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Crypto to revolutionize business and money evolution, Ripple co-founder

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The medium of exchange during the days of barter trade included precious metals, gold, and things considered valuable. Next came flat currency, banknotes, cash, things that have value because they are backed by governments and legal frameworks. Today there are math-based currencies! Currencies that are controlled by protocols and algorithms only. Now indeed, accepting and utilizing the power and potential of these new math-based currencies is going to be the big story in finance and the future of transacting.

In 2017, most of the top news featured included an article about cryptocurrency and Bitcoin’s enthusiastic rise and fall. Bitcoin’s value per unit rose from $900 in January to approximately $20,000 in December, according to CoinDesk. However, after a few days later, the cost of Bitcoin dropped by about 30 percent.

Despite such fluctuations in the crypto market, Chris Larsen, co-founder of Ripple, in a recent visit to his alma mater, predicted that blockchain and cryptocurrency technology would radically renovate and transform global business.

He argues that Bitcoin is making this revolution possible by kicking down doors and opening people’s eyes. Hard currency has always presented technical problems. For instance, how should a person track value in a way that is reliable and useful to extended networks of other individuals? Bitcoins are proving that computer protocols are as effective as institutional procedures in handling reliability and security.

Larsen speaking to students in Assistant Professor Shengle Lin’s Alternative Investment class, on April 9, highlighted that daily trading of digital currency isn’t as attractive as “the internet of value” being introduced by blockchain technology. The internet of value is an efficient system that allows money transfer to be made as quick and easy as an email, text message, or a phone call. The way it works is, if a person owes you $10, they initiate the transaction. The vast community of miners, who have powerful computing resources, verify and authenticate that the operation was done.

Larsen said,

“In the present time, if a person wants to wire money from their bank account to another country let’s say the U.K, it could take three to four days to reflect and would cost a fortune in transaction fees”

He further states, there is no fundamental infrastructure to send and receive money across borders instantly. This is the big problem that needs to be solved. This is where cryptocurrency and digital coins have hijacked the system in regards to enacting available, advanced, and fast transaction procedures that guarantee a swift and safe transaction.

Continuing with his thoughts, Larsen explained to the students that Cryptocurrencies exist on ledger networks, also known as decentralized networks. These networks aren’t controlled by financial institutions or governments; instead of having a central bank to process and record each transaction, every computer in the network records every transaction. The advantages of using cryptocurrencies are that they aren’t under the mercies of exchange or interest rates or transaction fees, and all in all, users have the ultimate control over their digital funds.

Alongside having numerous advantages, cryptocurrencies have their fair share of limitations too. Every ledge network has a unique set of attributes that makes it hard to apply on a global level, Larsen adds.

Subsequently, some digital currencies are not accessible. Bitcoin can only perform seven transactions per second, taking large amounts of power and resources to complete even a single transaction. That is due to all the computers in the network have to process each transaction. Larsen noted. Larsen also hinted at the fact that Bitcoin network consumes the same amount of energy annually as the whole population of Denmark.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of 【Kelly D Photography】 via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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