Digital currencies:

If we peek into the past, we need to devote a lot of time and energy for even a minor work to do, like in the past to deliver a document to a person who is living in another city, we need to hire a car, travel for hours and then at the end we can pass that document, but with the revolution in technology, it’s just the matter of one click you can connect or transfer any sort of data far across the world. There are many such examples, like machine learning and algorithms are one of the other inventions by using machine languages and tools we can easily compute complex task and can produce our desired results, using machines for completion of a task is like you have hired a lot of trainees to work under you and who propose different alternatives to solve a problem. With more advancement in industry, businesses, trading alliances, all seek their way toward the online world. Different countries and companies trade on an online platform, they buy goods, investing in stocks. In pursuit of digital marketing, Satoshi Nakamoto, 2009 generated the first digital currency (cryptocurrency).

Digital currency is not like traditional currencies issued by banks and owned by states or not as any banknote, these are non-tangible assets that can be exchanged, stored, processed, and managed on digital computers in stored value cards.

First digital currency, cryptocurrency:

Bitcoin was the first cryptocurrency, generated by using cryptography technique, the first blockchain currency, the first decentralized digital currency. Bitcoin attracted many people across the globe because of its blockchain property and decentralization properties, it means this type of currency does not require a person you need to rely on for transaction or storage of your asset it works similar to centralized currency except for third party involvement. Participants in bitcoin build trust relationships with each other and secure assets by using cryptography techniques.

Prediction of digital currencies:

Prediction of currencies is important in the financial market as it forecast the trends of currencies like which currency is going to crash and which is going to achieve high rates and all these predictions are made by closely analyzing the last closing price of a currency by using some technical methods and or by using machine learning, artificial intelligence, etc. There are several algorithms to predict stock prices.

Sometimes predicted currencies follow the same trends as predicted but sometimes it goes opposite of prediction so it is difficult to analyze what is going to happen with prices of currencies as no one have any instrument and those of standard economic theories are inefficient to predict the prices of digital currencies, inevitably it is difficult to made correct investment decision. CoinMarketCap is one platform for time series analysis of prices of different stocks, they track all circulating cryptocurrencies’ coins and keep records of coins traded in the last 24 hours and provide analysis based on historical data of trading. Nobody shares the formula of success, so they only predict what trends could come. If anybody knows about future trends, they must have invested their own and yet benefited first by it. To predict more precisely and accurately, we still need to progress more in technology.

The legal status of cryptocurrencies:

Considering emerging patterns and wide trends of the use of cryptocurrencies, they are enjoying legal status in many countries like Morocco, the US, Nigeria, etc. Many countries use alternate names like digital currency, Crypto-token, virtual commodity, cyber currency, and virtual asset allocating it a status of legal currency. Where these are banned like Pakistan, Nepal, Algeria, they considered these are solely built for terrorism and money laundering. Qatar and Bahrain react slight differently on the matter of cryptocurrencies: they allow their citizen to play with or invest in cryptocurrencies outside their borders. Following jurisdiction, many countries issued warning to their citizen about cryptocurrencies, and these warnings are particularly given by State banks, some countries go beyond the warnings they expanded their laws and ambit cryptocurrencies’ an act of money laundering and terrorism.