Source for BlockChain News

Category archive

crypto

TRON (TRX) Drops After Meeting Between Warren Buffett & Justin Sun Fails

by
TRON

TRON

TRON (TRX) has enormous potential, but in the last 24 hours, things have been rough, and the altcoin dropped by over 22%. The drastic drop is a result of the latest developments that involve Justin Sun and the botched lunch with Warren Buffett.

Botched Lunch Meeting Hurting TRON Price

Most of the time, the value of altcoins drops when Bitcoin price is also dropping. Although it is sometimes hard to ascertain why the value of Bitcoin is declining, when it comes to altcoin dips, things tend to be more clear. For instance, the latest decline for TRON is fundamentally a result of the anticipated Warren Buffett-Justin Sun lunch that failed to happen.

Justin Sun was scheduled to have lunch with Warren Buffett with the objective of convincing the skeptical Buffett that crypto is not a scam and the industry deserves to be treated with respect. There was a lot of expectation regarding the meeting, with many expecting it to push the price of TRON higher in the coming days.

Sun Under the Radar of Chinese Authorities

In the end, the fabled meeting didn’t happen, after Sun took to Twitter announcing that he wasn’t able to attend the $4.5 million charity lunch because of health issues, which were cited to be kidney stones. Other reports claim that he was not able to attend because of a wrangle with Chinese authorities where the special committee for internet safety charged him for illegal fundraising, money laundering, gambling, and spreading pornographic material.

>> Cryptocurrency Mining Legalized in Iran by the Economic Commission

With lunch not happening, expectations have been dashed, and the value of TRON has significantly declined. In the past week, the altcoin dropped around 3% but the last 24 hours have been worse, seeing TRX drop up to 20% in value, all of which spells bleak days ahead. The downward trend is expected to continue in the coming days because of the rumors and speculations being spread on the internet regarding the canceled lunch.

At the time of writing, TRON is trading at $0.023362, down 22% in the past 24 hours.

Featured image: DepositPhotos © giggswalk

If You Liked This Article Click To Share

Congressman Ted Budd Brings Back the Crypto Tax Bill

by
Ted Budd

Ted Budd

North Carolina Congressman Ted Budd has introduced a tax bill in the United States House of Representatives seeking to refine cryptocurrencies’ treatment by the Internal Revenue Services. The bill will amend the Code allowing the exclusion of losses or gains on similar crypto transactions.

Reviewing the Internal Revenue Code

The bill has been called the Virtual Value Tax Fix Act of 2019 and is being reintroduced by Congressman Ted Budd, having been first introduced in the previous Congressional session. The bill is being put before the House Committee on Ways and Means, and it seeks to amend the 1986 Internal Revenue Code, thus effectively ending the double transaction of virtual currencies.

According to the 1986 Code, losses and gains in transactions involving properties of a similar kind are still unrecognized. For instance, when there is an exchange of real property, be it for business or trade for a similar real property for business or trade, no loss or gain shall be recognized.

The bill seeks to have the exchange between cryptocurrencies of a similar kind to be treated the same way as transactions involving similar properties. Once the bill gets enacted, then cryptocurrencies will be excluded from double taxation under the current Internal Revenue Code.

>> Tezos (XTZ) Gains 200% YTD as Buyers Get Excited

Safe Harbor Bill

Besides the Budd bill, there is another crypto legislation being before the house. At the beginning of last month, Congressman Tom Emmer reintroduced the Safe Harbor for Taxpayers with Forked Assets Act of 2019. The bill aims to foster growth in the blockchain industry by reducing the burden on businesses in figuring the right tax laws.

The Congressman said that taxpayers will only conform to a law that is clear. The bill will not eliminate taxes on forked assets but, rather, it seeks to offer a safe harbor to those investors who fail to account properly for hard fork assets when calculating tax returns.

In June, Ted Budd told the House Way and Means Committee that virtual currencies should have a de minimis tax exemption similar to foreign currencies.

What do you think?

Featured image: DepositPhotos © VadimVasenin

If You Liked This Article Click To Share

India’s Proposed Crypto Bill Puts Crypto Owners in Jail for 10 years

by
Crypto bill

Crypto bill

Lawmakers in India have proposed a crypto bill that is considered by many to be ludicrous. The country is clamping down on cryptocurrency with an extreme proposal that would make Bitcoin and crypto ownership completely illegal. Those caught holding, mining, owning, or trading any digital asset could face a prison sentence of 10 years.

The bill coincides with the country’s plan to launch its own state-backed cryptocurrency—the Digital Rupee. The message is clear; people will have to engage with crypto the government’s way or not at all.

India’s Proposed Crypto Bill

The bill proposes that anyone involved in the crypto ecosystem should face criminal punishment. Any persons who “mine, generate, hold, sell, transfer, dispose of, issue or deal in cryptocurrencies, directly or indirectly” would face a 10-year prison sentence.

So severe is the punishment that those caught committing the crimes would face “non-bailable” sentences.

The draft crypto bill was first sourced by BloombergQuint. The source goes on to say that the courts will use four criteria when sentencing someone. They are as follows:

  • Culpability of the accused
  • Actual and intended gain made, and loss caused
  • Repetitive nature of the offense
  • Harm caused to the system

The lawmakers are even going as far as using the accused’s crypto profits against them. Any incurred fines from the criminal act will be three times as much as the profit made in the first place.

According to BloombergQuint:

“The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher. If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government.”

Should the bill be passed, anyone with Bitcoin or cryptocurrency will have to declare it and then get rid of it in 90 days. Further, the bill seeks to amend the Prevention of Money Laundering Act of 2002, to include all cryptocurrency and blockchain related activities.

>> Ripple to Enhance Transparency in XRP Volume Reporting

Where Does the Crypto Bill Leave the Digital Rupee?

In a rather hypocritical move, the government’s own cryptocurrency, the Digital Rupee, is exempt from such stringent laws.

The reason is the close ties to the country’s leading bank, the Reserve Bank of India (RBI), that this cryptocurrency would have. Both the central government and RBI will consult over the launch of the Digital Rupee.

Until now, RBI has been anti-cryptocurrency and blockchain. In 2018 it prohibited any RBI-regulated institutions from processing cryptocurrency purchases.

The proposed crypto bill puts to bed any hopes that India may adopt and regularize cryptocurrency.

Featured Image: DepositPhotos © hello.artmagination.com

If You Liked This Article Click To Share

TRON (TRX) Launches the Sun Network V1.0 Sidechain Scaling Solution

by
TRON

TRON

TRON (TRX) has announced the release of the Sun Network V1.0, which is a sidechain scaling solution officially being introduced by the TRON Foundation.

Sun Network V1.0 to Offer Unlimited Scaling Capability

The Sun Network V1.0 released is expected to enhance and offer unlimited scaling capacity to the platform’s mainnet. This will supposedly ensure dApps are running efficiently with high security while at the same time consuming less energy on TRON. Since the Sun Network V1.0 integrates several scaling projects such as smart contracts, cross-chain communications, dAppChain, and optimized application sidechain, it will offer 100 times scalability solutions to users.

The Sun Network is different from other scaling solutions because of two distinct features. To begin with, it enhances smart contract transactions with the main focus being to improve the TPS of the transactions on the mainnet, and it significantly lowers transaction fees. The other distinct feature is the ability of the sidechain enabling requirements to be personalized, such as transaction rates, setting sidechain incentives, as well as confirmation of speed, among other characteristics.

>> Bitcoin Hash rate Hits 80 Quintillion for the First Time

Scalability Solution Growing in Adoption

The expansion plan for the second layer scalability solution was initially revealed by TRON this spring with a testnet launch of the network done in late May. The company stated at the time that it had plans to unveil an optimization process for enhancing the ability to use the network as well as facilitate the deployment of sidechains by September. Generally, the solution will offer unlimited scalability to the mainnet, which will thus ensure there is an array of possibilities for the dApps as well as the entire ecosystem.

TRON’s CEO and Founder Justin Sun said that since the launch of TVM in October last year, there are over 500 dApps on the network. He says that the total account number on the network is close to 3 million with over 410 million secure transactions taking place since the launch of the mainnet.

Featured image: DepositPhotos © hello.artmagination.com

If You Liked This Article Click To Share

How is the Rest of the World Regulating Digital Assets?

by

While bringing US-based institutions on-board with digital asset trading is key to enlarging crypto’s overall market cap, crypto will only be successful as a truly international force—and not one only limited to the G-7. To that end, I’m going to shed light on other countries’ unique approaches towards digital asset classes in order to understand what the future of crypto regulation may look like.

Singapore

The Singaporean government has recently instituted a major regulatory framework for cryptocurrencies and crypto payment services. The framework will include a licensing regime for crypto payment providers—a descriptor that includes exchanges—and will regulate the following:

  • The issuing of accounts and electronic money.

  • The transfer of money within and out of Singapore.

  • The acquisition of merchants who will use their platform.

  • Money changing and the dealing in and exchange of digital payment tokens such as Bitcoin.

Singapore instituted this new framework with an intention to bolster its economy’s already strong financial technology presence. Association of Cryptocurrency Enterprises and Startups Singapore (“ACCESS”) chairman Anson Zeall has pointed to recent developments in Singapore’s crypto regulatory regime, noting that it is becoming more competitive at the international level with recent developments such as a new voluntary ‘code of practice’ that aims to proactively allow crypto players to adhere to anti-money laundering standards to promote public and commercial trust in their services.

New Zealand

As of September 1 of this year, companies in New Zealand can legally pay their employees in cryptocurrencies such as Bitcoin. This new guidance from the government lays out specific rules, however, that govern how companies will be able to take advantage of this opportunity, including:

  • That the payments must be in regular, fixed amounts.

  • The digital currency of choice must also be pegged to at least one regular currency.

  • The digital currency must be able to be converted directly into a standard form of payment.

While this guidance isn’t anything new, as the US, UK, and Australia have offered similar rules, it is yet another sign that crypto adoption and use is only increasing.

>> Bakkt is All Set to Launch Options on Bitcoin Futures in December

Liechtenstein

Liechtenstein regulates cryptocurrencies under the remit of its Due Diligence Act, which has a primary purpose of combatting money laundering and other illegal activities. While its Financial Market Authority recognizes that “the production and the use of virtual currencies as a means of payment are currently not subject to any [business] licensing requirements,” the Authority assesses licensing requirements and ICO filings on a case-by-case basis, leading to some uncertainty about when exactly certain regulations apply.

In addition, Liechtenstein is in the process of implementing a groundbreaking “Blockchain Act” that allows every possible asset, including real estate, bonds, and securities, to be tokenized, digitalized, and listed on a cryptocurrency exchange. This legislation creates a clear regulatory environment that counters risks, provides clarity, and facilitates the development of a token economy.

Finally, Liechtensteinische Post AG, its postal service, now offers cryptocurrency exchange services at its brick and mortar locations.

Belarus

Belarusian President Alexander Lukashenka issued a decree in 2018 that fully legalized cryptocurrencies, initial coin offerings (ICO), and smart contracts. The decree also instituted a zero percent tax on crypto holdings until 2023. The move was designed to boost crypto innovation and attract interest in Belarus’s HTP, a special economic zone that has been likened to the country’s own Silicon Valley. Belarus’s government declared earlier in 2018 that a full crypto regulatory regime was a top priority in order to transform its economy, public administration and social services.”

Regulatory Innovation

Many small jurisdictions like Belarus, Singapore, and Liechtenstein are crafting sector-specific rules for crypto, attempting to attract companies by providing regulatory security as well as tax breaks. On the other hand, larger countries with more established financial sectors are taking a more conservative ‘wait and see’ approach. In my view, much of the innovation in crypto regulation is coming from smaller countries due to a prevailing attitude of crypto as an opportunity, not as an active threat to established financial orders.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © garagestock

If You Liked This Article Click To Share

France’s Crypto Regulations | Finance Minister Wants Whole EU Adoption

by
crypto regulations

crypto regulations

This week, some are focusing on the recent fire that broke out in Notre-Dame cathedral, while others are looking at Bruno Le Maire, the French Finance Minister. According to Le Maire, EU member states should implement the same crypto regulations the French parliament approved last week.

Here’s what we know.

French Crypto Regulations are Key, According to Le Maire

Last week, France’s parliament approved a law called the Pacte (Action Plan for Business Change) law, which pertains to cryptocurrencies. The law also deals with other business plans. According to Reuters, the new law will attract crypto traders to the Western European country. It will do so by giving these traders recognition and taxing their profits in return. The goal of this new law is to create a market in Paris, says Reuters.

Other sources say that at a blockchain event in Paris, Le Maire told those who attended that he plans to “propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience.” He also reportedly said that the French model “is the right one.”

Will EU Member States Bite?

It will be interesting to see if EU member states decide to listen to Le Maire and adopt French crypto regulations. After all, cryptocurrencies are either banned or unregulated in most parts of the world.

>> SBI Delists Bitcoin Cash: Keeps Support for Bitcoin Sv

If Le Maire were to propose this (like he said he would), the relationship countries have with cryptocurrencies may change.

Takeaway

While there are places in the world that are regulating digital currencies in their own ways—Malaysia just regulated them back in January—it will be interesting to see if the European Union develops one stance on cryptocurrencies, based on French crypto regulations.

As we approach the month of May, be sure to keep updated with this story, as it will likely impact a handful of crypto traders.

Featured image: DepositPhotos © PromesaStudio

If You Liked This Article Click To Share

The Ultimate Guide to Getting Payments with Bitcoin

by
Bitcoin

Bitcoin

Bitcoin and cryptocurrencies are now a given. Whether you want them to or not, they will be gaining popularity every year. Obviously, it’s best to start learning about Bitcoin now. Here’s your ultimate guide to getting payments with Bitcoin.

Understand How Bitcoin Works

The first thing you must do is understand what Bitcoin is and how it works. As defined by BBC, “Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual.”

You could say that it is an online version of cash that can be acquired in three ways:

  • Creating with a computer.
  • Buying with “real” money.
  • Selling things and getting paid with Bitcoin.

Bitcoin is not as popular as the usual money you are used to, but it is quickly being adopted by many big and small companies. However, you should still keep in mind that BTC is banned in some countries.

To put it simply, every Bitcoin is a computer file that is stored in a digital wallet app on a mobile or desktop device such as a computer or smartphone. You can send and receive Bitcoins or parts of Bitcoins to your digital wallet.

Every transaction is recorded in the blockchain, which is a public list. This makes this technology extremely secure as nobody can spend coins that aren’t theirs, copy coins, undo transactions, or perform other malicious actions.

Determine Your Storage Method

The next step is determining your storage method. This is very important as it will help you keep yourself protected from hackers. Moreover, this will also protect everyone else you communicate with while performing BTC transactions.

Of course, Bitcoin is already a very secure currency, but there have still been instances of theft when users stored their Bitcoins on unreliable websites. To avoid such situations, you must choose a platform that has a good reputation.

>> Ethereum (ETH) Slumps 50% From Highs in 2019: What to Do Now?

Open Your Bitcoin Wallet

You will have to open a mobile wallet that is an app supported both by Android and iOS. Some notable apps of such kind include Airbitz and Copay. Some mobile wallets can even provide you with discounts and special offers if you use them for making purchases on a daily basis.

Alternatively, you can set up a web wallet, also known as an online wallet. This option is better for those who are planning to convert their Bitcoin to a fiat (national) currency or trade it for other cryptocurrencies. BitGo and BTC.com are both examples of these.

It is important to keep in mind that there are other types of Bitcoin wallets and just like mobile and web wallets, they also have their own flaws. It is impossible to have an entirely secure wallet, but you can still choose something more or less reliable.

Promote On Your Website

After you’ve done all the technical parts, it’s time for you to get the word out about your Bitcoin acceptance. If you own a business, it would be a great idea to start accepting payments in Bitcoin, so make sure to promote this feature on your official website.

If you have already created your ICO paper, then it would be a great idea to get it in other languages. In fact, translating your ICO can give you extra exposure along with the one you already get from promoting your new Bitcoin acceptance feature on your website.

In case you don’t have an ICO paper and aren’t planning to get one, you can still promote your Bitcoin compatibility on your website. Here are a few ways you can do it:

  • Add a logo somewhere on your website that says that your website is crypto compatible.
  • For online stores, you could add a button for accepting Bitcoin payments.
  • Lastly, you can promote this new feature on your business’s social media profiles.

Get Help from Specialists

One of the ways to get Bitcoin is to mine it. However, this is a very difficult and complicated process that must not be carried out by a beginner. But even if you are not planning to mine Bitcoin, it is highly recommended that you seek advice from specialists concerning how you must manage your Bitcoin transactions.

Once you get advice from the experts in this industry, you will be able to conduct safer operations with a smaller risk of being hacked. Besides, you can get invaluable tips that you might not find as easily by simply searching online.

Alternatively, consider finding relevant courses online or offline that you can attend and learn how to manage Bitcoin step-by-step. It’s a great option for those who don’t want to keep surfing the Internet for the information they need on this topic.

>> Ripple Escrow Wallet Transfers Another 500 Million XRP to Company

Follow Best Practices

Lastly, there is no need for you to invent something new, as the best practices are the methods that have proven to be effective. Here are some techniques you should adopt to make your experience with Bitcoin a positive one:

  • Don’t store your Bitcoins in the same place you keep them in during the day while making transactions. Just like you would take out real money from the cash register at the end of the day, withdraw your Bitcoins and store them elsewhere when you are not using them.
  • Consider exchanging your Bitcoins for a national currency immediately after receiving them. It’s not a difficult process and can be carried out by anyone through a virtual exchange house.
  • Alternatively, get a hardware wallet for fully controlling your private keys and storing your currency offline. This will make it harder for hackers to get through to your money. Nevertheless, make sure you keep this hardware wallet in a safe place.
  • Take into account many factors when choosing your storage wallets. Consider such factors as the platform’s regulatory frameworks, interaction with fiduciary currencies, the fees charged by the platform, and the availability of customer support.
  • Back up your wallet once in a while to be ready in situations when both humans and computers fail. Prioritize this feature when choosing your platform. Use strong passwords and make sure that all your linked accounts are strongly protected as well.
  • Avoid scammers at all costs. Bitcoin is an attractive currency as it is fairly new and already very popular, so there are many inexperienced people trying to get started with it. Don’t fall for scammers who claim they have a magic tool to double your Bitcoins. It’s not true, and you will simply lose everything you have at the moment.
  • Remember about HODL, which means “hold your Bitcoins.” Many beginners don’t have the necessary skills to earn a lot with trades, so don’t buy into all the success stories. It takes time, effort, practice, and patience before you figure everything out.

Final Thoughts

All in all, even though Bitcoin is not a stable currency yet, it already costs a lot and has a fair share of the market. By investing in Bitcoin now, your future will be more determined, bright, and hopeful.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © makidotvn

If You Liked This Article Click To Share

When will China Legalize Bitcoin Again? The Impacts on the Market

by
China

China

In September 2017, China conducted a nationwide blanket ban on cryptocurrencies, exchanges, and ICOs.

This had a global impact. After all, before the crackdown, the country of the red dragon accounted for nearly 80 percent of the world’s crypto transactions and ICOs and housed the biggest crypto mining operations. So what happened after the ban?

Well, cryptocurrency development didn’t stop. The miners moved, most going to Mongolia. ICOs registered in Singapore. And the big Chinese exchanges just moved to Japan or Hong Kong. So what’s up with China?

Hope on the Horizon

There is hope on the horizon for miners, investors, and exchanges both in and outside China. As I said, just because the government banned crypto (even if it is the government of the most populous country in the world) doesn’t mean development stopped. Because of this fact, a few new developments have surfaced.

Bitcoin as Actual Property

A business conflict arose over the holding and transferring of crypto assets in China. An unnamed plaintiff signed a contract that allowed the defendant to manage, trade, and invest in a pool of cryptocurrencies on behalf of the plaintiff. As things sometimes go in business, the deal went belly up, and the defendant refused to return the plaintiff’s cryptocurrencies.

A local news outlet reported on a ruling by the Shenzhen Court of International Arbitration, which decided that cryptocurrencies must be legally protected “by law due to its property nature and economic value.

>> IBM Shipping Blockchain Grows with Two More Carriers on Board

The Shenzhen Court decided that Bitcoin and other crypto assets should be legally protected by China’s Contract Law, even if crypto is considered illegal tender in the country: “Bitcoin has the nature of a property, which can be owned and controlled by parties, and is able to provide economic values and benefits.

This is solid news. I dare say it is something like a repressed minority gaining rights. Perhaps that is a bit much as a comparison, but there is some truth to it. Cryptocurrencies are a minority of financial assets. They’re growing. And even though they are illegal tender in China, they are still being given rights.

Cryptocurrencies as Currency

Despite China’s crackdown, cryptocurrencies are being given more than rights in the country—they’re being given use cases. For example:

  • September 2018 saw the start of the Ethereum Hotel. This opened in the National Scenic Area of Four Girls Mountain, and it accepts Ether as payment.
  • On October 1, Beijing Sci-Tech Report (BSTR)—an established technology news source—announced it would accept Bitcoin as a payment method. Starting in February 2019, its subscriptions may be paid for with BTC. This was done “to encourage the utilization of crypto in a real-world setting for practical actions.”

This all happened thanks to the two digital assets, Bitcoin and Ethereum, being recognized as properties under local laws in China.

Granted, it’s not all rainbows and sunshine. Trading Bitcoin and other cryptocurrencies remains strictly banned. Yes, merchants are technically allowed to accept cryptocurrencies—but trading, crypto events, ICOs, and any form of OTC are still very much prohibited and enforced with jail time.

This could be a significant problem even for non-Chinese traders: Buying into an unregulated ICO is actually one of the biggest mistakes investors make.

>> This UK Financial Regulator has a Problem with Facebook’s Libra Coin

Being Cautious

ICOs are strictly forbidden in China—no exceptions. But what about STOs (Security Token Offerings), the upcoming darling of the cryptosphere? These are also being watched with apprehension by China.

Pan Gongsheng, acting deputy governor of the People’s Bank of China, spoke at a financial forum in Beijing:

The STO business that has surfaced recently is still essentially an illegal financial activity in China. Virtual money has become an accomplice to all kinds of illegal and criminal activities.

Alas, we won’t be seeing STOs in China anytime soon—but they may be coming out of China. Why? Because, despite the caution, people and businesses in China are pressing for the legalization of cryptocurrencies. They understand cryptocurrencies are the future, and if China keeps strangling them, then they risk being left behind.

Featured image: DepositPhotos © Alexis84

If You Liked This Article Click To Share

Back to the Basics | Can Stablecoins Save Crypto’s Soul?

by
stablecoins

stablecoins

When the perpetually mysterious Satoshi Nakamoto, founder of Bitcoin, set out to build his own cryptocurrency, it’s fair to assume that he didn’t foresee where his creation would be just 10 years down the line.

This isn’t to say that the enigmatic developer didn’t have big plans for Bitcoin. After all, the aim of the digital currency was to ultimately overthrow the financial sector of the time. Instead, it became a capitalist dream—hurtling towards market values of almost $20,000 at its peak, before caving in on itself over the twelve months that followed.

Astoundingly, considering the unprecedented connectivity that we enjoy today, Satoshi Nakamoto has never been officially identified following the rise of his creation. Considering that he is rumored to own around 1 million Bitcoins that haven’t been touched—even during the cryptocurrency’s highest peaks—this has led to some investors to claim that Nakamoto died after founding his digital currency.

It would be quite something to hear Nakamoto’s thoughts on the ecosystem that he created. In the early days of Bitcoin, some adopters were keen to get the cryptocurrency up and running as a viable payment alternative—with some hip fast food places accepting the coin and a few businesses offering to pay salaries in Bitcoin.

Cryptocurrency startups established themselves in a bid to support transactions through Bitcoin. BitPay could’ve paved the way for the currency to be used to buy groceries or cinema tickets, but adoption wasn’t widespread enough to bring viability and Bitcoin began to mutate.

Last year, The Next Web found that 44% of all Bitcoin transactions are for illegal activities. Users found that Bitcoin was an ideal and untraceable currency for use on the dark web.

Writing for The Outline, Adrianne Jeffries said, “Nakamoto was a libertarian who wanted to create a system for payments that would circumvent governments, bankers, and corporations.”

He continued, “Instead, Bitcoin is now a get-rich-quick scheme that retains none of the exciting, anarchist features it proposed and has created a secondary economy with financial shenanigans that mirror the ones that led to the global financial crisis.”

It would be hard to classify Bitcoin as a failure, but it’s fair to say that the cryptocurrency has lost the soul it had as an emerging financial alternative off the back of 2008’s devastating financial crash.

There is, however, hope for the soul of the crypto-ecosystem as a whole.

2020 promises to be one of the biggest years for the world of cryptocurrencies. Stablecoins aren’t exactly new, but with the anticipated arrival of Facebook’s Libra and Wells Fargo Digital Cash, the volatility-free industry of stablecoins looks set to take centre stage.

Stability in the Face of Volatility

In December 2017, Bitcoin reached a value of almost $20,000; one year on it had dwindled to nearly $3,000.

As a digital currency that was designed to operate as a reliable alternate payment system, the success of the Bitcoin bull run in 2017 rendered the cryptocurrency unfit for its intended purpose.

>> Ripple Transfers XRP to New Trading Address: Bad News for Crypto?

Stablecoins, however, are pegged to real-world assets like the US Dollar or gold. Because of this, there aren’t any meteoric rises in value, but no crippling drops either.

Ethically speaking, stablecoins will be free from the clutches of speculators and profit-turning investors, leaving the digital coins to operate as they should—as a universal currency that can be used seamlessly beyond borders.

Practical Application

Stablecoins like Wells Fargo Digital CashTimvi (TMV), and Tether have been designed with convenience in mind.

When Wells Fargo announced its own digital stablecoin, the banking giants did so with an eye firmly fixed on enabling easy transactions. Lisa Frazier, head of the Innovation Group at Wells Fargo, boldly predicted that Digital Cash will be “faster than SWIFT, cheaper and definitely more efficient.”

Wells Fargo Digital Cash uses R3’s Corda Enterprise software to leverage swift book transfers internally—enabling funds to move seamlessly from a payer’s account to a payee’s account within the bank.

The true pace of Digital Cash remains to be seen, but if it is indeed faster than SWIFT, then it represents a step in the right direction towards utilizing crypto payments for everyday activities—like buying a coffee on the way to work.

Reaching the Unbanked

When Facebook announced Libra, its stablecoin that’s due to be released in 2020, it was done so from a humanitarian perspective.

Libra has been developed with the aim of reaching out to the unbanked citizens of the world. “For many people around the world, even basic financial services are still out of reach: almost half of the adults in the world don’t have an active bank account, and those numbers are worse in developing countries and even worse for women,” wrote Facebook subsidiary Calibra in a recent company statement.

Facebook, along with 28 other founding members of The Libra Association, including Visa, Mastercard, PayPal, Uber, Lyft, and Coinbase, among others, will focus on developing a stable universal currency that’s designed to accommodate low-cost transactions across borders.

“The goal of this new project is to build a financial ecosystem that can plug in and empower billions of people,” explained Dante Disparte, head of policy and communications for the Libra Association.

It’s early days yet, but 2020 may well be a watershed moment for driving the world of cryptocurrencies away from the soulless Wild West period of late-2017 and 2018 and into a new era of inclusivity and innovation. Hope springs eternal.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © monsit

If You Liked This Article Click To Share

How Can Blockchain Transform the Real Estate Sector?

by
blockchain real estate

blockchain real estate

Blockchain technology has the potential to revolutionize the real estate sector, from property trading to land registry process, diligence, and quick settlements.

Real estate is one of the significant assets in the world. The survey done by Grand View Research says that the global real estate market is estimated to reach a revenue of $4,263.7 billion USD by 2025. However, citizens in developed countries like the USA lost approximately $150 million because of real estate scams in 2018.

Though a lot of technology advancements have been made to overcome real estate scams and disputes, no technology solution has been found capable of completely doing so. If you would try to relate real estate with blockchain, you won’t find any relation at first.

But when we look at the possibilities that blockchain can bring, blockchain for real estate tends to be the next step in the revolution of the real estate industry.

blockchain real estate

In this article, we will discuss how blockchain can help overcome the problems faced by the real estate industry currently. We will map challenges faced by the industry with blockchain solutions.

Here are some of the issues faced by the real estate industry and why it requires a blockchain solution:

Lack of Transparency

The real estate market is filled with too many intermediaries who always wish to make a profit. Every intermediary involved in the process has a business model that they remain biased towards, as the deal can make them gain profits. They usually prefer to restrict options so that they are only available to sellers from whom they can make more benefits.

Lack of Liquidity

The issue of liquidity has existed in the real estate industry for a long time. Liquidity is termed as how rapidly any asset can be transformed into cash. The reasons why real estate properties are not as liquid as cryptocurrencies are because:

  1. The user base for buying cryptocurrencies is large than that for real estate.
  2. Crypto assets can be sold quickly by getting listed on public exchanges.

Also, entering real estate trading is quite costly because of the presence of intermediaries in the ecosystem.

Reliability

You might know how online scams can affect real estate traders. Imposters can deceive buyers into buying a property that is not even available for sale using their attractive website. Buyers may not be educated enough to perform background checks of the middlemen in the real estate ecosystem. It leads to a lot of legal issues and a loss of money.

>> Binance Makes Investment in Chinese Crypto Media Firm Mars Finance

Correctness

Forged documents play a crucial role in deceiving buyers and convincing them to purchase illegal property. Morphing applications can edit the entire image of a person. Such software can make it possible to edit the text in a physical document. These documents can be any bank-related statements or property papers.

Here’s how implementing blockchain in real estate can offer benefits:

Process of Searching Properties

Nowadays, brokers, owners, tenants, and buyers access and upload property listings via a third-party property listing platform.

Most of these platforms are subscription-based and request high fees from users. Also, the current process lacks standardized processes and has poor communication between the platforms. Besides, the data on third-party property platforms is fragmented across multiple listing sites, leading to data silos.

Blockchain can solve this issue by providing a single decentralized database to maintain the property listing. Since the data is distributed across a peer-to-peer network, brokers would have control over the data. All stakeholders of the platform can access the information without being able to manipulate it.

Property Management

Property management is complicated and involves multiple stakeholders, including property managers, vendors, landlords, and tenants. Many properties are either handled offline via paperwork or by software applications that cannot be integrated.

With a decentralized application that uses smart contracts, the process of property management, from managing cash flow to signing lease documents and submitting maintenance requests, can be performed in a secure yet transparent way. For instance, tenants and landlords could sign an agreement added to smart contracts that includes information like rental value, property, tenant details, and payment frequency.

Once the terms are agreed upon, lease payments are automatically initiated from the tenant to the landlord using smart contracts. Upon the lease period termination, the security amount is also sent back to the tenant’s account automatically. Implementing blockchain into property management can help to bring such a transformation.

Financial Evaluation and Due Diligence

Paper documents for identity proof still exist in the market nowadays. It requires a significant effort and time to perform financial verification and due diligence. Since it is a manual verification process, it also increases the chances of errors and usually involves third-party service providers. Such factors lead to additional costs and consume a lot of time in due diligence.

With digital identities on the blockchain, the whole process can be done online in a secure way. As a result, it improves efficiency, cuts down costs, reduces the risk of manual errors, and enhances data security.

For example, information like financial and legal status, vacancy, and performance metrics of a person can be associated with their digital identity, streamlining the process of property trading while adding layers of security.

All parties involved in property management would have their own digital identities. Everyone can use the property management application to send and sign property documents using smart contracts.

Land Registry

The process of a land registry currently involves middlemen who hold information that nobody else can access. The implementation of blockchain in the land registry could transform the process by allowing anyone to access and save information without the involvement of the third party.

Blockchain could also solve fraud issues by allowing everyone to access land title records while maintaining the immutability of land records. With the timestamped and immutable record of transactions, you have full control over your land title and forged documents become a thing of the past.

>> Ripple Soars 15% Suddenly, Other Cryptos Follow

Takeaway

Blockchain has the potential to bring transparency, enhance efficiency, and cut down costs for real estate investors by eliminating inefficiencies from key processes.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

Featured image: DepositPhotos © sdecoret

If You Liked This Article Click To Share

1 2 3 4
Go to Top