

These are the questions asked in the survey questionnaire and the results are
as follows age:
INTERPRETATION- Almost 95 % of the people in the sample were between
the age of 15-30 years .
This states that most of the people were from the young generation.
OCCUPATION

INTERPRETATION – out of the sample of 50 most of them were students

and some working employees.
Small part of the sample was from the category of business , professional and
others.
Do you own Cryptocurrency?

INTERPRETATION – As most of the people from the sample were learning

students majority of them did not own any type of cryptocurrency, yet thereare
some who did own cryptocurrency.
 RESULTS & DISCUSSIONS
Cryptocurrencies have gained significant attention in recent years due to their potential
for financial innovation and decentralized transactions. Some key points of discussion
include:

1. Security: Cryptocurrencies use advanced cryptographic techniques to secure

transactions and protect against fraud. However, there have been instances of hacking
and theft, highlighting the importance of proper security measures.

2. Volatility: Cryptocurrency prices can be highly volatile, with significant price

fluctuations in short periods. This volatility can present both opportunities and risks
for investors.

3. Blockchain Technology: Cryptocurrencies are built on blockchain technology, which

is a decentralized, transparent, and immutable ledger. Blockchain has the potential to
revolutionize various industries beyond finance, such as supply chain management and
healthcare.

4. Regulatory Challenges: The regulatory landscape for cryptocurrencies is still

evolving. Governments and financial institutions are grappling with how to regulate
and integrate cryptocurrencies into existing systems while addressing concerns such as
money laundering and consumer protection.

5. Adoption and Mainstream Acceptance: Cryptocurrencies have gained increased

adoption, with more businesses accepting them as a form of payment. However,
widespread mainstream acceptance is still a work in progress.
 RECOMMENDATIONS

AND

CONCLUSION
RECOMMENDATIONS:-

1. Education and Awareness: Encourage individuals and institutions to educate

themselves about cryptocurrencies and blockchain technology to make informed
decisions and understand the risks involved.

2. Regulation and Consumer Protection: Advocate for clear and comprehensive

regulations that protect consumers while fostering innovation and growth in the
cryptocurrency industry.

3. Security Measures: Emphasize the importance of implementing robust security

measures, such as strong encryption and multi-factor authentication, to safeguard
cryptocurrency holdings from potential cyber threats.

4. Investor Education: Promote responsible investing by educating potential investors

about the risks and volatility associated with cryptocurrencies, as well as the
importance of diversification and conducting thorough research.

5. Collaboration and Partnerships: Encourage collaboration between industry

stakeholders, including governments, financial institutions, and technology companies,
to develop best practices, share knowledge, and drive the adoption of cryptocurrencies.
CONCLUSION:-

Crypto-currency is such an invention which has become a global phenomenon. Earlier

RBI warned the Indians from using cryptocurrency that to be associated with money
laundering and terrorist financing. However, cryptocurrency is a modern technology
and a tool which needs to look forward for. Even though there has been no
regulatory response from the Indian government, the number of investors in
cryptocurrency is increasing rather swiftly over the last few years. Indian government
should take responsible steps now to regulate such currency as its user in India is
rapidly growing. Future of cryptocurrency in India looks promising and there is ray
of hope.
 BIBLIOGRAPHY AND REFERENCES
1. Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Retrieved from
https://bitcoin.org/bitcoin.pdf

2. Antonopoulos, A. M. (2014). Mastering Bitcoin: Unlocking Digital Cryptocurrencies.

O'Reilly Media.

3. Buterin, V. (2013). Ethereum White Paper. Retrieved from

https://ethereum.org/whitepaper/

4. Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution: How the Technology Behind
Bitcoin Is Changing Money, Business, and the World. Portfolio.

5. Popper, N. (2016). Digital Gold: Bitcoin and the Inside Story of the Misfits and
Millionaires Trying to Reinvent Money. Harper.