The Benefits of Business Analytics in Cryptocurrency

Business analytics is a term that can be applied to any number of data-driven business activities, but it generally refers to the process of analyzing past performance and drawing conclusions for future decision-making. It’s a way for businesses to optimize operations, maximize efficiency, and identify opportunities for growth. Cryptocurrency is the newest form of currency, but it’s already making waves in our society. Some people may even call cryptocurrencies the “future of money” because they are decentralized and secure. Cryptocurrencies like Bitcoin use encryption techniques to regulate their value and protect against fraud, which makes them an attractive alternative for some investors who are tired of dealing with banks or other financial institutions that control their money supply. Moreover, there has never been a cryptocurrency failure on record, which means no one ever lost any money due to fraud. But how does business analytics play into this? Let’s explore!

The cryptocurrency case study is targeting investors. The article focuses on the benefits of cryptocurrencies for investors. This indicates that the solution wasn’t developed for any other purpose but to serve these members of society, who are likely already familiar with cryptocurrencies and what they can do. This means the implications are wider than just being about investing—they touch on how uncertain investment decisions have historically been! Someone unwilling to take risks may feel safer investing in a form of money they know won’t change the value so quickly or so drastically as fiat currencies have done since 2008 or so, all without needing to learn about new technology which would require them to put more effort into solving problems associated with jumping onto this new platform for global transactions. After all, according to C.Y. Wang, “Bitcoin may someday trade as frequently and easily as dollars, euros, and yen.” The use of business analytics in this context could be said to have removed some of the guesswork and fears associated with investment decisions and led to a more stable currency market. Bitcoin is an example of a cryptocurrency that uses encryption techniques to regulate its value and protect against fraud. According to the EBR (European Business Review), the reason for analytics in blockchain is needed for “safety” and “helps make an investment even easier”. They also added- “This allows data to be protected against the blockchain. Which opens up a lot of opportunities for startups.”

The case study highlights how business analytics can be used to create a more stable currency market. This is done by analyzing past performance and drawing conclusions for future decision-making. The study provides specific examples that illustrate how this works in practice. For instance, it discusses how Bitcoin’s value has remained relatively stable over time, which is due in part to the use of business analytics. There is no clear answer as to whether or not business analytics can be effectively implemented in this context.

The case study does not provide clear suggestions on how to improve on the initial solution, but from a critical perspective, it is easy to see some limitations in the implementation of the business analytics solution. However, according to Deloitte, the article referenced states “The first question to ask when considering using crypto in your company’s operations is: Do we hold crypto on our balance sheet or simply adopt crypto-enabled payments? To determine the right path for your business, you need to make a careful determination of the best fit for your business objectives. Consider the potential benefits, drawbacks, costs, risks, system requirements, and more.” For instance, a steady market isn’t necessarily a healthy one if there are no opportunities for growth or change—a more sustainable model would have been to use business analytics to identify trends and develop new cryptocurrency alternatives that can grow alongside changing investment preferences. First, cryptocurrency will remain useful as long as governments continue printing fiat currencies. Second, the fact that cryptocurrencies do not rely on banks or other financial institutions means people have more control over their money supply. Third, business analytics has created a more stable currency market by reducing the risks associated with investing. I would improve upon the solution by identifying new patterns in cryptocurrency behavior and creating new cryptocurrencies to serve to change consumer preferences.

The author of this case study has made it seem that common sense knowledge can be replaced by business analytics, which comes off as implying that the 1.4 billion population is too dumb to learn about coin trading without an algorithm telling them what to do. The author also paints a picture of business analytics being so worthwhile in the cryptocurrency world that people are willing to forfeit their capital for it no matter what, which comes off as manipulation - don't forget to mention insider trading risks. It should also be mentioned that business analytics can only go so far without human intuition, which is why it is important to have a team of people working together towards a common goal when using business analytics. Finally, it's worth mentioning that business analytics can be extremely expensive and may not be worth the investment for some companies.

It is very difficult to operate a business successfully in today’s world without the ability to measure, analyze and use data. Business Analytics can be used for many purposes but at the heart of it, all are two basic questions: What do I know? And what should I do about it? Data analytics allow you to answer these questions by providing insights into your customers' behaviors so that you can act accordingly. This article by Sanyal has explored some benefits of using this tool when running your company or organization's marketing campaign. He states “It has not only allowed new traders to invest through blockchain technology but has also enabled large-scale organizations to invest in the crypto space. Further, Big Data Analytics has become a guided network for several crypto traders around the globe.” The following three reasons support my conclusion that businesses need more than just gut feelings if they want to succeed in today’s highly competitive market:

1. You may not have access to accurate information
2. Your competitors could be one step ahead of you
3. It takes too long to see the results if you do not have a Business Analytics plan

References

Deloitte Digital Asset Practice. (2021, September 1). The rise of using cryptocurrency in business. Deloitte United States. https://www2.deloitte.com/us/en/pages/audit/articles/corporates-using-crypto.html

Editor EBR. (2021, June 10). What are the 4 important benefits of cryptocurrency to Big Data Analytics in 2021? The European Business Review. https://www.europeanbusinessreview.com/what-are-the-4-important-benefits-of-cryptocurrency-to-big-data-analytics-in-2021/

Sanyal, S. (2021, May 20). How Cryptocurrency Benefits from Big Data Analytics. Analytics Insight. https://www.analyticsinsight.net/how-cryptocurrency-benefits-from-big-data-analytics/

Wang, C. (2021, October 19). Case Study: Should We Embrace Crypto? Harvard Business Review. https://hbr.org/2021/11/case-study-should-we-embrace-crypto