Digital Currency in Black and White

As a follow up article to my last story I came up with this helpful debate about the pros and cons of the digital currency. For those curios to know how the mentioned ICOs evolved over the last month I will share an update at the end of the article. 

Interests in cryptocurrency reaches new heighst 

Cryptocurrencies have been drawing significant interest over the last several months, according to Charles Bovaird, a financial writer and consultant who has worked for State Street, Moody's and Citizens Commercial Banking. He invested in Bitcoin and Ether, the leading cryptocurrencies, and believes that the future is bright for digital currencies. “This growing visibility is evident in both Google Trends search data and also the rising market values of the digital currencies themselves,” he said.

Zack Friedman, founder of Make Lemonade, whose career has included hedge fund investing and jobs with The Blackstone Group and Morgan Stanley, said cryptocurrencies have undisputed advantages but a uncertain future. “Proponents of cryptocurrencies cite several key advantages, namely decentralization, anonymity, security and automation,” Friedman said. “However, investors are split regarding the stability and merits of cryptocurrencies, with some believing they represent the wave of the future, while others dismiss them as pure speculation.” 

What is beneficial in cryptocurrency investment ? 

Friedman said the technology behind bitcoin has the potential to disrupt financial services  “Blockchain technology, which is the backbone of digital currency, has the potential to disrupt financial services by reducing the cost and complexity of financial transactions, while also augmenting transparency,” he said. “The implications of blockchain technology are far-reaching, not only in financial services, but in other areas such as healthcare, government, law, education, technology and more.”

One of the greatest benefits is that cryptocurrency cannot be counterfeited and transactions cannot be reversed arbitrarily by the sender, as chargebacks  in the case of credit cards. It also provides anonymity to the transactions. Credit cards operate on a pull basis where the store identifies the transaction and “pulls” the amount of the sale from the card. Cryptocurrency uses a “push” model which prompts the cryptocurrency holder to send exactly what they want to the seller without any other form of information.

One other benefit is the smart contract that lays behind the groundwork for each collaboration of this type. It changes the way we purchase and sell goods. Once a transaction is settled, the money to be received will be distributed compliant with the State of Work agreement to the involved parts. In most cases the business owners can be manufacturers, official distributors or intermediate sellers.

Moreover, cryptocurrency does not depend on exchange rates, interest rates or transaction charges.  The transaction takes place at the same speed, regardless of where the sender and receiver are located. It will allow you to have ultimate control over your money, who you send it to, and what types of fees you don’t have to pay. 

What risks are involved?

 Like any other business that comes with huge benefits, the risks that come with it should not be ignored. Top industry investors such as Ray Dalio, founder of investment firm Bridgewater, called Bitcoin a “bubble,” while Jamie Dimon, CEO of JPMorgan, has criticized non-flat cryptocurrency, which is currency not backed by a government.  Friedman says that investors also should consider several risks, including price volatility and regulatory intervention, before investing in digital currencies.

“Expect continued price volatility,” Friedman said. “Cryptocurrencies represent a new frontier. Therefore, retail investors should expect volatility and significant price swings as markets develop. While cryptocurrencies have experienced explosive growth, they currently remain a relatively small part of the global financial ecosystem. Regulators and policymakers will continue to monitor cryptocurrencies to determine any potential impact to financial stability or broader systemic risk.”

If you would like to learn more about cryptocurrency, take a minute to look up these terms: Bitcoin, Litecoin, Blockchain, Ethereum, and ICO. Bovaird recommends that you browse different cryptocurrency websites to stay up to date on the current technology advances and news happening in the industry.

The benefits of digital currency may see huge in todays economy, but before you invest diminish the risks involved by becoming familiar with key concepts before becoming an investor. To get you started check out the top currencies on coin market capital and see what benefits they bring to the world.

 

ICOs where our team invested 

Davor Coin 

•  6 mio coins sold out. It was sold out in seconds, which made it among the fastest sold coin
•  Lending platform released a day ago with the best offer seen yet in a coin
•  Internal Exchange will be released in 3 days

Ucoin Cash

• 2 mio coins sold out of 6 mio. 
• very promising with increasing demand – over 178.000 legit accounts want to buy this coin
• limited buying amount per account between 50 and 100 tokens 
• new limit is 200 UCH in the 7th round - 28.Nov 

Idea Coin 

• 10 mio coins sold out in 2 days
• Promising business model, relying on Bots transactions 

Unix Coin

• 6 mio coins to be sold in the ICO 
• Professional website with the right information in place
• Looks very similar to HextraCoin which had huge success   

We look forward to provide you with valuable input in the cryptocurrency market, this is why we appreciate any comment or helpful article ideas. If you like it please comment. If you hate it please comment. If you want to debate certain subject you can find us on the facebook page TobiasCrypto. We usually reply within seconds. 

Wish you an inspiring day, 

Julian&Tobias