From the $20,000 mark back down to $7,000 Bitcoin is generally on the low, and with Google, Facebook and Twitter's decision to ban all ads related to ICOs, it's clear the world isn't on cryptoculture's side.
What are your thoughts on the future of crypto investment/bitcoin and the rise of other currencies? Are you confident the cryptowave will continue to reach the shores of new investors? Find out in this week’s Your Thoughts.
Andrew Pritchard, MD Blockchain, 10x Growth Account:
It’s been a tough time for Bitcoin and crypto investors as the markets continues to go backwards. The bears have continued to win the battle against the bulls pushing the price of BTC and most altcoins further downwards. But, what is causing the drop in the markets?
There are several influences that are helping the bears as the cryptomarket struggles to gain any forward momentum.
Firstly, increasing regulatory framework (this is a short term negative issue but will ultimately be a very positive outcome) as each time the SEC/FCA, or any regulatory body for that matter, announces new regulations, even if supporting crypto, the markets react negatively.
The Governor of the Bank of England, Mark Carney called for greater regulation of cryptocurrencies and in Japan, punishment notices were issued to several exchanges while forcing some to halt trading entirely.
Secondly, the Mt Gox Bitcoin dump has been affecting the market for a few weeks as thousands and thousands of Bitcoins have been put on the market to be sold. This increased supply and cooled demand has led to further downward pressure on the price of Bitcoin. Basic economics of supply and demand has reduced the price. I.E Supply increases and demand remains constant or reduces, then price will fall.
However, as a positive supporter of the Cryptomarket, it is only a matter of time before the bulls return. Yes, Bitcoin’s price has taken a beating the past ten days due to major events negatively impacting market sentiment. However, one thing remains exceptionally clear. Blockchain technology is here to stay.
The next 6 months for major cryptocurrencies like bitcoin, is likely to be very, very bullish, as the public start to enter market with easier routes such as Coinbase and Barclays collaboration on faster payment methods.
Savva Kerdemelidis, Legal Adviser, LegalEdge:
The technology and protocol behind cryptocurrencies brings an exciting method to transact in a new and more efficient way. So long as cryptocurrencies can achieve mainstream adoption beyond simply being a "store of value", then there remains a significant potential for growth. As with the dotcom era, we’ll see winners and many losers. In my view, the potential for cryptocurrencies is just beginning. I expect to see new applications and use cases, particularly around governance or decentralised autonomous organisations (DAOs).
Although there’s been a lot of hype, cryptocurrency has not reached mainstream retail investors. Technological barriers have led to a lack of access and the risk of losing your investment, for example, by losing your password or transferring funds to an incompatible wallet. At the same time, regulatory risk has been a real factor in terms of curbing take-up. Both investment and adoption will increase once these barriers decrease and are better understood, with the availability of user-friendly applications.
If you look at investors, most of them have taken over 50% losses since the new year. Naturally this has impacted the appetite for ICOs and other investments. However, many will likely ride it out until June or July when the market is expected to recover.
Samuel Leach, FX Trader and Founder, Samuel & Co. Trading and Yield Coin:
With the recent news of Facebook and Twitter banning cryptocurrency adverts and Google potentially following suit in June 2018, it cannot be denied that there is a negative feeling around crypto.
Regulatory bodies such as the ICO, FCA, and GBX are also becoming more vocal; with new regulations being created and set to be enforced in the coming months. This is causing unease among potential investors as they are reluctant to invest in a market that currently doesn’t have widespread regulation, and which could risk them becoming uncompliant in the future. As such, crypto is in a limbo stage where current investors are cashing out and potential investors are hesitant to part with their money.
In reaction to the continuous stream of negative feeling surrounding the crypto market, cash outs are increasing at an unprecedented rate. This won’t recover until governments and regulatory bodies align and have a consistent strategy and overall view point on the crypto market. Therefore, it is possible we could see Bitcoin bottom out to $6,500. However, I believe we will see the markets hover around $9,000 in the short term, until there is more clarification around the wider view of the market.
Kevin Murcko, CEO, CoinMetro:
Prices between various cryptocurrencies are linked to an extent; when Bitcoin goes up, Ethereum or XRP, for example, will often follow suit. This is no different to how company stocks tend to follow the direction of the general market, their sector or industry rivals. For instance, a negative financial report for one retail stock often drags down other retail stocks as “guilt by association” turns things bearish for the whole sector. Cryptocurrencies are just as exposed to this effect if not more given the fact that the money flows currently are mainly from retail investors, who are much more susceptible to following the trend.
It is unlikely that 6-11k is the new range for BTC. The simple fact that it has existed far above these ranges for prolonged periods is an indicator that the floor and ceiling have not been set at all yet. Rather, BTC is still free-floating, and until the market as a whole becomes more regimented, a stable floor and ceiling won’t exist for any of the assets.
Increased stability is important for the future of crypto, as well as for overcoming the sector’s perceived reputation for being a poor store of value. In part, price stability will come from the introduction of more national and harmonised global regulatory oversight. This will allow for more institutional involvement and the creation of liquidity by way of synthetic instruments like futures, ETNs, ETFs, etc. It will also come from the realization amongst the general public that, like all investments, crypto does carry risk. As with other securities, prices are liable to go up or down.
Corrections have occurred, but it’s important not to think of crypto prices myopically: the price of bitcoin, for example, is today roughly 700 percent of what it was this time last year. Long-term, cryptocurrencies remain viable multitrillion-dollar assets.
Drew Bell, Chief Developer, Ethercoin:
The future is bright for crypto investment, as eventually the market will stabilise and become a more manageable platform. The market has a lot of potential for development and it’s about time businesses started accepting it, rather than ignoring it as sooner or later, their customers will catch on the trend and look for businesses that support the crypto industry.
There will always be an air of skepticism around digital currency, because it is not a tangible product, and people have a hard time understanding its true value.
I really believe that cryptocurrency will replace more traditional forms of currencies in the next 10 -15 years, especially with the growth and adoption that Bitcoin, Ethereum and Ripple has already seen. If that growth continues and we see more currencies reaching these heights, who knows just what the future holds for this new era of payment and investment.
The key to cryptocurrency breaking through to the mainstream and reaching new investors is all about trust. If you don’t build a relationship with your investors that is centered around trust and transparency, you can’t expect them to believe in your project. At a time when it seems the world is against a new form of payment, cryptos have to be on top of their game more so now than ever before.
Even though cryptocurrency is built on blockchain, the volatility of the market is clear and can therefore deter some investors. It can be extremely difficult for cryptos to instill trust in potential investors, especially as tech giants Google, Facebook and now Twitter have banned cryptocurrency ads, making it even harder for currencies to secure investment and appeal to potential customers.
It is clear there is a lack of understanding from key players in the financial industry about this new disruptive technology, therefore highlighting the need for more mainstream education so the market can continue to grow and develop for the future.
Kerim Derhalli, CEO, Invstr:
Cryptocurrencies are here to stay but, as with any emerging market, they must undergo a transition that will eventually attract the mainstream investor.
In my opinion, that transition will entail a few important steps, firstly, in regards to scalability, which will see blockchain evolve to handle more throughput. Currently, sharding techniques have increased transactions per second from seven in traditional blockchain to 3,000 in alternative blockchains. This still falls well short of the typical 20,000 or more credit card transactions per second.
Security is critical too. Digital exchanges and wallets are secure until they are not. Anonymity and the lack of a custodian make the operational risks far greater in cryptocurrencies that in traditional financial assets. Improvements in security will be needed before cryptocurrencies represent a serious challenge to other financial assets as a store of wealth. With a July deadline set by the G20 for unified regulation of cryptocurrency, coming alongside the launch of a dedicated UK task force, things are moving in the right direction.
Fundamentally, there is still also a lack of education around cryptocurrencies among investors. The number of currencies, tokens and assets is growing at a far faster pace than our collective comprehension and most people are still struggling with the basic concepts. Once the currency starts to achieve some real, commercial utility and we are more easily able to earn, spend, save and invest in cryptocurrencies, understanding and overall acceptance will increase.
Ivan Gowan, CEO, Capital.com:
The cryptowave is only going to build more momentum in the next 12 to 18 months. Just two weeks ago Barclays announced a partnership with a leading crypto company to facilitate payments to buy Bitcoin, Ethereum and Litecoin, the most established crypto assets. This may reflect a trend of major financial institutions moving away from outright denunciation of cryptocurrencies to a cautious participation, marking a significant shift in their approach and making these assets much more accessible to new investors.
Cryptocurrencies are seeing a remarkable increase in transparency, further improving trust. There are now a number of companies specialising in interrogating the blockchain of Bitcoin, establishing whether the currency has been used in any potentially illegal transactions on the dark web. This could make a huge difference to the willingness of those new to the market to invest in the currency. Bitcoin and other cryptocurrencies still labour under a perception of being used for dodgy dealings in dark corners of the internet, but with the increase in transparency, investors will feel much more comfortable putting their money into this market.
Of course, there are many ICOs that do not go through the proper regulatory procedures before launching, and it is these less-than-scrupulous organisations that are prompting Facebook and Google banning ICO advertising. However, there are many players in the market, backed by some of the biggest venture capitalists in Silicon Valley, that are spending hundreds of thousands of dollars on legal fees to ensure that they align completely with whichever regulatory environment that they operate in. We are increasingly seeing leading regulators, such as FINMA and the Gibraltar Financial Services Commission, embracing this innovation, issuing guidance and frameworks to companies looking to issue an ICO to ensure they do so responsibly and effectively. Smaller investors, who could be priced out of investing in exciting tech stocks like Amazon and Facebook, can access fantastic opportunities with ICOs, either getting in on the ground floor in the initial offering, or when the coin is listed on an exchange.
The ICO industry is currently something of a Wild West scenario. However, we are also at the early stages of what will be a transformative asset class. There is no doubt that we will see a number of new investors in cryptocurrencies and assets increase as the market matures, as regulators get up to speed with the technology, as the big banks begin to adopt more open-minded positions and as the transparency of cryptocurrency transaction history continues to improve.
Zafar Kanani, Network Manager, Forbury Investment Network:
It is difficult to predict the future path of cryptocurrencies, though it would be safe to say that they will likely continue to proliferate, and that regulation will increasingly become a consistent feature of the landscape.
With an ever-increasing pool of choices – there are now over 1,000 cryptocurrencies – anyone considering an investment should take the time to conduct thorough diligence and invest only what they can afford to lose, especially given the growing evidence of fraudulent activity. The likes of Twitter, Google and Facebook have gone so far as to ban cryptocurrency and ICO related ads due to concerns of reputational damage resulting from users unwittingly investing in fraudulent cryptocurrencies advertised on their platforms.
Despite Bitcoin, the best-known cryptocurrency, now trading at less than half its peak in December, there is no shortage of demand from investors across all cryptocurrencies. Many cryptocurrencies have and continue to be endorsed by celebrities, further fuelling interest and growth.
Alongside these developments, the increasingly disparate range of cryptocurrency applications is engaging a broader set of stakeholders than ever. The emergence of a ‘civic’ cryptocurrency, for example, has gained momentum as a mechanism to crowdfund capital for local projects for the public good. The city of Berkeley, California, has plans for such a cryptocurrency to generate funding for affordable housing amongst other public needs.
Daniel Wolfe, CEO, Tradingene:
Personally, my confidence in crypto is undiminished, despite the recent losses. I am confident that investors will have ample opportunity to ride the cryptocurrency wave up. However, they shouldn’t expect to generate quick returns and they need to be prepared for potential extended periods of volatility before we see a consistent upward trajectory.
There is always hysteria surrounding cryptocurrencies, but many fail to grasp that it is the transformative and disruptive nature of Blockchain which will ultimately bring rewards to those who invest wisely. Investors who follow the settled rules of investment, especially diversification, will be the big winners.
However, liquidity may be hard to come by and severe losses are a possibility.
Cryptocurrencies currently consist around 0.3-0.4% of the global fiat money supply. Therefore, if you believe, as I and many other experts do, that crypto will rise over the next five years to at least five percent or so of M2, then that is a tremendous return for investors.
They will just need to be prepared to stomach the turbulence.
Adrian Daniels, Corporate Partner, Yigal Arnon:
The cryptowave will continue to reach the shores of new investors. This is not to say that there will not be changes in form, size and type of cryptocurrencies, but the wave is now a tide and it's only going in one direction. But let's go back to some basics. The "cryptowave" is based on what is known as blockchain protocols, which is a kind of software that allows data to be stored digitally on a record that is held on the computers of 1000’s of people (or nodes) across the world. This allows people who do not know each other to complete transactions without fear of being cheated. This is so, because those nodes will hold a record of each transaction in an encrypted manner on the blockchain which cannot then be undone. As a result those transactions cannot be falsified without hacking 1000's of computers simultaneously and altering their records. Consequently, there is no centralized authority and no simple way to fake transactions. Bitcoin introduced the blockchain technology almost a decade ago, since which time the technology has become vastly more versatile and sophisticated, with smart (or self-executing) contracts capable of allowing the transfer of data, goods and services in a secure and verifiable manner without any "middle-men" like banks, ad-agencies, internet traffic aggregators, and a whole bunch of other third parties which make online commerce far less efficient and much more expensive. What does all this mean, it means the technology has uses that we have only just started to imagine. Since the blockchain can store any data and each block cannot be changed, any activity can be recorded on the blockchain. This means that the blockchain can ensure that people can be incentivized for contributing to the chain, which will have enormous knock-on effects on commerce, politics, regulations and science, among others. The blockchain will also likely change how or even if we bank – we will be able to keep all of our banking records on the chain, to which each of us will be the only one with the encryption key. Our medical records will be held exclusively by us, and will be shared only with whom we wish.
ICO’s are all supposed to be based on blockchain technology. The problem has been that a lot of them were fraudulent from the get-go, and others were pipe dreams with nothing behind them. A smaller number have related to companies offering great blockchain and smart contract ideas. As the number of ICO's has grown, the regulators have become increasingly involved, to the point where the US Securities and Exchange Commission (SEC) has largely put the brakes on public ICOs (as opposed to sophisticated investors, who in theory have the wherewithal to look after themselves) in the US. As the regulators untangle the knot, public ICO's will slow down and private ICO’s to sophisticated investors will take their place. This somewhat undermines the whole “democratization” of the investment process that the ICO’s were supposed to have brought us, but it may only be a phase before clearer regulations are adopted to safeguard the public in general. Additionally, we will see larger numbers of companies offering cryptocurrencies that look much more like a token you can use for a purpose (utility token) than a share. However, as the result of increased oversight will be fewer chancers bottling air and making millions, I think we will see an increasing numbers of offerings by brilliant entrepreneurs with profoundly disruptive, highly innovative and world changing products. To hijack Winston Churchill’s famous phrase: “This isn’t the end, it isn’t even the beginning of the end, but it is perhaps the end of the beginning. But what the end will be, I think is hard for us to yet imagine.”
If you have thoughts on this, please feel free to comment below and let us know Your Thoughts.
With ICOs at the forefront of cryptoculture worldwide, blockchain technology is predominantly being driven by digital currencies and their markets, but why? Below Finance Monthly hears from Drew Bell, Chief Developer at Ethercoin, who explains why.
2018 is set to be an even bigger year for Initial Coin Offerings (ICO) than 2017, with more startup’s turning to the fundraising method to remain in control and transparent in the process. According to a report by CNBC[1], around $100million a month is raised via ICO’s, showing the demand is increasingly prominent between investors and individuals.
However, as with many emerging trends, ICOs have been met with some scepticism and criticism. Before new businesses start jumping on this trend to become the next blockchain success, it is important to understand the challenges it might face and why trust should be built into the core of its offering.
Whilst there can be fraudulent ICOs, businesses and mainstream audiences need educating and to be made aware that ICOs are a viable fundraising mechanism.
The fastest growing form of investment
There’s no denying the fact that ICOs, “the fastest growing form of investment” carries numerous benefits for businesses looking to generate significant ROI without having to seek out venture capitalists. An Initial Coin Offering can be created by just about anyone, and offers businesses an efficient and streamlined fundraising opportunity.
Aside from the obvious benefits like being able to streamline a fundraising campaign for a startup business, by conducting a decentralised application, users will be offered a much better experience.
There is also the added benefits of online marketing, where an ICO can be marketed to a large, global targeted audience with little effort and cost. Potential investors can therefore research about a particular ICO via online ads, social media and websites no matter where in the world they might of originated from. The ICO investment model is open to everyone and free from the geographical restraints associated with IPOs.
An unpredictable market
It’s widely known that the blockchain and cryptocurrency market is an unpredictable place, where the majority of business see it as a sure fire way to attract investors who are looking for the next big blockchain score. Yes, an ICO looks to be an easier and more cost-effective way to raise funds for your business, but it can be just as challenging as as securing a venture capital; but you do have more control.
One of the biggest challenges a new business can face when journeying down the ICO route is the sheer amount of competition. In an interview with Business Insider, the founder of Evercoin announced there were around 30 new ICOs launching everyday, and raising as much as $200million per ICO[2]. Businesses need to make sure they are distinguishing themselves from such a saturated market with a strong unique selling point that will not only put them ahead of the game, but generate interest and a buzz amongst investors. With so many ICO projects not having an effective marketing plan and channels to promote themselves, they can get lost in the sea of ICO scams that take centre stage.
Essential to make a difference
ICO’s are essential for businesses wanting to enter the market, and to be able to thrive, ICOs need regulatory safeguards to be implemented and investors need to be educated. Trust should be at the forefront of any businesses fundraising project, and one of the first steps to building trust is for businesses to create an extensive whitepaper and detailed roadmap.
Due to the volatile nature of the blockchain technology, it can be hard to understand the true nature of the transaction during an ICO sale. Businesses should ensure they offer a safe and secure platform to boast legitimacy can help to instill trust amongst investors.
Communication is the key to success with generating trust amongst the blockchain market. By using social media to engage and update its audiences, investors will start to feel empowered and as if they are a part of the process. This will promote a higher level of transparency and result in more investment.
In today’s unstable and saturated blockchain market, it is essential that businesses looking to start on their fundraising journey are putting security, transparency and trust at the forefront of raising capital to maintain solid investment and build credibility amongst investors.
Do you dream of becoming a Bitcoin billionaire? A brand new tool could be just what you need to make the best investment choices. Using detailed historical data across the past 14 months, Cryptocurrencies: Past, Present and Future makes cutting-edge predictions for the future of the top 10 virtual currencies.
Using an exclusive, handcrafted algorithm, this Cryptocurrency predictor feeds historical data on price, trade volume, market cap and online popularity through a variety of analytical tools, including a Recurrent Neural Network, to forecast the exact rise and fall of ten chart-topping cryptocurrencies.
The ten virtual currencies monitored within the piece include:
If you’re concerned about being overwhelmed by numbers, all of the cryptocurrencies are explained in a handy, bitesize format. What’s more, the numerical information is displayed in easy-to-read data visualisations, allowing you to compare cryptocurrencies side-by-side.
Price: projected change from 11th March 2018 to 6th May 2018
|
Cryptocurrency |
Historic Price ($) | Projected Price ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 8,363.15 | 9,210.23 | 847.08 | 10% |
| Ethereum | 847.08 | 453.63 | -237.79 | -46% |
| Ripple | 0.64 | 0.24 | -0.40 | -63% |
| Bitcoin Cash | 961.95 | 2,209.68 | 1,247.73 | 130% |
| Litecoin | 151.91 | 74.27 | -77.64 | -51% |
| Cardano | 0.25 | 0.35 | 0.10 | 40% |
| NEO | 74.19 | 181.71 | 107.52 | 145% |
| Stellar | 0.23 | 0.03 | -0.20 | -87% |
| EOS | 7.79 | 10.78 | 2.99 | 38% |
| IOTA | 1.18 | 0.44 | -0.74 | -63% |
Despite the value of cryptocurrencies being constantly on the move, the algorithm reveals that Bitcoin Cash will skyrocket by $1,247.73 per unit to $2,209.68 if it continues on its predicted path - so is definitely one to look at if you’re tempted to invest.
Similarly, Chinese-produced NEO looks another strong contender for most valuable currency in the near future, with a projected increase of 145%.
Ethereum, meanwhile, is highly encouraged to be avoided, since it is charted to lose the most value, falling by a staggering $237.79 per unit. It doesn’t have the biggest percentage drop, though. That dubious honour belongs to Stellar, which is predicted to fall a shocking 87% in the next two months.
Market Cap: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic Cap ($) | Projected Cap ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 142,730,988,426.02 | 154,158,455,678.37 | 11,427,467,252.35 | 8% |
| Ethereum | 68,156,366,473.25 | 41,729,418,032.89 | -26,426,948,440.36 | -39% |
| Ripple | 25,252,161,207.70 | 8,869,504,279.97 | -16,382,656,927.73 | -65% |
| Bitcoin Cash | 16,658,329,786.90 | 36,799,060,701.21 | 20,140,730,914.31 | 121% |
| Litecoin | 8,648,418,622.43 | 3,938,002,135.37 | -4,710,416,487.06 | -54% |
| Cardano | 6,808,516,073.92 | 9,335,364,533.50 | 2,526,848,459.58 | 37% |
| NEO | 4,799,427,302.50 | 12,593,957,400.61 | 7,794,530,098.11 | 162% |
| Stellar | 4,480,273,009.02 | 435,870,950.73 | -4,044,402,058.29 | -90% |
| EOS | 5,060,747,304.76 | 6,472,334,213.85 | 1,411,586,909.09 | 28% |
| IOTA | 3,456,292,244.16 | 1,246,505,365.59 | -2,209,786,878.57 | -64% |
With Market Cap (Price multiplied by Circulating Supply), we’d expect the price to somewhat influence the projected value and percentage change. But what is even more interesting is how much changes in price influence the Market Cap.
As you would expect, Bitcoin Cash’s ceiling looks ready to rocket up by more than $20 billion to accommodate an increase in price - as we saw from the previous table. Similarly, NEO’s leap in unit value will be accompanied by the Market Cap expanding by an impressive 162%.
It’s more bad news for both Ethereum founder, Vitalik Buterin and Stellar creator Jed McCaleb though - as Ethereum’s overall cap is projected to plummet by $26 billion to reflect the drop in price, along with Stellar bottoming out with a devastating 90% fall.
Online Popularity: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic | Projected | Projected Change | Percentage Change |
| Bitcoin | 20.76 | 39.21 | 18.45 | 89% |
| Ethereum | 17.85 | 43.40 | 25.55 | 143% |
| Ripple | 8.10 | 11.65 | 3.55 | 44% |
| Bitcoin Cash | 1.33 | 4.90 | 3.57 | 268% |
| Litecoin | 6.16 | 10.03 | 3.87 | 63% |
| Cardano | 7.77 | 11.61 | 19.38 | 49% |
| NEO | 38.97 | 75.60 | 36.63 | 94% |
| Stellar | 1.08 | 2.26 | 1.18 | 109% |
| EOS | 36.75 | 35.01 | -1.74 | -5% |
| IOTA | 3.91 | 1.83 | -2.08 | -53% |
It’s not all market based, however. A detailed exploration of Google Trends data makes it possible to assess the Online Popularity of each cryptocurrency.
This time round, NEO has pipped Bitcoin Cash to the post with the highest search volume both historically and projected in the future, topping even the most well known of cryptocurrencies at a predicted 268% interest and suggesting a rapidly growing interest. On the other hand, IOTA has seen the largest percentage drop off, slated to fall by 53% over the next few months - which might be emblematic of the smaller cryptocurrencies catching the eye but then fizzling out shortly after.
Trade Volume: projected change from 11th March 2018 to 6th May 2018
| Cryptocurrency | Historic Volume ($) | Projected Volume ($) | Projected Change ($) | Percentage Change |
| Bitcoin | 5,667,195,738.85 | 7,166,097,605.00 | 1,498,901,866.15 | 26% |
| Ethereum | 1,417,140,960.15 | 1,298,920,128.13 | -118,220,832.02 | -8% |
| Ripple | 388,918,729.64 | 273,003,906.02 | -115,914,823.62 | -30% |
| Bitcoin Cash | 453,314,832.89 | 1,814,956,172.47 | 1,361,641,339.58 | 300% |
| Litecoin | 424,911,348.43 | 346,255,516.29 | -78,655,832.14 | -19% |
| Cardano | 248,373,198.32 | 460,968,025.75 | 212,594,827.43 | 86% |
| NEO | 113,482,544.19 | 752,430,833.70 | 638,948,289.51 | 563% |
| Stellar | 37,025,706.05 | 12,233,157.69 | -24,792,548.36 | -67% |
| EOS | 415,466,617.96 | 839,180,781.11 | 423,714,163.15 | 102% |
| IOTA | 28,132,548.14 | 12,149,569.36 | -15,982,978.78 | -57% |
Finally, Trade Volume projections reveal that Bitcoin (not Bitcoin Cash) is on a path to increase its projected value by a whopping $1.4 billion - the highest of all of the cryptocurrencies.
Though it may not have topped the chart this time round, Bitcoin Cash is still keeping up its high hopes across the board with a promising projection of increasing its volume by more than $1.3 billion by May - a 300% increase. Rounding off the success stories is fan favourites NEO, their trade volume set to soar by a remarkable 563% percentage increase - something we’re sure that the NEO team and potential investors will be thrilled by.
On a less happy note, however, Ethereum still appears set to bomb with a forecasted volume drop of $118 million - the biggest fall of any listed competitor.
More bad news is set for Stellar too, with a -67% percentage drop in trade volume predicted on the horizon. This follows a string of percentage decreases for Stellar. Of course we are speculating, but this could be due to the accessibility of this particular cryptocurrency as it cannot be bought via credit card and can only be obtained through a cryptocurrency exchange - quite a risky move if you ask us!
(Source: Cryptocurrenciesprediction)
Bitcoin will not become the world’s sole currency in 10 years - there will be many successful cryptocurrencies - and Ethereum is likely to take over Bitcoin’s dominant status, affirms the deVere Group.
The comments from Nigel Green, founder and CEO of deVere Group, follows bullish Bitcoin claims from Jack Dorsey, the chief executive of social media giant, Twitter.
In an interview with The Times, Mr Dorsey said: “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin.”
The deVere CEO, who in February launched the deVere Crypto app due to “soaring global demand”, comments: “Unlike Jack Dorsey, I do not believe that Bitcoin will become the world’s sole currency in 10 years.
“The original cryptocurrency is likely to remain the most dominant one in the market for some time, especially with its scalability issues being tackled.
“However, I am confident that there will be many successful cryptocurrencies alongside Bitcoin. This is primarily because they all have different inherent characteristics, strengths and values and, therefore, they are useful in different ways for people and organisations.
“Also, the market itself is set to grow exponentially, resulting in greater usage of and investment in all the major cryptocurrencies. This growth in the market will be driven by many factors. These include that simply an increasing number of individuals, firms and organisations are becoming aware of, have a better understanding of and use cryptocurrencies; and also because financial regulatory bodies around the world are increasingly looking to regulate cryptocurrencies, which will give investors even more protection and confidence in the market.”
Mr Green continues: “Jack Dorsey is, clearly, extremely bullish on Bitcoin, but I believe that its closest rival, Ethereum, could in the near future take over as the world’s biggest and most important cryptocurrency.
“I’m noticing a huge shift towards considering Ethereum as a blockchain [the revolutionary technology that underpins cryptocurrencies] platform rather than just a cryptocurrency.
“Many companies are launching their Initial Coin Offerings (ICOs), which are the cryptocurrency equivalent of IPOs, on Ethereum. In addition, the fact that it uses smart contracts makes it significantly superior to the ‘transaction based’ Bitcoin.”
The deVere CEO concludes: “Whilst I disagree with Mr Dorsey’s claim about the world having one single currency in 10 years and that it will be Bitcoin, it does underscore the growing assertion that digital currencies are here to stay and that the market is growing – despite the best efforts of financial traditionalists.
“There is a huge and growing demand for digital currencies in our increasingly digitalised world.”
Trading is no longer a male-only club. Women now represent 19% of online traders worldwide, and they’re also more successful at it than their male counterparts. This stems from an international report assessing the habits and demographic data of more than 500,000 traders. It was published by BrokerNotes, the online trading comparison site.
What’s caused the shift
The shift has been driven by the democratisation of trading as a result of the internet. This has paved the way for women to enter an industry that’s historically been dominated by men. But it’s not only that female trader numbers are increasing. They’re also better at it.
Women are depositing less than men in their online trading accounts (on average $424 less) and are making fewer, more calculated trades. Men, on the other hand, make more trades and are much more likely to be reactionary to changes in the market, which is proven to have a negative impact on overall return on investment. This type of trading costs men money – the average income of a female online trader being £35,743 compared to the average male income of £32,525.
The female crypto boom
The crypto boom has had a big role to play in fuelling the surge of female traders. Last year, there were 9.6 million total online traders worldwide. In 2018, it’s now 13.9 million, with 2.7 million of them being female. Interestingly, 59% of women choose to trade crypto over traditional assets like forex.
Although both genders are trading Bitcoin, women only represent 10% of total Bitcoin traders. This points to the fact that women are looking to altcoins when investing in crypto with females accounting for 18% of Dash traders and Ripple also attracting a higher percentage of female traders.
Other data points
Marcus Taylor, CEO at BrokerNotes, commented: “When people think of trading, they think of testosterone-fuelled ‘Wolf of Wall Street’ characters. The reality is there’s no place for stereotypes in an online world. By offering anyone the tools to research and develop trading strategies, the internet has opened up trading to the masses. With more women demonstrating a flair for trading, it points towards a transformation that’s also moving towards gender equality.”
Facebook, Google, and now also Twitter have all moved to ban cryptocurrency-based adverts on their sites. This means that any ads pertaining to ICO platforms, bitcoin wallets, token sales, crypto-trading etc. will be banned.
Much of this spouts from illicit ads and fraudulent activities. Therefore, there will be some exceptions and policies are still being put together. Analysts currently believe dips in market values and trading of crypto are being caused by the regulatory scrutiny and ban on ads.
This week Finance Monthly hears from BrokerNotes CEO Marcus Taylor on what this means for the crypto market as a whole: “The cryptocurrency market is taking a battering at the moment. It’s being viewed by consumers and big businesses as a wild west environment riddled with risk and instability. Google’s move to ban cryptocurrency ads, following Facebook’s decision last month, will light a fire under the industry to introduce the regulation needed to make the crypto market one consumers can trust in the long term.
“But what about the short-term impact? A recent report shows that 58% of online cryptocurrency traders are millennials and it seems logical that removing advertising from social media channels like YouTube and Facebook should have a major impact on their overall interest in the market. The reality will be different though.
“Although 18-30s represent a huge chunk of the market, 52% identify as experienced traders. The ban will simply serve to protect the ill-informed making bad decisions and bring market stability, rather than put a stranglehold on cryptocurrency trading.”
With the explosion of cryptocurrencies over recent years, many businesses and start-ups are turning to Initial Coin Offerings, or ICOs, to raise money to get their projects up and running. This week Finance Monthly gets the lowdown on ICO management from Dr. Moritz Kurtz, CEO & Co-Founder of Acorn Collective, clarifying the point, purpose and benefits of launching an ICO.
In an ICO campaign, early backers of the venture buy a percentage of the cryptocurrency, often based on one of the existing public blockchains, in the form of tokens created by the company they are supporting.
An ICO can theoretically be used to fund any project or product in any category, however, before an ICO is launched it needs to clarify:
With so many ICOs in the marketplace you must lay out your concept in detail before launching an ICO. This way contributors can see the utility of your token, and understand what they are buying into. It also makes token holders feel part of the process of creating a new technology, platform or product.
Who should run an ICO?
Whilst any product or project CAN launch an ICO, that does not mean anyone SHOULD. ICO’s have become a popular funding model with start-ups looking to bypass the traditional, and more rigorous, process of gaining funds via venture capital backing.
Although technically an ICO model can be used to fund anything, it is important to consider:
ICO for Crowdfunding
An ICO could be greatly beneficial for the crowdfunding space, as it allows for the following:
Essentially, an ICO can be used to ‘crowdfund crowdfunding’.
How is an ICO mutually beneficial?
Successful ICOs benefit both backers of the venture and those relying on the funds it provides.
The backers can contribute towards a product or project at an early stage, thus benefitting from the increased demand for the token as utility increases. Meanwhile, projects can receive early funding to build their business venture without having to give away equity in the company.
Things to think about
Although launching an ICO can hold great promise for start-ups, it’s not all plain sailing.
Getting the funds can be tricky. When launching an ICO you must generate interest from contributors to encourage them to buy your tokens which, in a crowded marketplace, can be challenging. Not getting enough funds is one of the biggest risks. Not meeting the minimum target means the funds are returned to the token holders and the ICO is deemed as having failed.
An ICO is a great way of raising funding for the right projects in certain industries, but is by no means an easy solution. The ICO world is currently saturated with projects and competition for funding is intense. Making sure you have a viable and sustainable idea that requires blockchain is a good start. From then on, a successful ICO requires all the same focus on marketing and community building as any other form of fundraising.
Now a booming trading market, cryptocurrencies do however create an avenue of risk. Below Schalk Nolte, CEO at Entersekt, discusses said risk and the overall safety of trading Bitcoin and the likes.
It’s official: Bitcoin is now the golden child of the investment community. Following news headlines about becoming instant millionaires, starry-eyed cryptocurrency enthusiasts are flocking to online exchanges to get in on the action. Sign up, transfer funds and trade – the faster, the better. To keep the eager traders’ money and data safe, these exchanges all need to have transaction security in place. And most of them do – except that their security appears to be stuck in the early 2000s.
Nine years ago, Bitcoin didn’t exist. Today, between three and six million people are estimated to have a bitcoin wallet, with over $3 billion worth of the currency traded every 24 hours. Nine years ago, the one-time password, SMS OTP or mobile transaction authentication number (mTAN), represented the apex of transaction security. Today, other technologies have left SMS OTPs in the dust in terms of both user experience and security – and for good reason.
OTPs are typically reliant on mobile network operators for delivery, and they require additional effort from the user without rendering transactions fraud-proof as a reward. They are vulnerable to man-in-the-middle (MITM) attacks for the simple reason that an OTP is never truly out of band, whether it’s delivered via SMS or another route. Because it’s entered into a potentially compromised primary channel, it will always be susceptible to MITM attacks, while the involvement of mobile networks also introduces the possibility of attacks such as SIM swapping and number porting.
In fact, in August 2017, Sean Everett, CEO of artificial intelligence startup PROME, lost a significant cryptocurrency investment with the platform Coinbase as a result of a simple number porting attack made possible by SMS OTP. Soups Ranjan, Coinbase’s head of data science, commented: “I firmly believe we have the hardest payment fraud and user security problem in the world right now.” So how is it possible that the OTP is still the security measure of choice at the majority of cryptocurrency exchanges – and, more importantly, what are the alternatives?
In order to protect its trader members and allow them to match the pace at which cryptocurrency fluctuates, a cryptocurrency exchange needs to do three things:
Minimize risk: This is done by implementing a solution that offers solid app security and strong customer authentication for all transactions.
Make things easy: A convenient and user-friendly trading platform will attract and retain customers. To put it another way, play to a real-world trading scenario: if you were a trader, would you want to open an app, copy an OTP, switch apps, and then paste it? Or would you prefer to simply open an app and scan your fingerprint? The choice isn’t difficult – especially considering that the easier option is also the safer one.
Achieve regulatory compliance: It’s cheap and easy for a trading platform to recommend or require that their traders install a third-party app like Google Authenticator, but this will mess with regulatory compliance – such as with PSD2’s Regulatory Technical Standards on Strong Customer Authentication. Third-party apps often only authenticate logins, not transactions, and as such are not compliant with these requirements. OTPs, needless to say, do not comply either.
If they want to offer winning and secure trading options for cryptocurrency aficionados, it makes no sense for these exchanges to insist on using obsolete, not to mention risky, technology. Instead, exchanges should be employing a more robust and convenient out-of-band authentication solution that does not rely on mobile networks. They should look for a solution that offers PKI-based authentication and transaction signing directly from the mobile phone, which will eliminate fraudulent transactions and build trust in cryptocurrency trading practices – all while providing a user-friendly experience.
On the flip side, cryptocurrency traders should be demanding better security from the platforms they use. It is the only way for them to keep their investments safe and avoid becoming the next cybercrime news headline. After all, if cryptocurrency is at the cutting edge of innovation, shouldn’t the same apply to the protection of its trade?
With the rise of several follow ups to Bitcoin, cryptocurrencies are proliferating at a very serious rate. With ICOs left, right and centre, Bitcoin could soon be facing serious competition; or is the competition already here? Below Richard Tall from DWF explains why Ethereum could be the new kid on the block.
I was helping a client the other day, to identify some of the legal issues surrounding his cryptocurrency trading business. One of my questions to him was which cryptocurrencies he trades in - and he very kindly shared a list of them with me.
It was pretty long.
I have previously made the point that, in the last four years, humankind has invented seven times more "currencies" than the governmental currencies that already existed. The two most famous of these, to those of us not immersed in the market, are Ether - the token associated with Ethereum - and Bitcoin.
Seemingly to most, Bitcoin is a bigger beast than Ethereum. But does the latter present a threat to the former's dominance?
The present state of the cryptocurrency market
As I write this article, the market capitalisation of all cryptocurrencies has taken a hammering as they suffer further setbacks. These range from UK mortgage companies refusing to accept funds generated from cryptocurrencies as deposits for properties, to concerns about further governmental bans in jurisdictions such as South Korea.
All of the major cryptocurrencies have trended in much the same way, albeit they do different things. Ether's market cap today is about $102 billion (slightly larger than Kraft Heinz) and Bitcoin's is about $190 billion (about the same as Citigroup).
In 2017 alone, the value of Ether rose by 13,000 per cent against a somewhat modest showing of 2,000 per cent from Bitcoin. There is little point in trying to ascribe reasons to the differing levels of value increase though, as a market driven by those seeking to get rich quick is no real market at all.
Ethereum's perceived threat to Bitcoin is not a simple comparison of relative worth, then. There are essential differences to what each does and while Bitcoin is currently synonymous with cryptocurrencies in the minds of the public, as the market matures the value of both Bitcoin and Ether will be driven by factors other than the frenzied speculation which currently persists.
Crucial differences between Ethereum and Bitcoin
In reality, Bitcoin and Ethereum are quite different.
Ethereum is a computing platform which provides scripting language for smart contracts. This means that there is a blockchain upon which a number of contracts can be written and which automatically execute on the happening of a set series of events.
As with most blockchains, it is open source, which means that anyone minded to do so can use the Ethereum blockchain to write and implement smart contracts, which are simply a series of promises in digital form. A bit like a contract really, just with the word "smart" added at the front.
Ether is the unit of value deployed on the Ethereum blockchain, and consequently shares certain characteristics with Bitcoin. It is a potential store of value and is fungible between persons who perceive it to have a value.
Bitcoin is ubiquitous. It has become mainstream, can be used as a means of payment in a number of different arenas and is part of common parlance.
Technically, there are no limits to the use of Bitcoin. While it settles in a way different to dollars or pounds, it essentially does the same thing - which is not a lot, really. Money exists and it sits in our bank accounts. It may enable us to do things but in itself it does not undertake any activity.
Ethereum - more than just a cryptocurrency
As we are currently seeing, governments are starting to put restrictions on cryptocurrencies, driven not by a desire to see their citizens exchanging any particular kind of asset for another asset, but because their citizens are speculating on something which their governments perceive they do not understand.
Ether is simply a child of Ethereum. Ethereum is actually a huge computing network which enables anybody to build a decentralized application. A business, if it determined that it needed a blockchain developed solution, could employ a programmer to build that on the Ethereum platform.
Ether, while associated with the Ethereum platform, is capable of performing the same function as Bitcoin. Whether or not it does so is simply a factor of the parties to any transaction determining whether or not Ether has any value to them.
So back to the central question, is Ethereum a threat to Bitcoin? Probably not.
While Ether is clearly a competitor to Bitcoin, bearing in mind that the combined market capitalisation of both is way south of the market capitalisation of some of the world's biggest companies, there is room for both. Ether has the advantage of being associated with Ethereum, and Ethereum does what Bitcoin cannot do, and came to be because of the limitations and single function of Bitcoin.
Mainstream businesses are beginning to embrace Ethereum technology with banks and other entities using Ethereum-led solutions for things such as payment services. The biggest threat to Bitcoin remains Bitcoin itself, with the continuing creep of government regulation and the ongoing tag of financial crime driving market behaviours.
By Kevin Murcko, CEO, CoinMetro and FXPIG
The digital asset economy has seen extraordinary growth over the course of the last year, as seen by the success of Bitcoin. Such rampant activity means that people will often forget that this economy is still developing. Regulations are yet to be imposed on the cryptocurrency market and it remains unknown how it will be affected when countries and governments decide to implement legislation. However, the recent history of the foreign exchange (forex) offers us a look at what the future might hold for the developing digital asset economy.
Forex trading occurs electronically, and is based on a decentralised market that is accessible globally. Despite differences in mechanisms and technology, this is not dissimilar from the decentralised and international structure of the cryptocurrency market. With this in mind, it is not unreasonable to believe that cryptocurrencies will follow the path already trodden by forex when it comes to regulation in future.
In the beginning…
Before Bitcoin and alternative cryptocurrencies were established in the late 2000s, the forex industry was facing radical change as the internet opened up the market to the public. New retail brokers started to appear alongside the traditional banks, providing new services and competition. As forex trading made the move online, there was an element of the “Wild West” culture that has also characterised the early stages of cryptocurrency. As both markets have experienced a similar introduction to the trading space, the future development of regulations for cryptocurrencies will mirror that of forex trading 10 years ago.
Forex regulation evolves
Traders now operate in a vastly different way, compared to in the past. Thanks to regulatory developments in the established forex space over the last 12 years, the current markets are built around protecting individual investors and market stability. The current conditions enforce businesses to jump through a variety of hoops - such as meeting minimum capital requirements, establishing audit requirements, and adhering to reporting and bookkeeping - before becoming a licensed forex broker. Thanks to this detailed process, regulators are able to weed out fraudulent brokers before they get to market.
On a national scale, individual financial institutions have their own measures for forex regulation as well, to further protect customers and prevent market abuse. For example, in Australia, the Australian Securities and Investments Commission (ASIC) brought in new regulations in 2009, which imposed new restrictions on over-the-counter (OTC) derivatives trading. This then provided the basis for other countries to reform their own forex regulations regarding OTC trading.
Australia is particularly careful when it comes to regulations, having felt the repercussions of deregulation in the 80s and 90s. The Australian regulatory environment is considered to be one of the most robust and effective in the world. There, modern forex brokers are required to maintain an ASIC license, which demands they hold, “at least the sum of $50,000; plus five per cent of adjusted liabilities between $1 million and $100 million; plus 0.5 per cent of adjusted liabilities for any amount of adjusted liabilities exceeding $100 million.”
Like Australia, Japan has implemented minimum capital requirements as part of its licensing framework for forex brokers. In fact, since first making an amendment to include forex in the Financial Futures Trading Act in 2005, the Japanese Financial Services Agency (FSA) has updated it policies on a number of occasions. In 2007, it found issues with highly leveraged transactions, which required increased regulation on the margin requirement ratio of some transactions. More recently, in 2016, Japanese regulators decided to update margin requirement policy again, but included it for all types of forex transaction.
How the past will affect the future of cryptocurrency
The past year has seen cryptocurrencies shoot into the mainstream, consolidating their status as a new asset class. However, with this growth in adoption, the prospect of regulation for the digital asset economy has become a more pressing issue. As the regulatory landscape for cryptocurrencies is far from established, investors are currently waiting to see the impact regulation will have on the market, as one nation’s implementation of regulation may have a bigger impact on the market, and on a global scale.
Despite many people in the crypto community being staunchly against regulations being introduced, governments and institutions are already looking at how they might implement new regulation on digital assets, and previous experiences with developing forex regulation are playing a strong role in this. However, imposed regulation may not necessarily be a bad thing for the digital asset economy. New regulations would mean people would feel safer investing in cryptocurrencies, as fraudulent brokers will be excluded from the market, which should then serve to drive increased adoption of cryptocurrencies in future. This would legitimise digital assets such as Bitcoin, and prove that these blockchain-based currencies could be the future of currency.
Of course, it is impossible to precisely predict what the exact impact of regulation will be on the digital asset economy, but by taking a look back at how the forex industry has been shaped by regulation over the last 20 years, then we can get a rough idea of how everything might play out for a decentralised international cryptocurrency marketplace.
To hear about FinTech and cryptocurrencies in Japan, this month Finance Monthly reached out to Kenji Hoki, Deputy Head of FinTech Promotion Support Office at KPMG Japan, who provides advisory services on financial regulations to financial institutions, as well as FinTech start-ups in Japan.
What have been the hottest topics in relation to FinTech in Japan in the past 12 months?
Not only in Japan, but globally, cryptocurrencies or virtual currencies have been what everyone’s been talking about recently. In Japan, they have been in the spotlight for a broad range of parties, including retail investors, FinTech start-ups, major financial institutions and authorities like financial regulators and central banks, while attitudes towards cryptocurrencies are varied across the sectors.
Retail Investors in Japan who trade cryptocurrencies are rapidly increasing and expanding their investments.
FinTech start-ups like a provider of personal financial management and marketplace to trade goods between users are seeking opportunities to incorporate cryptocurrencies as a mean of payment in enhancing their competitiveness.
Critical characteristic of the cryptocurrencies, when compared to traditional banks, is bypassing bank accounts to transfer money and the potential to disrupt their position in the financial industry. Large banks in Japan have plans to issue their own digital money, which can keep money flow via the account. In this context, Bank of Japan is conducting joint research with ECB on cryptocurrencies.
Japan has taken a very unique approach to emerging cryptocurrencies and has become the first country to give them legal status. The amendment of Payment Services Act (PSA) came into effect in April 2017, introducing new regulations that require virtual currency exchangers to register with the Financial Services Agency prior to setting up their exchange business.
What are the key recent developments in relation to cryptocurrencies?
Based on the amended PSA, 16 virtual currency exchangers were registered and are now subject to the regulations, while a lot of potential virtual currency exchangers are in the process of obtaining the status and are on the cue to register.
These companies include not only business operators that provide exchange services, but also various institutions, such as traditional financial institutions (banks, brokers, etc.), non-bank payment service providers, foreign virtual currency exchangers, etc. This increased interest to register highlights the potential of cryptocurrencies to become a business tool that can enhance the offerings of ordinary companies, which are not financial institutions.
New regulations have forced certain virtual currency exchangers that re not able to meet the registration criteria to close their business before the revised PSA came into effect.
As the cryptocurrency sector evolves rapidly, a study group from the Financial Council has started discussing a fundamental transformation of the regulatory frameworks in Japan - from focusing on entities like banks, securities companies, asset managers and insurance companies to functions like payments, finance and risk transfers, as well as redefining basic financial terms such as ‘money’, that will need adding ‘cryptocurrency’ to them.
Last but not least, global discussions on cryptocurrencies might affect the regulatory approach in Japan. In fact, coordinated regulations on cryptocurrencies are likely to be a priority on the global agenda for 2018. Discussing and considering how to face and use the cryptocurrencies, as well as fiat currencies, plays a new role in the future eco-system in the financial sector.
What would you say have been the best inventions of 2017 around the cryptocurrencies on an international level?
I would like to stress that these opinions are my own, and not the views of KPMG Japan.
Initial Coin Offering (ICO) could be a game changer at an international level, when it comes to shifting means of fund raising and hence, change the financial market/products (such as stocks) dramatically. A fundamental feature of ICO is to provide a broad range of parties an easier access (not easier money) to means of fund raising, in particular those who could not have had such access before ICO, including NPOs, start-ups, projects and even a divisions of a company.
These organizations and units who have had limited access to raise funds in the current financial markets can now benefit from fund raising via ICO and may facilitate innovation not only in the financial sector but in other sectors and markets too.
What have been the impediments on cryptocurrencies in Japan?
In facilitating business treating and/or using cryptocurrencies, many rules, other than regulations need to address cryptocurrencies. For example, accounting and auditing standards need to be reviewed to fit into this new environment and tax needs to be looked at too.
Furthermore, the regulations are still trying to keep up with the change. The above amendment of the PSA does not address ICO. As the sector expands continuously, differentiating digital currencies, including cryptocurrencies and fiat currencies, may be the next focus of the Financial Council and other similar organisations.
What does 2018 hold for cryptocurrencies in Japan?
Digitization in the financial sector will enter a new phase that will challenge the established systems. Banks will accelerate consideration or development of digital currencies which would be issued by themselves in order to keep the money flow in their hands.
Cryptocurrencies will be used more as a mean of payment from the current status, as opposed to an asset to invest in, while many FinTech start-ups that sell non-financial products/services are considering to add cryptocurrencies to their business model and expand the business in order to meet with users’ needs.
Token will be used more broadly to digitize existing non-financial products, while certain disciplines to sell Token without regulated intermediaries need to be introduced to the market. Distributed ledger technology might support the movement to replace certain goods like paper-based certificates with digital Token.
Any final thoughts?
In a digitized society, personal data and user interface is a critical source of competitiveness since every company, including financial institutions, has to customize its product and/or services to meet their users’ needs.
Meanwhile, digitization tends to remove the process of intermediation to deliver the products/services and payment, and bring old-fashioned processes to exchange directly between end-users.However, there’s the possibility of it falling apart both physically and electronically.
Until recently, it was impossible to transfer monetary value without trusted intermediaries and repositories who use expensive IT system and comply with strict regulations. However, distributed ledger technology enables the end user to do so directly by using cryptocurrencies as a mean of payment as well as Token as a digitized product/asset.
Financial authorities need to face that regulating intermediaries to be bypassed is not appropriate any longer in protecting users and markets.
Financial institutions need to know the above irreversible transformation and change their business model fundamentally and rapidly in order to keep up with an environment where personal data and user interface move to platformers to provide marketplace to users to exchange goods/services and monetary value instead of intermediaries.
E-mail: kenji.hoki@jp.kpmg.com
Electroneum, the first British cryptocurrency, has reported a successful first month of its mobile mining BETA trial, giving millions of smartphone users global access to mine cryptocurrency through their mobile devices.
Electroneum’s worldwide survey of over 44,000 participants saw 93% of users being young males, 64% labelled “crypto newbies” and 56% anticipating they will use the mobile mining experience all the time.
Designed to be the most user friendly and mainstream cryptocurrency in the world, Electroneum is the first company of its kind to offer mobile mining on the go, helping with the adoption of cryptocurrency into the mainstream market.
The mobile mining experience is a simulation of real computer mining, which allows users to obtain Electroneum coins whilst playing ‘games’ to increase the amount of coins they receive. The survey also found that a quarter (24.7%) of its users were located in North America, home to one of the largest bitcoin mining data centres, with Europe (21.9%) following closely behind.
Richard Ells, CEO and Founder of Electroneum said: “The past couple of years has seen a significant shift within the cryptocurrency market, with Bitcoin increasing its value at an exponential rate in 2017 alone. However, Bitcoin can be difficult to get hold of, trade in and spend so with the creation of our mobile mining BETA trial we know it will provide our users with the freedom, security and accessibility which you get from mining on a computer.
Electroneum’s mobile mining will be live in January 2018 after the success and response from its beta trial.
(Source: Electroneum)
