BITCOIN

GROUP MEMBERS:
 UMER WASEEM(EC-75)
 MUHAMMAD ABDULLAH(EC-77)
 ABDUL MOIZ(EC-72)
 JANZEB(EC-73)
 MUSAHID HUSSAIN(EC-84)

Plagiarism count 11%

ABSTRACT:
It was on this day, 13 years ago, Satoshi Nakamoto gave birth to a new currency
named “Bitcoins”, which he liked to call “A peer-to-peer electronic cash
system”. This crypto currency was created in the times of economic recession. It
can be traded for the goods and services. This electronic cash system provides
the facilities of instant online payments and transactions are anonymous. This
currency is not backed by any central monetary authority. The rise in the value
of bitcoin has emerged as a new way of earning profit. Due to which most
people are thrilled to invest in it. But there is also possibility of having a loss.
The aim of this paper is to know the willingness of Youngsters to invest in
Bitcoins. Our focus is to know the reasons of impatience of these youngsters to
invest in Bitcoin because the millennials seem to have more trust in crypto
currency than the stock market. The bitcoin investments provide guidelines for
taking risks which would help them in the operation of business in the future
leading to huge profit. We have circulated the questionnaire through google
form in various forms of social media. They are agreeing that it is reliable to
invest, buy and sell without any authority permission. there is a neutral response
own involvement of youngsters in bitcoin can grow the national economy and in
future it will be used as medium of exchange. This response is good attitude of
youth toward investment in bitcoin and this increasing market value of bitcoin is
a good sign for economy.
KEYWORDS: CRYPTOCURRENCY, BITCOIN, YOUNGSTER,
INVESTMENT
INTRODUCTION:Bitcoin is an online virtual currency based on public key
cryptographyproposed in 2008 in an article writtenby thepseudonymSatoshi
Nakamoto. It became fully functional in January 2009 and its wide adoption due
to the availability of a foreign exchange market allowing easy conversion with
traditional currencies (EUR or USD) has made it the most successful virtual
currency. Bitcoin has grown rapidly and spread far and wide in a relatively short
period of time. Bitcoin is a type of money that is completely virtual. It& like an
online version of cash. You can use it to buy products and services, but so far,
few stores accept Bitcoin, and some countries have banned it altogether.
Cryptocurrency is alsogaining popularity in Pakistan It is estimated that more
than 9 millionpeople, 4.1 of Pakistan& total pollution, currently own
cryptocurrency.People are very interested in buying bitcoins because of their
ability tobecome rich in the future. The constant growth in the value of Bitcoin
hasattracted investors whose ambition is to make a quick profit. The majority
ofBitcoin investors are young people, with nearly half of millennial
tradersadmitting they trust crypto exchanges more than the stock market. Most
ofthe account holders are young people who trade this digital currency toearn
money. This is because the youth have grown up in the digital
worldenvironment, so they believe in Bitcoin because it is electronics and
perfect for today world. The aim of this work is to know the willingness of
young people to invest in bitcoins. they deny that some cryptocurrency traders
have become millionaires through their successful investments. It is not often
that many people have also lost a significant amount and are trying to get rich
by investing in cryptocurrencies, so this article presents the reasons why they
desire to invest in virtual and create their own risk if the market value of
bitcoins falls. Cryptocurrencies arouse interest among young people who are
interested in modern technologies and take higher investment risk, but at the
same time would like to use cryptocurrencies to achieve the highest possible
profits in a relatively short time. The huge interest in Bitcoin, especially among
the youngest investors, stems from its independence and resistance to the old
order in finance. The speculation of this currency is also significant.
Cryptocurrency gives an opportunity for huge earnings if someone bought it at
the beginning of the year at the end of the year. Interest in bitcoins, especially
among young people,stems primarily from its speculative value. The potential
of this study is toprovide guidance to young people on how to take risks
investing in Bitcoin.This could be a way to earn a decent income. Young people
have alreadyexperienced several financial crises in the world, such as the stock
marketcrash of 1987, the financial crisis of 1997 and the financial contagion
inEast Asia. So it reduced faith in centralized institutions. This study will
beuseful to find out earning income from something else like Bitcoin.
RESEARCH QUESTIONS:
What is theopinion of young people?
What is the future of Bitcoin?

LITERATURE REVIEW:
The rise in the value of bitcoins have made people believe that bitcoins is a
newway of earning profit. This made researchers to write on this new, virtual
currency. Some researchers have written on its liquidity and payments, some
have written on its Price Unitability and Anonymous transactions and some
havewritten on its gain from Investment and the risk involved in it. There is
ampleresearch available on the topic of bitcoins. Below are a few abstracts from
therecent literature.
Allayannis and Fernstorm(2018), have argued that, the case describes a
hypothetical hedge fund manager who’s examining whether to invest in Bitcoin.
The case discusses potential risks and rewards of investing in Bitcoin, the role
ofBitcoin and digital currencies more broadly and financial innovation in the
space,such as ICOs. It can be taught as part of a second year MBA elective
course ininvestments, financial institutions/ capital markets, or
fintech.According to Baur, Lee and Hong(2015), Bitcoin is defined as digital
money withina decentralized peer-to-peer payment network. It is a hybrid
between preciousmetals with intrinsic value and Fiat currency backed by a
Monetary Authority. Thispaper analysis the question of whether Bitcoin is
currency or investment andmore specifically, what is its current usage and what
usage will prevail in thefuture given its characteristics. We analyze these
statistical properties of Bitcoinand find that it is essentially uncorrelated with
traditional asset classes such asstocks and bonds. The analysis of transaction
data of Bitcoin accounts shows thatbitcoins are mainly used as an investment
and not as an alternative currency.Currently Bitcoins is “small” relative to the
size of other asset classes and thusdoes not pose an immediate risk for
monetary, financial or economic stability.
According to Lande and Mohture(2021), bitcoins are virtual and digital
cryptocurrency. Each Bitcoin is fundamentally a computer file which is stored
in a‘digital wallet’ app on a smartphone or computer. Day by day bitcoins are
becoming popular as a currency and there is increased acceptance of the
same.There are several benefits of using Bitcoin such as they can be used
anytime andanywhere, they cost lower fees, there are safer medium of transfer
for themerchants, there is no personal information tide to the transaction and
they are transparent and neutral medium of exchange. They also suffer from
certain disadvantages such as lower degree of acceptance, volatility and that
they are yetto mature in terms of technology. All in all, bitcoins have the
potential to becomethe currency of the future.
Gordon and Marthinsen(2022), have posited that, explaining changes in
bitcoinsprice and predicting its future have been the foci of many research
studies. Incontrast, far less attention has been paid to the relationship between
bitcoinsmining costs and its price. One popular notion is the cost of Bitcoin
creationprovides a support level below which these crypto currencies price
should never fallbecause if it did, mining would become unprofitable and
threaten themaintenance of bitcoins public Ledger. Other research has used
mining costs toexplain or forecast bitcoins price movements. Competing
econometric analysishave debunked this idea, showing that changes in mining
costs follow changes inbitcoins price rather than preceding them, but the reason
for this behaviorremains unexplained in this analysis. This research aims to
employ economic
theory to explain why econometric studies have failed to predict Bitcoin
pricesand why mining costs column movement in Bitcoin prices rather than
precede
them.
Katkam(2022), have agreed that, Bitcoin has been the most successful
cryptocurrency in the past few decades, attracting a considerable amount of
investors. The volatile nature of crypto-market has landed down both profits
andlosses to its investors at different instances. This paper discusses some major
factors thatare promoted the growth of Bitcoin and highlights some series of
eventsthat contributed to the rise and fall of bitcoins in the past years. The paper
alsooutlines a brief comparative study between Ethereum and Bitcoin.
The purpose of this review was to view the trends in the investments of bitcoin
inthe past few decades and see how it has attracted an abundant of investors.
Withthe help of the review, we also came to know that a finance manager has
toscrutinize the risks and rewards before he or she invest in bitcoins. Along
withthis, there has been a long debate whether bitcoin is a currency or an
investment.But the analysis of transaction data done by Baur, Lee and Hong, we
came toknow that bitcoins are mostly used as an investment. Therefore, the
bitcoins have the capability to become the future currency because of its several
benefits, thatare why most countries have accepted this currency.
METHODOLOGY:
This part describes the methods of collection of data. Qualitative
paradigmwas selected to achieve the aim of the study. Qualitative
researchparadigm gained prominence due to its ease to adopt to standard way
toconduct the research. For data collection we adopted the
questionnairemethod because it is easy, quick and efficient way of obtaining
largeamounts of information. As we wanted to study the eagerness
ofyoungsters on the bitcoin investments. To achieve this aim, the
candidateswere chosen from ages between 15 and 24. The location of the
researchincluded University of Karachi and NED University because firstly
we couldeasily find the above-mentioned ages in these universities and
secondly, itwas the most convenient for all the group members since we study
in oneof these universities. First, we distributed the questionnaire to the
studentsof NED and KU physically. Some friends from our own class fill out
thequestionnaire. We also asked the students, who use
Universitytransportation, to fill out the questionnaire which was easy for us to
dobecause some of the students were our friends and they also helped us
byinsisting their other friends to fill out too. We also circulated
thequestionnaire on social media like WhatsApp, Facebook and
Instagramthrough Google Form to the students studying in the NED and KU.
We alsoasked a favor from them by forwarding the questionnaire to their
otherfriends. And it manifested to be more effective regarding the
datacollection. This questionnaire development is Likert scale in which
vendorshave to agree, disagree or stay neutral on our statements. In the time
ofpreparing this research the identities of the participantswere kept
anonymous.
DATA ANALYSIS:
Bitcoinisariskyinvestmentinthischartyouseethatmostlyresponsesareagreedwithth
atbecausethisisnotanyauthority-basedinvestmentornoanyprivacyofthisinvestment

InthischartyouthresponsesareagreedthatBitcoinisfiatcurrencyorlegalizedcurrency
itcannotbeusedfreelywithout authoritypermission
IncreasinginvaluesofBitcoin,increasingmarketvalueofBitcoin.Inthischartyouseet
hatyoungsters are mostly agree that Bitcoin will be used as a medium if
exchange for beingcommonlyusedinbuyingandsellingproductsinfuture

Inthischartyouseethatthereisneutralresponseofyouthmostlyontheinvolvementofy
outhinBitcoincangrow thenationaleconomy
InthischartresponsesareneutralthatBitcoinisreliable,simplecryptoinbuying,selling
it,Easytoinvestonitotherthancryptocurrenciese.g.ether,Biancocoin,Solana,Tronetc.
FromoursurveyregardingBitcoin, wehaveconcludedthat,
Majority of youngsters were neutral towards many questions. Like regarding
Bitcoin is free from thirdpartyInterference, youngsters Involvement is good sign
fornational economy, reliability of
Bitcoin,contributionofbitcoinineconomicgrowthetc,however
asignificantamountbelievescontraryofthat.Responses towards many questions
were positive too like, Bitcoin is more reliable amongcryptocurrencies, Bitcoin
transactions are more convenient than Centralized currencies. A lot ofstudents
have optimistic approach about the future of Bitcoin. In a nutshell, youth have
positive IntentstowardsbitcoinandatthesametimeaSufficient amongthemwere
neutralaswell.
CONCLUSION:
Majority of youngsters were neutral towards many questions. Like regarding
Bitcoin is free from thirdpartyInterference, youngsters Involvement is good sign
fornational economy, reliability of
Bitcoin,contributionofbitcoinineconomicgrowthetc.,However
asignificantamountbelievescontraryofthat.Responses towards many questions
were positive too like, Bitcoin is more reliable amongcryptocurrencies, Bitcoin
transactions are more convenient than Centralized currencies. A lot ofstudents
have optimistic approach about the future of Bitcoin. In a nutshell, youth have
positive IntentstowardsbitcoinandatthesametimeaSufficient amongthemwere
neutralaswell.
REFRENCE LIST:
1)Allayannis & Fernstorm (2018). SSRN Electronic Journal. Bitcoins:
Investments or illusion?
2)Baur, Lee and Hong(2015). Journal of International Financial Markets,
Institutions and Money.
Bitcoin: Medium of Exchange or speculative assets?
3)http://www.investopedia.com/terms/b/bitcoin.asp
4)Gordon and Marthinsen(2022). The Quarterly Review of Economics and
Finance. The Price and Cost of
Bitcoin
5)Share Cast (2022). Retrieved from
https://www.sharecast.com/promoted/cryptocurrencies/why-
young-people-have-faith-bitcoin.
6)J.Frankenfield, Cryptocurrency, Investopedia, May 2020
7)G.C Dumitrescu, Bitcoin – A brief analysis of the advantages and
disadvantages, Global Economic Observer, 5, pp.63-71, 2017