The Rise and Fall of Cryptocurrencies: Defining the Economic and Social Values of Blockchain Technologies, assessing the Opportunities, and defining the Financial and Cybersecurity Risks of the Metaverse

ArXiv ID: 2309.12322 “View on arXiv”

Authors: Unknown

Abstract

This paper contextualises the common queries of “why is crypto crashing?” and “why is crypto down?”, the research transcends beyond the frequent market fluctuations to unravel how cryptocurrencies fundamentally work and the step-by-step process on how to create a cryptocurrency. The study examines blockchain technologies and their pivotal role in the evolving Metaverse, shedding light on topics such as how to invest in cryptocurrency, the mechanics behind crypto mining, and strategies to effectively buy and trade cryptocurrencies. Through an interdisciplinary approach, the research transitions from the fundamental principles of fintech investment strategies to the overarching implications of blockchain within the Metaverse. Alongside exploring machine learning potentials in financial sectors and risk assessment methodologies, the study critically assesses whether developed or developing nations are poised to reap greater benefits from these technologies. Moreover, it probes into both enduring and dubious crypto projects, drawing a distinct line between genuine blockchain applications and Ponzi-like schemes. The conclusion resolutely affirms the continuing dominance of blockchain technologies, underlined by a profound exploration of their intrinsic value and a reflective commentary by the author on the potential risks confronting individual investors.

Keywords: Blockchain, Cryptocurrency Mining, Metaverse, Fintech, Smart Contracts, Cryptocurrencies

Complexity vs Empirical Score

  • Math Complexity: 2.0/10
  • Empirical Rigor: 3.0/10
  • Quadrant: Philosophers
  • Why: The paper is primarily descriptive and conceptual, focusing on high-level discussion of blockchain trends, regulations, and risks without formal models or statistical analysis. It lacks empirical backtests, datasets, or technical implementations, relying instead on narrative and qualitative assessment.
  flowchart TD
    A["Research Goal: Assessing the Economic, Social,<br>and Risks of Blockchain & Metaverse"] --> B["Methodology: Interdisciplinary Approach<br>ML Risk Assessment & Case Studies"]
    B --> C["Data & Inputs:<br>Blockchain Fundamentals &<br>Global Economic Indicators"]
    C --> D["Computation:<br>Simulating Crypto Mining<br>Smart Contract Mechanics"]
    D --> E["Outcomes:<br>Distinguishing Legit Projects from Ponzi Schemes<br>Developing vs. Developed Nation Impact Analysis"]
    E --> F["Conclusion:<br>Affirmed Blockchain Dominance<br>with Defined Investor Risks"]