Category: Bitcoin

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.

With advanced technology, the graph of users of cryptocurrencies is also going upward. Many countries have recently given a green signal to use virtual currency. Japan is one of the leading nations in this where it has decided to have some better platforms for virtual currency. One of the biggest exchanges for cryptocurrencies in Japan, Huobi, is all set to introduce 6 new tokens into the market. It has asked the users to cast their vote in this regard about choosing which tokens they would like to see listed in the exchange. The exchange has mentioned the details in the official portal, and it is in the process to include 6 new tokens among IOS token IOST, Enjin ENJ, NEO, Tezos XTZ, Ontology ONT, and QTUM. As per the official circular, users will start voting, and the process will be completed before the 16th of August 2020.

Process of voting

The voting has begun since 16th of July 2020 and users will be allowed to cast per account 1 vote they have with Huobi. The account holders can vote every Friday, and maximum five votes will be allowed per account. The voting process will end on the 16th of August 2020. The token that gets the highest number of votes will be considered for listing in the Huobi exchange. However, there is no guarantee about that, and they are just considering public opinion before adding suitable tokens into the exchange.

Popular tokens that are likely to get listed

Among all the tokens that are in the race, three of them from China are having a good chance of getting listed in the Huobi exchange. The IOST platform, NEO and ONT are the top tokens that are likely to be listed according to sources. The IOST is similar to Ethereum blockchain, and the token is based on the Internet of Services which can be used for smart contracts. NEO, on the other hand, that is in the business of developing digital IDs and smart contracts. ONT is in the business of providing blockchain solutions to companies.

Currently, Huobi is offering 7 cryptocurrencies for trading including BTC, Ethereum, Ripple, BCH, Monacoin, and Litecoin. Considering the growing demand for cryptocurrencies across the world, many tokens may get added in the near future. This will also help traders to diversify their investments, and they can participate in several cryptocurrency rallies at a time with such options.

A new crypto-coin backed by two leading crypto-giants has started to make waves in Latin America after six months of its launch. With a market already welcome to various crypto-currencies, the new altcoin has taken advantage of this warm-welcome and has been adopted by millions of customers. After its inception in 2014, it has become Mexico’s leading and primary block-chain based currency and has gathered considerable momentum since its launch. The widespread reach of the altcoin was recently discussed by a panel of experts including the backers of the said currency.

Rapid Success

The path-breaking advancements and swift success of the currency are partly supported by the local market’s increasing need for such secure, virtual, and block-chain based currencies that are easily operated through remote connections. A large pool of freelance users is also a big chunk of the crypto-currency customer group that has taken part in the new altcoin’s fantastic success. The ease of handling through one’s smartphone instead of the confusing and meandering processes of the bank is also an instrumental factor. People seem to favor a form of currency accessible easily through the mobiles they can operate in the comforts of their home.

Record-Breaking Performance

This amazing expansion of a relatively new crypto-currency comes at a time when crypto-currency transactions and investments are at an all-time high in the local market. With a recently executed trade that was conceptualized in the figures of millions of dollars, the market has witnessed a record in crypto-currency dealings and trades. The owners of this novel altcoin are rapidly gathering immense success as they make further ambitious plans to expand their base from the local market to international ones. With more investments coming their way, Bitso is riding a wave of continual success and an all-time high.

Reasons behind success

One of the basic reasons for such rapid development can be attributed to the main benefits if dealing with crypto-currency. These may include their high safety measures and transparent recordings. Pioneered by the innovative technology of block-chain development, crypto-currencies are extremely hard to be siphoned off by a third-party hacker. Further, the system of the peer-to-peer network also helps to maintain the transparency that further prevents any chances of trouble. Crypto-currency has also been gathering momentum with many reputed and trusted investors backing their introduction into the mainstream market.

Other reasons behind such an electric introduction of a new altcoin may also be because of the ease of use associated with crypto-currency. All you need to start transactions and investments involved in altcoins is to get online and get yourself an e-wallet. After that, the user is free to accept- send and investment in the virtual currency any way they like without the worry of outside hackers swooping in to steal all of their hard-earned money. But one has to be careful in keeping their private keys private since hackers may try to find this key in order to gain access to your wallet. It is advised to keep it safe in an offline encrypted device or even on printed paper to ward off hackers.

Crypto-currency is making large and considerable waves all across the world as is evident by such a scale of success for a relatively new crypto-currency introduced to the market. With investments still going strong, and millions of users adopting crypto-currencies every minute, the future of this virtual wealth looks bright. The financial landscape is no more the slow-paced elephant of the times of our elders; it is now a dynamic and fast-changing space of constant movement that is improved by the presence of crypto-exchange.

Bitcoin has grown massively in the last decade since its inception from a small community basing its values on cypherpunk to become a concern for national security with strong implications on geopolitics. Melterm Demirors, CSO of Coinshares and Andy Bromberg, Coinlist’s President, spoke as a part of the Unitize Panel named “From Bitcoin to Fedcoin: The Next Decade of Digital Money.” However, very little was spoken about Fedcoin or the Central Bank’s currencies at the event by the invited dignitaries. Instead, the entire focus of the conversation was tilted towards how Bitcoin is going to play a pivotal role in the coming time, especially its implications in geopolitical landscape and competition in the space of technology. 

Demirors said that in recent years, there had been a major shift in power dynamics. It is more dependent now on computing technology and fast connectivity, which plays a major role in national defense and cybersecurity. While giving examples of the changing dynamics, Demirors gave an example of how Amazon Web Services went on to become the biggest defense contractor in the country while Huawei was allegedly charged with threatening national security through its technology and consumer outreach. Meltem Demirors believes that as the United States has allowed foreign governments to participate in the infrastructure building contracts, the move by Huawei may be politically motivated. 

Recently, semiconductor firms like TSMC and Intel have been planning to take back the production of their hardware to their respective native countries. Demirors believes it is a possibility with Bitcoin mining as well in the future. She speculated that it is possible in the next few years; more than 40 percent of Bitcoin mining takes place in the United States itself. The government, in the future, may look at the cryptocurrency networks as a part of the national security apparatus. 

 While talking about government-issued digital currencies and Stablecoins, Demirors said that they could not be classified in the same category as Bitcoin. Currently, the idea of digital currencies is being adopted by many people and is being used in different ways. It is mainly because the space of digital assets and currencies is evolving and yet to fully mature. However, Demirors did say that Central Bank digital currencies have no connection or similarities to Bitcoin whatsoever. 

Both Demirors and Bromberg reiterated the fact that using the phrase “blockchain-based” is misleading, partly because of the infiltration of propaganda in the industry. However, they both agreed at the event that the Central Bank’s digital currencies are a much better option over the current digital fiat infrastructure. She noted that whether it is Bitcoin, Stablecoin, digital bank currencies, or any other projects, they all are trying to solve a problem that we are currently facing. 

Meltem said that the biggest problem that Bitcoin solves is that of choosing which monetary system to go with. Many people who do not agree with the existing monetary infrastructure have little to no choice to fight back. Digital currencies that are backed by dollars do not solve the issues of privacy, censorship, and financial control. Bitcoin is the dominant force to reckon within the space of digital assets and currencies and is on the way to becoming the resistance money. So, in the end, it can be paradoxically said that Bitcoin plays a role in national security, while also giving an option to escape it. 

Among the users who love to use the latest options in the field of technology, the blockchain is known as the latest option. For the new users, it may be something new, and they may not be aware of its usage, but those who are in this field know the use of this technology in various fields and understand its importance as well. Many blockchain enthusiasts feel that it is high time that service providers have interoperable blockchains in the market. While this seems like a feasible option in the near term, it has many challenges. To begin with, current issues include loss of important data and loss of funds during international transactions. All of these have to be covered up with new patches that uniformly work on all crypto platforms. Apart from that, the entire lots of cryptocurrencies have to maintain some sort of uniform coding so that they can provide similar security features for the users. In this way, users will feel comfortable to switch from one currency to another without any hassles. The security concerns are grave and in the interest of users as well as companies that offer the currency and their use on various platforms.

SIA partners with tech giant Quant Network

Many companies in this era are interested in the use and development of this technology. In a recent development, SIA, one of the leading payment providers in Europe, has partnered with Quant Network and conducted several interoperability tests with cross-blockchain transactions. All this was done successfully, and it is mainly designed to facilitate data transfer between different blockchains. With such advanced frameworks, it will be easy for developers to implement cross-platform applications into the market. In this way, banks and other financial institutions can allow cross-blockchain transactions without facing any issues.

Markets are not yet ready for cross-blockchain transactions

Even though many solutions exist today with regards to cross-blockchain transactions, it is still not up to the mark. Most of them still work on some centralized platforms, and they have to be devised into decentralized solutions in order to fit them perfectly into the blockchain model. The financial institutions have to open up their systems and make it easy to share information between different platforms. This is also beneficial for processing payments in a quick time, and it will also improve efficiency by a considerable margin.

Issues with cross-blockchain systems

There are several issues associated with the current cross-blockchain systems that are available in the market. The biggest challenge comes with making such transactions cheaper and faster. When it comes to cost issues, it depends on various factors as the cost of KYC for cross border transactions are very high, with several banks and financial institutions. In this regard, a uniform fee structure will be beneficial to cut down costs associated with cross-blockchain transactions.

Speed of transactions

The speed of the transactions also depends on various factors. Its biggest hurdle comes with the combined efficiency of all the blockchains included in the system. The overall speed depends on the lowest-performing system in the chain. It can drag the performance of all other blockchains involved in the system. In this way, a standard has to be reached before implementing interoperable blockchains across various exchanges. We have already seen various outages when prices of certain blockchains move by a huge margin. In this situation, managing interoperable blockchains still look like a distant dream. However, with constant up gradation in technology across various platforms, it may become possible in the future.

As cliché as it sounds, but it is a truth that the wealth of rich keeps increasing and the poor find it difficult to make the ends meet. There’s a specific reason for this. The unbanked don’t have access to proper resources to increase their wealth. They remain in the cave when it comes to earn more and increase their assets.

In plain words, it can be termed as an injustice. It should not be only available to people with wealth. Unless taught by a professional, people with no wealth remain uneducated about various methods to increase their money.

For some people, Bitcoin is just a word. They don’t know what it means and how to acquire it. Why? Because finance gurus and experts don’t teach anything to the economically weaker class. In short, to make the unbanked wealthy there should be a transparent way to provide them with financial resources.

The traditional financial system is flawed in many ways. The unbanked are suffering from the side effects of debt and inflation. A lot of debate is conducted on the failure of the system but no one provides a solution to it.

Money is just being created out of thin air. There can be a solution to balance the ecosystem. Bitcoin is the way to correct the errors of the fundamental financial system. It is an evolvement on its own. There is no discrimination while transacting a Bitcoin. Everyone is treated equally in this system.

You must know that when you are making a transaction in Bitcoin, your identity is not revealed and not even your name. Your wallet is also encrypted with the Bitcoin. In a nutshell, there is no chance of dividing a certain group of people according to the wealth they own. No one will ever know how much digital wealth you have.

Everyone is treated with the same respect in the world of Bitcoin cryptocurrency. No one can judge you based on your looks, financial, and social status. Doesn’t it look like a perfect financial system? Yes, it does.

As a society, it is our responsibility to teach everyone about such a system. Everyone should know how to save for the future by investing in the Bitcoin. It will be much better if future transactions will take place in Bitcoin rather than dollars.

The dollar has no inherent value. Its value keeps on changing every day and it is highly volatile. Bitcoin too is highly volatile but its rewards are high as compare to the dollar or any other currency. Needless to say, it is highly secure to make transactions in this digital currency.

When people start to use Bitcoin as their primary method to invest money, they will get to know how to get more gains by making little investments. Ideally, this thing should have been taught by our peers but since they have not, we have to make changes in our lives.

Making more money is a discipline that very few people know. Every other person thinks that he or she may need thousands of dollars to get started. A big part of the American population can’t afford an unpredicted expense. Their entire budget gets disturbed if they have to repair the car in the mid of the month.

The economy can only be changed if a certain method is used to get rid of this inequality in society. People should be empowered by providing educational resources and knowledge on how to build wealth. They should know how to save and invest in their current earnings.

For example, teaching the unbanked about the Bitcoin is also a solution to fill the gap in current economic differences. Just the way nature works on the law of evolvement and adaptation, so should we.

We should know there is a problem in the current financial system and we should do something about it. Bitcoin is the answer to get out of debt by investing carefully and generating the wealth we deserve.