Thursday, June 23, 2022

Will Crypto Be The Future

Tesla Invested $15 Billion Into Bitcoin

Partner | The Future Of Finance Is Crypto – Here’s How It Could Be The Future Of Your Career Too

Elon Musk, the self-proclaimed “TechnoKing” of Tesla, has recently made quite a name for himself in headlines. From being a leader of the meme-coin Dogecoin and likely having a massive hand in pumping Bitcoin after updating his Twitter bio to include Bitcoin and subsequently buying $1.5 billion worth of Bitcoin for Tesla, Musk and Saylor have put a face to the institutional acceptance towards cryptocurrency. Recently, Tesla has also announced that customers can now buy their vehicles using Bitcoin.

Threats Roadblocks And Bottlenecks

Apart from the danger of big government stepping into squash crypto or warp it to their means, there are also other roadblocks and bottlenecks. These threats might stop the introduction of cryptocurrency as the future of money, and in some cases, might jeopardize the entire crypto ecosystem.

The first threat against crypto comes in the form of quantum computing. Cryptocurrencies typically operate on military-grade encryption for the networks that control the various blockchains. Google recently released the first-ever quantum computer, and they state that four to five evolutions of the processor could lead to breaking 256-bit encryption.

If this technology reaches the hands of hackers, and it inevitably will, then the security of the Blockchain is under severe threat. There would be noting stopping hackers from breaking into the Blockchain and destroying it.

The next threat comes in the form of bitcoin mining. At the moment, there are millions of people mining Bitcoin. However, there is a finite amount of the cryptocurrency, limited to 21-million coins. What happens after miners finish mining the Blockchain? If they all turn off their machines at the same time, who will be responsible for maintaining and verifying all of the transactions on the network?

Therefore, if we were to move global trade to a blockchain, it would slow things down tremendously. Imagine waiting weeks for your credit card transactions to go through.

The Dawning Of Decentralized Finance

The need for transparent, secure, and accessible financial systems is said to be mounting and becoming more obvious. This is believed to be caused by the current centralized financial systems continued failure to provide financial freedom and credibility to users. Many see decentralized finance or DeFi as a system that can offer more transparency and better transactional security and replace some conventional financial processes soon.

DeFi is said to be quickly gaining traction in investing, trading, borrowing, and lending that catalyze a revolution in todays financial services. The increase in demand and accessibility of cryptocurrency exchanges are increasingly raising the popularity of different DeFi systems worldwide. Along with it, cryptocurrency exchanges have become well-known with investors too. These top crypto exchanges in Australia are some of the platforms Australian investors are progressively trading cryptocurrency with.

Therefore, cryptocurrency is believed to continue to push changes to financial systems as theyre known today. As a result, the DeFi created on a public blockchain is becoming a more viable alternative financial system that offers more access to financial services. Anyone anywhere can connect to it while it also offers transparency.

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Renewable Energy Bitcoin Mining

The requirements to mine Bitcoin and Ethereum may be high, and hardware costs are certainly steep at the moment.

Thats why renewable energy mining is a huge differentiator in terms of profitability, not to mention long-term sustainability and environmental protection.

Expect to see industry pioneers explore new avenues for renewable energy mining and pave the way for the future of crypto as a whole.

Cryptocurrency Or The Future Of Payments

Meet the billionaire who believes in the future of crypto ...

Coins and paper money are history. In the new reality, currency will consist of only digital series of letters and numbers, or ‘cryptocurrency’. Soon, there will be no more banks. At least, this is what some would have us believe. Is this really true? And, what is the banks role if cryptocurrency accounts for a larger proportion of money flows?

Also Check: How Do You Pay Someone In Bitcoin

Why Is Bitcoin Still The Most Important Cryptocurrency

Despite thousands of competitors that have sprung up, Bitcointhe original cryptocurrencyremains the dominant player in terms of usage and economic value. Each coin was worth roughly $47,000 as of December 2021, with a market capitalization of more than $886 billion.

Investing in cryptocurrencies and other Initial Coin Offerings is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

What Are Some Other Important Cryptocurrencies

Many cryptocurrencies have gained importance or hold the promise to do so. Dogecoin, for example, was a meme-based joke coin that reached fame when Tesla CEO Elon Musk promoted the token on social media. Aside from Dogecoin and the others listed above, several other bitcoin forks also exist, such as Bitcoin Gold and Bitcoin SV. Other important coins include Ripple , Solana, USD Coin, and Tezos.

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The Crypto Climate Accord

With more than two dozen companies signing the Crypto Climate Accord last year, we saw mass enthusiasm in the support of renewable energy and conscious consumption of resources.

Carbon neutrality and avoidance of fossil fuels were two of the main points on the CCA agenda.

Not only does this encourage partnerships with renewable energy producers worldwide, but it also has the knock-on effect of pushing other industries toward a greener, more sustainable standard of operation and supply chain transparency.

Tom Tirman Ceo Parsiq & Iq Labs

What crypto’s volatility means for the future of the trend

The metaverse will get attention from major gaming studios, merchandisers, and media conglomerates.

Analysis

The next generation of digital assets in 2022 will be game-changing. NFTs which unlock utility for users and interact with different ecosystems across platforms and the metaverse will get attention from major gaming studios, merchandisers, and media conglomerates, to name a few…

Some of our partners like Starbots and Solcery are already working on this so weve seen what is possible and were ready!

About

An open-source, DeFi framework IQ Protocol will unlock billions in utility by giving digital asset owners the opportunity to rent to other users risk-free and without collateral. The IQ Protocol token launches in Q1 2022. See updates here.

Also Check: How To Put Bitcoin On Cash App

Cryptocurrency Predictions For 2022 And Beyond

The cryptocurrency crash which started in early 2022 is something that those that have been around crypto for a while have seen before. With some similarities to the 2018 crash, it remains to be seen whether or not the cryptoverse is currently at the beginning of another crypto winter, or if cryptocurrencies will quickly bounce back later this year.

However, as blockchain technologies and cryptocurrencies continue to develop and offer new features, functionality, and capabilities mainstream adoption looks increasingly likely in the coming years.

In such a world, overall demand for cryptocurrencies looks to rise, as people add this new asset class to their portfolios and acquire them to power transactions on-chain. With this, total market capitalization for the industry is poised to break its 2021 highs of $3 trillion, BTC is well positioned to break $100k and fulfill its vision of being digital gold, and all other cryptos which will be needed to power critical infrastructure and daily life will be pulled up along with this growth.

Popular Cryptocurrencies Used Around The World

Cryptocurrencies were created to enable easy transfer of money by eliminating geographical boundaries. Numerous cryptocurrencies were created one after the other over the past few years and now it is reported that over 3000 types of cryptocurrencies are being used around the globe. Some of the most popular cryptocurrencies are listed here –

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So Whats In Store For The Future

The truth could be far more more complicated, and would require further research, and such research would be extremely helpful.

But for now, cryptocurrency seems to be a good investment. In short, it is good money that can be expected to increase in the long term.

We live in an age where global production is increasing year on year. More is being produced, and more is being consumed. By the quantity theory of money, when production of goods and services increases faster than the money supply, each individual unit of currency has greater buying power.

Therefore, the logical conclusion to draw would be that holding cryptocurrencies that are becoming widely accepted is a good idea. Even if they may be temporarily overvalued, their increasing usage would mean that equilibrium would soon be restored or even surpassed.

Digital payments in cryptocurrency, and the technology that supports such payments, as goods in joint demand, would also therefore be a good investment.

While the traditional form of Greshams Law would suggest that people hoard good money, and therefore payment gateways for such good money would receive little usage, the converse is now true good money is driving out bad, and will continue to do so.

I will end this piece with a caveat: not all cryptocurrencies are equal some are indeed a better investment than others. What this depends on is how well they fulfil the purpose of money, especially as a store of value, and as a medium of exchange.

Rethinking Proof Of Work

The Future of Crypto Currencies

The Proof-of-Work consensus system is one of the great achievements of cryptocurrency and blockchain in general, but now, some of the top minds in the industry are questioning whether its the best way to move forward with mining.

More people are pointing out that PoW leads to the concentration of mining power in the hands of just a few key players, which clashes with the mission of crypto as a decentralized and equitable technology.

Thats why Proof-of-Stake systems are seeing more popularity, as evidenced by the rise of altcoins like Cardano, Solana, and Algorand.

These platforms are different in that they reward users who hold and stake tokens to power the network, requiring less energy and resulting in more even distribution of resources.

PoS has the potential to change how coins like Ether are mined in the future, as developers look for ways to make these networks more efficient and fair.

Also Check: Can You Get Rich From Bitcoin

Algorand: A Top Crypto Project To Buy On This Dip

Heres why Algorand is a large-cap cryptocurrency that may be worth more investor attention right now on this dip.

More on: ALGO

Theres certainly a growing opinion that the crypto market may have outsized potential for years to come. Indeed, after what was an incredible 2021, this view certainly makes sense.

However, picking the top cryptocurrencies to buy right now may seem like a daunting task. After all, there are thousands of such projects out there, many with similar offerings to each other.

In this article, Im going to highlight why I think Algorand is a project worth considering right now.

Legit Reasons Why Cryptocurrency Is The Future

Is Bitcoin the currency of the future? Is cryptocurrency the future?

These questions have been asked countless times by people who have been recently exposed to the digital currencies market. For those of us that have been here long enough, we know this to be true. Not with absolute certainty, but with a high probability.

Cryptocurrency is the future of the internet, or at least its next stage, because it is inherently superior to traditional financial systems we use today.

For one, the financial sector is full of third-party services eating up unnecessary costs. Furthermore, these systems are quite exclusive in the sense that they have stringent requirements that the vast majority of the global population simply do not have access to. As a result, they find it extremely difficult to participate in digital commerce.

For this reason, developing nations care more about financial inclusion more than developed nations. What the latter cares more about is privacy, which is becoming more scarce in western countries and even eastern countries. China, for instance, has implemented mass surveillance over their citizens.

These are some issues that crypto can and will fix one day. And did I mention that it cannot be stopped? How can crypto not be the future then if no one can prevent it?

  • Cryptocurrency is the future
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    New Crypto Rules Appear On The Horizon

    Washington lawmakers sense that cryptocurrency is a big and important thing. But they are struggling, perceptibly, to understand it. It may only be a matter of time before crypto gets its “series of tubes” moment from a hapless representative out of their element.

    In , executives from six cryptocurrency companies were called to testify before the House Financial Services Committee, where they discussed potential paths for future legislation. Lawmakers in the US have expressed interest in a range of topics — whether stablecoin issuers should be considered banks, when to tax cryptocurrency and how to craft functional rules in a highly technical and complex industry. This is tricky stuff. Creating the right standards will take time.

    “I think there’s going to be a lot more conversations around crypto and blockchain,” said Dixon, one of the executives who testified before the House committee. Dixon previously testified on the issue of net neutrality before a House committee during her tenure at Mozilla in 2019 and harbors no illusions when it comes to regulating new technology. Some discourse will be positive and some will be negative, “but I just think that having these conversations, we’re going to see policymakers and regulators be more focused, and hopefully, more traditional businesses will be more focused on that.”

    As the cryptocurrency industry grows up, it will continue to shift in ways we can’t yet imagine. But one thing is clear: Crypto will be a part of our future.

    You’ll Hear More About Stablecoins

    The Future of Crypto – A Yahoo Finance Special

    Bitcoin and other cryptocurrencies have grabbed headlines because of their volatility. You can become a millionaire or lose it all at the hyper speed of the internet. But try buying a latte with bitcoin, and that volatility can make things confusing fast.

    Enter stablecoins. This subcategory of cryptocurrency, which is tied to an underlying asset, mitigates much of that volatility. Stablecoins could play a vital role in turning cryptocurrency into something we can easily use to conduct the ordinary transactions of everyday life.

    “People should start paying attention to trends in stablecoins both as a medium of payments and as a dollar digital currency. The use cases for cross-border payments, aid relief, instant settlement payments are starting to flourish in 2021 and we will see more of that in 2022,” Rachel Mayer, a vice president of product at fintech firm Circle, said in an email.

    Transferring assets more efficiently is one of the central values of a stablecoin. This value is powerful for companies that need to move digital assets and cash quickly and efficiently.

    “On the payments side, more industries will start adopting stablecoins as a more efficient way to make payments,” Omid Malekan, author of The Story of the Blockchain and a professor at Columbia Business School, said in an email. “Stablecoin volumes will continue to grow, but the share of that volume that is only involved in crypto trading will go down.”

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    Here Comes The Metaverse

    There’s plenty of debate about what the ‘metaverse’, the next-generation virtual reality-powered version of the Web, might look like. Yet despite the uncertainty of this hybrid physical/virtual landscape, the metaverse is inevitably going to be a fully functioning marketplace among other things where users can dart around from one place to another as digital replicas of themselves, purchasing products in virtual stores.

    Although not owned by any one company Google, Microsoft, and Samsung are also participating with Facebook with their involvement in the XR Association Facebook has placed the biggest stake in this virtual land with an elaborate marketing campaign, which included renaming itself, Meta. It claims that its concept of this digital marketplace will be “a set of virtual spaces where you can create and explore with other people who aren’t in the same physical space as you.” Hang out with friends, work, play, learn, shop, create, and much more.

    See also: CIO priorities: 10 challenges to tackle in 2022.

    Crypto Community Discusses Warfare In Ukraine Importance Of Crypto And The Future Of Bitcoin

    During the course of the early morning trading sessions on Thursday , 24-hour statistics show the crypto economy dropped more than 11% in value against the U.S. dollar. While the leading crypto asset bitcoin shed close to 10%, a myriad of alternative digital assets lost close to 20% in value. The crypto market downturn is being blamed on Russia invading Ukraines borders as Russian president Vladimir Putins troops entered the country before dawn on February 24. The digital currency community has been discussing the situation and many crypto advocates have different opinions about the current geopolitical risk and its future effects on the crypto economy.

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    Crypto Futures Trading Explained

    Crypto futures give investors the opportunity to bet on the future price of bitcoin without having to actually own or handle it.

    Futures are a type of derivative trading product. These are regulated trading contracts between two parties and involve an agreement to purchase or sell an underlying asset at a fixed price on a certain date. In the case of bitcoin futures, the underlying asset would be bitcoin.

    Futures allow investors to hedge against volatile markets and ensure they can purchase or sell a particular cryptocurrency at a set price in the future. Of course, if the price moves in the opposite direction a trader wishes, they may end up paying more than the market price for bitcoin or selling it at a loss.

    In some circumstances, instead of actually buying or selling a cryptocurrency like bitcoin directly, which involves setting up a crypto wallet and navigating through complicated exchanges, futures contracts allow investors to indirectly gain exposure to bitcoin and potentially profit from its price movements.

    Read more: How to Invest in Bitcoin Without Buying BTC

    In 2021, CME reported an average daily volume of 10,105 bitcoin futures contracts, up 13% on the previous year.

    So whats so special about crypto futures trading?

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