Month: August 2020

The financial pundit George Ball has changed his tune regarding Bitcoin. The head of a reputed business firm had previously been unwilling to see the cryptocurrency as a viable player in the economy and something to be reckoned with. But with recent approving moves by the federal authorities and growing correlation of Bitcoin with traditional forms of financial resources, the man seems to have seen Crypto’s glory. The pandemic has put things into perspective, and the lacking capabilities of traditional government-run economic elements have made it clear that they cannot be depended upon in trying times. On the other hand, altcoins seem to be thriving in these uncertain times and have sufficiently corroborated their risky nature of operations.

Turning Viewpoints:

Ball explained his shifting loyalties with the growing concern of the market further weakening because of the governments’ generous distributions of stimulus packets. The subsidiaries may be necessary for people right now, but the solution is a short stilt that will further dishevel the already weakening economic stick house. These preliminary measures will come back as huge tidal wave destruction to many modes of transactions accept cryptocurrencies.

Renewed Faith on The old reliable:

The finance head reiterated the common benefits of Bitcoin in a newer post-pandemic light. He emulated the safety of cryptocurrencies and how they can act as long-standing repository wealth unaffected by the shifting winds of finance or the devastating effects of natural calamities. He also praised Bitcoin’s trading capabilities and how it provides high returns during critical points in time. He assured that brighter days lay ahead as many traders will turn towards altcoins in huge numbers as government-regulated fiat currencies will quickly lose ground once the after-effects of all those public subsidiaries roll in. Thus the most fundamental feature of Bitcoin, that is, autonomy from authoritative control, will be a major attractive quality for new users.

The ball is not the only previously unmoved trader that has changed his opinions with changes the economy is facing today. Many other industry honchos who had limitedly accepted Bitcoin’s ingenuity are now embracing with wide arms and hopeful eyes. The stability of the altcoin due to its independence from government regulation, increasing valuations, rapid and explosive returns along with a Bull Run forecast up ahead has greatly increased the appeal of all forms of cryptocurrency for the previously skeptical. 

In the past some years, the use of virtual currency has been increased, but yet people do not take it as money. However, a decision provided by the court of law in the USA, there is no doubt that money is not different than the bitcoin. In a surprising outcome, the D.C Federal court has said that Bitcoin is a form of money. Hearing the case of United States v Harmon, Howell, the Chief Judge mentioned that Bitcoin is a form of money as generally money is a medium of payment and exchange and anything that can store value. Bitcoin meets all these requirements, and hence it can be considered as money. This verdict has created sensation in finance world and also opened the new directions for the virtual currency.

Bitcoin covered under Money Transmitters Act

As per the new ruling, Bitcoin is now considered a form of money, according to the Washington D.C Money Transmitters Act. The money laundering case against Larry Harmon, who operated an unlicensed bitcoin trading platform, was heard by the court, and it declared bitcoin as money so that criminal charges against the accused could not be dismissed.

What experts say in this matter?

While the court’s decision has cheered many market participants in the cryptocurrency market, things still remain the same as per market experts. The decision of the court, which agreed that bitcoin is a form of money, is meant in that particular context of money transmission licensing in D.C. Apart from that, it does not provide any validity for the cryptocurrency in other forms of the financial markets.

Investors should not get too excited about this decision, and it should be taken with a pinch of salt as it does not provide legal sanctity to cryptocurrencies. Many investors are shying away from such investments as they are afraid of regulatory sanctions against cryptocurrencies. In some countries, such cryptocurrency exchanges have been banned without considering the fate of investors. In this situation, investors should always exercise caution while dealing with cryptocurrencies.

In most cases, even though you might be dealing with a stable cryptocurrency like Bitcoin, you should also be careful about the exchange offered by the trading services in this virtual currencies. If the exchange is not having regulatory permissions from the local government, it may get into trouble at a later stage, and you will face problems with your investment. Investors should consider all these factors while investing in cryptocurrencies.

The CEO and Founder of Cypherium blockchain, Sky Guo, recently said that he believes the central bank digital currency (CBDC) based international payments would start happening in the coming years or maybe even sooner. Sky also said that the development happening of CBDC in the central banks of many countries would make way for many countries in the European Union as well as the United States and China are leading in the international payments across borderlines. At the rate in which the developments are taking place in this field and the interest of the banks to make CBDC a reality is what gives hope that the cross-border payments would soon become a common mode of making payments in the near future. 

There are many countries across the globe that is domestically experimenting with the CBDC by launching pilot projects. One such example is Didi, a ride-sharing company that has partnered with the respected Digital Currency Research Institute of China. It is what makes the cross-border payment through CBDC in the future inevitable, said Sky Guo. However, he did mention that there is one hurdle in the process that is the different technology and regulatory parameters used by different countries with respect to CBDC. Sky Guo said that the central banks of different countries should work together to solve the interoperability features, which can otherwise cause a range of issues. Unless these interoperability issues are resolved, the CBDCs of different countries wouldn’t be able to interact and adapt to different systems and technology, making the global adoption or cross-border payments almost impossible. 

Sky Guo said that there are two categories of CBDCs, namely retail CBDCs and wholesale CBDCs. The retail CBDCs are primarily used for daily purchases by retail investors, whereas the wholesale CBDCs can be used for bigger transactions, mainly by the banks and similar financial institutions. Coming with the solution, Sky Guo said that Cypherium blockchain, made by combining HotStuff combination and Proof-of-Work or PoW algorithms, provides a solution that enables cross-chain interoperability for Central Bank Digital Currency. 

Sky Guo is among the most noted figures in the crypto world and is also part of the OMFIF Digital Monetary Institute. He has been part of the many virtual roundtables and conferences with the People’s Republic of China, De Nederlandsche Bank, Digital Currency Research Institute, Banque De France, and European Central Bank, along with many others leading names in the crypto and financial world. Sky Guo believes that banking and financial institutions have to work together to bridge the gap between the traditional banking system and digital currencies. It is, for this reason, the global mind behind the central banking system, OMFIF has launched the Digital Money Institute. 

The main purpose of the Digital Money Institute is to engage in market research and study the issues and problems that the digital currencies are facing globally, and make its adoption easier, not only by the retail investors but by institutional investors and financial organizations. 

While the concept of blockchain and peer-to-peer network in crypto-currency may have revolutionized the technological world, there are certain blocks in the path of its true development. For years innovators of crypto-currency have stuck to their specific doctrines as well as the technologies that operate through them despite many of the problems involved.

For the blockchain algorithm to flourish in the virtual world unhindered, users must be able to exploit every platform providing the cryptocurrency service without having to be stuck with one because of petty disagreements between the developers.

Basic Vitality

The main vitality of inoperability in blockchain lays in the plethora of opportunities it will present. It will be able to further progress from crypto-currency development to other forms of ownership, especially that of data which is as valuable as gold in this fast-changing world. The ongoing coronavirus pandemic has placed a mirror to the various problems associated with supply and demand as well as how important it is to cooperate during a crisis. The blockchain holds its essence in its ability to let the unanimity of the whole group hold cognizance as well as to maintain transparency and easy application. These solutions can be applied to many commercialization processes that a growing economy desperately needs.

The big obstacle

So what is stopping us from using blockchain in a more global way? The lack of inoperability is the bigraison d’etre. The lack of inoperability forces the user to be stuck in the blockchain that he’s using and doesn’t allow her to communicate or affect another blockchain simultaneously. Along with that, the process of choosing the correct option to develop of a blockchain becomes extremely over-complicated since the correct choice differs from blockchain to blockchain.

The much-needed solution

Inoperability requires the platform-innovator to be a little large-hearted and allow the developer who didn’t opt for their particular platform to progress regardless. The developers must be encouraged to help each other out and opt for a universal code of operation that will bring uniformity to an overly complicated process that need not be so.

The secret lies in the intrinsic need of humanity to help each other out. Instead of focusing on gathering the most number of transaction and become the biggest chain on the block, true progress can be achieved by cooperation.