Theories Of Competitive Advantage And Strategic Management Sample College Essay

Theories of competitive advantage

A company is deemed to have a competitive advantage when it acquires and utilizes attributes that give it an edge over the competitors in the market. Therefore, every company constantly seeks to develop a competitive advantage through its strategic management goals (Kryscynski, Coff, & Campbell, 2021). A company’s strategic goals must be aligned with the realities on the ground and the expected changes in the market. The strategic management goals must be anchored by the attributes that will help a company become competitively advantageous. Without such anchors, then the management goals will quickly become obsolete. Every company has to constantly adjust the processes it takes to achieve its goals to ensure they reach the goals indicated within the suitable timeframe and get ahead of competitors (Saeidi et al., 2019). The constant changes in achieving strategic goals are usually aimed at ensuring that a company utilizes its competitive advantage and adjusts to the policies that competitors are implementing. Therefore, one cannot understand strategic management without understanding the concept of competitive advantage.

The Market-Based View theory of competitive advantage

The market-based view theory indicates that the external environment of a company is usually what dictates the competitive advantage that a company can have. The theory indicates that a firm constantly tries to respond to the external environment. For a company to be successful, the theory indicates that it has to be compared with other players in the industry and not necessarily on how it performs individually. Issues such as profitability are determined by how other players are doing in the industry. Therefore, the theory helps one look at the achievement of a company based on other players in the industry and not based on its merits. Porter’s five forces model is one of the theories that help expound on the market-based view theory since it helps one analyze the external environment. For a company to gain a competitive advantage, it must be aligned with the structure developed in the industry (Quaye & Mensah, 2019). Therefore, the competitive advantage will be minor differences within the firms in the industry. Therefore, the structure of an industry is essential in helping inform a company’s management on how to develop their company. The behavior of a company is significantly influenced by how other industry players behave and how the market responds to such measures. Therefore, the theory helps one focus on the issues that will affect the market and align the company’s strategic goals with the issues that will be responding to the market needs while aligning oneself to the industry’s structure.

Relevance to management

The market-based view theory helps management understand the external environment of a business. Porter’s five forces model is a critical indicator of how one can analyze the external environment (Lestari et al., 2020). For example, competitors and customers are critical in helping one decide on the products they should introduce into a market. Without proper market analysis, the management cannot set strategic goals to benefit a company. Strategic goals have to be aligned with the needs of the market. When the market does not respond well to a product, any other competitive advantage the company might have can quickly be rendered useless. Therefore, every management must ensure that it focuses on the external environment. The theory also helps a company understand how issues are run within an industry. One has to understand aspects such as the technology needed in different activities and how to get the right technology. Therefore, the market-based view theory is critical in helping the management understand the external environment of a business. Once the external environment is understood, it will be easier to develop goals and get the resources to respond adequately to the external environment.

The Resource-Based View Theory

The resource-based view theory focuses on the internal environment of a business. The internal environment is seen as the main driver for competitive advantage. The theory indicates that a company must utilize its resources well to enjoy any form of competitive advantage (Varadarajan, 2020). Every resource within an organization must be deployed correctly to show its effectiveness and give the company an excellent competitive advantage. The resource-based view argues that resources in a company are assets tied to the company for a specific period. For example, employees can be an asset to a company. However, one has to organize the employees properly and place them where they are most competent for the organization to realize its employee potential. There are three categories of resources; they can be physical, monetary, and human. For example, an organization can have high profitability, giving them a competitive monetary advantage. The company can quickly lower its prices to a level where it is making losses and undercutting the competition. In doing so, it will quickly eliminate competitors who do not have the monetary resource. The theory, therefore, advocates for every organization to be constantly stock-taking to ensure they can know the resources that can help them gain a competitive advantage in the market.

Relevance to management

The resource-based theory helps the management understand the importance of the internal resources that they might have. Internal resources can be critical in helping an organization become better. For example, there can be talented employees who can develop critical technologies that will bring significant changes in the market (Varadarajan, 2020). The theory helps the company’s management focus on such individuals, ensuring they are placed in areas where they can be most effective. The theory is critical in helping the management understand what assets are considered within an organization. Further, the theory helps management understand how to utilize the resources that they might have. The resources within the company must be adequately utilized for the organization to take advantage of any other competitive advantage from the external environment (Zameer, Wang, & Yasmeen, 2020). For example, when a company does not have the right employees to help develop the right technologies, it can be challenging for the management to realize the goal of constantly renewing its technology and staying ahead of the competition. Therefore, the theory helps management in focusing on the internal environment and understand the potential of the internal environment.

The Knowledge-Based View

The theory helps one focus on one part of a company’s resources. The theory argues that knowledge is the most important resource that a company can have (Shan et al., 2019). Without knowledge, it can be challenging for any other aspect of a company to give it a competitive advantage. The theory is anchored on modern technology, which means that every product being developed has to be done with the right technology. Technology is constantly evolving. Therefore, there is a need for the company to know about how different aspects of technology are evolving. Knowledge is usually seen as the only asset that increases with its use as opposed to any other asset which decreases as it is used (Wagner & Hollenbeck, 2020). When a company has the knowledge and protects it, it becomes a critical asset. For example, when a company develops a new drug, it can patent and sell it for a long time in the market without competition. Therefore, knowledge will give the pharmaceutical company a competitive advantage since it will operate as a monopoly. Every company must have innovative knowledge to ensure it constantly has the edge over its competition. Innovation must be nurtured within the organization to e that it increases over time. Therefore, the theory helps one in focusing on knowledge development and management.

Relevance to management

The knowledge-based view helps one focus on an area usually not considered critical. The management must know that knowledge is significant in helping a company gain a competitive advantage, especially in an information age where technology constantly evolves (Shan et al., 2019). The theory helps management go into an area where it focuses more on developing knowledge and the capabilities of individual employees. The research of a company is enhanced through such a theory. Every company has to ensure that it is constantly working towards ensuring that it is giving its customers the right products with the right technology (Azeem et al., 2021). Also, a company has to be ahead of the competition. Knowledge is usually the main factor that helps a company remain ahead of the competition and gain a significant market share. Having innovative knowledge which helps an organization remain ahead of the competition usually means that an organization has invested in research, especially for manufacturing companies. Further, knowledge helps in advancing new methods of dealing with customers. Therefore, the knowledge-based view is critical in helping management understand the right approach to gaining knowledge.

How can the theories inform Starbucks Corp’s senior management in developing a competitive advantage?

The three theories can be critical in helping any organization become better and remain ahead of its competitors. One of the leading theories that the company can use is the market-based theory. The theory helps the company focus on the external environment. A company like Starbucks must be alive to the external environment to survive in the industry. The company has been one of the market leaders, but it can easily be replaced when it stops responding to the market’s needs. There is competition from companies such as Mcdonald’s, Costa Coffee, and Dunkin Donuts, which also have a significant market share (Arsawan et al., 2022). Therefore, Starbucks has to be constantly aware of what the competition is doing. Further, one has to use porter’s five forces model to understand the external environment. For example, an aspect such as entry to the market for any individual is easily assessed since one can easily set up coffee shops. One has to know the customers and the preferences that they prefer to use at different times. Customers are constantly changing, and Starbucks has to ensure that it is working towards ensuring they have the correct information on customers’ preferences. Therefore, the market-based view will be critical, especially for Starbucks Corps, which operates in a highly competitive environment.

The resource-based theory will be critical in helping Starbucks understand the resources it might have that can help it get a competitive advantage. The company is known worldwide, which can be a significant asset. Further, the company can easily enjoy economies of scale since it buys coffee in bulk. Such resources can be made into assets for the company and be made to help the company make products that are cheaper compared to the local market. Further, the company can quickly start developing technology that will help it better roast the coffee and save on other resources. The knowledge-based view is critical in helping the company get into research and understand how to serve customers better and minimize their costs while maximizing their profits. Knowledge is critical in helping an employee deal with different situations that might come up within the organization. Customer service is essential for service companies such as Starbucks, which means that employees must have the proper knowledge of how to treat customers and how to respond to their needs of the customers. Therefore, the three theories will be critical when added to the Starbuck strategic management goals development plan.

Firm’s strategy and strategic position

Starbucks corporation is a company that has brought in measures that are aimed at ensuring they develop a workforce that is happy and wants to work for the company. The employees are referred to as partners. Over sixty percent of Starbucks employees feel that they are being paid well. Seventy-nine percent of the employees are satisfied with their wages, while seventy-four percent are satisfied with their stocks in the company (López-Robles et al., 2019). Eighty percent of Starbucks employees are happy working for the company. Therefore, Starbucks can be categorized as a happy workplace, especially compared to other companies in the industry. Starbucks has established itself as one of the best places that one can work. In doing so, the company has ensured that it attracts the best employees in the industry. Further, the employees at Starbucks are well-motivated. The company’s nature is that it is a service industry where customers constantly interact with the company employees. Therefore, the company has ensured that it makes the employees happy. Happy employees result in happy clients. Happy clients ensure that the company has many return customers. In every company sector, most employees are dedicated to their work. The company’s resources have been targeted toward ensuring that the company has employees who are satisfied and happy to be working for the company. Focusing on people has ensured the company remains a market leader, especially in competitive markets.

Starbucks focuses on employees.

Starbucks corporation has significantly focused on improving its services by ensuring they have motivated and happy employees working for the company. Therefore, one of the areas that the company has focused on is the need to pay an employee based on their contribution to the company (Bertels & Desplaces, 2021). There are performance-related payments that form the bulk of the salary an employee gets. Such payments mean employees are motivated to work more hours since there will be more pay. The company has further emphasized the quality of service that the employees give. The employees have adequate training to understand how to talk to customers and engage them on different issues. Training employees is critical, especially at the restaurant level, since every restaurant might have different needs and cultures. Therefore, the company has ensured competent, motivated, and happy employees.

Starbucks has ensured that it brings equality among its employees. The company has ensured that employees are seen to be equal. The company has ensured they have the same uniform from the managers to the lowest level employees in a restaurant (López-Robles et al., 2019). In doing so, it becomes hard for any person to know who the manager is. Such a step reduces any bias that the customers might have. Employees also feel that the management is considering them since even managers are supposed to undertake some of the other employees’ duties. Another critical step in making employees feel equal in the organization is the calling of employees partners instead of workers or employees. Therefore, the company says that it is in partnership with the employees to help customers get the best possible experience. Such titles can motivate an employee to work better. The company has ensured that funds are available to make employees happy, and the employees usually reciprocate by ensuring they serve the customer well. The company has gotten loyal employees who have been critical in helping market the company. The employees help the company get return customers, who have been the bulk of the customers. Further, the company is constantly getting new customers due to the services offered by the employees. When the employees are well-motivated socially, financially, and mentally, they become better and more valuable to the company. Teamwork is developed within the organization, and every partner works to ensure they achieve shared success.

For employees to continue offering services happily, the company has to help them solve some of their worries. One of the main worries is usually welfare issues, especially an aspect such as healthcare (Bertels & Desplaces, 2021). The company has different levels of health coverage, which ensures the employees when working there. There are benefits such as medical coverage and dental and vision plans. There are also other levels, such as health care and dependent care reimbursement accounts. There is also life insurance for employees. In terms of an accident while working, the employee has been insured against disability and any other accident through the accident cover. The health of the employee is adequately considered in the company. Regarding financial welfare, the company has one of the best 401(k) retirement plans in America. There is a generous match for the employee’s contribution toward their retirement package (Li, 2022). Further, employees have an opportunity to buy discounted company stock which is reserved for employees. The stocks are a critical addition for the employees since it ensures that employees own the organization. Consequently, employees will be more motivated to work for the company since they will share in its profitability even when they leave. Further, the feeling of ownership motivates employees to get more customers for the company since they become shareholders and want to serve the customer just as they would do in their restaurant. Further, when employees have stocks, they are more motivated on how they can develop the company since they feel they have a right to develop a company they own.

There are perks that employees of Starbucks are entitled to. The perks are designed to ensure that the employees are motivated and can access the services that they offer at a discounted price (Musonera, 2021). Employees are entitled to the main perk is a coffee and tea mark out. The company has indicated that employees receive a free pound of coffee or box of tea per week. Therefore, the employee can become one of the primary consumers of the products. When an employee is consuming the products they are selling for free, customers are encouraged to buy them. There are in-store discounts for employees when they purchase beverages, merchandise, and food. The employee can make purchases in another Starbucks, not necessarily where they work. There is a thirty percent discount for employees when they purchase products from Starbucks (Gao, Zhao, & Chen, 2021). Such a discount means that an individual will always prefer going to Starbucks as opposed to any other competitor. The employees are, therefore, considered even when they are not at work. The company has also ensured that employees get access to the Spotify premium subscription, which enables them to listen to music, create a radio station, and listen to the Starbucks in-store playlist. Therefore, such minor details go a long way in ensuring employees are happy and contented. When the employees are happy, the customers become happier since the execution of services is enhanced.

Starbucks and the customer

Another critical group of people that Starbucks has focused on is the customers. The baristas have been well-trained to give each customer a personalized experience (Nemmaniwar, 2022). For example, when one walks in, they are asked their name and the barista is always smiling. The company has provided free Wi-Fi and customers have a place to sit without being bothered even before they make any orders. The free Wi-Fi usually invites customers to stay longer. Starbucks has coined the phrase “third place” about their restaurants, meaning it can be considered a place between home and work. When needs a break from both home and work, they can come to Starbucks and have coffee. Further, the restaurants have ensured that they have the right music that will be appealing to the general population within a locality. The music played helps in making the customers feel at home. The familiar music makes it easy for every customer to relate to the environment (Johnson, et al., 2020). Such steps are taken to ensure that every customer gets personalized services. Further, the customer experience is significantly enhanced by such attention to detail. The attention to detail is replicated in all the company’s restaurants, which means that customers in different parts of the world can get personalized experiences. Therefore, the customer experience at Starbucks can be considered world-class.

Starbucks believes that it should have control over the customer experience that it gives. To ensure that it is consistent in the delivery of services, the company has adopted a model which does not include franchising (Fuertes et al., 2020). There are more than thirty-three thousand restaurants that the company runs without any franchise. Therefore, the company has ensured that the services offered are the same. The treatment of customers in one Starbuck restaurant in America is the same as in Europe. Such uniformity has ensured that the company has an unparalleled execution of the command (Grant, 2021). The feeling in one Starbucks is the same in another continent. Therefore, the company has ensured loyal customers can get into a Starbucks restaurant and get the same services anywhere in the world. Such a business strategy has ensured that the company can control the customer since they can control their experiences. The company has ensured personalized services are also offered online (Lombardi, Chidiac, & Record, 2021). Customers can get recommendations based on their previous experiences online. Therefore, the company has ensured that customers do not constantly have to repeat the orders that they made previously. The algorithm has been set in such a way that it ensures one gets the recommendations they prefer and makes ordering easier. The company has ensured that in every place where it offers services, it gives personalized services ad ensures customers are happy.

In conclusion, the Starbucks brand has ensured that it focuses on the people rather than service provision. The company has ensured that it addresses the needs of the people more than it addresses the issues pertaining to the selling of coffee. However, the company has also focused on providing quality products. The company has understood that for the customer to be happy, there is a process that has to be undertaken by different stakeholders. One of the main stakeholders is usually the employees, especially in a service industry like the one Starbucks is operating in. Therefore, the company has ensured that it utilizes all its resources and gained a tremendous competitive advantage, ensuring it remains a market leader in different markets.

References

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Therapeutic Effectiveness Of Counseling Approaches Free Writing Sample

Introduction

Counseling as an essential part of psychotherapy has been at the center of discussion among scholars, policymakers, and practitioners. Generally, there is an agreement that all main forms of counseling and psychotherapy have a positive aggregate effect. Moreover, current research on the effectiveness of counseling and psychotherapy is rather clear-cut: counseling is effective (Welfel, 2015). According to subjective client reports and more objective statistics, counseling may be helpful for a range of mental health discomforts, both in the short term and over longer periods. Some research also suggests that therapy’s benefits may work well with antidepressants and other medications (Alkatheri et al., 2013). However, the research evidence on the effectiveness of specific types of counseling could be clearer. Thus, this study reviews the current literature to assess the three prominent counseling approaches. Specifically, the review covers Carl Rogers’ Person-Cantered therapy, Adlerian theory, and Gestalt therapy. To achieve this, the paper critically analyzes current research on the strengths and weaknesses of these counseling methodologies. It concludes with research gaps and recommendations for future research. While no model of psychotherapy stands out as the best in delivering desired therapeutic outcomes, the approaches have different strengths that work distinctively, depending on the type of clients involved.

Common Factors in Therapeutic Effectiveness

Much research has been needed to explain what specific factors make certain counseling approaches effective. In this regard, researchers generally agree that counseling is effective and outline specific factors to consider when determining the level of effectiveness. For instance, Gupta and Tripathi (2020) highlight the necessary conditions for achieving the desired therapeutic results based on Rogers’ proposals in the person-centered approach: (i) there must be a therapeutic understanding between the client and the therapist, (ii) there must be congruency between the client and the therapist, (iii) unconditional positive regard for the client must be shown by the therapist, (iv) empathy and understanding is expected from the therapist when handling the internal frame of the client, and (v) the client should have a positive perception of the therapist. Experiential learning is another key feature that enhances the therapeutic effectiveness of this methodology. It promotes social responsibility and personal accountability while eschewing traditional teaching approaches. Adler and Sarstedt (2021) opine that individuals with challenges consult a therapist to learn to understand their problems and how to handle them. After people have developed a greater understanding of themselves, they can concentrate on developing new abilities and behaviors that will aid them in overcoming these difficulties. Their assertion is based on the provisions of Adlerian therapy, where enhanced mental health and overall well-being are linked to a stronger sense of social connectivity based on assisting others, understanding the community, and developing a sense of purpose.

The challenges experienced in determining the effectiveness of different therapeutic approaches are mainly because clients respond differently to various counseling approaches. For instance, in Gestalt Therapy, González-Hidalgo (2017), while studying the effects of GT on indigenous and peasant activists, established that therapy sessions—conducted after Naranjo’s SAT-HTH training—assisted the participants in reflecting on their personal stories and gaining in social life. Many attendees, particularly women, felt more confident after the sessions and could actively engage more in community gatherings. On the other hand, Rodgers et al. (2022) observed that numerous clients express satisfaction with online therapy, which may lead therapists to be more receptive and accepting of the person-centered approach to therapy. Theirs was an assessment of video counseling, where they noted that remote counseling would likely continue to be popular, but it is important to recognize that technology has a non-neutral role in the therapeutic process. In Adlerian therapy, Chen et al. (2021) argues the case for incorporating empathy in therapy, maintaining that such practices make the clients optimistic, move past their reluctance to change, and create the expectation that the client will attain success. Therapists may ask their clients to consider the rationale for their behavior as they explore them. It is also thought that reflecting on past events helps clients understand past behavioral patterns that may have contributed to their expected challenges (…). Thus, therapists can search for recurring themes after reviewing multiple reflections based on the client’s situation.

Carl Rogers’s Person-Centred Approach

Carl Rogers uses client-centered psychotherapy to challenge clients to reclaim their resources for healing and growth (Joseph, 2014). As Gupta and Tripathi (2020) explain, Rogers, challenges clients to rethink success as empowerment and well-being by drawing on personal development and connection-building. There is a general understanding that Rogers’ conception of the self is phenomenological, existential, and humanistic. In his guide on person-centered coaching, Joseph (2014) opines that Rogers’ beliefs are predicated on a fundamental belief in people and that, given a supportive therapeutic environment, people naturally desire to self-actualize toward growth and fulfillment. Generally, the success of the person-centered model relies on the relationship between the client and the counseling professional. This assertion is supported by Rodgers and Tudor (2020), who established three basic conditions regarding the counselor’s attitude that can be used to improve the effectiveness of the therapeutic approach. The first condition demands transparency from the therapist, where they are expected to be genuine in their desire to help the client. Secondly, the therapist has to value the client unconditionally. Finally, empathy is necessary as the service provider needs to view things from the client’s perspective.

Researchers have assessed the potential contribution of person-centered therapy to the highly digitalized healthcare environment. To this extent, the model has made significant inroads in video counseling and psychotherapy, where it is used to offer remote counseling services (Treanor, 2017). Existing text-based, non-visual, non-auditory, or nonsynchronous types of counseling and therapy are acknowledged as viable information sources to more fully understand patient-centered techniques’ role in online therapeutic work. Using video conferencing software, a strong connection and a therapeutic alliance can be created between the client and the counselor. Harrison and Wright (2020) point out that therapists favor person-centered online working methods, especially short-term work. Such approaches include how unconditional positive regard can easily be promoted via synchronous, text-based counseling where the tone is given with no facial expression or voice, and congruence may be formed and put to good use in non-visual modes of counseling online. Similarly, the person-centered approach emphasizes experiential relationships as agents of change, and Treanor (2017) notes that empathy is frequently demonstrated in online work at relational depth. It is better for the client if any comments made by the counselor that a particular technique would be useful are based on an informed sense of why it might work. It may be true that therapists should go with what works, but to accomplish that, they must try to comprehend and assess the underlying idea.

While the person-centered approach to therapy has shown its effectiveness in dealing with Anxiety and helping in remote psychotherapy, it has also received its fair share of criticism. According to Seligman (2006), the effectiveness of this approach is limited because it needs to be more leisurely, simplistic, and optimistic and lacks the required focus on clients; hence a need for structural and directional change. Thompson and Henderson (2007) also mention the models’ reliance on highly intelligent and hardworking clients as a fundamental weakness, especially concerning its applicability. Such sentiments are echoed by Moon (2007), who noted that the model relies more on the client and therapist’s attitude rather than technique. Thus, the applicability of the model is restricted to specific contexts.

Adlerian Theory

The psychodynamic, goal-oriented, and brief Adlerian therapy is based on the views of Alfred Adler, a former Sigmund Freud’s partner. Adler focused most of his studies on feelings of inferiority vs. superiority, discouragement, and a sense of belonging in the context of one’s community and society (Adler & Sarstedt, 2021). He argues that, despite the potential for neurotic behavior, feeling inferior can motivate one to put in more effort and accomplish more. Adlerian treatment emphasizes the development of each patient’s distinct personality while appreciating and realizing how interconnected all people are. Goal-directedness in human conduct is the central idea of Adlerian treatment (Adler & Sarstedt, 2021). Current research suggests that several of Adler’s most significant hypotheses may have neurological roots. For instance, Cohen (2022) discovered a connection between eudemonia, or happiness anchored in meaning, and lower inflammatory levels and improved genetic expression. Additionally, it is said that the theory stresses the significance of using techniques and resilience for the client. These can be summarized as providing encouragement, developing expectations, examining behavior purpose, and assessing memory (Ashby et al., 2020; Chen et al., 2021). Agarwal and Meany-Walen (2019) noted that therapists listen to their challenges and empathize with their patients. Their research on multiracial children also demonstrates that therapy involves helping patients become aware of their talents and confident in their ability to succeed. Therapists may urge patients to consider how they would act if they were already the person they aim to be. On the other hand, understanding the function of some of these maladaptive behaviors can frequently help individuals create better-coping techniques (Ashby et al., 2020).

Current literature also suggests that the four stages of Adlerian therapy contribute to its effectiveness in counseling and psychotherapy. By using the theory concepts, therapists aid clients in better comprehending their objectives and life motivations. The first stage is the engagement phase, whose primary objective is to create a therapeutic understanding between the therapist and the client (Agarwal & Meany-Walen (2019). This calls for the capacity for cooperation, coordination, and interpersonal harmony. Ashby et al. (2020) explain the second stage, assessment, where the therapist works to understand the client adequately. This includes gathering background information, learning about prior experiences, and using psychotherapeutic tests. This typically requires looking at childhood experiences, family dynamics, and how the person views these events. Adlerian therapists may perform assessments to find and learn about these goals as a way to ascertain the goals a person is seeking to attain and the normal methods by which they go above the third step, insight, is to help the person understand their situation and become more conscious of their behavior. (Chen et al., 2021). At this level, the person receiving treatment must develop personal insight into their ideas and behaviors, even though a therapist may make observations. Finally, the therapy concludes with reorientation (Chen et al., 2021), where the therapist helps clients develop new skills, habits, and behaviors to help their personal growth. The only notable criticism towards Adlerian therapy is seen through Miller and Dillman Taylor’s (2016) work, who say the model lacks scientific and empirical evidence.

Gestalt Therapy

Gestalt therapy (GT) is a form of psychotherapy focusing more on the patient’s present circumstances than their prior experiences. This type of treatment emphasizes how crucial it is to understand a client’s life context and personal experiences by analyzing their challenges (Forgarty et al., 2020). Additionally, it entails accepting responsibility rather than blaming others. Gestalt, which by definition refers to the form or shape of something, implies that the whole is more than the sum of various elements (González-Hidalgo, 2017). The premise of this counseling program primarily emphasizes perception. Gestalt therapy focuses on interpreting and assigning meaning to our experiences and surroundings. Current literature on GT also focuses on the client’s reported changes to determine the model’s outcome effectiveness, especially where it is used for group interventions (Forgarty et al., 2020). Researchers have mostly concentrated on certain psychopathological, societal, and personal issues and specific targets. In an earlier study by Arip et al. (2013), the group guidance module’s overall content validity regarding student self-development was based on Gestalt theory and some of its fundamental tenets, including the holistic approach and person experience individual responsibility, and the here-and-now method. However, Doric (2017) used Gestalt therapy in prison with offenders who had psychopathology symptoms and noted no changes in the offenders’ behaviors or lives, though they did notice minimal enhancements in depressive groups than in maniac groups, who specifically benefited from their active participation in sessions and from the opportunity to resolve fundamental disputes in their lives using the analysis of incomplete gestalts.

Other studies have also compared the effectiveness of GT through comparisons to other counseling and psychotherapy approaches. Béja (2020) investigated the effectiveness of GT as a method of psychotherapy through a comparison with the national databases of comparable UK studies on different clinical models like Psychodynamic Therapy and Person-Centred Therapy. The researchers found that GT is equally successful as other methods. Indeed, the researcher established that their study’s pre-post treatment variances could be compared to the findings in other literature that examined different clinical models using the same assessment method. When Farahzadi and Masafi (2013) investigated how well GT and cognitive-behavioral therapy worked to lessen dysthymic disorders and the severity of symptoms among Iranian children, they arrived at the same conclusions. Instead, they noticed a big difference between the control group and the means of the two clinical models. Specifically, the warm interactions and confidence-building in the first sessions seem to be the most crucial aspects of both clinical models.

Like in the person-centered approach, critics of Gestalt Therapy question its applicability to various contexts. Specific controversies relate to whether or not the model is consistent with the available methodology. Doric (2017) noted that although the therapeutic approach is spontaneous, it only works for some clients as some may find it too aggressive. They also cite the limited monitoring during the interactions between the client and the therapist as an area of concern. GT is also considered time-consuming because it often takes time to establish the required level of trust between the therapist and the client (Forgarty et al., 2020). Thus, its weaknesses could challenge the arguments in support of its effectiveness.

Conclusion

In conclusion, the reviewed literature demonstrates that Carl Rogers’ Person-Cantered therapy, Adlerian theory, and Gestalt therapy are effective in counseling and psychotherapy. None of the three approaches stand out in terms of overall effectiveness beyond the rest, as they have all shown how instrumental they are to clients’ recovery process. Notably, Carl Rogers’ Person-Cantered therapy has demonstrated its ability to help clients battling Anxiety and its ability to operate in the highly digitalized modern healthcare environment. To this extent, it facilitates remote therapy as personal connections between the client and their therapists can be maintained within video counseling. Similarly, Adlerian theory creates better mental health and overall well-being, associated with a stronger sense of social connectivity based on helping others, integrating into the community, and discovering a sense of purpose. On the other hand, GT has shown its strengths in group settings, where it helps clients to build confidence and improve their relationships.

While these studies have fairly assessed the effectiveness of these therapeutic approaches, significant research gaps lie in their inability to effectively investigate the therapeutic orientation of these models based on the client’s perspective. Even though the quality of the relationship a client can develop with a specific counselor is often at the top of the list of factors to consider before beginning counseling, the compatibility of a client’s preferences with a specific therapeutic approach is still crucial. Such preferences significantly impact how the client feels about the relationship and the process, affecting how simple it is for them to benefit from the process. Thus, future research should focus on incorporating the client’s feelings toward different therapeutic approaches rather than solely on treatment outcomes. Moreover, a counselor should not accidentally recommend a particular work style; rather, it should be deliberate and informed. Ultimately, the effectiveness of a therapeutic process should be decided by how the client feels about it.

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Understanding Fiat And Cryptocurrency Essay Example For College

Introduction

Cryptocurrency is a digital currency developed as an alternative to the established banking system. An increasing number of people are considering using Cryptocurrency as an alternative to fiat currency due to its many advantages over conventional money, including lower transaction fees, higher levels of anonymity, and more robust security.

Reducing financial crimes committed with fiat currency is one area where Cryptocurrency has shown promise. It’s no secret that money laundering, tax evasion, and fraud are significant issues for governments and financial institutions worldwide. The stability of the international financial system remains at risk from these crimes despite numerous efforts to combat them.

The question that is pegged in the long run, therefore, is how, if at all, could the widespread use of Cryptocurrency reduces the likelihood of the kind of financial crimes that are typically committed with fi Cryptocurrency has the potential to revolutionize the way we think about financial crime prevention, so it uses is of great interest to academics, policymakers, and financial experts. Understanding how Cryptocurrency could be used to reduce financial crime and foster a more secure and stable global financial system requires weighing the pros and cons.

Significance of Study

Studying how bitcoin usage might reduce fiat currency-related financial crimes could help create efficient financial crime prevention methods. Money laundering, theft, and tax dodging impact countries and society. Cryptocurrency and blockchain technology could reduce these crimes.

The study could teach lawmakers and regulators about bitcoin adoption’s potential benefits. This study can help create new policies and laws that encourage bitcoin usage to lower fiat money financial crimes. The study can also reveal bitcoin adoption’s obstacles and how to overcome them to optimize its benefits.

This study could create new and effective measures to combat financial crimes involving fiat money and teach lawmakers and regulators about bitcoin adoption’s pros and cons.

Thesis Statement

By offering provisions for a more transparent, decentralized, and compliant financial system, adopting Cryptocurrency can mitigate fiat currency-related financial crimes. The list of financial crimes includes tax evasion, money laundering, fraud, and fraud corruption.

Hypothesis

H₀: The amount of crypto spent is as equal to the value of crypto money spent

H₁: The amount of crypto spent is not as equal to the value of crypto money spent

Body

Fiat Currency

Fiat currency came into existence when governments wanted to issue notes that could be used to efficiently conduct trade in place of gold or silver (White, (2023)). FIAT came to be because carrying gold or silver around for trade had become problematic. From here, fiat currency could be accepted as legal tender. However, FIAT currency is not backed by silver or gold. Fiat currency, therefore, only relies on people’s faith in a government and its economy (Lekhi, (2023)). Faith is such that the currency’s value can be used to pay debts and taxes.

Fiat currency’s modern concept derives from the medieval European monetary systems (Kaur et al. 2023). In those times, the paper money and the silvers issued by governments were backed by reserves for gold and silver. The backing of these currencies by these reserves was faced over time, and currently, most currencies in circulation are fiat currencies (Bielig, (2023)). Fiat currency has an existing advantage in the sense that there exists a high level of flexibility in the monetary policy (Hanieh (2023)). Governments can use fiat currency to speed up or slow down an economy. The speed-up is done by printing more currency or buying securities.

Fiat currency is also convenient for daily transactions, unlike gold or silver, because it is easy to carry around and use for trade. The use of fiat currency for millennia has allowed for the practice of safe and efficient banking systems (Salampasis et al., 2023). Additionally, individuals also have the liberty to store riches in liquid form. The drawbacks that come with the use of fiat currency include erosion of a currency’s value through inflation. People’s trust in a government can also be undermined, which leads to a currency losing value (Alfar et al., 2023). Factors that lead to trust erosion include political instability and mismanagement of the economy.

Crypto Currency

Crypto is a digital currency that uses cryptography technology to perform and store transactions (Johnson et al., 2023). Cryptocurrencies are digitalized, and blockchain is the technology under which cryptocurrencies operate. Blockchain technology provides a public ledger of the transactions that have been effected on a currency (Koeswandana & Sugino, 2023). The decentralized nature of cryptocurrency technology makes it resistant to fraudulent transitions and manipulations.

The first and most popular Cryptocurrency is bitcoin, which was created in 2009 by an anonymous person or group of people that went by the pseudonym Satoshi Nakamoto. After 2009, multiple cryptocurrencies were created, but each is unique.

Crypto is fast in transactions, and they also yield high returns, and for this fact, therefore, they have grown in popularity. They have, along the way, be highly volatile. The high volatility rate and lack of regulations make crypto a risky investment area (Asgari et al., 2023). Cryptocurrencies have also been used in illegal activities such as money laundering and tax evasion, raising concerns about their potential for misuse. Cryptocurrency is a complex and rapidly evolving technology in finance (Nadiar et al., 2023). We must rethink our approach to Cryptocurrency as we handle the risks and benefits better and more cautiously.

Fiat Currency in Crime

Like any other form of money, Fiat currency has been used in lawful and unlawful/criminal activities. For decades, several criminal activities associated with fiat currency have been recorded. Of the most apparent criminal activities that are associated with fiat currency, there are:

1. Money Laundering: Under money laundering, the proceeds of crime get disguised as legitimate funds. Criminals that have engaged in this type of activity have always employed different approaches, and in the list, there is the use of shell companies and offshore accounts (Wang & Hsieh, 2023). The two are used to launder money through the system.
2. Fraud: Illegal activities such as Ponzi schemes, scams, and identity theft are just the range of terms that make up the broad term of fraud (Scharfman, 2023). Fiat currency has been used by criminals to facilitate their criminal activities and to deceive their victims.
3. Corruption: For corruption to take effect, power has to be abused by self-centered individuals. Meaning corruption is affected by a person in power for personal gain. Funds have been embezzled, and bribes have been accepted in many cases by public officials and business leaders (Wang & Hsieh, 2023). The two groups broadly engage in corruption. On the other hand, corrupt activities are purely done using fiat money.
4. Tax Evasion: This has been termed an illegal activity, which means avoiding paying taxes. The methods criminals have used using offshore accounts and shell companies to hide assets and evade taxes (Calafos & Dimitoglou, 2023).
5. Counterfeiting: Under this crime, fake documents get produced to deceive others, and so do fake currency. Counterfeit currency has been treated as real money in the black market in multiple cases, with few cases recorded where counterfeit funds have been used to purchase goods and services (Gibbs, 2023).
6. Drug trafficking: Illegal drugs get produced, distributed, and sold under the criminal act of drug trafficking (Kushnirenko & Kharatishvili, 2023). The entire process entails the use of fiat money to make payments through the entire process.

Crypto Currency in Crime

Cryptocurrencies, just like in the case of fiat currency, have been used in criminal activities as well. Of the criminal activity list imposed on crypto, there are:

1. Money Laundering: Cryptocurrencies are anonymous, and for this, they can easily be transferred through borders (Wang & Hsieh, 2023). This act makes it easier for crypto to be used in illegal activities.
2. Fraud: scams such as Ponzi schemes have been used by fraudsters in Cryptocurrency to deceive victims into sending them money.
3. Ransomware Attacks: Under ransomware attacks, a victim’s data or information is held hostage by the criminal until a ransom is paid (Wang & Hsieh, 2023). Ransoms demanded in Cryptocurrency are challenging to track and yet easily transferable.
4. Dark Web Markey Place: only specialized types of software can be used in accessing the dark web (Wahrstätter et al., 2023). The dark web has always been used to buy and sell illegal goods and services, and crypto has always been used to make payments.
5. Cybercrime: blockchain platforms have been used to facilitate cybercrime as identity theft has been effected, wallets to have had their IDs stolen and therefore crypto taken out of them, and the entire process involves hacking (Schulp et al., 2023).
6. Tax evasion: Individuals in cases more than one have used crypto to transfer wealth across borders, sealing the same from the authorities and evading tax.

Discussion of Theories

Several theories have been developed and proven to relate to reducing fiat currency financial crimes by adopting cryptocurrencies. Of the list of financial crime theories developed, there are:

• The Transparency Theory: The transparency theory argues that cryptocurrencies built on blockchain technology provide a more transparent financial system. Transactions on a blockchain are public and can be audited, making it more difficult for criminals to launder money or evade taxes (Hosen et al., 2023). Transparency is done through the use of ledgers in blockchain technology. The ledgers are treated as public ledgers, and they, therefore, record transactions in a decentralized and distributed database. Therefore, a network of nodes is used to maintain these networks (Sousa et al., 2022). The nodes, in multiple settings, verify each transaction using a consensus algorithm; therefore, the same gets added to the ledger as a block. Public ledgers are meant to be transparent and for everyone to see. Still, the catch is that the transparency degree and the degree of implementation might vary from one blockchain to another (Miraz et al., 2022). Bitcoin as a blockchain is deemed fully transparent, yet others may allow for privacy features or limited visibility.

• The Anonymity Theory: The anonymity theory argues that the pseudonymity offered by cryptocurrencies makes it more difficult for law enforcement to trace the origin of funds and track criminal activity. The difficulty comes through because the transactions performed on the blockchain are recorded in pseudonyms or cryptographic addresses instead of real names and other identifying information (Sardá, 2023). The pseudo-recorded means the transactions are transparent but hard to associate with a specific entity in real time. Since duplicate transactions can be made from anywhere worldwide, it would still be difficult for law authorities to identify the parties involved (Firmansyah et al., 2023). Additionally, the crypto exchanges where crypto is traded for fiat currency do not need individuals to provide extensive identity information (KYC-Know Your Customer). The KYC makes anonymous trading easy, hence complicating funds tracing.
• The Decentralization Theory: The decentralization theory argues that cryptocurrencies, which are not controlled by any central authority, provide a more secure and reliable financial system (Hosen et al., 2023). Cryptocurrencies can reduce the risk of fraud and corruption by removing the central control point. Remember that in traditional financial systems, central banks, governments, and financial institutions that comprise the central authorities are responsible for managing and overseeing financial transactions (Hosen et al., 2023). This power yielded by the central authorities leads to several potential issues, including corruption, fraud, and inefficiencies. In contrast to fiat currency, cryptocurrencies are built on decentralized technology. The decentralization allows a decentralized system of nodes to verify the transactions and maintain system integrity (Hsieh & Vergne, 2023). There, therefore, lacks any system of failure or vulnerability. Transactions, therefore, are processed quickly and safely. The processing ensures that there is no need for intermediaries. Additionally, the transparency and immutability of blockchain technology provide a more trustworthy and reliable system that can be used for the storage and transfer of value (Hsieh & Vergne, 2023). The occurrence is because each transaction is recorded on a public ledger that is visible to all participants. In this way, fraud, hacking, and other forms of misconduct are prevented. Any attempt to manipulate the system can easily be detected and prevented.

• The Compliance Theory: The compliance theory argues that cryptocurrencies, which are not regulated by any government or central authority, can help reduce financial crimes by encouraging compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations (Gaviyau & Sibindi, 2023). The compliance theory effectively provides a framework that ensures compliance with the laws and regulations, enabling and preventing criminal activities. Additionally, regulatory oversight ensuring compliance with the set regulations can significantly help raise the legitimacy and the mainstream adoption of cryptocurrencies by businesses, consumers, and institutions. Most of these groups might have in the past hesitated to use the technology as they might have been having concerns associated with criminal activities.

There is no mutual exclusivity with these theories, and the relationship between Cryptocurrency and crimes is complex. Cryptocurrency can reduce financial crimes in one area just as it can increase crime in another. Therefore care is needed while adopting Cryptocurrency (Li & Wei, 2023). It is wise to keep the potential risks and the benefits in mind.

Literature Review

Description and Summary of Publication

Through his publication, Paul de Mortgages (2023) provides a bearish and bullish view in his examinations and expounds on the potential of Cryptocurrency as a disruptive technology and its effect on the future of finance. The author argues that Cryptocurrency has a vast potential to revolutionize finance, and this too by providing a system of finance that is transparent, decentralized, and secure. The bullish view, therefore, talks of the possible benefits of Cryptocurrency, including faster and cheaper transactions, increased financial inclusion, and reduced corruption.

Additionally, Paul de Mortgages acknowledges that there are serious risks that are linked to the adoption of Cryptocurrency. Of the list of risks, there is a lack of regulation, high volatility, and the potential for criminal activities. Together with the warnings he gives on the dangers of cryptocurrency adoption, through his bearish view, he continuously warns of the dangers that loom, such as financial instability, risks of fraud and money laundering, and the opportunity of there being a bubble and a burst.

Gaps Identified in the Market

Well, Paul de Mortanges has provided a comprehensive analysis of Cryptocurrency’s possible benefits and drawbacks. On the other hand, though, he has provided minimal info on how embracing Cryptocurrency would alleviate financial crimes linked with fiat currency. He touches on the topic but does so briefly and fails to provide an elaborative examination or experiential proof to help support claims. The study, therefore, provides shallow Intel into how the adoption of Cryptocurrency could help mitigate crimes related to fiat currency, and this calls for more research to address this gap fully.

Description and Summary of Publication

The book written by Paul and Michael explores the rise of crypto and their impact on the global economy. With the division made into three parts which are; the history and the development of bitcoin, the technology backing crypto and the potential impact that crypto has on the global economy, the argument put forward by the authors is that Cryptocurrency offers a decentralized, transparent and secure financial system that will challenge the fiat currency system. Additionally, they recognized the possible risks and challenges connected with Cryptocurrency, and in the list, there is a lack of regulations, high volatility, and the existence of criminal activities. Optimism lies with them as they proceed that these risks can be significantly reduced provided that new technologies and regulatory frameworks are implemented.

Description of Publication

Although the book contains an elaborative analysis of the possible advantages that could be gained from using blockchain technology, the discussion of the difficulties and constraints that are associated with implementing this technology needs to be improved. The authors must provide a detailed analysis of the potential regulatory and legal challenges that might accrue upon the full adoption of Cryptocurrency and blockchain technology. Additionally, they delve less into how the anticipated challenges might negatively impact the ability of blockchain technology to mitigate fiat currency-related financial crimes. The challenges are sorted out by Jan Lansky (2018) after discussing the benefits and the potential risks associated with Cryptocurrency; he suggests that with the combination of the right technology, Cryptocurrency can be used to mitigate the crimes related to fiat currency. In this line, though, he must state the right technology combinations to consider. The list of studies provided to aid lawmakers and academics forms an understanding of how Cryptocurrency may affect financial crimes and how to regulate them.

Methodology

Case Study Research Design

There will be the examination of a specific instance or event involving the application of Cryptocurrency, which will be the basis of a Case Study Design (Ruokolainen et al., 2023). The event will therefore be used to investigate how Cryptocurrency might reduce the likelihood of fiat currency financial-related crimes.

Case Description

In 2019, several people were apprehended for allegedly using cryptocurrencies to conceal money obtained dishonestly. Large sums of bitcoin would be acquired in this instance, which was then spent on high-priced items and real estate. The inquiry uncovered that it was challenging to track the origin of the funds and identify the people involved due to the use of bitcoin.

Research Questions

1. When compared to using traditional cash, how did the use of bitcoin help the people, in this instance, transfer their funds more efficiently?
2. What are the possible drawbacks of using bitcoin to prevent financial crimes
3. compared to traditional cash currencies?
4. Could this case affect how the government handles bitcoin and crypto-related financial crimes?

Data and Data Collection

Data that is to be used in this case is data that will come from past activity, and what this mean is secondary data will be used. The data will be collected from observations, documents, and audio-visual materials.

• Observations: Using observations can be beneficial for developing a more in-depth comprehension of the environment in which the incident occurred (Elshater et al.,2023). Furthermore, observations can shed light on the actions and interactions of the parties involved.
• Documents: Legal documents, letters, and company notes are all examples of documents that can shed light on the specific background of a case. As a bonus, these can shed light on the players’ thought processes in case (Elshater et al., 2023). In particular, for our case study, we will focus on materials such as reports related to Cryptocurrency and financial crimes on that incident.
• Audio-Visual Materials: Additional information about a case may be gleaned from audio-visual materials, including interview tapes and security videos, due to information they can reveal about characters and interactions.

Procedures

There will be a detailed description of the steps taken to carry out the research, including the order taken in carrying out the research, the directions provided to subjects, and any random factors deliberately manipulated.

• Sequence of Events

1. The study will provide room for finding instances where bitcoin was used to commit crimes.
2. There will be gathering information through several methods, including conversations with relevant parties, a thorough examination of relevant law papers, and a thorough examination of relevant academics.
3. In order to answer the study queries, the scholar conducts an analysis of the data.

• Directions for the Participants

In this case, the researcher would give those with a stake specific directions on participating in conversations or provide the necessary paperwork.

• Independent Variables Manipulation

The prevalence of Cryptocurrency related financial offenses is the exogenous variable here. The scholar would not attempt to control this variable but rather look at a single instance where it occurs.

Data Analysis

There will be an elaboration of the statistical techniques used for understanding crypto usage in executing criminal activities. Additionally, after understanding the dynamics of crypto in crime, an illustration of how to improve crypto to combat fiat currency crimes will also be illustrated. The software used for analysis is Excel, which has aided in organizing and analyzing the case study data collected.

• Descriptive Statistics

Descriptive statistics gives an analyst information on the measures of the central tendency of the numeric attributes within their data. Having performed this only on two numeric attributes, “Amount of cryptocurrency used in the transaction” and “Price of the goods or services purchased with cryptocurrency,” we have the results as tabulated below:

Table 1: Descriptive Statistics

• Visualization

There will be a pictorial depiction of the dataset variables at this point. The visualizations will help us understand the distribution of each attribute in a pictorial form.

1. Pie Charts.

A pie chart is a circle graph that divides data into equal segments to show relative sizes. Each slice’s curve length in a pie chart should correspond to the value it displays:

Pie chart 1: Transaction location

According to Pie chart 1, the USA has the highest number of crypto transactions hence the highest number of fraudulent transactions. Russia and, lastly, China follow the same. China’s last position is explainable since they had burnt the use of crypto by 2019.

Pie Chart 2: Types of Purchase

Types of purchases made have it that there are more Jewelry, Luxury Cars, and Real Estate that the fraudulent crypto funds were dumped into as indicative by percentages. Yachts and Artwork are the least avenues for investments for crypto frauds.

Pie Chart 3:

48% of crypto funds recovered from the 2019 case were from fraudulent activities, which typically explains that more individuals were scammed of their crypto. Most cryptos were stolen from wallets directly. Crypto that is laundered and comes from tax evasion is the least recorded of the three sources.

2. Histogram

Histogram 1: Amount of Crypto

The count is higher for the crypto amount ranging from 2.321 to 22.321, and the counts drop drastically after that, creating right-skewed data. The transacted crypto amounts stood to be lower.

Histogram 2: Goods’ Prices

Looking at the prices of goods, it is evident that it mimics Histogram 1’s alignments and gives rightly skewed data. The deduced findings mean that most goods purchased are lower in price in relation and the number stands at 15.

3. Regression

Tables 1: Regression

According to the R Square value, it is way below 0.9 and comes in at 0.03, indicating that the line of fit is way lower and that the stats are not that rightly fitting for a prediction. The deduction makes it clear to understand that the model is not significant, as the significant value of 0.417 is more than 0.05 the significant value. We, therefore, accept the null hypothesis.

Ethical Considerations

Human subjects’ research necessitates adhering to strict ethical guidelines to ensure the safety and well-being of the people involved. Researching the use of bitcoin to reduce financial offenses connected with conventional money raises several moral questions.

1. Before giving their permission to engage in a study, participants should have all of their questions answered and be aware of the study’s goals and responsibilities (Huerne et al., 2023). Scholars need to get written permission from each subject, and those individuals need to know they can drop out of the research at any moment.
2. Protecting subjects’ names and the confidentiality of their personal information are the responsibilities of the research team (Huerne et al., 2023). The privacy steps are paramount when dealing with private information about money offenses.
3. Scholars should take precautions to lessen the possibility of injury to study subjects. Participants vulnerable to the study’s material may benefit from therapy or other mental assistance.
4. Scholars are responsible for guaranteeing that their studies are conducted fairly and that all subjects are given equal opportunities and consideration (Huerne et al., 2023). The process involves recruiting a representative population sample and actively engaging with all the study’s subjects to ensure their perspectives are considered.
5. Scholars studying human subjects must follow all relevant laws, rules, and standards. The following rules involve submitting your research to an ethics commission or institutional review board (IRB).

To ensure the study is performed responsibly and ethically, researchers must consider and address ethical concerns at every stage.

Conclusion

Money trafficking, tax avoidance, and deception are just some of the financial offenses that have been committed using cryptocurrencies. Many criminals have used cryptocurrencies for their autonomous and anonymous features to launder stolen money. Despite these caveats, the widespread use of cryptocurrencies may reduce the incidence of financial offenses typically linked with conventional money. Blockchain technology can be used for its immutability, openness, and tracking to improve financial purity and less the possibility of financial offenses.

Know Your Client (KYC), and Anti-Money Laundering (AML) laws built on the blockchain are one-way cryptocurrency usage that can reduce the prevalence of financial offenses connected with conventional money. By making monitoring and confirming transactions easier, blockchain technology can help financial organizations and authorities crack down on money laundering and other forms of financial crime. In addition, smart contracts built on the blockchain can facilitate automated conformance with AML laws, eliminating the need for physical involvement and limiting the scope for human mistakes.

Adopting a cryptocurrency can reduce the incidence of financial offenses typically committed with conventional money because of the increased openness and tracking of transactions. Due to block chain’s autonomous structure, any user can view and monitor events on the ledger, making it harder for offenders to hide their activities. In addition, blockchain technology can help people establish their digital names and profiles, which can boost the reliability of business partners and lessen the likelihood of deception.

To sum up, while there are undoubtedly new obstacles to overcome in the fight against financial crimes, there are also exciting new ways in which financial security can be strengthened and the likelihood of illegal activity diminished thanks to the widespread usage of bitcoin. Increased openness and tracking of transactions made using blockchain technology can aid in the reduction of financial offenses involving the conventional currency. The offenses include money laundering and the financing of terrorism. These solutions could be better, and they need to be revised and refined regularly to keep up with the ever-changing threat of financial offenses.

Recommendations

The study, in this case, has focused only and majorly on reducing and eradicating fiat currency-related currency-related financial crimes in general and this too across the globe. The focus needs to be deeper, considering the extent crypto has covered in journey and development. The proposed areas of interest for additional learning and research that should also be focused on include, firstly, the actual jurisdiction of crypto handling across the globe and an in-depth assessment of the development of crypto activities and the crypto adoption in the world. Secondly, the actual fight against crypto adoption by paranoid governments and the actual centralization control different governments seek over different crypto assets, for example, the USA and China. There is also the development of the Central Business Digital Currencies (CBDCs), the currency governments plan to use to monitor citizens when total crypto adoption is reached worldwide. China and the other nine states have developed CBDCs that are in operation, and they are majorly used to limit specific operations that are not deemed favorable to the citizens. A dive into the reactions of different countries on the crypto realm greatly benefits understanding crypto dynamics moving forward. Thirdly, an assessment of the investments into digital assets and the difficulties of choosing assets should also be assessed in a separate study. Investments are also an area where individuals lose money due to the multiple numbers of digital assets developed by digital asset developers worldwide. To understand Cryptocurrency’s dynamic spread, there is also the need to collect relevant and rich datasets to understand numbers and the globe’s crypto activities alignments. Numbers never lie, and neither is accurate data when used well to understand the dynamics of the world.

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