Author: protector

This article was originally posted by Mintdice at
https://www.mintdice.com/blog/200-financial-institutions-now-use-ripple-xrp

Blockchain technology has garnered much attention over the last few years from both critics and advocates alike. Put simply, blockchains essentially provide a way for untrusted parties to decide on the state of a database without using an intermediary like a bank. And with global banking being a $134 trillion industry, blockchain technology anddistributed ledger technology could disrupt some of the main services banks provide. These services include:

• Payments. With blockchains, payments can be distributed faster and with lower fees than banks.
• Clearance and Settlement Systems. Reduced operational costs can bring us one step closer to financial institutions conducting transactions in real time.
• Fundraising. Initial Coin Offerings (ICOs) are in the process of testing a new model of financing that allows access to capital from traditional capital-raising firms.
• Loans and Credit. By getting rid of the need for gatekeepers in the loan and credit industry, blockchain technology can improve security measures, making it easier to borrow money securely and deliver lower interest rates.

While the technology hasn’t yet gone fully mainstream, blockchains are already starting to transform everything from payment transactions to how money is made in the private sector. This begs the question—will the traditional banking industry embrace this new phenomenon or reject it entirely?

Bitcoin, a decentralized cryptocurrency devoid of a central bank, is currently at the forefront of this revolution. Often credited as the world’s first digital currency, Bitcoin has established itself as one of the most innovative payment networks in history. But others like Ripple are quickly following suit and emerging as key players in an ever-evolving financial market.

In fact, Ripple recently announced that they have amassed more than 200 clients with 13 new financial institutions signing up for their blockchain-based payment solution RippleNet. These include Euro Exim Bank, SendFriend, JNFX, FTCS, Ahli Bank of Kuwait, and others.

What is RippleNet?

Founded in 2012 and headquartered in San Francisco, CA, Ripple markets itself as a provider of “one frictionless experience to send money globally using the power of blockchain.” Ripple’s CEO, Brad Garlinghouse, recently remarked that 2018 was the company’s best year on record. As published in BTC Manager, RippleNet (Ripple XRP) had gained more than 100 new customers last year, acquiring roughly three new customers each week. They also saw a 350 percent increase in the number of customers sending live payments, and according to Garlinghouse, the company is beginning to see more customers “flip the switch and leverage XRP for on-demand liquidity.” They recently broke their 200-customer threshold on January 8th, 2019.

As it stands, the goal of RippleNet is to facilitate cross-border payments between across its robust network of 200+ banks and payment providers worldwide.

The benefits of RippleNet encompass:

• Accessing a standardized network of institutions worldwide.
• Transact payments in seconds, not days, with instant settlement.
• Get end-to-end visibility into fees, delivery time, and customer information.
• Reduced capital requirements for cross-border payments.

The reality is that the process of moving money to various networks around the world inevitably produces delays and leaves customers dealing with the aftermath of additional fees. The needs of these individuals and businesses sending cross-border payments are changing fast. These customers now expect and demand real-time, low-cost, and wholly trackable payments on a global scale. But today’s payments infrastructure cultivates an experience that is quite the opposite—it’s slow-moving, expensive, and obscure. Utilizing RippleNet’s services allows customers to address and solve these pain points pain points via its sophisticated network of banks and payment providers.

RippleNet was created to solve the inefficiencies related to speed, transparency, and cost. Specifically, the fragmentation of payment processing times and high fees that are passed down to users is a main concern. And customers cannot seemingly keep up with the growing demand for rapid low-cost payments.

RippleNet’s ecosystem can be categorized into two distinct groups:

• Network members (Enablers of RippleNet).
  • Banks seeking to process payments for both corporations and consumers. In some cases, the banks could also process payments for and provide liquidity to other banks. These banks would then leverage RippleNet to provide better service to existing customers and boost acquisition.
  • Payment providers looking to provide liquidity and increase payout reach for banks to improve their payment volumes.
• Network users (Originators of RippleNet).
  • Platform businesses looking to send high volume and low value payouts to a global network of suppliers, merchants, and employees.
  • Corporate treasury departments intending to send large disbursements within their global supply chain in hopes of gaining greater capital visibility and control.
  • Banks and payments that want to only send payments instead of processing them, to combat the high costs and disorganization of correspondent banking.
  • Consumers looking to send payments through their bank or payment provider to yield cost-efficient, real-time results.

Which Financial Institutions are Involved with RippleNet?

RippleNet and xRapid are Ripple’s core contributions to the industry. RippleNet allows banks to work together with other participants within the network in ways that significantly reduce costs, while xRapid facilitates liquidity instantly via XRP.

Ripple’s xRapid is now expanding its reach into new markets, aiming to be the next thing that enables faster payment processing and lower costs than the current banking system. However, many of RippleNet’s clients are not using XRP for liquidity, but are directing their interests more towards Ripple’s unique technology platform and modern APIs that allow for faster, lower cost, and more transparent payments.

The XRP community remains hopeful that the Ripple blockchain will be adopted by most financial institutions in the coming years, which could be edging out SWIFT from the cross-border payment/remittance industry.

Final Thoughts

Presently, the global money market is under quite a bit of pressure in three major areas, including the uncertainty in regulation of financial transactions, a waning interest rate, and the digitization of recent technology.

Banks, in particular, have been rated as one of the most hated institutions. In fact, in Harris Poll’s Annual Corporation Reputation survey, the banking sector was ranked the least loved industry. Research indicated that such disdain stemmed from the perception that most banks often get away with basic financial indiscretions, yet can simultaneously force the public to pay for their wrongdoings any and every time they fail.  

But, luckily, the world is rapidly moving towards an age of true digital advancement. And for traditional banks to remain relevant, they have to adapt. As RippleNet has already demonstrated that it’s a force to be reckoned in the global payments sector, a partnership between the two would seem to be ideal.

The ease of deploying and using RippleNet makes it a viable platform for banks. Technical obstacles could diminish, processing might be faster, and payments could be easily settled.

This article was originally posted by Mintdice at
https://www.mintdice.com/blog/200-financial-institutions-now-use-ripple-xrp

This article was originally posted by Mintdice at
https://www.mintdice.com/blog/can-cryptocurrencies-replace-national-currencies

Bitcoin has gained incredible momentum and adoption recently as the most popular and largest cryptocurrency. While many people think of Bitcoin as a speculative investment with the crazy returns, the real value driver behind Bitcoin is its status as a digital currency and store of value.

There are many people that believe Bitcoin as a digital currency represents a viable alternative currency to national fiat currencies. Futurists claim that cryptocurrency is going to disrupt 25% of national currencies by 2030 and threaten the central banking system.

But how realistic are these claims? Do cryptocurrencies have the potential to disrupt our system current currency and banking system?

Why does cryptocurrency threaten national currencies?

Cryptocurrencies are built on a decentralized technology called blockchain. The blockchain is a permanent secure ledger of records, transactions, and other data. In the traditional use case, the blockchain’s credibility is constantly maintained and verified by the network of users on the blockchain. This peer-to-peer network allows the system to function and thrive outside of a central point of control.

So when this technology is applied to create a token, it can represent a unit of value and thus a currency.

National currencies have gone through trends over the decades. Back in the 1900s, currencies, like the U.S. Dollar was backed by actual gold and had real value behind them. Today, national currencies are primarily fiat paper currencies backed by the trustworthiness of the government.

Banking systems are set up maintain national currencies by creating a safe place to store money, a reliable place to borrow money, and a liquidity provider for the currency markets. However, banking systems have become so centralized, that many people are desperate for an alternative.

The cryptocurrency market has gained massive adoption due to the decentralized nature and market equality it brings. There is still a lot of support for fiat currencies, but cryptocurrencies provide a secure digital way for people to store and trade money.

What do proponents say about cryptocurrency?

Proponents of cryptocurrencies note that they won’t be like traditional currencies. Where the US Dollar is tied to the economic activities of the United States, Bitcoin is independent of any government or jurisdiction (and thus, there is little cryptocurrency regulation). The cryptocurrency price is not tied to traditional economic activity. They also have the ability to limit the token or money supply to prevent governments from tampering with the currency by creating inflation.

Cryptocurrency influencers and those trading cryptocurrencies also think the values and prices will continue to be volatile. Especially after the recent large downturn in January and February, long-time cryptocurrency traders pointed to the consistent trends of massive dips along the way the past few years. Traditional investments like stocks and bonds go through cycles, cryptocurrencies are doing the same and will likely see more volatility.

Cryptocurrency also has the potential to change commerce as more and more retail is done online. Doing e-commerce transactions using digital currency makes sense for most people using Bitcoin and other cryptocurrencies to buy and sell online.

How do governments define cryptocurrency?

One key issue with cryptocurrencies at the moment is that government agencies, especially in the U.S., can’t come to a consensus and agree on what cryptocurrency is and how to define it. Each agency is defining cryptocurrencies to fit under their jurisdiction so they have the authority to regulate it.

The U.S. Securities and Exchange Commission (SEC), which regulates the nation’s securities and stocks, classifies cryptocurrencies as a security. They view each coin as a security representing ownership interest in the blockchain company. It’s true that some tokens are ownership shares, but most cryptocurrencies are not intended to replace stocks or shares of a company.

The Internal Revenue Service (IRS), which is the federal tax authority in the US, defines cryptocurrency as a property, rather than being an actual currency. This means that in the eyes of the IRS, any time a cryptocurrency is traded is a taxable event. Traders are obligated to pay taxes on any gains from any cryptocurrency trades. This raised eyes when people were expecting to use cryptocurrencies to pay for their cup of coffee. No one pays taxes on their currency gains in the US Dollar when they make a purchase, why would it apply to a digital currency?

The IRS recently responded by saying that cryptocurrency transactions under $600 are not taxable. However, investors and traders are still up in arms over having to track each transaction for tax purposes. Many are purporting that cryptocurrencies are then similar to real estate property when traded and should be exempt for like-kind purchases under a 1031 exchange.

The US Commodity Futures Trading Commission (CFTC) sees it a little differently and classifies cryptocurrency as a commodity, placing it under their authority. In response, two large platforms allowing futures trading have created and marketed Bitcoin futures. Cboe and CME both released Bitcoin futures trading in December 2017 when Bitcoin was spiking. People started trading Bitcoin like a commodity and betting on future prices of the cryptocurrency, pushing the coin’s price up towards an all-time high of $20,000 at its peak.

Pros and cons of crypto as currency

Advantages

One huge advantage of using digital currencies like Bitcoin as a store of value and medium of exchange is that they cannot be manipulated the same way fiat currency can. Central banks are notorious for printing paper money and diluting and inflating the nation’s money supply. This has happened in the US, where the dollar has lost 96% of its value since 1913 when the Federal Reserve took over the banking system.

The US isn’t the only nation that falls into this predicament. Venezuela is famous for inflating away their nation’s currency and hurting its own citizens who believe in the monetary system. Just Google Venezuelan currency and you get headlines like the following, “Death Spiral: 4000% Inflation in Venezuela.” These are the primary problems when you have a central point of authority, and they are the key issues that cryptocurrency like Bitcoin is trying to solve.

To continue with the Venezuela use case, the president is issuing a national cryptocurrency called the Petro that will be maintained on the blockchain and backed by the country’s chief export, oil. The government expects to leverage the cryptocurrency as a way to get around US sanctions and access international financing. This approach is interesting because it represents a move back toward physically-backed currency. Where paper money used to be commonly backed by gold, cryptocurrency is proving that you can back the currency with certain items of value.

Disadvantages

While there are some great potential benefits, there are also areas of concern when considering cryptocurrencies as actual currency. To start, as cryptocurrencies start to take market share so to speak, traditional currencies will naturally lose value and people holding would essentially have worthless paper in their hands.

There is also an infrastructure gap for widespread use of cryptocurrency. Existing financial institutions are scrambling to get their arms around the idea of cryptocurrencies and build their own networks and exchanges in order to keep up with the pace. E-commerce retailers were starting to line up to accept crypto payments like Bitcoin. But with the recent volatility, many have realized the possible dangers in accepting crypto payments at the moment. 

Final thoughts

Regardless of how we individually feel about the aspect of Bitcoin and other cryptocurrencies replacing the national currency and banking system, the trend is in place and we have to learn how to take advantage. Governments and financial institutions quickly realized the potential impact to their established business practices and activities, and have been trying to get ahead of the game ever since.

Whether the cryptocurrency wallet takes over in the next 10 years is unknown. But it’s important, especially for investors and trader, to keep abreast on the changing dynamic landscape. Governments, businesses, and individuals all have their own opinions about the cryptocurrency market, and it should continue to be a rollercoaster ride from here on out… so strap in!

This article was originally posted by Mintdice at
https://www.mintdice.com/blog/can-cryptocurrencies-replace-national-currencies

The article was originally published by Mintdice at https://www.mintdice.com/blog/will-bitcoin-crash-again-in-2019/1

Bitcoin was all the rave last year, with its high-profit margins and an influx of new investors. However, it is safe to say that over the span of one year, it has matured considerably. Like Ethereum founder Vitalik Buterin told CNBC, Bitcoin may never have as much hype as it did in 2017 because so many people are now aware of cryptocurrency and how it works.

A lot of things have changed in the cryptocurrency sector since over-the-top forecasts were made in 2017, including a $160,000 price estimation for Bitcoin. One of such changes is the introduction of Bitcoin Futures which control the price of BTC by allowing large investors to exert pressure on it.

This means that predictions of large price values like the one above are unlikely to be met in the near future. Another change is the start of Bitcoin institutional investing. For example, both the Bakkt and the Nasdaq platforms claim to be open to offering cryptocurrency investing to institutions.

While stakeholders struggle to keep the BTC price at bay, one daunting question still looms: Will Bitcoin crash again in 2019 or will it peak and stabilize at a better price point than it currently has?

WHAT DOES THE FUTURE LOOK LIKE?

The last major cryptocurrency crash which followed the December 2017 peak brought about a need for an evolution in Bitcoin investment. Where Ethereum had ICOs as a new way to pour funds into the cryptocurrency industry, Bitcoin lacked one.

Soon, industry experts like the Winklevoss twins started looking towards exchange-traded funds (ETFs) to create long-term sustenance of Bitcoin as an investment vehicle. Unfortunately, these ETFs cannot function without approval from the Securities and Exchange Commission, so the industry is at a crossroads: evolve and survive, or continue at the same pace and end in a bubble burst.

AN EMPHASIS ON NON-PHYSICAL BITCOIN ETFS

An exchange-traded fund is a security that tracks underlying real-world assets like gold, equities, oil, bonds, commodities or cryptocurrency. It allows investors to buy into it and earn dividends from their investment. Such shares are easy to trade like stocks and can get rid of any barriers faced by investors when trying to purchase those underlying assets themselves.

The submitted ETFs proposals describe funds that are primarily derivatives. They can be shorted or coordinated with a Bitcoin future. Only physical Bitcoin ETFs are currently a good fit for the Bitcoin market since derivatives bring about the unfavorable market to another state.

Bitcoin exchange-traded funds have been in the headlines lately, mostly for their rejections. Just recently, theWinklevoss twins faced a rejection of their own. This has not deterred other parties who are bent on seeing this new form of investment come to life.

Unfortunately, the SEC is building up quite a track record of rejections with a toll of up to 15 rejected Bitcoin ETFproposals since 2013.  

BITCOIN PRICE FORECAST VS. BITCOIN USAGE     

One major factor to consider when looking at the possibility of another crash is the adoption rate of Bitcoin. Currently, ownership is still quite low, only a few points higher than last year. This implies stagnation and also that investors have found other coins which they deem more competitive. The younger generation is generally more bullish on Bitcoin usage since they consider it a product of their age, but the older generation remains skeptical.

However, this brief stagnation does not prove that Bitcoin will crash. If anything, the introduction of Futures and the demand for ETFs make up for it and shows that Bitcoin is here to stay.

It also shows that users are serious about integrating it into their daily transactions, which may eventually save the pioneer digital currency.  

The introduction of stable coins like tether and application-tolerant platforms like Ethereum and EOS have given Bitcoin a serious run for its money. The high price point, which has been Bitcoin’s most attractive feature in the past has also turned out to be its Achilles’ heel.

Percentage increases in profit are simply not as good as those in cryptocurrencies with lower prices. For example, a user who buys $2000 worth of XRP at $0.3 can afford to purchase 6666 tokens while the same amount will only purchase about 0.3 BTC at $6000 per unit. While XRP can easily rise by 100% to $0.6, it will take a lot more for BTC to hit $12,000. This makes it more profitable to buy into smaller cryptocurrencies.

But what about the earlier forecasts of Bitcoin? How do they tie in with this new usage information? Simple, they do not. Several forecasts were made with assumptions of an ideal situation in which adoption would progress quickly and at a steady rate. Some of these forecasts have been revisited, with extended timelines that seem more realistic in light of Bitcoin’s recent performance.

WHAT ARE THE BITCOIN PRICE PREDICTIONS FOR 2019 AND 2020?

The recent issues faced by Bitcoin have not stopped industry figures from making future predictions about its price. Industry predictions generally fall between $25,000-$29,000 as a realistic price point for Bitcoin.

This is especially because it has been trending in its transition band, in which it will trade most of the time, since May 2018. This signifies an imminent major bull run in the cryptocurrency industry.

Some other significant Bitcoin price predictions for 2019 include:

• $28,000 by the end of 2019, according to Ronnie Moas, crypto bull and founder of Standpoint Research, in a report published by Cointelegraph.
• $36,000 by the end of 2019, according to Sam Doctor, Quantamental Strategist at Fundstrat Global Advisors, who based his prediction on the historical average 1.8x P/BE multiple.
• $25,000 according to Thomas Lee, Co-Founder and Head of Research at Fundstrat Global Advisors
• $1 million, according to John McAfee, Founder of McAfee Associates, who earlier predicted a $500,000 price point before modifying it. McAfee claims that he used the same model which was used to predict $5000 at the end of 2017.
• $10,000-$100,000 in the next 5 years, according to Joe DiPasquale, CEO of BitBull Capital.
• $10,000 by the end of 2020 according to Fred Schebesta, Co-Founder and CEO of Finder.
• $61,900 by the end of 2020 according to Bobby Ullery, CTO of Waysay who also predicted a shared market capitalization of $4.5 trillion between Ethereum and Bitcoin.
• $30,000 by the end of 2020, according to Matias Dorta, Founder of ICO Informer, who also sees several countries adopting Bitcoin as a reserve currency by 2030.
• $30,000 by the end of 2020, according to Craig Russo, Co-founder of sludgefeed.com
• $75,000 by the end of 2020 and a market capitalization of $1.3 trillion, according to Brandon Quittem, a cryptocurrency analyst & writer.

FINAL THOUGHTS

Due to all the factors discussed above, including pending ETF proposals, stagnation, the introduction of Bitcoin futures and the competition among cryptocurrencies, it is difficult to say whether Bitcoin will indeed crash again in 2019. Considering its current performance, the leading cryptocurrency is at a point where it could either crash again or blossom into a widely accepted medium of exchange and investment.

As with almost everything else in this relatively new industry, the future of Bitcoin is shrouded in unpredictability and falls heavily in the hands of investors and regulators. However, there is no denying that Bitcoin is evolving every day as more people become exposed to it, including those who are not direct users.

The article was originally published by Mintdice at https://www.mintdice.com/blog/will-bitcoin-crash-again-in-2019/1

This article was originally published by Mintdice at https://www.mintdice.com/blog/buying-bitcoin-with-paypal-harder-than-it-sounds

Unlike the period in which Bitcoin first emerged, it is a lot easier to buy cryptocurrency today. The major upside of this is that users do not have to break their necks searching for a way to buy their favorite coin.

There are numerous ways to go about it, including exchanges and Bitcoin ATMs, as opposed to attending crypto meetups and hanging around chatrooms in the hopes of meeting people who are willing to sell their tokens. However, most exchanges have not completely figured out how to make it easy for users to buy Bitcoin using fiat currency. In fact, this is a major drawback since people mostly have fiat currency as their starting point for acquiring cryptocurrency.

Normally, fiat purchases can be carried out through third-party applications like Paypal. However, users have found it nearly impossible to do something as simple as buying some Bitcoin straight from their Paypal accounts. With the Paypal active user base falling to 250 million, this is a far-reaching problem.

Currently, attempting to buy cryptocurrency through Paypal is difficult and expensive, mostly due to the potential for users to take advantage of chargebacks. For example, a user could buy some Bitcoins on an exchange, directly from their Paypal account and use its support system to charge it back so that they receive a refund. This can be problematic for exchanges since they can’t request refunds from the Bitcoin wallets they’ve credited.

WAYS IN WHICH BITCOIN CAN BE PURCHASED WITH A PAYPAL ACCOUNT

Although they are few, there are still some other ways in which users can purchase Bitcoin directly from their Paypal accounts, including direct trade, Bitcoin loans, and centralized exchanges and Specialized payment apps.

1. P2P DIRECT TRADE

Since most exchanges do not accept Paypal payments in exchange for BTC, direct trade is the most efficient way forward for those bent on using the payment app.

This involves sites that facilitate peer-to-peer agreements to sell and purchase Bitcoin using Paypal. Essentially, one user connects with another, either in person or through the use of a decentralized exchange like Localbitcoins, Paxful or Cancoin. After connecting, both users can agree on Paypal as a method of payment for their mutual benefit.  

LOCALBITCOINS

Localbitcoins is easily the most popular way to buy BTC from a Paypal account. It is a peer-to-peer marketplace that aims to connect buyers and sellers who want to carry out their transactions using Paypal.

The platform method has continuously proven to be an effective way to achieve this. However, users must be careful when choosing sellers to avoid any fraudulent issues. Traders can be filtered by looking at their trade volume and feedback.

PAXFUL

This is another popular marketplace which links buyers and sellers as well as provides escrow services. The fees on Paxful are higher than the market rate but may prove to be worth it. Its user interface bears some slight similarities to Localbitcoins. Apart from Paypal, the platform also conducts transactions via Skrill, Payoneer and gift cards. The site will only accept verified U.S. Paypal accounts.

CANCOIN

Cancoin is a relatively new, decentralized peer-to-peer exchange for Bitcoin traders. It facilitates transactions between users and allows them to carry out these transactions using Paypal. Cancoin greatly emphasizes its security and range of tools to make the user experience more convenient.

Some features include multiple escrow orders, multi-signature transactions, custom alerts via email, SMS, desktop or browser and Interactive price history graphs. Creating an account on the platform is free but sellers pay a 1% fee on each transaction apart from the normal Bitcoin transaction fees. Buyers on the other hand, do not pay fees.

2. P2P BITCOIN “LOANS”

Bitcoin lending is becoming increasingly popular and since a large number of users receive money through Paypal, several bitcoin lending platforms accept it as a payment method. In these systems, users who hold Bitcoin can decide to lend their tokens to other users in hopes of generating profits from interest.

Since Bitcoin lending is still a growing concept, there are not many lending platforms. As a result, the chances of finding one that accepts Paypal as a payment method are slim. xCoins has managed to stand out in this regard.

XCOINS

xCoins is a cryptocurrency exchange, which also serves as a peer-to-peer marketplace, offering additional services including Bitcoin lending. It primarily exists to act as a bridge between Bitcoin lenders and borrowers.

When users fund their xCoins account, they can decide on what interest rates they would like to charge their borrowers, with a starting point of 15%.

Borrowers on the platform are matched with loans, according to the needs they specify.

xCoins guarantees a high level of security through its internal rating system. This way, the credibility of users can be verified easily.  

3. CENTRALIZED CRYPTOCURRENCY EXCHANGES

A handful of centralized exchanges have also developed their own systems for ensuring security while accepting Paypal as a payment method. They include Virwox and eToro.

VIRWOX

VirWoX, an acronym for Virtual World Exchange, is a centralized cryptocurrency exchange which accepts Paypal payments. It was launched in 2007 as a digital currency exchange even though it precedes Bitcoin.

Currently, the platform has over 1 million registered users and uses an automatic order system to match them. Like almost any other exchange, a user must create an account to use the platform. 

After this step, funds can be deposited in a virtual wallet using Paypal, credit cards, and a host of other options. Subsequently, buy-sell pairs, market limits or order limits can be created on the exchange page and submitted.

ETORO

eToro is a popular social trading and online forex platform where users can invest in several digital assets. The platform offers a wide array of cryptocurrencies and ensures that all user assets are managed in a single place.

It also eliminates the need for a digital wallet and claims to use high-quality encryption technology to secure investors’ funds. Unfortunately, fees on the Etoro platform are relatively high.

4. SPECIALIZED PAYMENT APPS

Some payment apps act as intermediaries to allow Paypal users access cryptocurrency from their accounts. One example is WirexApp which is not an exchange, yet facilitates the purchase of digital currency.

WIREXAPP

WirexApp allows users to set up consistent Paypal cryptocurrency payments. Unfortunately, a user’s first transaction takes about 1-2 days but all transactions after that are carried out instantly.

It is available in several countries including Bahamas, Bahrain, Iceland, Indonesia, Italy, Malaysia, Malta, Philippines, Romania, Saudi Arabia, and the United Arab Emirates among others.

To get started, users must create and verify a WirexApp account. This gets them a free virtual visa card which they have to deposit about $3 into. The card can be added to Paypal and used to pay for cryptocurrency transactions.

FINAL THOUGHTS

Buying cryptocurrency from a Paypal account has many upsides. But fraud, its major drawback seems to trump them all. Until major exchanges find a way around chargebacks, users may be stuck jumping through hoops just to buy cryptocurrency conveniently.

At the same time, platforms that currently offer this service are few and as a result, there is more profit to go around in the form of transaction fees. While this is great for these exchanges it does not do users any favors– since the scarcity of a Paypal payment option on cryptocurrency exchange will only drive up the existing transaction fees on the few platforms that offer this option. Hopefully, exchanges will become fiat-friendly in the next future and allow users to pay for cryptocurrency more conveniently.  

This article was originally published by Mintdice at https://www.mintdice.com/blog/buying-bitcoin-with-paypal-harder-than-it-sounds

This article was originally published at Mint Dice at https://www.mintdice.com/blog/dash-vs-ethereum/2

It’s no longer a stretch to say that cryptocurrency may play a huge role in how money is generally perceived in the future. For now, however, digital currencies and the teams behind them continue to figure out ways to get from the starting point (Bitcoin) to the future of decentralized storage of value.

The emergence of Bitcoin was a turning point in how financial transactions have been handled for a long time. Vulnerabilities within the banking system such as high transaction fees, relatively slow transactions, and being privy to a central authority were exposed.

For a time, it was exciting to imagine the benefits of Bitcoin, but it begged the question: How exactly could the world expand this alien system so that the average person could benefit from it? Bitcoin, even with its status as an industry pioneer and giant, has been unable to answer that question so far, but Dash and Ethereum, two newer digital currencies, have.

What is Dash?

Dash is a peer-based decentralized system that allows people to send its eponymous token in the form of electronic cash, from one place to another. It aims to be as liquid as fiat currencies such as the US dollar, and, it is built on the Litecoin open source code, which was derived from the original Bitcoin source code. Dash was created by Evan Duffield in 2014; it was known as XCoin and Darkcoin in the past.

In some ways, it is similar to Bitcoin and many other cryptocurrencies in the sense that it is open source, and mostly handles financial transactions, facilitates all transactions through its own blockchain, has an active community, and has relatively low transaction fees when compared to fiat transactions. However, these qualities are quite commonplace in the industry and are even characteristic of lesser-known coins.

Now here’s where Dash gets truly interesting.

To set itself apart from most coins, Dash incorporates a ‘PrivateSend’ function, which allows users to send tokens privately, by hiding the transaction among other ones. Since they are mixed up, it is difficult to identify a particular private transaction. To muddle its transactions, Dash uses a service known as CoinJoin. While this feature is open to all Dash users, there is a limit of 1000 Dash. Even though the PrivateSend feature sounds like an instant sell, Dash has even more to offer.

Formerly known as InstantX, its InstantSend feature lets users carry out transactions within 1.5 seconds, which is leagues faster than Bitcoin. However, higher fees are charged for these transactions. The fees are charged by Masternodes, which are nodes with a higher status on the Dash network. These nodes are responsible for confirming all PrivateSend and InstantSend transactions and receive a block reward of 45% for doing so. Nodes that wish to become Masternodes are required to hold 1000 Dash as a barrier to entry.

What is Ethereum?

With Ethereum, there are many layers to unlock. For one thing, Ethereum is far more complex than Bitcoin or Dash. It also has a very different goal for how people interact with cryptocurrency and employs a lot of moving parts, which can be difficult for the average non-expert to understand.

Founded by Vitalik Buterin and Joseph Lubin in 2015, Ethereum is a decentralized platform on which other decentralized applications can be built, deployed and operated. Its creation has given rise to several modern concepts that are seen as the norm when dealing with cryptocurrency and blockchain technology in general. These include Initial Coin Offerings (ICOs), Smart Contracts, Decentralized Autonomous Organizations (DAOs), and Gas.

Despite the setbacks that Ethereum has faced so far, it was the first platform to give Bitcoin a run for its money. It veered off the traditional financial route and sought to give people a way to interact with the core blockchain technology, building companies and solving problems in the process.

Smart contracts have taken the human flaw out of contract negotiations and executions, from matters as simple as renewing subscriptions to transactions as complex as buying property. From art to real estate, shipping and even entertainment, many industries have felt the impact of Ethereum’s contribution to blockchain as it is currently perceived. But does that make it good enough to win a Dash Vs Ethereum war?

Weighing Both Sides

Since both platforms have fundamentally different value propositions, why should both be compared? The answer is simple. At the end of the day, the blockchain ecosystem exists as a singularity, and these platforms are playing major roles in laying the groundwork for further development. To succeed, they must figure out scalability, volatility, and security regardless of what they do or what industries they cater to.

Scalability

On the scalability end, Ethereum has struggled so far. The structure of the platform shows an urgent need for improvement. Since its price skyrocketed in 2017, sending gas prices over the roof, Ethereum developers have been working on scalability solutions like sharding and launching a Casper protocol. However, both solutions have hit the rocks so many times that it’s starting to look like scalability may never truly happen for the platform.

Unfortunately, not much can be said for Dash either, since it would be unable to handle the type of transaction volumes seen on Bitcoin. Like Ethereum, the platform is continuously working towards improved scalability; Dash has joined forces with Arizona State University, in a partnership worth $350,000, to find a solution. However, if there’s one thing that can be said for the scalability of Dash, it’s that it is immune to bottlenecks from large transactions.   

Security

Ethereum security isn’t much better; the platform has been plagued by scam ICOs and security threats. It has also undergone four hard forks to fight the hacks, theft, and fraud on its blockchain. On the other hand, Dash doesn’t have to deal with ICOs and has measures in place to tackle issues such as double spending. It also claims that it cannot be hacked like Ethereum, that it values user anonymity, and that it eliminates third parties.

Volatility

On the issue of volatility, neither currency has been particularly great. Ethereum has been a huge Bitcoin competitor since its creation, and maintained its position as the second largest cryptocurrency by market capitalization before it was overtaken by Ripple in 2018. Within that period, it showed more than 1000% positive and negative volatility. Dash remains in fifteenth place, with a market capitalization of approximately $700 million. Between October and December 2018, its price rose from $160 to more than $1000. While this sounds great on paper, it is not sustainable. These coins have solid value arguments that they cannot meet properly because of the volatility they are subjected to.

Final Thoughts

Cryptocurrency is gradually heading towards mainstream adoption but must face many hurdles along the way. Every day, Dash and Ethereum seem to be fighting different battles towards the same goal: to stay afloat. Where Ethereum has the support of active founders and dApp developers, Dash has loyal supporters suggesting solutions on various forums. Where Ethereum is fast becoming “all smoke and no fire,” Dash is working its way up from underdog status. In the end, one of these coins may outlive the other, but for now, it’s too difficult to tell. One thing is certain: they are both positive additions to the ecosystem, and will hopefully remain so.  

This article was originally published at Mint Dice at https://www.mintdice.com/blog/dash-vs-ethereum/2

This article was originally published at Mintdice at https://www.mintdice.com/blog/hive-blockchain-the-future-of-mining

As the world of blockchain continues to undergo rapid development, several companies have come into the limelight. While it may be difficult to separate the wheat from the chaff where investment is concerned, some companies clearly stand out. One of such companies is HIVE Blockchain, a mining firm that seeks to bridge the current gap between capital markets and blockchain innovation.

Through the creation of multiple cryptocurrency mining farms, they hope to conquer the mining space. Each farm has been strategically placed and filled with equipment as well as miners who continually work to validate and secure transactions on various blockchain networks.

Apart from being one of the top blockchain stocks, HIVE is currently the largest and farthest-reaching blockchain infrastructure company. Despite its age, the firm has made our list of blockchain stocks to invest in for several reasons and has positioned itself in the industry as one to look out for.

A Brief History

Genesis Mining, one of HIVE’s parent companies, was founded by Marco Streng and a team of early Bitcoinadopters and is currently one of the world’s largest mining corporations. It is considered a global leader in the field and has created several products to advance mining.

Only two years after the first large-scale Genesis mining farm was developed in 2014, the company went ahead to establish the world’s largest Ethereum mining operation.

Genesis Mining also launched the Logos Fund which serves top venture capitalists and has raised more than $100 million in assets since its creation. The firm currently caters to more than 1 million customers and employs hundreds of staff all over the world.

Since the creation of HIVE by Genesis and Foire, the company has successfully raised up to $115 million in funding. According to recent announcements, it is also set to expand its mining operations and capabilities. These expansion efforts include a new large-scale mining facility and up to $100 million in extra funding.

HIVE Blockchain also became the first publicly traded stock on the Canadian TSX venture exchange (a major stock exchange, that solely deals in cryptocurrency mining), which it was added to in September 2017.

The Intended Purpose of Hive Blockchain

Founded in 2017 through a partnership between Genesis Mining and Foire Group, HIVE Blockchain was created for the sole purpose of accelerating and amplifying the development of the industry. It currently carries out mining operations for up to eight different cryptocurrencies including Bitcoin, Ethereum and Litecoin.

Although there are a lot of blockchain firms to invest in, only a few focus on infrastructure. This limits investment options in that particular area, leaving investors on the sidelines, where they miss out on a technology with so much potential.

Genesis and Foire recognized this problem and created HIVE as a solution, which would give investors the opportunity to stand firmly behind blockchain infrastructure. Not only is this profitable for investors, but it’s also beneficial to the industry as a whole. Without proper infrastructure, there is only so much blockchain technology can do to influence other industries.

The applications of blockchain technology are made possible by mining. In essence, this is a term used to describe the process of securing a network through consensus and validation of all transactions on it. It is carried out by a distributed network of computers and is typically done for any of the following reasons:

• To ensure that only valid transactions are recorded on the blockchain (an immutable digital ledger which powers the network in question).
• To ensure that a log of all transactions is continuously updated.
• To earn block rewards (payouts), which in turn ensure distribution of tokens on that network.
• To maintain trust and integrity among all nodes within the system.
• To decentralize the process of making financial transactions. Where normally, user transactions would have to be facilitated, validated and recorded by a central authority with rights to user data (such as a bank), miners would play this role instead.

For infrastructure to undergo the necessary development, investors must be involved as drivers of the ecosystem.

What Hive Blockchain Actually Does

HIVE Blockchain is leveraging the wealth of experience that Genesis Mining Group commands, to create and maintain the infrastructure that blockchain network users can benefit from.

It operates as a cryptocurrency mining firm and validates transactions on blockchain networks. It also provides cryptocurrency mining services and bridges any gaps between digital currency markets and their traditional counterparts.

Why is Hive Blockchain Important?

The importance of HIVE blockchain as a core driver of infrastructure lies in its promotion of blockchain development and sustenance. Since this technology is central to the concept of most cryptocurrencies, they will cease to exist without the necessary infrastructure.

Since the Bitcoin hype began to die down, people started realizing that its underpinning technology can be used for much more than just storing monetary value. This is just one fish in a sea of blockchain use cases. If developed and used correctly, this technology can disrupt almost every global industry in the world, from real estate to health, agriculture, shipping, and even art, making life easier for people and businesses. For this to happen, infrastructure must be solid and this is why companies like HIVE are important parts of the ecosystem.

The HIVE team’s understanding of capital markets combined with the technical knowledge of Genesis Mining gives investors a chance to view the industry in a different light and approach it more strategically. More importantly, they can be a part of the creation of something new and phenomenal. Many investors missed the chance to be a part of Bitcoin in its early days but now, they are presented with a new opportunity to be part of something even bigger.

Hive and the Future of Web 3.0

Currently, HIVE mining computers work to generate and hold cryptocurrency as part of the company’s long-term investment strategy. This exposes investors to its portfolio of digital currencies as well as the operating margins of mining.

Blockchain technology is still growing at a rapid pace and is set to evolve outside of financial solutions in the near future. There is a possibility that this evolution will give way to a new decentralized future that HIVE refers to as ‘web 3.0’. According to the firm “Our vision is to truly be the backbone of this new web 3.0 decentralized world by building, operating, and acquiring the critical infrastructure that will be required to power it.”

Final Thoughts

Blockchain investment is a topic that comes up more often than it seems and there are so many options to choose from. However, investors should have a strategy for profitable and long-term stock benefits. For an industry that still exists in its early stages, merely choosing any random project to invest in, just won’t cut it and may end up leading to a loss of funds.

When investing, the projects with the most viable use cases should typically get top priority and what better use case is there for blockchain than its own sustenance through the development of infrastructure? Probably none. Apart from the fact that HIVE blockchain makes infrastructural investment more accessible to investors, it is backed by two credible companies.  

Most blockchain systems cannot function without the mining process so it makes a lot of sense to invest in that area and be part of something that may change the world, possibly in more ways than the internet ever did.

This article was originally published at Mintdice at https://www.mintdice.com/blog/hive-blockchain-the-future-of-mining