Connect with us

Blogs

Can Precious Metals Save Crypto?

Published

on

crypto
READ LATER - DOWNLOAD THIS POST AS PDF

It has been over two weeks since the second large crypto market crash of 2018, and many believe that the bubble we all know as Bitcoin has finally burst. This is the year when BTC has hit its highest value ever, only to gradually drop back down.

While the entire year was progressively bearish, Bitcoin has successfully held its ground at the price of $6,400 for months. However, in mid-November, this changed, and the coin continued to sink. As a result, the same year that gave it the value of $20,000 per coin also brought it down to $3,700. Those who invested in it when it was at its all-time high have lost over 80% of their investment within 11 months.

The drop is not only limited to Bitcoin, however, but to all top currencies, such as Ethereum, Bitcoin Cash, XRP, and countless others. However, while many believe that these cryptos are going down, this doesn’t necessarily mean that they will all disappear. It is possible that some of them will manage to survive. Even if they don’t digital currencies are hardly going away for good.

Cryptocurrencies are here to stay

Their utility is a real thing, recognized around the world. Blockchain in crypto came in a pair, and will likely remain together, especially since they provide people with online transactions outside of banking system. This is not only practical for black market merchants anymore, and numerous businesses are already considering this as an alternative to traditional payment systems.

For some of them, this is not only a choice but a necessity as well. Banks often tend to deny services to some of their customers, as do credit cards. Sometimes, the reason is nothing more than their political views. One example of this is what happened to an alternative social networking website called Gab. Gab is known for allowing its members to express controversial views on various topics, which is something that did not sit well with banks. As a result, its founder stated that Gab will be turning to BitPay and Bitcoin.

As this continues, more and more such cases are expected to appear, which is why alternative payment systems have grown to become a necessity. However, major Bitcoin exchanges, like Coinbase, for example, are also becoming very politically correct. So much so, in fact, that they have also started blacklisting those who they don’t like.

In addition, they are collecting their customers’ personal data and giving it to the IRS. In the end, Bitcoin users can only guarantee their privacy by never actually using their coins for anything. This is only one of the problems connected to Bitcoin. It is also very slow when it comes to confirming transactions, it consumes a lot of energy, and there is a constant risk of loss if investors lose their private key. Not to mention outside threats, such as fraud, hack, government crackdown, and alike.

However, the biggest problem with Bitcoin and other cryptocurrencies, by far, is their volatility. Since they don’t have any asset backing them, it is nearly impossible for these coins to have a stable, constant price. This is one problem that can be solved by bringing real assets on the blockchain.

Backing crypto with gold?

One idea that might solve this issues revolves around using precious metals to back cryptocurrencies, just as they were used for backing fiat money some time ago. While there are numerous challenges — legal and technical — as well as a constant threat of scammers, there are many who support this solution.

These are optimists who believe that we are approaching the time when precious metals such as gold can be used on the blockchain for buying things such as shares of stock, real estate, and more, without ever having to us fiat money. This would mark the return of demand for gold and other precious metals, and the entire idea is a bullish view on the future of crypto and blockchain.

However, there is a bearish view as well. Numerous banks around the world are researching the crypto space, with some of them already making plans on launching their own coins. Doing so could potentially satisfy public policy goals, provide customers with protection and security, and even provide privacy in payments, which is something that the private sector failed to do.

While their claim would be that they only have security, privacy, and protection of their customers in mind, they would effectively eliminate competition to fiat currencies, and move to an all-digital economy at the same time. While Federal Reserve officials continue to deny that they are planning to issue their own coin, they still looked into the possibility.

The crypto space is evolving rapidly, and predicting the next turn is impossible. This includes the potential direction that crypto will take, as well as the intentions and potential interventions from the governments, banks, and alike. While precious metals may come into play once again, even this is still only a speculation, with no certainty about anything at this time. One thing is certain, and that is that a big change of a financial sector is happening right now, and it will take a few years for things to stabilize again. During those years, pretty much anything is possible.

For the latest cryptocurrency news, join our Telegram!

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 Pexels

Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

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…

Continue Reading

Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

Continue Reading

Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

Published

on

SonicX
READ LATER - DOWNLOAD THIS POST AS PDF

When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

Continue Reading

Elite