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Business

Is Bitcoin Taking Over the Business World?

by Matthias
written by Matthias

Bitcoin has registered immense success over time. Its prices shoot up to 750% in a year so it would not be too early to say it is taking over business. However, recent reports are worrying. With a recent big crash, you may be uncertain whether to invest bitcoin. Reports from China show that bitcoin prices plummet by 30% and the uncertainty that ensues should make you reconsider your choice to invest in bitcoin.

Bitcoin’s Firm Foot on Business and why you should not invest in it.

The infatuation with bitcoin is major. As a Cryptocurrency its doing better than real time currency. Experts however say it is an investment Armageddon. It can plummet anytime soon and the below reasons peak into bitcoin. Despite its firm foot, it lacks in:

  1. Bitcoin has unregulated space

Bitcoin’s lack of regulation by either government or banks is the red flag that should warn you off. In the case of a grievance, you will have no authority to address it to. When you are ripped off after you have bought a commodity suing your credit card, you will be compensated. On the other hand, if you are ripped off by a bitcoin transaction, you have no grounds to ask for compensation.

You should not invest where there is unregulated schemes. Therein lies pain if you lose your investment yet you cannot ask to be compensated.

  1. The issue of bitcoin’s legality

The legality of bitcoin is one major hurdle, most especially for Indian investors. Even though bitcoin has not been declared legal, it is recognized by the Reserve Bank of India and other Indian authorities as currency. This was however cleared in a December 2013 press release.

 

In the press release, traders of bitcoin and other virtual currencies were warned about potential operational, financial, customer protection, legal and security related risks. If this alone is not enough to keep you from investing in bitcoin, the latest February 2017 press release ought to.

The press release stated The Regulator had not licensed companies to trade in visual or digital currencies. The Reserve Bank of India added that if you deal with bitcoin it would be at your own peril.

  1. Ponzi schemes abound

You should be aware of the high risk of fraud. Fraudsters have banked a lot on the misinformation and lack of clarity that has surrounded bitcoin and Cryptocurrencies. Weigh your options keenly if you see a promise of ‘high returns’. It might be a Ponzi scheme.

Watch out for those companies that promise to double your initial investments. Miscreants will use the growing fame surrounding Cryptocurrencies to lure you into Ponzi schemes. If you want to invest, do so in the right state of mind because bitcoins are highly volatile. Promises of great returns after a short time are therefore highly unlikely.

  1. Prone to illegal activity

Extortionists and even terrorists can utilize the Cryptocurrency space as advantage over your investment in bitcoin. Illegal activities might just be at the end of your transaction without your knowledge. Cybercriminals can lure you and take advantage of your investment and you have no way to ask for compensation because they know how to cover their tracks.

Cybercriminals mask their addresses and even the government is not able to snuff them out. On one occasion, a bitcoin trader had his computer locked by hackers. They demanded from him payment in 3 bitcoins for his computer to be unlocked. He made the payment but the hackers did not keep their end of the bargain.

Hacking incidents and cybercrime make it impossible to track these legal activities. This stands as a danger in the Cryptocurrency space. Bitcoin has an unregulated scheme and this will expose you to unforeseen risks such as anti-money laundering and financing terrorism laws.

  1. Extreme volatility

Investing in Bitcoin is a high-risk venture because its prices are volatile. Bitcoin investment has been met with a fair share of skepticism. Analysts have their reservations about bitcoin because it lacks an ecosystem that will allow them study its investment. Bitcoin lacks enough ecosystem making it impossible for analysts to study is an investment.

What the bitcoin ecosystem lacks is enough individuals, organizations, entrepreneurship support organizations and top performing startups. These elements make bitcoin give bitcoin a ‘lesser’ ecosystem. You should invest if you have imperfect information. Bitcoin prices are not regulated and if you join the bandwagon, prices climb even higher.

Being lured by bitcoin’s high prices will burst your bubble of expectation. When this happens, it will cause widespread loss and your initial investment will not be recovered.

  1. Neither currency, nor commodity

Bitcoin lacks clarity on its origin. The proponents of bitcoin have unlike ‘fiat currencies’ failed to call bitcoin a commodity. This corrupts even the thought that bitcoin has been mined using complex mathematical formulae. Bitcoin does not fall in the currency category. Before you invest in it, you should know that any government does not control it.

The act of bitcoin declaring itself as democratic makes it risky for you considering investing in. Ensure that your investment is at least backed up by a tangible asset or at least by sheer demand.

  1. If you are not familiar with bitcoin, do not invest

Take it from global bankers and experts who have warned against investing in bitcoin. They are of the opinion that Cryptocurrencies are but a bubble waiting to burst. You may be caught up in the quagmire that bankers and retail investors are caught up in. Retail investors have used the Citgroup CEO Virkam Pandit as leverage because he invests in bitcoin.

This should not make you invest if you have no knowledge prior to bitcoin. You should follow Warren Buffet’s take of not investing in something that you do not understand. If you are not convinced yet, if bankers ask you to keep away from bitcoin because they do not understand bitcoin it is most likely that retail investors have no understanding of the phenomenon as well.

Conclusion

Bitcoin is a lucrative form of Cryptocurrency business. What lags it from ‘taking over the business world’ are the above reasons. It is an unregulated scheme and you should only trust your investment with an avenue that has put in place enough measures to secure your interests. Still it is the fad on the business street, there is no denying that.

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Business

Top 7 Benefits of Using Cryptocurrency

by Matthias
written by Matthias

Cryptocurrency is a digital money designed to work as a medium of exchange that uses progressive encryption procedures called cryptography. Cryptography safeguards all transactions controls the formation of additional units and verifies the relocation of properties. Cryptocurrency is a type of the following currencies;

  • Digital currencies
  • Virtual currencies
  • Alternative currencies

Cryptocurrency uses decentralized control with a mechanism known as blockchain, which is an unrestricted transaction database. The first Cryptocurrency was Bitcoin that was invented in 2009, from then there have been a number of cryptocurrencies that have come into existence.

In recent years Cryptocurrency has swiftly gained recognition and understanding of its usage and value by many people. Apart from Bitcoin, there are other types of Cryptocurrency such as;

In April 2013 Bitcoin received a great deal of attention in many parts of the world when its worth was $266 per Bitcoin. But after two months the value of Bitcoin decreased by 50%. Currently, Bitcoin has a market worth of $10 billion.

The following are the benefits of using Cryptocurrency:

  1. Recognized Universally

Many global businesses currency have embraced the use of Cryptocurrency this is due to fluctuating exchange rates during transactions. Have you ever experienced difficulty in currency exchange or charged for currency exchange? For Cryptocurrency, there are no such things and are priced at a constant value.

Non-issue and recognized value of cryptocurrencies have led to time-saving in determining a value for a transaction, and charges associated with the exchange of different currencies. As Cryptocurrency is being embraced in different parts of the world, it is going to make financial dealings quicker and easier.

The other forms of the electronic money system, Cryptocurrency is the safest of all. This is because with Cryptocurrency you own a private key and a corresponding public key that creates your Cryptocurrency address, which only belongs to you. But for the other electronic systems, your account can be owned by another person without your consent.

For Cryptocurrency to replace traditional currencies and credit cards it will take time because many people are unaware of cryptocurrencies hence education on Cryptocurrency is essential if it is going to be used in future.

  1. Accessible to Everyone

Globally there are almost two billion people who have access to internet and phones. These group of people is slowly embracing the use of Cryptocurrency rather than the use of traditional forms of money. M-Pesa a Kenyan mobile money transfer system and micro-financing service have currently announced a Bitcoin device, in which has already gained popularity few months after later.

As the world is rapidly developing and the use of mobile phones connected to the internet are also increasing, many people and businesses will embrace the use of Cryptocurrency. It is considered that the use of Cryptocurrency will spread quickly in the manner phones spread at the end of the 1990s and beginning of 2000s.

  1. No Middlemen

Use of Cryptocurrency in the acquisition of property helps in the removal of costly lawyers, brokers and other middlemen who inflate the price of a property. Cryptocurrency essentially acts like, “a vast property rights database”, this is in regards to a financial professional and can be used to implement and apply a contract between two parties on various properties such as automobiles.

  1. You have Control of Cryptocurrency

The most exciting thing about Cryptocurrency, unlike other money systems, is that you have the control of your money. Most traditional money systems such as;

  • Brokerage houses
  • Banks
  • Credit Unions

Usually, take control of your money and you have to adhere to their terms and services. If you do not abide by these terms they can append your account. Sometimes they can increase the monthly fees without consulting the account owners which becomes more expensive.

But for Cryptocurrency there is no one who can manage your funds, you are the only one who can decide when to change your terms.

  1. Secure

Unlike cash or credit cards, Cryptocurrency is digital and encoded to avoid theft of your funds. If you are using legacy payment methods or a wallet full of money, theft becomes easier contrasting Cryptocurrencies.

Globally online, saving, and credit transactions are rapidly increasing on a daily basis. Hence the only safe method of transactions all this is by the use cryptocurrencies.

  1. Decentralization

Unlike banks and financial institutions which are controlled by the government and tracing and seizing of customers’ accounts is easy. For cryptocurrencies, no government can trace it hence no chances of confiscation.

Cryptocurrency is untraceable due to the fact that there are a number of networked computers that use Blockchain hence no central control.

  1. Appreciating Currency

Cryptocurrency has promoted usability and growth of global markets due to increase in the value of cryptocurrencies. As many users and merchants join the network the more the demand and the higher the prices of cryptocurrencies.

There are also other benefits of Cryptocurrency that are considered to be minor. They include:

  • Low inflation risk
  • Computer-generated Wallets – Cryptocurrency can be safely stored in a virtual wallet hence minimal the chances of theft.
  • Leverage – businessmen who trade Cryptocurrency with the help of brokers are presented with leverage, giving them a great pact of flexibility.
  • No transaction cost – no transaction cost is applicable when it comes to Cryptocurrency because all Cryptocurrency transactions are documented on a public account book and not on paper.
  • Fraud – Cryptocurrency is digital and hard for counterfeiting to take place.
  • Easy to use – Cryptocurrency is easy to use, by adding an extension to your business application or use of an application.
  • Faster processing – settlements are done within one minute opposed to banks that take five to seven business days.
  • Borderless dealings
  • Cashback platform for customers

There are many other benefits of using cryptocurrencies and currently, it is taking over the global market. With all these benefits I strongly recommend you to embrace the use of Cryptocurrency so as to be part of it.

Also, you should be aware of the risks involved when transacting using Cryptocurrency. You should trade Cryptocurrency with intelligent assets which are basically a better way of getting involved in the digital market using money in your ideal currency, without trading with the concerned Cryptocurrency.

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Sizes of Some Random Markets Compared with Crypto Market
Business

Is it Too Late to Buy Bitcoin and Is It Too Late to Invest in Cryptocurrency?

by Matthias
written by Matthias

As the price of bitcoin hit its all-time high of $19,000 last year, most people thought that it is too late to buy it. Despite the fact that the bitcoin price has shed some value since then and now trades around the $9,000 mark, most of those people still think it is late for them to buy a bitcoin.

However, it is not too late to purchase a bitcoin or invest in cryptocurrencies. The advice by most financial experts to steer clear of crypto investments is wrong for several reasons and there are reasons which point to the fact that Bitcoin and other cryptos are destined for greater things.

Is it Too Late to Buy Bitcoin

We will take a look at some of these points.

Crypto Projects are Gaining Widespread Acceptance

The stance of some top companies and governments in the world surrounding bitcoin and other cryptocurrencies is changing. An example of this is Ripple, a cryptocurrency that has been designed to make inter-boarder payment faster with less transaction speed. Banks and other financial institutions across the globe have registered with Ripple to use their blockchain so as to make payments faster.

This huge potential by Ripple means that it is set to become a very important coin very soon. Bitcoin is also trying to catch up with that with the adoption of the SegWit and the Lightning network.

As these cryptocurrencies begin to gain widespread acceptance by companies and businesses across the globe, their coins will ultimately increase in value. Thus, it isn’t late to invest in a crypto project to invest in.

Crypto Market Bearish Run is Just a Correction

According to the “Bitcoin Index Misery” tool that was developed by a Wall Street analyst Thomas Lee, this is the best time to purchase Bitcoin and other cryptos. The bitcoin misery index is currently below 18, which means now is the best time to buy a bitcoin or invest in cryptos. He explained that the misery index gets low every year and bounces back within 12 months. Lee has predicted that Bitcoin would hit the $20,000 by the middle of the year while his end of the year prediction still remains at $25,000.

This view is shared by analysts in the financial world. The crypto market is currently facing a correction but it is expected to bounce back and go on a bullish run afterward.

The price of cryptocurrencies have been rising for the most part since they first started out and there is no indication that the rise will stop soon despite the current market correction.

Country Stock Market Caps vs. Crypto Market Caps

Another reason why people are convinced that it is too late to invest in bitcoin and cryptocurrencies, in general, is because of the huge market value. The market value of cryptocurrencies which rose quickly last year has made several people think that the market is saturated and a bubble might soon take place.

Let us take a look at this statistics and understand what is really happening. The US Stock Market Cap is 167 times bigger than the Bitcoin market value and it is also 94 times the size of the crypto market. The second largest economy in the world, China has a stock market that is 54 times the size of Bitcoin’s market cap and 31 times that of the crypto market.

Country Stock Market Caps vs. Crypto Market Caps

Why are we making this comparison? It is because we want to dismiss the notion that Bitcoin and other cryptocurrencies are in a bubble. The crypto market is just a fraction of the US and Chinese stock market. When you look at it that way, then you will know that the crypto market isn’t in a bubble, rather it has the potential to grow even bigger than it currently is. Since they have the potential to grow even bigger, then it isn’t late to invest in Bitcoin or other cryptocurrencies.

Crypto market is just a fraction of the events that happen in stock exchanges across the globe and has the potential to rise even higher in the next few years.

Watch this video here.

Sizes of Some Random Markets Compared with Crypto Market

Looking at it from another angle, let us take a look at the market cap of some random market and compare them with that of cryptocurrencies. Some markets such as the Autonomous Vehicles, Virtual Reality, Augmented Reality, and the Internet of Things haven’t been fully explored yet but their market cap is bigger than the whole crypto market.

It is safe to conclude that the Bitcoin and crypto market has made more progress than the above-listed markets yet they have bigger market value than Bitcoin and other cryptos.

How often have you heard people ask if it is too late to invest in the virtual reality market or the autonomous market? How often have you heard people ask if these markets are in a bubble even though most of have greater market value than the crypto market?

The loyalty points market currently has a market value of $653 billion, which is bigger than the whole crypto market but the market has never been termed as overvalued.

All this points to the fact that the crypto and bitcoin market has the potential to grow even bigger than it is at the moment. When you consider the fact that larger players in the industries such as hedge funds, CME, investment banks, pension funds, asset managers, and others haven’t started investing in the market yet, then you would know that the market will explode beyond its current state and it is not late for you to invest in the market.

Diversification should be a Priority

The most important rule of investment is diversification. Keeping all your investments in one market is very risky as you might lose everything. However, if you diversify, you reduce the risk of losing everything. Bitcoin and other cryptos are excellent assets to diversify your investment.

Since they are to act as assets to you, then it isn’t late to invest in them

Conclusion

The question posed in this post is something only a few people can answer with much confidence. However, all signs point to the fact that it isn’t late to invest in Bitcoin and the crypto market as the market has the potential to become even bigger than it currently is.

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