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Adoption

Issues and Problems in Cryptocurrency: Some Ailments and More

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Why is cryptocurrency adoption so riddled that mass-adoption of the decentralized currency is defeated? Issues and ailments are as follows.

Cryptocurrency Atmosphere

There exists an enthusiastic atmosphere around the adoption of cryptocurrency and its use in everyday commercial activities. But there is traction despite positive sentiment towards such use prevailing across investor and the technology adopters. Why is cryptocurrency adoption so riddled that mass-adoption of the decentralized currency is defeated?

 

Issues and ailments which are affecting the cryptocurrency industry are as follows:

For fiat-currency users to adopt the ways of the cryptocurrency, the biggest challenge is having or owning their wallet and learning to manage it. Providers are offering centralized wallets in this juncture as well.  Users will be able to use it transfer money at a fast pace and also offer a degree of reliability. Banks will also be sure that funds provided are legitimate immediately.

At the same time, developers do not take the opportunity to connect their product with the end-users, because of ‘zero-marketing.’ Mainstream users need more than technology and need it to be explained for common use.

Besides devs do not take the opportunity to back their product and ensure it is not exploited by scam-users and their technology besmeared. This further adds to the confusion for a regular investor.

An extension of this issue is that the user experience of these technology-first services is also so limited that users are not very into using these products. There has to be the integration of services from linking banks to using the trading platform so that there is seamless use. Investors cannot be left hanging due to one platform not linking without a hitch with the next service.

The 5 –year life cycles which most devs assume is logically correct for cryptocurrencies is not understood by the common user. The lack of insurance for any money stolen is also a big issue here. The instances where exchanges have quickly replaced coins hijacked from it for their use has been partially effective in restoring the faith of users in these coins. However, for a permanent long-term solution, insurance is most necessary.

On the trading-end of cryptocurrency, there have to be cyclic phases built for bull and bear runs in contrast to what is currently happening. Users will have to look beyond gatekeeping cryptos. It is currently a challenge for the user not to be able to access commercial chain services like the groceries or the stationary stores or the florist. Thus there is a divide a thin line for full conversion of the mainstream user to switch from their cents and dollars to the satoshis and other coins. There is also an increasing urgency to remove the barriers of adoption such as fake FUDs. Again ICOs which were scamming in 2017 appeared to be controlled in 2018, with many of the countries blocking such offers. Chinese have already banned it, and other countries too are taking a very stringent stance in blocking such ICOs.

 

It is very important for the techno-crypters to encourage mainstreamers to provide the necessary atmosphere and to allow the next bull run to ensure mass adoption.

#Blockchain

2019 Blockchain Adoption: The Next Cryptocurrency Price Catalyst

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Let have a look at recent survey statistics from Deloitte's report related to blockchain technology and see how it will affect the cryptocurrency market.

Industries that we never thought would be disrupted, will be disrupted massively and the company executives know it and they want to be ahead of the curve and find ways to not be disrupted out of their business. Blockchain has got a lot of amazing applications and uses cases but at the same time blockchain will not solve all of the world’s problems. It can certainly go along way towards solving quite a few of them which is amazing as a tool.

 

Let have a look at some of the recent survey statistics from a report from Deloitte related to blockchain technology:

  • Around 95% of the companies surveyed say that their company plans to invest in blockchain technology in 2019.
  • With 16% of the company executives surveyed said that they are planning on investing $10 million or more into blockchain technology in 2019.
  • 84% believe that blockchain technology is broadly scalable and will eventually achieve mainstream adoption.
  • 68% of the executives polled also believed that they will lose a competitive advantage if they don’t implement blockchain technology.
  • 59% of people who were polled believe that blockchain will disrupt their industry.
  • 39% of the people viewed blockchain as being overhyped.
  • The executives who are most interested in blockchain technology by industry are Automotive industry: 73%, Oil and Gas industry: 72%, Live Sciences: 72% being the most bullish on blockchain technology.
  • 84% of executives polled expect blockchain to provide more security than conventional IT systems.
  • 32% of executives expect greater speed.
  • 28% of executives are looking for new revenue models.
  • Only 2% perceive no significant advantage of blockchain over existing systems.
  • 42% of surveyed view blockchain as a critical strategic priority for their organization.
  • According to 39% of people surveyed, regulatory issues present the greatest barrier to further investment in blockchain technology.
  • 37% of executives are more concerned with the actual implementation of the technology. Citing things like lack of in-house understanding of how to implement blockchain technology.
  • 45% of companies are considered to be likely to join a blockchain consortium with competitors while 29% are already a part of a blockchain consortium.
  • 52% of companies are focused on permissioned blockchains. So we are going to see a lot of permissioned blockchains within companies so that’s not surprising but 44% are prioritizing public blockchains.

 

There are going to be a lot of companies that don’t really do very much in terms of buying bitcoin or any other cryptocurrency but there are will be a lot of companies that will because the use case for public blockchain is very real and the use case for value transfer is very real and companies recognize that. Some of the biggest use cases that companies are looking at are supply chain, internet of things and digital identity. A lot of that has very strong value on public blockchains in particular. So public blockchains such as bitcoin will see a lot of use.

If we assume that as surveyed, 44% of the world’s top 1000 businesses start using pubic blockchains such as bitcoin and ethereum on a regular basis. What do you think that is going to do for the price and adoption?

The United States is lagging behind overall, especially behind the other nations, particularly which were polled: China, Canada, Germany. Going back to the regulatory concerns which are probably holding back a lot of American executives from getting more into blockchain technology particularly into public crypto assets such as bitcoin or ethereum. The report from Deloitte finishes up saying that blockchain is not ready for prime time yet, it is getting closer to its break out moment every day. The report states the momentum is shifting from a focus on learning and exploring the potential of the technology to identifying and building practical business applications.

If we go back to when the internet started and invest in companies that became the big things, that’s what we have right now with cryptocurrencies. Though there will be companies that won’t need crypto assets themselves, they’ll be using blockchain technology but we are going to have a lot of companies which are going to be using these public blockchains for a wide range of use cases. This is going to be the new internet of value and the future of the web and cryptocurrencies are going to play a very strong part in that. The crypto markets are just these powder cakes ready to blow. We have institutional investors coming in, we have better infrastructure than we have ever had before for the crypto industry and businesses are using and investing in blockchain technology.

 

Let us know your opinion on the Deloitte’s report in the comments section below.

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Adoption

Are Cryptos and Government like Water and Oil?

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Cryptos are not only good for the public but also very beneficial for governments as well. In most cases, governments are starting to utilize cryptos.

There is no denying that cryptos are nothing but a benefit to our modern lives. People use these digital assets from their many functions. These could be the transparency of companies, the anonymity in their use and overall profitability of trading them. However, cryptos are not only good for the general public but also very beneficial for governments as well. In most cases, governments are starting to utilize cryptos as a means of running banking operations or bypassing international sanctions with their use. The speed at which cryptos can be transferred completely trump the old ways, like Wire transfer, it is a much more effective way of doing business. But how exactly do governments see cryptos? Do they consider it a threat, or a boon?

 

Iran and Russia – best examples

Both Iran and Russia are currently facing a lot of sanctions from pretty much the whole world. Their political actions have caused them a lot of trouble in terms of their economies, and something needed to be done to bypass them somehow. You probably already know that businessmen don’t really care what a country has done in the past, as long as they can pay for their services. This was the case with Russia in the start of 2017 when predictions were made that their economy would continue tumbling down, the weakening of the Rubble is a testimony to that, therefore an alternative to international business was desperately needed. Same case with Iran.

 

Iran has gone as far as giving a national cryptocurrency the green light after their fiasco with Donald Trump. It’s just too hard to handle all of these sanctions and an Iranian state cryptocurrency can definitely give them a chance to breathe. The realization of the project, however, remains uncertain, as many aspects are still being discussed among the authorities.

Russians had the same idea about a potential “Crypto Rubble”, but it was quickly disregarded. You see, Russia holds a lot more authority in the world, therefore nobody could truly dare to “go all in” in terms of sanctions. This meant that Russia still had a lot of opportunities as sanctions became softer and softer, therefore the idea was scrapped at the beginning, but the fact that it was introduced is already a good indicator.

 

 China – bypassing own restrictions

China is well on its way to digitalizing most of its industries. However, this didn’t stop them from banning cryptos. However, many experts believe that the ban will soon be lifted as the government is starting to see cryptos in a new light. The fact is that the 70 companies, currently operating in the free trading zone of Guandong, have achieved quite a lot, and the Chinese government has noticed. Add that to the fact that Chinese are the least likely to use cash when making a purchase, and you have yourself a recipe for a crypto haven.

 

More to come

As cryptos continue to grow, despite their price fall in the recent past, governments are finding it un-affordable to ignore them. They are all gearing up for an actual crypto dominated future, and it can be seen. The success of Ripple-Net is also a testimony to the bright future, as banks are starting to utilize the digital assets more often. The fear that ensured bans in some countries is starting to fade away, as authorities start to actually research and learn more about cryptos. It is just a matter of time before everything switched over, but which crypto will it be?

 

No matter what you think about Bitcoin or Ripple, the cryptos that will be most prominent on a national level, will definitely be stablecoins, which the governments themselves will undertake in terms of development. So keep an eye out, you don’t want to miss the big prize.

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#Bitcoin

Federal Reserve Bank: Altcoins are the primary reason for bitcoin price fall.

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Federal Reserve Bank of St.Louis explains the three likely possibilities of the future of bitcoin. an indefinite increase, zero or somewhere in between.

A blog published by the Federal Reserve Bank of St.Louis explains the three likely possibilities of the future of bitcoin. These are

  • indefinite increase in value,
  • zero

or

  • somewhere in between

According to the bank, they believe that bitcoin will be somewhere in between. According to the writers, the major element that is bringing down the price of bitcoin is the increasing supply of altcoins or bitcoin alternatives. The bitcoin market is quite volatile and the demand for bitcoin is the only reason for the price increase and decrease and not the fixed supply. If there were no alternatives to bitcoin or if there were no altcoins then probably all the money currently in the cryptocurrency market would have been invested in bitcoin solely.

According to the economists are the Federal Reserve, if a restaurant sells meals for $10 that is equal to one Hamilton bill ($10) or two Lincoln bills ($5+$5). If the supply of Lincoln bills is increased, that would not change the current scenario of the ratio of 2:1 between the two bills.

 

What’s the real value of bitcoin?

The price of bitcoin and other altcoins is still undiscoverable. According to some analysts, bitcoin price increased massively due to the hype created in 2017 which also increased the price of other bitcoin alternatives or altcoins while others believe that it was just a coincidence. The use case of bitcoin is one of the prominent reasons for the mass adoption and the price increase. Institutional investors are still in their early phases of investing in bitcoin and altcoins. The increase in the institutional interest will thrive the price of bitcoin in the future. With the adoption rising with things like the BAKKT exchange, NASDAQ bitcoin futures and bitcoin ETFs being launched, this would eventually increase the demand for bitcoin and in due course of time, the price of bitcoin is likely to experience a bullish momentum.

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