According to a Bloomberg report, CEO of Square Inc. and Twitter, Jack Dorsey, expressed sanguinity about the role of cryptocurrency in the future. Dorsey said:
“The internet deserves a native currency — it will have a native currency.”
On Wednesday, Dorsey shared the idea of cryptocurrency enthusiasts — at the Consensus conference and cited virtual currencies as the future of a legitimate way of global crypto payment. He also said, he doesn’t know whether it is going to be Bitcoin or any other cryptocurrency though he said:
“I hope it will be.” He also added:
“This technology is a fundamental shift in our world and can have so many positive outcomes. We have to do the work to educate regulators and educate the SEC why this technology is important.”
A developer of payment and financial services solution, Square, permitted traders to accept Bitcoin in 2014. It made the availability of Bitcoin trading for almost each and every user of its Cash App. Everyone at Square doesn’t share the same enthusiasm as Dorsey, though he said, it was quite combative to move in the company. He also added, there are still many discussions and arguments over this topic, but according to Dorsey, many of the board of directors of the company are also robust to the idea of cryptocurrencies — crypto payment system.
Square reported low profits at the beginning of May — in the first quarter for the trading of Bitcoin, which amounted to only $200,000. The trading of Bitcoin made a 5% revenue overall, which was almost $34.1 million, and $33.9 million has been spent by the company in order to purchase tokens.
The recent speech of Dorsey reiterates his previous comments that the leading cryptocurrency, Bitcoin, is going to become the single currency of the world within a decade.
“The world ultimately will have a single currency; the Internet will have a single currency. I personally believe that it will be Bitcoin.”
At this time, Bitcoin seems to be sluggish and inflated, which makes it even more hard to use as a medium of exchange. Future on Bitcoin — Dorsey also added:
“As more and more people have it, those things go away
One of the largest markets for cryptocurrencies after Japan and U.S. is South Korea, as it’s believed by many. South Korea’s population is equivalent to Arizona and California if they’re put together. The cryptocurrency speculation looks like it has been overhyped unreasonably and South Korea’s government wants to take some fundamental steps now, to control this cryptocurrency trend in the crypto world.
South Korean’s Crypto-Market – Current Situation
At this time, you can clearly see a lot of chaos in South Korea. It all started when the government of South Korean officially legalized Bitcoin service back in July 2017, which caused a momentous progress in the demand for cryptocurrency trading all around the country.
North Korean hackers targeted South Korean Bitcoin exchanges in August 2017, and by the end of September, there were many rumours that South Korea was planning to execute stricter regulations on cryptocurrencies. These rumours turned out to be more serious by December and based on speculations, it changed into an absolute ban on cryptocurrency exchanges and had a bad impact on the crypto world.
South Korea Influence on the Cryptocurrency Prices
According to an estimation by The Blockchain Industry Association, South Korea has many cryptocurrency exchanges, including;
This tells us that even with 50 million people in a country, the demand for cryptocurrencies is so high that it has traded at more than a 30 % higher price than other countries.
80% of the investors in South Korea have earned from investments in cryptocurrency and almost one-third of salaried Koreans have an average of $5,000 in cryptocurrency, which is a huge acceptance of an unapproved investment based only on speculation.
How are cryptocurrency traders operating in South Korea?
Many banks including the second largest one in the country, Shinhan Bank, offer local cryptocurrency exchanges with computer-generated bank accounts. Each investor/user can use these virtual bank accounts for depositing or withdrawing huge amounts of Korean Won without using their real bank accounts, which takes a lot of time and is costly at the same time.
The industry is currently under the government’s radar, amid other fears, that illegal funds will be entering the market and management of price of cryptocurrencies will be based on speculative investments.
How’s 2018 been so far for Cryptocurrencies in South Korea?
More regulatory plans have been announced by the government to ban this anonymous cryptocurrency, in order to control cryptocurrency speculation. Meanwhile, after this announcement, several South Korean exchanges were removed by the CoinMarketCap from its website, stating that extreme price divergence is the main reason for this. Around $20 billion was wiped off Ripple’s market cap as a result. After a statement by the Ministry of Justice, news of a whole cryptocurrency ban arose once again.
Is there going to be any ban on the cryptocurrencies?
The government started to notice huge speculation that drove instabilities in the cryptocurrency market since September 2017 and in order to evade money laundering and other crimes related to it, strategies to prohibit anonymous trading on local exchanges were testified in December 2017.
The Prime minister of South Korea, Lee Nak-Yeon, warned about the hazard of cryptocurrencies being an easy way for the younger generation especially students, to get involved with such illegal activities.
Regardless of the media misrepresentation of more stricter rules for cryptocurrencies, at the beginning of 2018, Kim Dong-yeon (the Finance Minister) ensured that there’d be no ban of cryptocurrencies in South Korea. The government also proclaimed that there’ll be tax on cryptocurrency exchanges around 24%. Apart from banning anonymous trading, they’ll be banning foreigners and minors from opening any other new cryptocurrency accounts as well.
How South Korean government will enforce bans?
The south Korean government has restricted the opening of new virtual accounts and cryptocurrency traders won’t be permitted to make any deposits into their virtual currency exchange wallets. They’ll be only able to deposit it only if they’ve the name of their cryptocurrency exchange and it matches that of their bank accounts.
It’s been demanded by financial authorities to the cryptocurrency exchanges to revamp their AML (Anti-Money Laundering) and KYC (Know-Your-Customer).
Are These planned regulations of South Korean affecting the crypto-industry?
Because South Korea has such a huge cryptocurrency market, this means that these regulatory decisions of government will have a huge impact on the crypto market worldwide.
During all these rumoured reports of the government banning cryptocurrency, the total market cap of all coins was declined by 40% in just one day. But shortly afterwards, the market cap started to rise once again.
All the rumours have played a big role in the cryptocurrencies’ price, and any change in the economic decisions or law made in the hubs of major crypto, will always result in such instabilities.
However, there’s always a possibility that it will climb back to the pre-crash levels.
Roque Solis, president of the SoliSYSTEMS corp, never fictionalized that bitcoin mining equipment he credited in February would have already paid for itself and made money as well. SoliSYSTEMS Corp is a company which developed an EMV smart cards for electronic advantage transfer for the federal backing program.
Solis was powerless to ignore bitcoin by attending a number of conferences. So, he decided to do experiment new technology via mining. He wants to get the better handle on the technology, whether this technology has the ability to use in this company or not?
Then, Solis bought a Bitmain Antminer S9 for $2,400.
As a result, he mined 1.01BTC worth $2,584 in Bitcoin wallet, on this weekend. Solis said, “When I bought the miner, the price per bitcoin was around $1,200. I thought I’d break even in one year, but actually, it’s been about five months.”
This gain indicates that individual hobby mining is not profitable anymore. Distinct miners don’t have the capacity to compete with the companies in mining bitcoins. with the $600 below price, electricity and pool fees, a person needs 500 days to break even on miner investment.
Furthermore, the rise in awareness about the mining pool, the price is also getting higher. Solis’s experience shows that hobby miner can break even within few months.
According to the Solis, money’s amount is increased on daily basis with miner’s jump from $7 to $16 freshly.
According to the Sean Walsh, rising price of the bitcoins motivates the investing behavior of the miners. It is a key process which supports the whole network by safeguarding its ledger. Walsh said, “There are a lot of metrics that actually matter, like the number of people that own at least one bitcoin, but nobody cares about that. It’s just price. It’s the one score that wakes people up, and when The Wall Street Journal and other financial publications write about bitcoin.”
While Google trend shows the similar stories of bitcoin and bitcoin mining. Price factor of the bitcoin is not only the reason of increasing interest hobby mining. According to the Walsh experience, bitcoin transaction fees were stable from last few years, those fees have seen an uptick.
Walsh said, “This has to do with the block size debate, because the network is a bit congested, and people are having to pay more to get their transactions confirmed.”
In past, 100 bitcoins were per day transaction fees. Then this fee reaches to 350 bitcoins a day.
And, by 1,800 bitcoins shaped daily, 350 bitcoins are near to 20% of that. This is a blunt difference, a year ago when 60 bitcoins were paid in fees and 3600 produced on daily basis.
Walsh said. “that’s a huge boot.”
He added, “I don’t know that [increasing transaction fees] are affecting people’s interest in getting into mining. People may not realize why it’s more lucrative to mine bitcoins now, but when they run the numbers, the payback period looks better than it used to.”
He added, “It’s very important for people entering bitcoin mining that they really understand how to calculate their revenue and expenses. They need to make sure their cost basis and operating costs are very low.”
Like, if a junior miner overspends on accommodating servers, then there’s a modification, they are over-leverage.
Bitcoin’s value was down about 20% over the last weeks of June. Walsh said, “normal respiration of an asset class.” So far, others are not experienced in investing process and might be unaware of these fluctuations in bitcoin’s price.
According to the Solis, “it’s all about learning through experience”. The Antminer S9 is running in Solis’s company’s server room and in the presence of the groups of servers, he is unable to identify how much electricity is used by the miners. Solis says, “It is noisy, though,” and “Compared to the other servers, it’s very noisy.”
It is a machine with two particular boards with fans that rotate at 54,00 – 7000 per minute revolution. Solis is not the only one person who interesting in bitcoin hobby mining.
The future of bitcoin
The world today has reached at fairly modern-day monetary practice by now. Making its way through the barter system, and from coins to paper. So, where are at today? What is the next step? The answer is – Bitcoin.
Challenging and confronting all the monetary compulsions of the world, Bitcoin came into flow around 2009. Introduced by a pseudonym, Satoshi Nakamoto this peer-to-peer system started making the news by 2013. Its distinctive architecture makes it ‘mining’ more resource intensive gradually during the time. The main unique feature linked to this cryptocurrency is that the total production of bitcoin will be limited to 21 million. This number can not be exceeded at any time.
The value of Bitcoin has been behaving volatile since ever, but the extreme volatility has been seen since 2015-2016. After a China-led spree, there was again a sudden up thrust in the value of the currency, making headlines of another outbreak, reaching its highest value. But this vertigo doesn’t seem to stay steady at any margin.
Backbone of Bitcoin
Blockchain technology- the most hyped one, is the backbone of the system. It is a foundational technology which has the legitimate potential to change the world. And without a doubt, it can create new foundations for our systems in social and economic circles. This may seem like the ‘tulip fever’ in the 17th century to a lot of onlookers, but the bubble doesn’t seem to burst anytime soon.
Bitcoins are only generated by the process called ‘mining’. These transactions are compiled into blocks and participants are given mathematical puzzles to solve. The one who solves the problem first, is awarded with Bitcoins in exchange for services. Sounds easy? Not really!
These bitcoins are stored in a digital wallet that is somewhat our bank accounts. These wallets can be installed on our computers or cell phones. All the transactions performed are stored in the blockchain. It works as a public ledger. The transactions must be verified by the network in order to work. This network is architected substantially in an algorithm that generates the high level of security, so no other user can spend your funds.
The Blockchain is like digitized, secure ledger which stores every information and runs this disintegrated system. Bitcoin relies on Blockchain to perform and conduct every transaction.
What does the future hold for bitcoin?
So, what’s next it has in store for us? As unpredictable as these nine years, the future of these Bitcoins will remain the in same vertigo. It has been tied to nothing but algorithms and falls under no influence.
Bitcoin has so many advantages to being just wiped off or not to be accounted for by any time in near future. It has already made itself interlinked with some big economies and is here to stay with the same fluctuating nature.
These cryptocurrencies may have possibly bypassed the rules of traditional monetary and financial systems but there still are many limitations in the system.
In order to reduce these, there has been made an e-shop where you can spend your digital currency. The portal allows consumers to buy products using bitcoins.
The financial system legacy has served us long without giving much room to more. A mere chance given to the cryptocurrency revolution without government interfering will harm no one. Except there will be less power resting with the government that they are used to of practicing.
Countries that have weak currencies oppose greatly of this system and are planning to ban the digital money completely. But it’s not stopping the consumers adopting and accepting this new change and development. It definitely has the ability to change the financial pipping of the world. But whatever the argument may sit or face, despite the fluctuating price of this system nothing is certain for sure.
Ethereum is one of the leading cryptocurrencies in the digital world. In fact, it’s the second most popular cryptocurrency after Bitcoin. The technology used to develop Ethereum algorithms is same as Bitcoin, and this is the main reason why these two function in a pretty much similar way.
Now, the question that comes to the mind is: if both Bitcoin and Ethereum are similar in nature, what makes the purchase of Ethereum more sensible over the purchase of Bitcoin and other cryptocurrencies?
In this article, we have discussed 1o reasons why buying Ethereum over makes more sense. Let’s give them a read!
Reasons to Invest/Purchase Ethereum Over Bitcoin In 2017:
The Bitcoin network has recently gained the reputation of being slow. According to the news coming out of Bitcoin community, this is due to the increased volume of transactions on the network. The slow confirmation time has left the Bitcoiners extremely annoyed and agitated. On the other hand, Ethereum offers transactions that are much faster. For an insight, the average Ethereum transaction time is 12 seconds in comparison to 10 minutes of a Bitcoin transaction.
‘Smart Contracts’ is a unique feature of buy Ethereum. It is basically an exchange mechanism which holds the precise records and assists two untrusted parties to make a direct exchange. These Smart Contracts reside in Blockchain and are autonomous to third party influence.
Ethereum Is Open Source:
Ethereum algorithms are open source, which means any programmer/developer can access the code without having to go through permissions regarding the improvement of the code. The biggest advantage of Ethereum’s being an open source is that it allows the collaboration of projects between different sectors of industry that are based on Ethereum. As a result, the projects become seamless and more Integrative with each other.
No Third Party Involvement:
Using Ethereum allows you to avoid dealing with third parties such as banks, lawyers, etc. The transactions do not depend on any intermediaries. The only thing they are dependent on is the Ethereum network.
Compared to Traditional Banking, The Security Is Much Higher:
Our traditional banking system creates transactions on a monthly basis. The code of these transactions is stored in a bank’s computer and there are validations and approvals by the central authority. On the other hand, the code for Ethereum transactions is stored on participating computers. These computers forward this code to the network’s nodes – making the transaction environment secure.
Ethereum Virtual Machine:
If you remember, we discussed ‘Smart Contracts’ in the earlier part of the article. The Smart Contracts needs a specialized environment to function: Ethereum Virtual Machine is that environment! The EVM gives all the projects running on Ethereum network a common base and provides them with a standard set of instructions. Some of the major programming implementations of EVM are Ruby, Java, C++, Python, and Haskell.
No Transaction Fees!
Due to the availability of EVM for Ether transactions, all the account objects reside in a common execution environment. The communication between these accounts takes place via transactions. The code gathered from these accounts helps confirm/ignore a transaction. If the code is correct, the transaction will be confirmed. Else, it will be ignored. Since all of this is the responsibility of network, no transaction fees are needed.
Ethereum Is Highly Stable:
One of the biggest advantages of Ethereum is that it is highly stable, has organic growth, and does not have massive spikes in price fluctuations. Besides, Ether provides the common folk with a low-cost alternative to other cryptos. Moreover, despite having encountered a number of cyber-attacks, the Ethereum blockchain still remains in huge demand to the customers. All thanks to the high stability!
The Transactions Are Immune to Frauds:
Ethereum transactions are fraud less. The decentralized nature of Ethereum allows no tempering or data loss while using the network. Moreover, the network does not allow anyone – even a programmer or data miner – to destroy the record of a transaction that has already happened.
Transactions are Permissionless:
Ethereum transactions are permissionless as there is no central node in the network. Everyone can make a transaction on the network. All they have to do is install the software and they are good to go.
These are the top 10 advantages of Ethereum. In conclusion, the currency offers some unique advantages and, is perfectly safe to use, or to make an investment. If you are looking to start a crypto venture, Ethereum is the best option to take off. Good luck!
Tags: why buy ethereum, bitcoin vs other cryptocurrencies