Crypto-assets Law Related
Money has evolved greatly over the years and it is no
astonishment that things are going to change even more in the future to come. It
would be of interest of yours to know that mostly crypto coins the renown crypto assets is assumed Satoshi
Nakamoto, the inventor of Bitcoin came up with the life changing invention of
a decentralized digital cash system. The best part of any crypto-assets is that mostly they are away from legal formalities and this gives user full ownership with no state intervention.
One of the simplest explanations of what the most recent
trend of crypto currency actually stands for and represents that the top
internet search defines crypto-currency "a digital currency in
which encryption techniques are used to regulate the generation of units of
currency and verify the transfer of funds, operating independently of a central
bank”.
Crypto currency is more and more trending term denoting
digital money that can be purchased, transferred, and sold securely using
cryptography, which encrypts and protects the data used to help identify and
track crypto currency transactions. Contrasting the regular currency, which is
backed by something tangible like gold or other forms of trading, crypto
currency is purely digital money and exists only on the internet.
What are the Features of Crypto
currency?
Key features that make crypto currency valuable:
·
It
is basically digital orvirtual money that is a product of coding.
·
The
economy is assessed by peer-to-peer internet protocol/rules.
·
It
represents encrypted or encoded data.
Which are the top crypto-currencies
for online trade?
Human is a social being and no one survives in isolation and
the only key to effective living is making most of the available resources.
There
is a surfeit of crypto currencies available in the market. Each one of them
holds unique features and usually operated on the different block chain
technology with varying intentions.Examples of crypto currency would include, Bit coin Market Cap,
Ethereum
Market Cap and Ripple Market Cap. Some
of the best crypto coins are:
Bitcoin
The elated rise of bit coin is talk
of the town across the globe. The digital currency coin, Bitcoin was first
introduced as open source software by a group of programmers under the name of
Satoshi Nakamoto in 2009.
Bitcoin Cash
Bitcoin Cash is a result of a split
of Bitcoinand is considered as one of the valuable crypto currencies.
This
digital coin is supported by Bitmain, the biggest Bit coin mining company and
manufacturer of Bitcoin mining chips
(ASICs).
There are many investors who buy and invest in Bitcoin Cash, thinking
it to be Bitcoin.
Bitcoin Cash has actually no link
with the Bitcoin. Bitcoin cash was created because of SegWit, a feature
implemented in bitcoin that Bitmain didn’t liked.
SegWit sanctions cheaper transactions for
miners and prefers bigger mining blocks (8MB vs. 1MB for Bitcoin).
Litecoin
Former Director of Engineering at
Coinbase, and Google employee, Charlie Lee made the Litecoin as the digital
silver in the competition of Bitcoin, the digital gold. It is one of the first Altcoins that was
created.
Ethereum
Ethereum was launched in the year
2015. It is a programmable block chain with decentralized software platform
which helps developers to build Smart
contractsandDApp (distributed applications).
In No time this crypto
coin Ethereum, has become inspiring to the developers and its users due the
features of running without any downtime, interference, control, and fraud.
Zcash
Zcash is one of the crypto currencies
that are considered as a foremost competition to the Bit coin,
Ethereum,
Litecoin, and other crypto currencies available in the market. Zcash makes use
of the revolutionary technology, known as the “zero knowledge Succinct
Non-Interactive Argumenta of Knowledge or zk-SNARK.
Dash
Dash, formerly known as Dark Coin is
the updated version of Bitcoin which was launched in 2014. Instant Send
Technology makes it is more reserved and pledges faster transaction.
The
decentralized master code network of Dash makes transactions nearly untraceable
which helps in maintaining more confidentiality and secrecy.
What are the Benefits of Crypto
currency?
Ease in Finance
Management and Wealth Management
In modern times, finance management as a subject of study and
implementation has gone a sea change under crypto ambit, and wealth management
or investment banking firms are more interested in crypto assets management.
Loans
Easy availability of loans online is also one of the features of crypto currencies. Loan
transactions are growing more in crypto currencies as people investing in them
are growth oriented and seek more money so resort to lending and lend more.
Thus, there are more and more crypto currency loans available and trending in
the digital market.
Easy availability and
access
The biggest benefit of crypto currency is that it is easily
available for use to the general mass. Since the mechanism is decentralized in
its system of operation, investors from across the world can avail it and reach
out to all others.
Connecting to investors is now made much easier. One must
know how to transfer funds online and then be a part of the large and eternally
increasing network of crypto currency.
This bridges the gap between the
affluent and the poorer strata of the society.
Anyone is able to access it and
use it to their advantage with all equality and ease.
It’s a huge boost to those with mobile phone who did not
previously have knowledge of online money payment but can now have everything
easily at their fingertips.
This is what is called as digitalization, a term
tossed in modern times. No special knowledge is required to handle or use crypto-currency.
The internet and a smartphone are just what you need to go
ahead with its usage.
With changing times, even those who have not received
formal education in structured schools, are able to access the worldwide web.
Lower fees
How often does it happen that you transfer money from your
bank account but the statements at the end of the month speak of not only your
transactions but also the hefty handling charges levied by the bank.
This means that a portion of your hard-earned savings
actually goes waste as you are not able to use it and still need to part with it.
The solution to this problem is substitution with crypto currency. In case of crypto
currency, the charges are nil or almost negligible and this serves as a big
respite to those who slog it out at work.
It is worthy to be noted that in case one avails of a third
party to maintain or keep track of their Bit coin wallets, they may need to
make payments to the third party respectively.
One common third party for the
creation and sustaining Bit coin is Coin base which charges additional fees or
as you may call it, commission.
Recently it has changed its headquarter to the United Kingdom
and has made changes in its privacy policy and threatened its users to comply
with it else leave for which it has lost its credibility among users.
Privacy
In simple terms, this implies that no one will be able to
steal one’s
personal data from others such as sellers, buyers or other relevant entities.
Your information remains confidential.
The cherry on the cake is the fact that
you can create a profile of yours without disclosing your real identity on the World
Wide Web, which is no longer a safe place as no information is truly secure.
Purchase of privacy based items like bachelorette cake, adult
items and services, etc. is also easy.
The traditional method proceeded with
the merchant getting to know every detail of people each time they made a
payment by card since the card would first pull out all of the data before
debiting the amount.
Crypto currency transactions are reportedly different each
time you engage in any value transfer, irrespective of whether it is the same
second party or not. The history of use can be secured and a little smartness
is eligible to go a long way.
There is no authoritarian bank to have an eye on
your account or keep track of your activities as in the case of fiat
currencies. You are the sole owner of your own money.
Crypto currency uses a
push mechanism where only the desired amount is sent out to the merchant and
nothing further is released or divulged.
Fast and Easy
Transactions
Crypto currency aids in quick, easy and prompt payments. The
task is complete within instants and saves a lot of time. One does not need to
key in any credit card or debit card details.
It is a top preference these days
when no one has the time to visit banks and wait in the queue for long hours or
miss out on office work as that is the only time when the banks remain
functional.
All that is needed is the recipient’s wallet address. The
correct amount to be transferred needs to be entered and a notification of
successful payment pops up within minutes, depending on the crypto.
There is
immediate settlement and leads to no trust issues or question regarding
reliability and fraud. Future contracts can also be easily timed and executed
absolutely hassle free. There is no payment delay.
Block chain
technology
removes all the trouble of third party approval that might be needed otherwise
in case of traditional asset transfers.
Middlemen, in their own interest, often
delay the process and may drag it on for days which creates pressure on the
smooth functioning of work and disrupts the flow of actions. One does not
require a business account or a utility like withdrawal software.
Decentralized
operations
Crypto currency is now taking over the traditional banking
methods and that is a total makeover of the very basis of the existence of
humanity as economy is the most crucial one out of the key pillars of society Crypto
currency (Bit coin) is managed by its network of subscribers or users.
There is no third-party involvement and a dense grid of
computer devices use block chain to keep the database of records fully safe.
Thus,
it is indeed, a decentralized process that is rapidly gaining fame and
recognition. The network is evolved, exists and functions on a peer-to-peer or
user-to-user basis.
There is no place for any middlemen in between. No
information needs to be provided to the country’s Government or the central bank.
The
mass collaboration of pseudonyms and anonymity keeps the service ongoing and
active for millions of used present in different corners of the world.
Universal and
international
Crypto currency is seriously recognized across borders and no
one can say that your crypto currency is not money that can be used or is
invalid currency. It can be used in any country and across countries to make
the transaction faster, easier and more reliable.
This can go a long way in
giving just the needed boost to the economy of a country and subsequently aid
in the development of the global economic status and structure.
Bill Gates has already claimed about Bit coin which is one of
the crypto currencies that Bit coin is better than currency, where currency
refers to fiat currency.
In
fact, what makes it more suitable for international use is that is not affected
by country based exchange rates, transaction charges, interest rates or any
other related charges which are applicable locally.
It literally stands by
the motto that each and every pence count. Thus, not a single penny is lost to
the exchange rates and just the exact amount is sent over.
No external taxes and
impositions, work greatly in the favor of crypto currency, which is also one of
the most important and useful benefits of crypto currency.
In fact, this can also be made use of while travelling to top
international destinations for business or pleasure, as the case may be. There
is no central bank to define the strict rules of transactions.
This is the age
of fast forward where one desires to know the basic functioning of things and
then go ahead in synchronization with time and learn consequently.
Less chances of fraud
Crypto currency methodology keeps track that no transactions
once completed can be reversed.
This makes the deal an ideal one and totally
safe and secure from the traps of frauds who are always on the lookout for
innocent victims who can be scammed or looted.
People are often worried about chargebacks. This means that
once a transaction is shown as successful fraudsters try to reverse the
transfer.
This leads to huge losses to the recipients who often take time to
register what just happened and by the time the terrifying realization dawns,
it is already too late. Thus, crypto currency is a great means to make sure
that there are no chargebacks.
Though those who have faced similar trouble in the past from
traditional and old school banking means may take time to gain trust on crypto
currency it is absolutely the need of the hour to upgrade to what’s new and
reap the benefits as soon and as much as possible.
Internet use
The internet has connected the whole world and made it a
small well connected family where distance may exist only in terms of lengthy
kilometers, and those are in only numbers.
Communication has been made easy and
so has dealing. People now easily and instantly make networks to expand their
businesses and means of work. Other key points to be noted here are:
Ø Crypto currency simply makes this
easier by using a simple thing like the internet and internet based
technologies.
The internet has now become a source of crypto currency and
exists in almost every household, be it the rich class of the society or the
not so influential ones.
Ø There is least human intervention.
However, the role of humans is also preserved as it would cease to exist if the
network of users (humans) stops connecting and making transactions with each
other.
Ø This also provides opportunities to
those who do not know the utility of internet to learn about it. It is never
too late to learn and crypto currency is a superb method to make the world more
advanced, sophisticated, informed, active and educated.
Ø This has the potential to open a new
world of transactions for people and various entities, and it warmly welcomes
the future where everything is digitalized or based on the operations of
machines and encryption technologies.
Advantages of using
Crypto currencies
The key to make crypto currency a universal truth is to
educate the younger as well as older generations, and people from all walks of
life, about how it works and why they should avail of it immediately.
1. Unlimited Transactions
In crypto currencies, you can pay
using your wallet to anyone, anywhere and any amount. The transaction cannot be
controlled or prevented, so you can make transfers anywhere in the world
wherever another user with a crypto wallet is located.
2.
Peer-to-Peer Crypto currency Network
Crypto currencies do not have any
master server to manage all transactions. Exchange of information is between
2-3 or more software clients.
All installed by users’ program-wallets are part
of a crypto network.
3.
Transparency
In crypto currency, every transaction
recorded on the block chain. The block chain keeps information about
everything.
If anyone has publicly used the crypto address, then anyone can see
how much crypto is owned. If the address is not publicly confirmed, then no one
will ever know that it belongs to someone.
4.
Highly Secured
All your transactions will be secure
as it is using cryptography. It is next to impossible for any person other than
the owner of the wallet to make any payment from the wallet unless they were
hacked, don’t worry there are many ways to protect yourself.
5.
No Inflation
Coins are limited to use and mine in crypto
currencies therefore neither political force nor corporations able to change
this order, there is no possibility for development of inflation in the system.
6.
Anonymity
In crypto currencies, you’re able to
create an infinite number of wallets without reference to the name, address or
any other information.
What are the Disadvantages of Crypto
currency?
1. lack of knowledge about crypto currency
Most people are not aware of how to use crypto currency and
hence open themselves to the hacker. The digital currency technology is
somewhat complex and therefore one needs to be mindful of it before investing.
2. Not Accepted Widely
Though crypto currencies have earned
quite a reputation in the eyes of digital traders but still they are not
acceptable in countries and online websites, Very few countries have legalized
the use of crypto currencies. It makes it unfeasible for everyday use due to a
lack of acceptance.
3. Strong Volatility
Crypto currencies having highly
volatile nature since from the day it has come into the lime light of online
trade. This is one of the main reasons mass adoption is taking longer than it
should.
Many corporations don’t want to deal with a form of money that is going
to go through huge swings in volatility.
4. Not Able to Reverse the Payment
If you mistakenly pay someone by
using crypto currency, then there is no way to get a refund of the amount paid.
All you can do is to ask the person for a refund and if your request is turned
down, then just forget about the money.
Since it seems to be such a good deal
overall that is why there are still many individuals who do not make use of the
fancy services provided by crypto currency.
5. Large Risks of Investing in Crypto currency
Crypto investments are involved high
risk because of its volatile nature and terrorist and other illegal activity
financings, lack of a central issuer, which means that there is no legal formal
entity to guaranty in case of any bankruptcy.
Well, the truth is that though these are the pros and cons ofcrypto currency,
there are several till date who are unaware of the concept of digital money and
digital currency. It sounds utopian or perfectly idealistic to them.
Though crypto currency has not been able to replace old
banking techniques, it can be safely said that it is running fast and steadily
in the world race and seems to be gaining speed each day.
Like every coin has
two facets, crypto currency too has its cons but the pros for sure outweigh the
cons and make it an ideal means of conducting speedy, valid and secure
transactions over miles as well as minutes.
Thus, now wonder why we need crypto
exchanges and relevant services and why their strength needs to grow yet
further.
What are Crypto Exchanges?
Crypto exchanges are growing as there are such signals which
are conductive of pro-crypto currency based development.
There are estimated to
be around 100 in strength per the latest records where crypto currencies can be
traded. Just as currency exchanges or stock exchanges there are crypto
exchanges for crypto assets as there are also for any other commodity as well.
For this, we may make thorough analysis of benefits of crypto
so as to ascertain the demand and supply which would determine the need of
crypto exchanges and other crypto based services.
Almost all exchanges provide
crypto wallet services as well where crypto currencies can be stored. A list of
some of the popular and well-known crypto currency wallets are:
1. Mycelium
Mycelium is a very good option for experienced or an advanced
user who is hunting for a reliable Bitcoin
digital wallet. The mobile wallet permits both the Android and the
iPhone users to invest in the Bit coins and have a complete authority over the
currency. There is no interference from any third party.
2. Bread wallet
It is a simple mobile based Bitcoin digital wallet, where
sending the crypto coins especially Bit coins is as simple as sending an email.
You need to download the wallet from the Google Play Store or iOS app store
because you will find no server to send and receive the Bit coins.
3. Copay
Convenience is the term used while using the Copay
wallet. This wallet is considered as one
of the best digital wallets available on the market.
Its user-friendly
interface can be easily accessed on desktop, mobile and the web. As it is a
multi-signature digital wallet, funds can be transferred or shared between
business partners and friends.
4. Exodus
It is probably one of the unknown digital wallets that have
an interactive and easy interface that can be accessed only on the desktop. The
wallet supports the storing, receiving and trading of the Bit coins, lite coins,
Doge coins, Ether and Dash.
The in-built Shape shift exchange allows you to
trade Bit coins for Altcoins and vice versa without the need to leave the
wallet.
How to analyse Crypto currency v/s
Fiat Currency?
Fiat currency is declared a legal tender by the government.
It can either be represented electronically, as bank credit or take a physical
form, i.e. paper currency and coins. It can be used for the payment of taxes
and its supply is controlled by the government or central banks.
On the other
hand, crypto currencies supply is controlled by an algorithm or computer
programming methodologies of encryption. In most places they cannot be used to
clear taxes and is not a legal tender.
Apart from these differences, there are no major differences
between the two. Both can be used as a medium of exchange, as well as for
storing and transferring value.
The value for both is governed by scarcity,
work, demand, supply and other economic factors. Both can be used for purchase
and can be traded on exchange.
There has been constant debate and arguments at the state,
the national and the international levels regarding the acceptance and benefits of crypto currency.
While some appear to be in favor of this new development there are also some
who protest it and wish to stick to the traditional concept of money transfers
and banking to handle the economic aspect of one’s life and country.
However one important question to be asked is that if people
have such notions about it, why are there individuals who are making it big in
the field of crypto currency?
There have been varied opinions such as crypto currencies
being unreal money or crypto currency being unsafe.
It is rightfully said that,
what is persistent is change and this is why it is imperative to be up-to-date
with how alterations in the society are taking place and what one must do to
adapt and adjust to.
It must be noted and understood why it is growing rapidly as
a preferred mode of making a livelihood and how its popularity can be used to
one’s advantage.
