Monthly Archives: August 2017

Will Cryptocurrency Replace Other Forms of Payment? To answer that question I look to author Andrew Smith who iscredited with the quote. People fear what they dont understand and hate what they cant conquer. I believe this quote can be applied to many situations and still hold true.

For instance, one area in which this quote may hit the mark is with cryptocurrency. Of course, it may not be fear itself that is driving the cryptocurrency craze. Instead, it could be fueled more by FOMO, or fear of missing out.

This leads me to question whether or not cryptocurrency will replace other forms of payment.

Cryptocurrencyis a form of digital currency that uses encryption to make financial transactions secure. As a result, monetary exchanges are difficult to forge and do not require bank intervention to complete.

You cant hold cryptocurrency in your hand or pocket. The only place it exists is on computers through the exchange of digital currency.

There are a lot of reasons why cryptocurrency is currently making stronggains in popularityand use. When taken together these reasons could be enough to secure cryptocurrencies place in our society and replace other forms of payment in the future.

Cash is heavier, dirtier, easier to steal, and easier to forge than digital currency making it less appealing than its digital replacement. Checks, as an alternative, can also be easily stolen and forged and take up more room than cryptocurrency.

Other forms of payment, such as credit and debit cards, are similarly less appealing in comparison to digital currency because they can be hacked or stolen costing you thousands.

Transaction fees that banks charge for the exchange of money may be lower by using cryptocurrency or even avoided altogether, adding to the appeal.

With all of these reasons behind it you would think cryptocurrency would be the logical next step to replace other forms of payment. But there may be reasons to be wary of its use.

One reason to be cautious of using cryptocurrency as a means of payment is because of thewild changes in its value. Gold values, which are often still used as a comparison, have remained fairly steady over the past seven years. However, cryptocurrency, Bitcoin in particular, has seen values that have remained volatile over the same timeframe.

An additional reason to be cautious in the use of digital currency is legality. Not all countries yet recognize cryptocurrency as a means of payment for goods and services. The U.S., in fact, does not yet distinguish it as legal tender.

Cyber theft is another threat that could deter the widespread use of digital currency. Because cryptocurrency exists only in an intangible form on the internet it is vulnerable to theft by hackers.

Reportedly, some large corporations have used cryptocurrency to legally evade their taxes since the IRS does not recognize it as money. The IRS is trying to put a stop to this. But, as more businesses and citizens catch on to this loophole there could be further tax losses.

Some may fear cryptocurrency and others may embrace its use. But whether or not cryptocurrency will replace other forms of payment in the future is not yet clear. It is likely only time will tell.

This article was originally published on Due.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Will Cryptocurrency Replace Other Forms Of Payment? - Nasdaq

A U.S. economist and businessman known for his work in spearheading the early development offutures contracts is seeking a cryptocurrency patent.

Richard Sandor, a former Chicago Board of Trade chief economist and vice president, advanced the utilization of financial futures back in the 1970s, earning him the moniker "the father of financial futures" and, later, "the father of carbon trading," according to Time.

Notably, perhaps, Sandoris now listed as the first of three inventors for the "Secure Electronic Storage Devices for Physical Delivery of Digital Currencies When Trading" patent application, released on August 10 by the U.S. Patent and Trademark Office.

Sandor is currently the chairman and CEO of Environmental Financial Products LLC, which is listed as the applicant for the patent.The application itself details a hardware concept for the storage of digital currencies tied to derivatives contracts.

It explains:

"The invention relates to a method to facilitate trading of digital currencies, which comprises electronically storing an amount of a digital currency on an electronic storage device or electronic registry; and physically storing the storage device or electronic registry in a secure, physical repository that is not publicly accessible with the storage device or electronic registry available for use in subsequent delivery of the digital currency."

It's the latest submission to focus on cryptocurrency-related derivatives, coming on the heels of news that options exchange CBOE is planning to launch products in this area later this year.

Firms like CME have also moved to obtain intellectual property tied to cryptocurrencies. As CoinDesk previously reported, CME's patent applications reveal an interest in bitcoin mining derivatives.

Richard Sandor image viaJon Lothian News/YouTube

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'Father of Financial Futures' Seeks Cryptocurrency Hardware Patent - CoinDesk

President Trump recently signed a foreign sanctions bill into law that included provisions mandating that governments monitor cryptocurrency transactions. The bill was passed by the U.S congress last month and is directed at Russia, Iran, and North Korea.

Also Read:Homeland Security Injects $2.25 Million Into Distributed Ledger and Blockchain Surveillance Startups

President Trump has signed a controversial foreign sanctions bill into law that mandates the Iranian, Russian, and North Korean governments must monitor cryptocurrency circulations as a measure to combat illicit finance trends.

The bill requires that governments develop a national security strategy to combat the financing of terrorism and related forms of illicit finance. Governments will be required to monitor data regarding trends in illicit finance, including evolving forms of value transfer such as so-called cryptocurrencies.

Although the new legislation indicates the U.S governments desire to monitor cryptocurrencies, at this time making no indication that a more aggressive cryptocurrency crackdown may be imminent.

Yaya Fanusie, a former CIA counter-terrorism analyst for the CIA, has presented a balanced account of the threat posed to anti-terror authorities by bitcoin and alternative cryptocurrencies. The national security concern is not that criminals will use this type of technology they use all technologies, Mr. Fanusie said. The policy question is: How do you deal with something that governments cant control?

Fanusie previously identified the first verifiable instance of bitcoin being used a vehicle for fundraising by a terrorist organization, and continues to conduct analysis for the Center on Sanctions and Illicit Finance at the Foundation for Defense of Democracies. In an interview with the Washington Times, Fanusie recommended that U.S government work closely with cryptocurrencies in order to ensure that they are not used for illicit financing. Bitcoin is like a rebellious teenager, it wants to do its own thing, he said. So what do you do? Do you ban it? No, you want to have a good relationship with it and influence how it develops.

According to the bill, an initial draft strategy is expected to come before Congress within the next year, and will see input made by US financial regulators, the Department of Homeland Security, and the State Department.

Do you think that sanctioned governments will adhered to the U.Ss provision relating to the of monitoring cryptocurrency transactions? Share your thoughts in the comments section below!

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US Foreign Sanctions Bill Mandates That Governments Monitor ... - Bitcoin News (press release)

Image: Getty

With the meteoric rise in popularity of Ethereum, cryptocurrencies and blockchains are back in the news again. Graphics card prices have soared with the promise that those who have the computers and know-how to do some serious mining can take home huge sums in a Bitcoin-like gold rush to snatch up as much virtual currency as possible. But how easy is it to make your fortune in cryptocurrency? And is it worth your while getting started?

Weve all had tech related regrets. Betamax, backing the Zune against the iPod, letting that precious vinyl collection go. No one likes living with regrets, so dont add what you drive to that list. Stop thinking about it and just book a Mustang test drive already.

For the uninitiated, mining for currencies like Bitcoin and Ether means devoting a huge amount of computer processing power to doing accounting sums for the platforms behind them, helping to verify the accuracy of the public blockchain ledgers.

You're essentially getting rewarded for keeping the books for these platforms, which we've explained in more detail here, and the rise of cryptocurrencies like Bitcoin and others has led to a flood of amateur enthusiasts jumping into the mining business the idea of having your computer whirring away making you free money sounds almost too good to be true.

Image: Peter Miller/Flickr

And in reality, it almost is you can get rich from cryptocurrencies, but you need to put in plenty of work, and have luck on your side. You're more likely to get a windfall due to market pressures than the quality of your mining rig, which is why it's only worth a shot for the most committed and the most adventurous.

Mining for cryptocoin requires some free software tools and a dedicated rig. Turn the clock back several years and you could get away with a powerful home PC and make a few bucks. These days you can waste a weekend and a month's wages on building a machine with four graphics cards purring away in a row and still not make a profit.

GPUs are now established as the mining processors of choice in most situations graphics cards are even built for and marketed towards miners now basically because they're better at doing lots of laborious, repetitive tasks, whereas CPUs are better suited to switching between many tasks quickly.

Image: Screenshot

The trouble is, the serious players have got whole farms of these computers, and unless you've got a warehouse and some life savings to spare, you're going to be lagging a long way behind. You're up against huge foreign operations running off cheap electricity and hardware bought wholesale.

Even if you do get yourself a rig set up and find a currency with a bit of a profit margin, you're still putting yourself at the whims of the cryptocurrency markets mining can start or stop becoming profitably depending on a currency's current value.

There are several profit calculators on the web that will tell you how much computing power and electricity you need to make a certain amount of cash, so you can see exactly how much (or more likely, how little) you could make. Take Bitcoin, for example, which is now just about impossible to mine profitably for average users at home you'd need thousands of GPUs running before you'd get close to getting more back in Bitcoin than you'd be paying for electricity.

Market fluctuations in cryptocurrencies. Image: Screenshot

You can fork out thousands of dollars on specialised kit, if you want to, but even then you're only going to be raking in a handful of dollars a day with Bitcoin. That of course can go up or down as the currency value fluctuates, and what's profitable one day might not be the next if your chosen cryptocurrency dips in value, or gets some bad media coverage that's where the slice of luck we mentioned earlier comes in.

Other options, like Feathercoin and Ether, have a better profit potential than Bitcoin right now, with the caveats we've already mentioned: If you're serious about your mining then you need to keep a very close eye on the market trends, because the situation can change on a weekly or even daily basis. A single Litecoin, another cryptocurrency, has swung from costing you between $US10 ($13) and $US55 ($72) this year alone.

For instance, a huge $US64m Ether heist carried out last year was severe enough to cause a fork in the Ethereum platform it runs on top of, and a halving in price of Ether itself if you've got a powerful, expensive, cryptocurrency mining operation going on in your basement then that's a serious hit on your profits through factors completely out of your control. Sure, a swing the other way can make you relatively rich, but it's a risk, and the upward trend won't necessarily continue.

Image: The Ethereum Project

Many modern-day miners join a mining pool, combining resources with other users and getting a share of the profits, but the same risks remain. Fork out a few thousand on a mining rig, take the time to study the market trends, go through the process of setting up the programs, join up with a mining pool, and yes you can if the prices stay buoyant and you've picked your cryptocurrency wisely make a few thousand dollars a year. Whether or not it's worth the risk and investment is up to you.

And if your investment isn't already precarious enough, remember the scene is constantly changing: In the near future Ethereum is set to switch from its existing Proof of Work (PoW) system for extending the blockchain to a new Proof of State (PoS) system which is easier to scale and less energy intensive.

Without going too far into the technical details, it essentially makes the mining process more like earning interest on money you've already got: Racks of graphics cards won't be able to generate wealth as they did in the past, which is bad news for miners looking for a profit even if it's good news for your electricity bill. Instead, earning money will rely on staking (investing) rather than mining.

Image: Asus

In other words, if you're already halfway through building your Ethereum mining machine you might want to pick a new cryptocurrency... at least until the ground rules change on that one too. (Remember what we said about the constant state of flux?) And that's really the only way to squeeze any profit out of cryptocurrency mining operations keep moving as fast as the market does, and switch up the currencies you target as conditions change.

As soon as one cryptocurrency becomes profitable to mine, as we've seen with Bitcoin and Ethereum, everyone wants a piece of the action and making money gradually gets harder. It's then time to get in early on another currency. In short, if you want to get rich (or at least make a profit), you need to pick and keep picking the right cryptocurrencies, have a serious amount of graphics processing power in hand, hope that your chosen currencies stay secure and keep increasing in value, and put in a lot of time and effort.

It's not impossible, but we can think of easier ways to make a buck. If you're determined to jump in and get involved in cryptocurrency mining, if only for the educational and geek appeal rather than to make any money, your best bet is to immerse yourself in one of the many mining forums out there, which will give you the inside track on the latest news and market trends.

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Google's always-listening smart home speaker is finally in Australia. But do you need one?

Following promises of "fire and fury" from US president Donald Trump if it continues its belligerence, North Korea released a statement on Wednesday threatening to launch an "enveloping strike" at the island of Guam, a US territory in the Pacific. Here's why Pyongyang thinks Guam is a worthy target.

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How Exactly Do You Get Rich Off The Hot New Cryptocurrency? - Gizmodo Australia

Bitbay has announced that it will enter the Indian cryptocurrency markets, with the companys Indian exchange expected to be operational before the end of August. Bitbay is Polands largest exchange by trade volume, and is set to become the first international bitcoin exchange operating within Indias cryptocurrency markets.

Also Read:Panel Recommends Indian Government Take Immediate Steps to Stop Bitcoin Use

Bitbay has announced that it will be launching its exchange platform for the Indian cryptocurrency markets. Bitbay will be the first cryptocurrency exchange to offer altcoin trading providing trading pairs for ethereum litecoin, lisk, monero, ash, and gamecredits.

From August 14 Bitbay will offer demo trading that does not involve using real money, before launching full operations on August 24th. In a recent interview with Money Control, Bitbay India Head, Rohit Dahda has stated we are taking all necessary steps to adhere prescribed rules for Bitbay India. In fact, we are offering demo trading for users before using real currency to bring a level of confidence in common people.

At a launch function for the newexchange, Bitbay CEO, Sylwestor Suszek, stated that Bitbay India has been conceptualized to provide innovative services, support and solution for cryptocurrency users in terms of fast and secure transactions. Our team consists of specialists and Bitcoin enthusiasts who are active in crypto community, attend industry conference events and support charity causes via meaningful fund donations to relevant Indian societies. An official press release states that the prime objective of Bitbay India is to remove all misconceptions related to cryptocurrency, drive more people towards digital currencies, attract potential investors from market and offer all round platform to trade as well as exchange multiple cryptocurrencies at Bitbay.

According to Coinmarketcap, Bitbay hosts the largest BTC/PLN market by volume, with Bitbays 24-hour volume sitting around $8.35 million at the time of this articles composition equating to roughly 0.26% of total global bitcoin trade. We are the number one in Eastern-Central Europe with more than 200,000 users. We are number 10 in the world and are in operations since 2014, Suszek told Moneycontrol.

Despite the nations current climate of regulatory uncertainty regarding Indias cryptocurrency markets, Bitbay plans to expand its presence in India over the coming months, including the introduction of up to 17 different altcoins. Very soon, we will be bringing more features on the platform to cater to requirements of common people on a day-to-day basis. We are following a high-security model and following two-fold authentication models for safe transaction, states Rohit Dahda.

What do you think about Bitbays entry into the Indian cryptocurrency markets? Share your thoughts in the comments section below!

Image courtesy of Shutterstock and Bitbay

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Bitbay Exchange Enters Indian Cryptocurrency Markets - Bitcoin News - Bitcoin News (press release)