Advancements in digital technologies enhance our quality of life. The exchange of information is a crucial
contributor to such enhancement. The exchange of information allows people to
internationally communicate, share ideas, make purchases, and trade from the comfort of their homes.
As more people exchange information, the volume of data transmissions increase.
This trend cannot be ignored, especially by the financial industry. This is because money is the exchange of
a certain information: value. Historically, the exchange of value materialized in various forms. At first, value
was bartered. Then, coin and paper money was issued to store and represent value. Currently, the most
widespread medium of exchange is electronic or digital money.
In 2009, the first cryptocurrency called Bitcoin emerged. Bitcoin is a cryptographically encoded digital
currency. Bitcoin allows users to transact with one another without relying on intermediaries such as
private or central banks. Bitcoin’s price is entirely based on the supply and demand of the market. After the
initial success of Bitcoin, other cryptocurrencies followed suit (e.g., Ethereum, Lisk, EOS, Waves, Civic, 0x,
Ripple). Digital wallets are used to store these cryptocurrencies (e.g., Airbitz, Armory, Bitgo, Blockchain,
Coinbase, Greenaddress, Ledger, Jaxx, Mycelium, Samourai, Xapo).
Although the precise number of active cryptocurrency users are unknown, estimates suggests that, in 2013,
there were 8.2 million active cryptocurrency users. By 2016, this figure ballooned to 35 million users. This
trend suggests the tremendous growth potential and robustness of the cryptocurrency industry