Everything You Need to know about Cryptocurrency - II

Future of Cryptocurrency

Cryptocurrency offers faster and non-fee payment transactions around the globe and could be a replacement for gold and fiat money. Although their invention wasn’t for normal equity investments, the investors did get attracted due to its high volatility. The acceptance is commendable though many companies have genuinely invested or considering investing in this currency. Significantly, paving its way to becoming the universal standard currency.

Presently, the target crowd of the Cryptocurrency market is tech–savvy.

Companies like Expedia, eBay, and Microsoft use Cryptocurrency and have certainly accepted the fact that Cryptocurrency is indeed the future. Bitcoin, for example, is the future simply because fiat currency will be losing their value due to excessive printing. Additionally, there is also a tendency that fiat money can fall to the value of 0 and no value at all.

Cryptocurrency reduces the risk of fraud by tracing the originality of the product with the help of blockchain. However, it is still fighting for recognition and introduction with governments.

In Dec 2017 bitcoin broke trading charts by surging up to $20K becoming the most worthy cryptocurrency in the world.

The regulations and policies around cryptocurrencies are getting better and tighter. Countries like the US, UK, Australia have accepted this currency with open hands, fostering innovation. Besides, it is not so far away from the truth that everything will be a part of this trend shortly. For example, India is reluctant to accept cryptocurrency but is willing to work around blockchain. So there is resistance in its adoption due to security and the currency being decentralized.

It is also facing criticism for its use in the dark web, illegal activities, notorious volatility. However, being praised for transparency and portability.

Key Takeaways:

A Cryptocurrency is a new form of digital asset based on a network that is distributed across a large number of computers.

The decentralized structure allows them to exist independently. Moreover, it doesn’t depend on the government or any organization.

Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.

Additionally, Cryptocurrency uses Encryption techniques to secure its network.

Future of cryptocurrencies — Source: Investopedia; Future of Cryptocurrencies

Read about the basics here:

Everything you need to know about Cryptocurrency

India and Cryptocurrency

Indian Bank Unite MultiState Credit Co. in collaboration with crypto banking service provider Cashaa, has established a joint venture a UNICAS. It is aiming to provide both online banking services and walk-in services for cryptocurrencies and its products. Though, this is amid India’s fluctuating and uncertain cryptocurrency regulations. In March 2020 Supreme Court “took down the ban on cryptocurrency” which was put by RBI. There is still a lot of scepticism in investors about cryptocurrency due to RBI’s continuous warnings.

Anyhow, UNICAS will be allowing a United Account to its customers to integrate cryptocurrency wallets directly with their accounts. Moreover, enabling them to directly buy Bitcoin (BTC), Ether (ETH), Ripple (XRP), and Cashaa (CAS). It is possible to pay either in cash or directly from their accounts. After the launch of UNICAS, United is also thinking of enabling lending loans to its customers against cryptocurrencies.

Cryptocurrencies have seen significant adoption since March their approximately trading volume surged from 200 % to 400%.

Kuma Gaurav, Chief executive talking about the Collaboration of Cashaa and Unite MultiState Credit Co.

Kumar Gaurav, the chief executive of Cashaa, said that “the increased interest in cryptocurrencies was a major reason for them to integrate cryptos into the legacy banking system. He said that UNICAS will help disseminate reliable information about cryptocurrencies to the mainstream Indian population and help further the adoption of cryptos in India. He also said that the addition of cryptocurrency services to a traditional bank will help India adopt a more digitized payment system.”

Bitcoin after the Coronavirus Pandemic

Even Bitcoin and other cryptocurrencies were not immune to the economic decline due to Corona Pandemic. Back in March, coinciding with the falling oil prices. The decline penetrated the cryptocurrency market too, and they lost their value in just a day.

The original cryptocurrency lost over 50% of its value in a day. The investors saw it as proof that it is somewhat too interlinked with traditional finance to be any safer. The bitcoin went down to almost $3000 during the pandemic though it did climb back to $10000 soon. However, it’s being considered as a new start, and it’s predicted to have a positive effect on bitcoin in, coming years. As of 2020, the value of Bitcoin could spike up to $10000.

Yahoo is emphasizing to invest on Bitcoin, Ethereum, NEO, and EOS in 2020.

70% of global bitcoin mining operates from China and Korea. Eventually, It is quite evident that they faced a setback too. It is ironic because investors claim cryptocurrencies as safe assets, especially for tough times like these. Lockdown was the main reason for the reduction in mining farms.

Applications in Practice of Cryptocurrency

1. Wallets

Trezor: A subsidiary of Satoshi Labs, manufactures hardware wallets where users’ private keys are stored in the device. The wallets are compatible with both computers and mobile phones, supporting the Android, IOS, Linux, and Windows operating systems. Additionally, each device is compatible with hundreds of cryptocurrencies. For Example, Bitcoin, XRP, Litecoin, Bitcoin Cash, Tether, Monero ,zcash, ether, and all ERC-20 tokens.

Exodus: Exodus wallet is best for mainstream users who don’t hold many cryptocurrencies. Their main aim to manage their wallet and make instant trades. Unlike Trezor, Exodus is only a software wallet and doesn’t offer many security features.

2. Payments

Coinbase Visa: Visa Grants Coinbase Power To Issue Bitcoin Debit Cards as per an article on Forbes Visa has officially granted Coinbase, a cryptocurrency company, its principal membership, for the first time. Hence removing the crucial and expensive middleman from the process and letting user spend their Bitcoins, XRPS and Ether anywhere VISA is acceptable. Visa did clarify that they will not be accepting cryptos once the project goes live.

Bitcoin:

1st ever cryptocurrency invented and by far the most sort out till date. It is also the 1st ever decentralized and P2P network which can work without any central authority across the globe. It’s known as the digital gold standard in the cryptocurrency network.

Bitcoin is the pioneer of blockchain technology that made digital money possible, and over the years of bitcoins existence, its value has fluctuated tremendously.

The current value of Bitcoin is 1 Bitcoin = 9,76,600.77 Indian Rupee, now that’s crazy.

One major advantage that Bitcoin has over other cryptocurrencies is that its impossible to counterfeit. Reason being there are only 21 Million Bitcoin created from mining no more no less.

3. Banking – Border Transactions

Ripple:

Ripple is a technology that has a dual function, as a digital currency as well as a digital payment network for financial transactions. It operates on an open-source and a P2P decentralized platform.

1 Ripple (XRP) = $0.499 USD or 0.00007797 BTC

Hence, allowing a transfer of money in any form both fiat and cryptocurrency. It does use middleman in currency transactions and offers an exchange of any currency.
Its digital coin, XRP acts as a bridge for other currencies which includes both fiat and cryptocurrencies. Unlike Bitcoin, its Network does not run with a proof of work system. Additionally, the nature of its Network and its systems exposes its users to certain risks. Nonetheless, it does improve some features of traditional banks. Transactions are complete within seconds on a ripple network even though the system handles millions of transactions frequently.