The Potential Risks of Mining and Investment in Digital Currencies based on Financial Technology Applications
DOI:
https://doi.org/10.33736/ijbs.7621.2024Keywords:
digital currencies, mining, investing, fintech applications, risksAbstract
This study aimed to explore the potential risks associated with mining and investing in digital currencies through financial technology (fintech) applications. The research approach employed a combination of quantitative and qualitative methods, utilizing an inductive-deductive framework. The researcher conducted online surveys, and interviews with professors and experts, and analyzed the collected data using Microsoft Excel and NVIVO software. The study also utilized illustrative graphs of digital currency markets, computing power charts, and energy consumption indexes related to digital currency mining. The findings revealed various potential risks of mining and investing in digital currencies, impacting individuals, businesses, and ecosystems. These risks encompass environmental concerns, excessive energy consumption, security vulnerabilities, and financial losses. Additionally, investing in digital currencies through fintech applications can lead to inadequate investor protections, market volatility, regulatory challenges, fraudulent activities, lack of transparency, and insufficient investor understanding. The value of this study lies in its ability to analyze the potential risks associated with mining and investing in digital currencies, offering valuable insights for individuals, businesses, and policymakers. It can aid stakeholders in making informed decisions, developing risk management strategies, and enhancing their overall understanding of the potential implications on individuals, businesses, and the ecosystem.
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