Introduction to Cryptocurrencies

Investing in the cryptocurrency market space is often complex, especially for traditional investors. This is because investing directly in cryptocurrency requires the use of new technologies, tools and adopting some new concepts.

If you decide to immerse yourself in the CryptoCurrency world, you should have a clear picture of what to do and what to expect.

Whether it’s Bitcoin, Litecoin, Ethereum or any of the 1300 tokens, buying and selling cryptocurrencies requires you to choose an Exchange that deals with the products you want.

Being the most famous decentralized cryptocurrency, Bitcoin leads the cryptographic space so dominantly that the terms crypto and bitcoin are sometimes used interchangeably. However, the fact of the matter is that there are other cryptocurrencies that can be relied upon to make cryptocurrencies.

Litecoin

Litecoin, also called “silver in Bitcoin gold,” is an open source decentralized payment network that operates without involving any intermediary.

How does Bitcoin Litecoin vary? Well, both are similar in many ways, but the generation of Litecoin blogs is much faster than that of Bitcoin. This makes investors around the world open to accepting Litecoin.

Charlie Lee, a former Google engineer, founded Litecoin in 2011. Although Litecoin does not have Bitcoin anonymity technology, recent reports have shown that Litecoin is preferred over Bitcoin because of its persistence. Another factor that favors Litecoin is Bitcoin SegWit technology, which means the safe trading of currency pairs without involving participation in exchanges.

Ethereum

Launched in 2015, Ethereum is a decentralized software platform that enables distributed applications and smart contracts to operate without third-party interference. Currency is the ether that is like an accelerator within the ethereum platform. In the leading cryptocurrency space, Ethereum. is the second most preferred option after Bitcoin.

Zcash

Zcash gained attention in the latter part of 2016 and focuses on solving the problem of anonymous transactions. To understand the currency, let’s consider it as “if Bitcoin is like HTTP for money, Zcash is HTTPS”.

Currency offers the protected transaction option to maintain the transparency, privacy and security of transactions. This means that investors can transfer data in the form of encrypted code.

Script

Originally known as darkcoin, Dash is a more selective version of bitcoin. It was released in January 2014 by Evan Duffield under the name Xcoin. It is also known as the Decentralized Autonomous Organization or simply DAO. The currency was meant to eradicate all the prevailing limitations of Bitcoin. Currently, Bitcoin has gained a substantial position in the cryptocurrency space.

The alternative to virtual currency that promises secure and anonymous transactions over the peer-to-peer network is cryptocurrency. The key to making a lot of money is to make the right investment at the right time. Compared to making money everyday, cryptocurrency models work without involving any average man as a decentralized digital mechanism. In this distributed cryptocurrency mechanism, ongoing activity is issued, managed, and approved by the community peer network. Cryptocurrency is known for its fast transactions over any other mode, such as digital wallets and other media.

In addition to the above, other major cryptocurrencies include Monero (XMR), Bitcoin Cash (BCH). EOS and Ripple (XRP).

While bitcoin is the trend setter and leads the race, other currencies have also occupied a significant position and are growing in preference every day. Given the trend, the other cryptocurrencies will have a long way to go and could soon give Bitcoin a very difficult time maintaining its position.

If you’ve decided to make a speculative investment in this disruptive technology and want all the current and future recommendations, connect with “The Top Coins”.

5 Advantages of Trading Cryptocurrencies

When it comes to trading cryptocurrencies, you need to speculate whether the market you have chosen will increase or decrease in value. And the interesting thing is that you never own the digital asset. Actually, trading is done with derivative products like CFDs. Let’s look at the advantages of cryptocurrency trading. Read on for more information.

Volatility

Although cryptocurrency is a new market, it is quite volatile due to short-term speculative interest. The price of bitcoin fell to $ 5851, from $ 19,378 in 2018, in just one year. However, the value of other digital currencies is fairly stable, which is good news.

What makes this world so exciting is the volatility of the value of cryptocurrency. Price movements offer many opportunities to traders. However, it also carries many risks. Therefore, if you decide to explore the market, just be sure to research and develop a risk management strategy.

Working hours

Normally, the market is open to trade 24/7 because it is not regulated by any government. In addition, transactions are made between buyers and sellers around the world. There may be short downtime when infrastructure upgrades occur.

Improved liquidity

Liquidity refers to the speed with which a digital currency can be sold in cash. This feature is important as it allows for faster transaction times, better accuracy and better prices. In general, the market is illiquid as financial transactions take place on different stock exchanges. Therefore, small transactions can lead to large price changes.

Exhibition taken advantage of

Because CFD trading is considered a leveraged product, you can open a position on what we call “margin”. In this case, the value of the deposit is a fraction of the commercial value. Therefore, you can enjoy a great exposure in the market without investing a lot of money.

The loss or gain will reflect the value of the position at the time of closing. Therefore, if you trade with margin, you can make huge profits by investing a small amount of money. However, it also amplifies the losses that can exceed your deposit in one transaction. Therefore, be sure to consider the total value of the position before investing in CFDs.

In addition, it is important to ensure that you follow a sound risk management strategy, which should lead to appropriate limits and stops.

Quick account opening

If you want to buy cryptocurrencies, be sure to do so through an exchange. All you have to do is sign up for an exchange account and keep the currency in your wallet. Keep in mind that this process can be restrictive and require a lot of time and effort. However, once the account is created, the rest of the process will be fairly smooth and hassle free.

In summary, these are some of the most prominent advantages of forex cryptocurrency trading right now and now. Hopefully, you will find this article quite useful.

The stages of a market mania

What is a mania? It is defined as a mental illness characterized by great arousal, euphoria, delirium, and hyperactivity. When it comes to investing, this translates into investment decisions motivated by fear and greed without tempering them with analysis, reason, or balance of risk and reward results. The craze usually runs parallel to the business development of the product, but the calendar can sometimes run erratically.

The technological boom of the late 1990s and the current cryptocurrency boom are two examples of how a real-time craze works. These two events will be highlighted with each stage of this article.

The stage of the idea

The first stage of a craze begins with a great idea. A lot of people still don’t know the idea, but the benefit potential is huge. This usually translates into unlimited benefit, as “something like this had never been done before.” The Internet was one such case. People who used the paper systems of the time were skeptical as to “how can the Internet replace such a familiar and ingrained system?” The backbone of the idea is beginning to build. This translates into the modems, servers, software, and websites needed to get the idea to something tangible. Investments in the idea stage start poorly and are made by people “in knowledge”. In the case, they can be the visionaries and the people working on the project.

In the world of cryptocurrencies, the same question arises: how can a piece of cryptographic code replace our monetary system, contract system, and payment systems?

The possibilities

The first websites were rude, limited, slow and annoying. Skeptics would see the words “information highway” that visionaries were spitting out and saying “how can this really be so useful?” The element forgotten here is that ideas start at worst and then evolve into something better. Sometimes this goes for better technology, more scale and cheaper costs, better applications for the product in question or more familiarity with the product combined with great marketing. As for investment, early adopters are getting into it, but there is still no euphoria or astronomical returns. In some cases, investments have yielded decent returns, but they are not enough to incite the masses to jump. This is analogous to the slow internet connections of the 1990s, the failure of websites or incorrect information in search engines. In the world of cryptocurrencies, they are witnessing the high mining cost of coins, slow transaction times and hacking or account theft.

Acceleration

You are beginning to know that this Internet and “.com” are the most interesting news. Products and tangibility are being built, but due to the massive scale involved, the cost and time invested would be massive before everyone uses it. The investment aspect of the equation is beginning to advance the development of the business, as markets discount a company’s potential with the price of the investment. The euphoria begins to materialize, but only among the first adopters. This is happening in the world of cryptocurrencies with the explosion of new “altcoins” and the big media press that space is getting.

The euphoria

This stage is dominated by the parabolic yields and potential that the Internet offers. Not much thought is given to implementation or problems, as “the returns are huge and I don’t want to miss it.” The words “irrational exuberance” and “mania” are starting to become commonplace as people buy because of greed. Negative risks and negativity and largely ignored. Symptoms of mania include: Any company that has.com in its name is hot, the analysis is thrown out the window in favor of optics, the knowledge of the investment becomes less and less evident among the new entrants, the expectations of returns of 10 or 100 packers are common and few people really know how the product works or not. This has occurred in the world of cryptocurrencies with stellar returns in late 2017 and incidents of the company’s shares appearing hundreds of percentage points by using “blockchain” in its name. There are also “reverse takeover offers” in which shell companies that are listed on a stock exchange but are inactive change their name to something involving blockchain and the shares are suddenly actively traded.

The Crash and Burn

The business landscape of the new product is changing, but not as fast as the investment landscape is changing. Finally, a change of mentality appears and a large sales strip begins. Volatility is massive and many “weak hands” are wiped out of the market. Suddenly, the analysis is used again to justify that these companies have no value or are “overvalued”. Fear spreads and prices accelerate downward. Companies that have no income and that survive on advertising and future prospects are exploited. Incidents of fraud and scams that increase to take advantage of greed are exposed, causing more fear and selling stocks. Companies that have the money quietly invest in the new product, but the pace of progress slows down because the new product is “an ugly word,” unless the benefits are convincingly demonstrated. This is starting to happen in the world of cryptocurrencies with the folding of lending systems through cryptocurrencies and major incidents of currency theft. Some of the marginal currencies are falling in value due to their speculative nature.

The survivors

At this stage, the investment landscape is charred with stories of losses and bad experiences. Meanwhile, the big idea goes into tangibility and for the companies that use it is a boom. It begins to be implemented in day-to-day activities. The product is starting to become the standard and visionaries are quoted as saying that the “information highway” is real. The average user notices an improvement in the product and mass adoption begins. Companies that had a real profit strategy get success during the burn and burn stage, but if they have money to survive, they get to the next wave. This has not happened so far in the world of cryptocurrencies. Expected survivors are those who have a tangible business case and corporate support, but it remains to be seen what companies and currencies will be.

The next wave: the business catches up with fashion

At this stage, the new product is the standard and the benefits are increasingly evident. The business case is now based on profits and scale rather than idea. A second wave of investment appears that begins with these survivors and extends to another initial craze. The next stage was characterized by social media companies, search engines and online shopping, all derived from the original product: Internet.

The conclusion

Manias work similarly over time. Once the phases and thought process of each are recognized, it becomes easier to understand what is happening and investment decisions become clearer.

The International Regulations for Cryptocurrencies will create win-win situations

The backdrop

The initial offering of coins on blockchain platforms has painted the world red for technology companies around the world. A decentralized network that can assign tokens to users who support an idea with money revolutionizes and grants.

Bitcoin that earned profits turned out to be an “asset” for the first investors to give multiple returns in 2017. Investors and cryptocurrency exchanges around the world took the opportunity to generate huge returns for themselves, which which led to the rise of multiple online exchanges. Other cryptocurrencies such as Ethereum, Ripple and other UCIs promised even better results. (Ethereum grew more than 88 times in 2017!)

Although ICOs landed millions of dollars in the hands of emerging companies in a matter of days, ruling governments initially decided to keep an eye on developing faster fintech technology that never had the potential to raise millions of dollars in a very short period of time.

Countries around the world are considering regulating cryptocurrencies

But regulators became cautious as the technology and its underlying effects gained popularity as ICOs began to think about billions of dollars worth of funds, also in the proposed plans written on white sheets. .

It was in late 2017 that governments around the world seized the opportunity to intervene. Although China completely banned cryptocurrencies, the U.S. Securities and Exchange Commission (SEC) highlighted the risks to vulnerable investors and has proposed treating them as securities.

A recent warning from SEC President Jay Clayton, published in December, warned investors to mention:


“Also remember that these markets cover national borders and that major trading operations can take place on systems and platforms outside the United States. Your invested funds can travel quickly abroad without your knowledge. As a result, they can expand the risks, including the risk, that regulators, such as the SEC, may not be able to effectively prosecute bad actors or recover funds. “

Then followed India’s concerns, in which Finance Minister Arun Jaitley in February said India does not recognize cryptocurrencies.

A circular sent by the Central Bank of India to other banks on April 6, 2018 called on banks to sever ties with companies and exchanges related to trading or trading in cryptocurrencies.

In Britain, the FCA (Financial Conduct Authority) announced in March that it had formed a working group on cryptocurrency and would take help from the Bank of England to regulate the cryptocurrency sector.

Different laws, fiscal structures between nations

Cryptocurrencies are mainly coins or tokens launched in a cryptographic network and that can be traded worldwide. Although cryptocurrencies have more or less the same value worldwide, countries with different laws and regulations can generate differential returns for investors who may be citizens of different countries.

Different laws for investors in different countries would make the calculation of returns a cumbersome and cumbersome exercise.

This would involve an investment of time, resources and strategies that would lead to unnecessary prolongation of processes.

The solution

Instead of many countries formulating different laws for global cryptocurrencies, there should be a constitution of a uniform global regulatory authority with laws that apply at borders. This measure would play an important role in improving the legal business of cryptocurrencies around the world.

Organizations with global goals such as the UN (United Nations), the World Trade Organization (WTO), the World Economic Forum (WEF) and the International Trade Organization (ITO) have already played an important role in the union of the world on different fronts.

Cryptocurrencies were formed with the basic idea of ​​transferring funds around the world. They have a more or less similar value among the stock exchanges, except for insignificant arbitrage.

A global regulatory authority to regulate cryptocurrencies around the world is the need of the hour and can establish global rules to regulate the new mode of financing ideas. Right now, all countries are trying to regulate virtual currencies through legislation, the drafting of which is in progress.

If economic superpowers with other countries manage to agree on the introduction of a regulatory authority with laws that know no national borders, this would be one of the biggest advances in designing a cryptography-friendly world and enhancing the use of one of the technologies. smarter transparent. May system ???? – â ???? the blockchain.

A universal regulation consisting of subparts related to cryptocurrency trading, returns, taxes, penalties, KYC procedures, laws related to exchanges and penalties for illegal piracy can provide us with the following: advantages.

  1. It can make the calculation of profits very easy for investors around the world, as there would be no differences in net profits due to uniform tax structures.

  2. Countries around the world may agree to distribute a certain portion of the profits as taxes. Therefore, the proportion of countries on taxes collected would be uniform worldwide.

  3. It could save time spent setting up numerous committees, drafting bills followed by discussions in the legislative realm (such as Parliament in India and Senate in the United States).

  4. No need to go through exhausting tax laws in each and every country. Particularly those involved in multinational trade.

  5. Even companies offering tokens or ICOs would comply with the aforementioned “international law”. Therefore, the calculation of post-tax income would be a walk for businesses

  6. A global structure would require more companies to have better ideas, thus increasing employment opportunities around the world.

  7. The law may be assisted by an international oversight body or regulator of world currencies, which may have the power to blacklist an ICO offer that does not adhere to the rules.

Not all are advantages when it comes to a law that would govern cryptocurrencies around the world. There are certain ones disadvantages too.

Bringing together the world’s financial leaders to come together and draft a law may take a long time. Discussing and reaching consensus can be a challenge

  1. Countries or economies that provide tax-free structures may not accept the law that provides for a universal tax policy.

  2. Global surveillance or interference by the regulatory authority in monitoring the evolution of ICO-related regulations may not go well with some countries.

  3. Universal law can cause the world to be divided into factions. Countries that do not support cryptocurrencies such as China may not be part of it.

  4. The law may be the idea of ​​economically strong nations that could design it to suit their best interests.

  5. This law would be centralized with a global regulatory body as opposed to decentralized cryptocurrencies.

Conclusion

The world has been together to improve. Either making a peaceful world after World War II, or coming together to get better laws and trade treaties.

The International Trade Organization (ITO), the World Trade Organization and the World Economic Forum have some of the best brains that define the world economy.

They can come together and be part of a body that would define the economic prosperity of the world. They would help draft global cryptocurrency standards and could be part of the regulatory body that would be the guide and beacon for thousands of ICOs around the world to improve. Initially, this may take a long time, but it will make things easier for the next few times.

Is cryptocurrency the future of money?

What will the future of money look like? Imagine entering a restaurant and looking at the digital menu board of your favorite combination food. Only, instead of being priced at $ 8.99, it is shown as 009 BTC.

Can crypto really be the future of money? The answer to this question depends on the general consensus on several key decisions ranging from ease of use to safety and regulations.

We examine the two sides of the (digital) currency and compare and contrast traditional fiat money with cryptocurrency.

The first and most important component is trust.

It is imperative that people trust the currency they use. What gives value to the dollar? Is it gold? No, the dollar has not been backed by gold since the 1970s. So what gives value to the dollar (or any other fiat currency)? The currency of some countries is considered more stable than others. Ultimately, people’s trust is that the government issuing this money is firmly behind it and essentially guarantees its “value”.

How does trust with Bitcoin work, as it is decentralized, meaning that it is not a governing body that issues currencies? Bitcoin is in the blockchain, which is basically an online ledger that allows everyone to see each and every one of the transactions. Each of these transactions is verified by the miners (people who operate equipment on a peer-to-peer network) to prevent fraud and also to ensure that there is no double spending. In exchange for their blockchain integrity maintenance services, miners receive a payment for each transaction they verify. Since there are countless miners trying to make money, each one checks to see if the others are working if there are mistakes. This test of the work process is the reason why the blockchain has never been blocked. Basically, this trust is what gives value to Bitcoin.

Then let’s look at the closest security friend, security.

What if my bank is stolen or there is fraudulent activity on my credit card? My bank deposits are covered by FDIC insurance. Chances are my bank will also reverse the charges I never made to my card. This is not to say that criminals will not be able to achieve stunts that are at least frustrating and time consuming. It is more or less the peace of mind that comes from knowing that I will most likely recover from any wrongdoing that has occurred to me.

In cryptography, there are many options when it comes to storing your money. It is essential to know if the transactions are insured for your protection. There are reputable exchanges, such as Binance and Coinbase, that have a proven track record of correcting mistakes for their clients. Just as there are less respectable banks around the world, the same goes for cryptography.

What happens if I throw a twenty dollar bill into the fire? The same goes for cryptography. If I lose my login credentials for a particular wallet or digital exchange, I will not be able to access these currencies. Again, I can’t stress enough the importance of doing business with a reputable company.

The next number is the scale. Currently, this could be the biggest hurdle preventing people from making more transactions in the blockchain. When it comes to the speed of transactions, fiat money moves much faster than cryptocurrencies. Visa can handle about 40,000 transactions per second. Under normal circumstances, the blockchain can only handle about 10 per second. However, a new protocol is being enacted that will trigger up to 60,000 transactions per second. Known as the Lightning Network, it could result in the transformation of cryptography into the future of money.

The conversation would not be complete without talking about convenience. What do people normally like about their traditional methods of spending and banking? For those who prefer cash, it’s obviously easy to use most of the time. If you want to book a hotel room or a rental car, you need a credit card. Personally, I use my credit card wherever I go for convenience, security, and rewards.

Did you know that there are also companies that provide all this to the cryptographic space? Monaco now issues Visa cards that automatically convert your digital currency into the local currency.

If you’ve ever tried to connect money to someone, you know that this process can be very tedious and costly. Blockchain transactions allow a user to send encryption to anyone in minutes, no matter where they live. It is also considerably cheaper and safer than sending a bank.

There are other modern methods of transferring money that exist to both worlds. Take, for example, apps like Zelle, Venmo, and Messenger Pay. These apps are used by millions of millennials every day. Did you also know that they are also starting to incorporate cryptography?

The Square Cash app now includes Bitcoin and Jack Dorsey CEO said, “Bitcoin, for us, doesn’t stop at buying and selling. We believe it’s a transformative technology for our industry and we want to learn as quickly as possible. ”

He added: “Bitcoin offers the opportunity to get more people to access the financial system.”

While it’s clear that fiat spending still dominates the way most of us move money, the new encryption system is gaining ground quickly. Tests are everywhere. Prior to 2017 it was difficult to find conventional media coverage. Now almost all major business news outlets cover Bitcoin. From Forbes to Fidelity, everyone weighs their opinions.

What is my opinion? Perhaps the main reason Bitcoin can be successful is that it is fair, inclusive, and gives financial access to more people around the world. Banks and large institutions see this as a threat to their own existence. They follow the losing end of the largest wealth transfer the world has ever seen.

Still undecided? Ask yourself this question, “Do people more or less trust governments and banks every day that passes?”

Your answer to this question may be what determines the future of money.

Crypto TREND: fifth edition

As we expected, since the publication of Crypto TREND we have received many questions from readers. In this edition we will respond to the most common.

What kind of changes will come that could change the games in the cryptocurrency sector?

One of the most important changes that will affect the world of cryptocurrencies is an alternative method of block validation called Proof of Stake (PoS). We will try to keep this explanation fairly high, but it is important to have a conceptual understanding of what the difference is and why it is a significant factor.

Remember that the underlying technology with digital currencies is called blockchain, and most current digital currencies use a validation protocol called Working Test (PoW).

With traditional payment methods, you need to rely on a third party, such as Visa, Interact, or a bank or check clearing house to resolve your transaction. These trusted entities are “centralized,” meaning they maintain their own private ledger that stores the transaction history and balance of each account. They will show you the transactions and you must accept that it is correct or start a dispute. Only the parties to the transaction ever see it.

With Bitcoin and most other digital currencies, ledgers are “decentralized,” meaning all network users receive a copy of them, so no one has to rely on a third party, such as a bank, because anyone can directly verify the information. This verification process is called “distributed consensus.”

PoW requires that a “job” be done to validate a new transaction for blockchain entry. With cryptocurrencies, this validation is done by “miners”, who have to solve complex algorithmic problems. As algorithmic problems become more complex, these “miners” need more expensive and more powerful computers to solve problems ahead of the rest. “Mining” computers are often specialized, typically using ASIC (Application Specific Integrated Circuits) chips, which are more skillful and faster at solving these difficult puzzles.

Here is the process:

  • Transactions are grouped into a “block”.
  • Miners verify that transactions within each block are legitimate by solving the hash algorithm puzzle, known as the “proof of the job problem.”
  • The first miner to solve the block’s “work problem test” is rewarded with a small amount of cryptocurrency.
  • Once verified, transactions are stored in the public blockchain throughout the network.
  • As the number of transactions and mining increases, so does the difficulty of solving summary problems.

Although PoW helped get decentralized and decentralized blockchain digital currencies to have some real shortcomings, especially with the amount of electricity these miners consume trying to solve the “labor problem test” as quickly as possible. According to Digiconomist’s Bitcoin energy consumption index, Bitcoin miners use more energy than 159 countries, including Ireland. As the price of each Bitcoin increases, more and more miners are trying to solve the problems, consuming even more energy.

All this energy consumption just to validate transactions has motivated many users of the digital currency space to look for alternative methods to validate blocks and the main candidate is a method called “Stake Test” (PoS).

PoS is still an algorithm and the purpose is the same as in the working test, but the process for achieving the goal is quite different. With PoS, there are no miners, but we have “validators”. PoS is based on trust and the knowledge that all people who validate transactions have an important aspect to the game.

Thus, instead of using energy to respond to PoW puzzles, a PoS validator is limited to validating a percentage of transactions that reflects their participation. For example, a validator that owns 3% of the available ether can only theoretically validate 3% of the blocks.

At PoW, the chances of solving the job test problem depend on how much computing power you have. With PoS, it depends on how much cryptocurrency you have at stake. The bigger the bet, the greater the chances of solving the block. Instead of earning cryptocurrencies, the winning validator receives transaction fees.

Validators enter their participation by “blocking” a portion of their background tokens. If they try to do something malicious against the network, such as creating an “invalid blog”, they will lose their share or security deposit. If they do their job and don’t infringe on the network, but don’t earn the right to validate the blog, they will get their share or deposit.

If you understand the basic difference between PoW and PoS, this is all you need to know. Only those who plan to be miners or validators need to understand all the aspects and advantages of these two validation methods. Most of the general public wishing to own cryptocurrencies will simply purchase them through an exchange and will not participate in actual mining or in the validation of block transactions.

Most of the cryptographic industry believes that in order for digital currencies to survive in the long run, digital tokens need to switch to a PoS model. At the time of writing this post, Ethereum is the second largest digital currency behind Bitcoin and its development team has been working on its PoS algorithm called “Casper” for the past few years. We expect to see Casper implemented in 2018, putting Ethereum ahead of all other major cryptocurrencies.

As we have seen earlier in this sector, important events such as the successful implementation of Casper could make Ethereum prices much higher. We will keep you updated on future issues of Crypto TREND.

Stay tuned!

Cryptocurrency: the Fintech disruptor

Blockchains, side chains, mining: the terminology of the clandestine world of cryptocurrency continues to accumulate minutes. While it seems unreasonable to introduce new financial terms in an already complicated world of finance, cryptocurrencies offer a much-needed solution to one of the biggest hassles in today’s money market: the security of transactions in a digital world. Cryptocurrency is a decisive and disruptive innovation in the moving world of fine technology, a relevant response to the need for a secure medium of exchange in the days of virtual transaction. At a time when bids are just numbers and numbers, cryptocurrency proposes to do exactly that.

In the most rudimentary form of the term, cryptocurrency is a proof of alternative virtual currency concept that promises secure and anonymous transactions through peer-to-peer online mesh networks. The wrong name is more a property than a real currency. Unlike everyday money, cryptocurrency models operate without a central authority, as a decentralized digital mechanism. In a distributed cryptocurrency mechanism, money is issued, managed and backed by the peer network of the collective community, whose ongoing activity is known as mining on a partner’s machine. Successful miners also receive coins to thank for their time and resources used. Once used, the transaction information is issued to a publicly blocked network block chain, preventing each currency from being spent twice by the same user. The blockchain can be considered as the cash register. The coins are secured behind a password-protected digital wallet that represents the user.

The supply of coins to the world of digital currencies is decided in advance, free of manipulation, by any individual, organization, government entity and financial institution. The cryptocurrency system is known for its speed, as transaction activities through digital wallets can materialize funds in a matter of minutes, compared to the traditional banking system. It is also largely irreversible by design, further reinforcing the idea of ​​anonymity and eliminating any other possibility of tracing the money to its original owner. Unfortunately, prominent features (speed, security, and anonymity) have also made cryptocurrencies the mode of transaction for many illegal businesses.

Like the real world money market, exchange rates fluctuate in the digital currency ecosystem. Due to the finite amount of coins, as the demand for foreign currency increases, the coins inflate in value. Bitcoin is the largest and most successful cryptocurrency to date, with a market capitalization of $ 15.3 billion, capturing 37.6% of the market and is currently priced at $ 8,997.31. Bitcoin hit the foreign exchange market in December 2017 by trading at $ 19,783.21 per currency, before facing the sudden fall of 2018. The fall is due in part to the rise of alternative digital currencies such as Ethereum, NPCcoin, Ripple, EOS, Litecoin and MintChip.

Due to the coded limits on their supply, cryptocurrencies are considered to follow the same economic principles as gold: price is determined by limited supply and fluctuations in demand. With the constant fluctuations in exchange rates, its sustainability remains to be seen. Consequently, investing in virtual currencies is currently more speculative than an everyday money market.

After the industrial revolution, this digital currency is an indispensable part of the technological interruption. From the point of view of a casual observer, this increase may seem at once exciting, threatening, and mysterious. While some economists remain skeptical, others see it as a lightning revolution in the monetary industry. Conservatively, digital currencies will displace about a quarter of the national currencies of developed countries by 2030. This has already created a new asset class alongside the traditional global economy and a new set of investment vehicles will come. of cryptocurrency in the coming years. Recently, it is possible that Bitcoin has bathed to focus on other cryptocurrencies. But this does not indicate any blocking of the cryptocurrency itself. While some financial advisers emphasize the role of governments in repressing the underground world to regulate the central governance mechanism, others insist on continuing the current free flow. The more popular cryptocurrencies are, the more they attract control and regulation, a common paradox that alters the digital note and erodes the main purpose of its existence. In any case, the lack of intermediaries and supervision makes it extraordinarily attractive to investors and causes a drastic change in daily trading. Even the International Monetary Fund (IMF) fears that cryptocurrencies will displace central banks and international banking in the near future. After 2030, regular trade will be dominated by the cryptographic supply chain, which will offer less friction and more economic value among technologically skilled buyers and sellers.

If cryptocurrency aspires to become an essential part of the existing financial system, it will have to meet very divergent financial, regulatory and social criteria. It must be pirate-proof, easy to consume, and heavily protected to offer its fundamental benefit to the main monetary system. It must preserve the anonymity of users without being a channel of money laundering, tax evasion and internet fraud. Because they are essential for the digital system, it will take a few more years to understand whether the cryptocurrency will be able to compete with the expanding real world currency. While this is likely to happen, the success (or lack thereof) of cryptocurrencies in meeting the challenges will determine the fortune of the monetary system in the coming days.

Preparing for a world of cryptocurrencies: China edition

Over the past year, the cryptocurrency market has received a number of strong blows from the Chinese government. The market was successful as a warrior, but combos have taken their toll on many cryptocurrency investors. The poor market performance in 2018 is evident compared to the stellar gains of one thousand percent in 2017.

What happened?

Since 2013, the Chinese government has taken steps to regulate the cryptocurrency, but nothing compared to what was applied in 2017. (See this article for a detailed analysis of the official notice issued by the Chinese government).

2017 was a milestone year for the cryptocurrency market with all the attention and growth it has achieved. Extreme price volatility forced the central bank to take more extreme measures, including a ban on the initial supply of currencies (ICOs) and a reduction in domestic cryptocurrency exchanges. Shortly afterwards, China’s mining factories were forced to close, citing excessive electricity consumption. Many stock exchanges and factories have moved abroad to avoid regulations, but they have been accessible to Chinese investors. However, they still fail to escape the clutches of the Chinese dragon.

In the latest series of government-led efforts to control and ban cryptocurrency trading among Chinese investors, China has widened its “eagle eye” to control foreign currency exchanges. Companies and bank accounts suspected of making transactions with foreign cryptocurrencies and related activities are subject to measures, from limiting withdrawal limits to freezing accounts. There have even been ongoing rumors among the Chinese community about more extreme measures to be applied to foreign platforms that allow trading between Chinese investors.

“As to whether there will be more regulatory action, we will have to wait for orders from higher authorities.” Excerpts from an interview with the team leader of the Chinese security oversight agency of the Ministry of Public Security’s public information network on February 28

WHY? BECAUSE ??

Imagine your child investing their savings to invest in a digital product (in this case, cryptocurrency) that has no way of verifying its authenticity and value. He could get lucky and make it rich, or lose it all when the crypto-bubble burst. We are now scaling this to millions of Chinese citizens and we are talking about billions of Chinese yuan.

The market is full of scams and meaningless ICOs. (I’m sure you’ve heard news about people sending coins to random addresses with the promise of doubling their investments and ICOs that just don’t make sense). Many underdeveloped investors participate for their money and would care less about the technology and innovation behind it. The value of many cryptocurrencies is derived from market speculation. During the crypto-boom of 2017, participate in any ICO with a famous advisor on board, a promising team or a decent hype and you are guaranteed at least 3 times your investments.

The lack of understanding of the company and the technology behind it, combined with the proliferation of ICOs, is a recipe for disaster. Central bank members report that nearly 90% of ICOs are fraudulent or involve illegal fundraising. In my opinion, the Chinese government wants to make sure that the cryptocurrency remains “controllable” and not too big to fail in the Chinese community. China is taking the right steps towards a more secure and regulated, albeit aggressive and controversial, world of cryptocurrencies. In fact, it could be the best move the country has made in decades.

Will China issue an ultimatum and make cryptocurrency illegal? I doubt it very much, as it is quite useless to do so. Currently, financial institutions are prohibited from holding any cryptographic assets, while individuals are allowed to, but are prohibited from conducting any type of trading.

A state-run cryptocurrency exchange?

In the annual “two sessions” (called because two major parties, the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPCC)), participate in the forum held in the first week of March, the leaders gather to discuss the latest issues and make the necessary changes to the law.

Wang Pengjie, a member of the NPCC, delved into the prospects of a state-owned digital asset trading platform, as well as starting educational projects on blockchain and cryptocurrency in China. However, the proposed platform would require an authenticated account to allow trading.

“With the establishment of related regulations and the cooperation of the People’s Bank of China (PBoC) and the Securities Regulatory Commission of China (CSRC), a regulated and efficient cryptocurrency exchange platform would formally serve for companies to raise funds (through ICOs) and investors to maintain their digital assets and get a capital valuation “Excerpts from Wang Pengjie ‘s presentation at the two sessions.

The march towards a blockchain nation

Governments and central banks around the world have struggled to combat the growing popularity of cryptocurrencies; but one thing is for sure: everyone has adopted blockchain.

Despite the repression of cryptocurrencies, the blockchain has been gaining popularity and adoption at various levels. The Chinese government has supported blockchain initiatives and adopted the technology. In fact, the People’s Bank of China (PBoC) has been working on a digital currency and has conducted counterfeit transactions with some of the country’s commercial banks. It is not yet confirmed whether digital currency will be decentralized and offer cryptocurrency features such as anonymity and immutability. It wouldn’t be a surprise if it turned out to be just a digital Chinese yuan, given that anonymity is the last thing China wants in its country. However, created as a close substitute for the Chinese yuan, the digital currency will be subject to existing monetary policies and laws.

Governor of the People’s Bank of China, Zhou Xiaochuan. Source: CNBC

“Many cryptocurrencies have experienced explosive growth that can have a significant negative impact on consumers and retail investors. We don’t like products (cryptocurrency) that take advantage of the huge opportunity for speculation that gives people the illusion of ‘get rich overnight’ Interview with Zhou Xiaochuan on Friday, March 9th.

In a media appearance on Friday, March 9, the governor of the People’s Bank of China, Zhou Xiaochuan, criticized cryptocurrency projects that took advantage of the crypto-boom to collect and fuel market speculation. He also noted that the development of digital currency is “technologically inevitable.”

At the regional level, many Chinese cities have launched blockchain initiatives to promote growth in their region. Hangzhou, known for being the headquarters of Alibaba, has stated that blockchain technology is one of the city’s top priorities in 2018. The local government of Chengdu City has also proposed building an incubation center for encourage the adoption of blockchain technology in the city’s financial services.

Local conglomerates such as Tencent and Alibaba have also formed alliances with blockchain companies or started projects on their own. Blockchain companies like VeChain have also secured multiple partnerships with Chinese companies to improve supply chain transparency in China.

All clues point to China working towards a blockchain nation. China has always been open-minded to emerging technologies such as mobile payment and artificial intelligence. From now on, China will undoubtedly be the first country with a blockchain. Will we see the Chinese government step back and let its citizens trade again? Probably when the market has matured and is less volatile, but definitely not in 2018.

3 solid reasons for the world of digital currency: cryptocurrency

Welcome to the “cryptographic” world.

– A mastery of Blockchain technology

– A cryptocurrency market

– A closet of the Bitcoin payment system.

So here’s the trend or you can call it the “world of digital currencies” with a big step up in the game.

If you avoid Bitcoin and cryptocurrency today, you will fall into a ditch tomorrow. In reality, it is the present and the future of the currency that does not know how to take the steps. From its inception to date, it is growing and helping many people around the world.

Whether it’s Blockchain to record transactions or a Bitcoin system to manage the entire payment structure or an Erc20 token portfolio to define the rules and policies for the Ethereum token, everything goes hand in hand and into the world’s new currency stream .

Sounds great, right?

Also, with the advent of this successful currency mode, many of the companies like to be a part of this game. In fact, it is about helping companies or organizations get Blockchain technology or cryptocurrency without any hassle through a reliable Blockchain development company. With a lot of knowledge and potential, these companies are developing this currency and playing a vital role in the digital economy.

Just for a nano-second, if we assume that cryptocurrency will no longer exist, what will happen?

Maybe, time will counteract your thinking.

First launched by Satoshi Nakamoto, Bitcoin was the colonizer and, from that initiation, an innovative digital currency with a spectrum of good things evolved.

So the question arises: will the development of cryptocurrencies or their cryptocurrency-creating company disappear or stay until the end?

In reality, it is not possible to predict the future, but we can say that the cryptocurrency or the Erc20 or Blockchain or Bitcoin Wallet Development Company will be there with the same taste of enthusiasm and passion to lend a hand to organizations and business verticals. .

John Donahoe, the former CEO of eBay, said: “Digital currency will be a very powerful thing.”

And it turns out to be very accurate as time approaches.

He actually has some valid reasons behind the success of this concept.

Fraud test:

With cryptocurrency, blockchain is associated. Therefore, every transaction is recorded in this general ledger, avoiding any deception. And all identities are encrypted to overcome identity theft.

Erc20 takes care of all the rules and protocols, so no rules or orders are broken. If you’re there, don’t forget to contact development company Erc20 and get it developed within the standards.

You are the sole owner:

No third party or other wizard or electronic system to evaluate what you are doing. Only you and your client maintain the end-to-end experience. Isn’t that a great concept?

However, the solution is instantaneous and is handled between you and your provider without any further interruption. At the end of the day, it’s your call.

Easily accessible:

The internet has done everything within reach and reach. It plays an indispensable role in the digital currency market or the foreign exchange market. You will have a better option for currency exchange instead of using traditional and time consuming forms. And, a wonderful way to be understood as an enthusiast of the realm of cryptocurrencies.

If you own a business and plan to welcome cryptocurrency to your area, always go ahead with a particular decision. Approach a trusted provider or develop cryptocurrency exchanges that discuss it with all the cards open and then hit the ball on the field.