Has Cryptocurrency Become Every Indian’s Dream Investment?

If you’re reading this article, chances are you already know about Bitcoin. This platform has turned the entire world digital in just three years. Today, people from all over the world use this service without sharing their personal information with the world. However, if you think you can benefit from the service directly from the Bitcoin platform itself, you should change your mind. For anonymity, you should use a reliable bitcoin mixing service.

If this seems like something new to you, we can help you figure it out. This article will help you get familiar with the service. You will also understand the reason why there is so much hype about it and on the Internet. We will also shed some light on the benefits of the service. Read on.

Advantages of Bitcoin Mixing Service

With the help of Bitcoin, you can remain anonymous while doing your transactions on the Internet. Traditionally, when you make payments online, you have to pay high fees. For example, if you pay with your credit card, the bank will charge you for providing the service. No matter what medium you choose to use, you will have to pay fees. Not everyone can afford to pay these fees.

On the other hand, if you choose to pay with digital currency, you won’t have to pay any fees. Also, your identity will not be shared with anyone. In general, it is important to note that these transactions are not anonymous. Your activities are recorded and accessible to anyone via blockchain. It’s a huge database of these transactions, which means your information is shared with the person you’re dealing with. All your information is shared, including your name, address and other details. Now, if you want to enjoy true anonymity, you need to use a blending service.

The purpose of the service is to facilitate the owners. Therefore, if you use this service, you do not need to register by providing your personal information. If you are a first-time user, you can choose from a variety of services that won’t charge you anything. Likewise, they will not require PGP key verification. In fact, the purpose of the Services is to ensure that you enjoy true anonymity when making these transactions.

Since there is a high demand for these mixing services, scammers take advantage of the system to make money. That’s why it’s important to do your homework before choosing a good blending service. Finding a reliable supplier is of real importance.

What you need to do is hire a matchmaking service that won’t ask for your name, email or other personal information. In addition, the service provider does not have to keep records of the transactions that their users make on a regular basis.

In short, we suggest you choose a bitcoin mixing service wisely. Choosing the right service is important if you want to enjoy the benefits explained in this article. Just be careful and make an informed decision.

Cryptocurrency vs. fiat currency

Are you familiar with fiat currencies and crypto currencies? Both are currencies in one form or another and are open to public use worldwide. But both are different and different in their own way. There is always one group that favors the use of cryptocurrencies while the other has a soft corner for fiat currencies.

In the cashless society, crypto money plays a huge role

If you look at the market of the 1970s and 1980s, you will find that cash played a dominant role. But with the change in technology, electronic transactions have become a common norm. Today, more and more people are influenced to become a cashless society. With the move towards a cashless society, cryptocurrencies play a big role.

Cryptocurrency and fiat currency are always in conflict

Cryptocurrency and fiat currency are popular types of digital currency, especially when it comes to online transaction. Both are currently used currencies in the market but have some differences in them. There are a hell of a lot of ads you will hear every day comparing crypto money and fiat money. This article will highlight the difference between the two in a more comprehensive and clear manner.

Distinguishing what currencies mean

Before you can understand the difference between the two, you need to understand what they are and how they are defined.

A fiat currency is a legal tender that has the backing of a central government and operates in physical form. For example US Dollars, British Pounds, Euros, etc. On the other hand, cryptocurrency is not legal tender and has no central government or bank backup.

Therefore, the difference between crypto currency and fiat currency is noted as follows:

• Cryptocurrencies are decentralized and global in nature. There is no legal entity or government that controls the currency with its laws and regulations. Fiat currency is centralized, under the control of bank and government laws and regulations.

• Cryptocurrencies exist only in the digital realm. On the other hand, you will find that fiat currencies have a tangible and physical existence.

• There is a limited supply of cryptocurrencies with a maximum range of them available in the market. Whereas fiat money has an unlimited supply as the government and bank have the right to produce coins and paper money when the situation calls for it.

• Bitcoin and other cryptocurrencies are created by computers, while fiat currencies are issued by local government and banks.

• Cryptocurrencies are presented as public and private pieces of code. On the other hand, fiat currencies are presented in the form of coins and paper money.

• The value of crypto currencies is not recognized by market supply and demand. Whereas the value of fiat currency is determined by market regulations of supply and demand.

The different types of crypto and fiat currencies

Over the last decade, the popularity of cryptocurrencies has become a huge success. It was in 2009 when Bitcoin was first introduced and years after several other types of cryptocurrencies emerged. Starting with Litecoin. Dogecoin, Ripple to Dcash and Zcash, there are tons of them. On the other hand, fiat currency has rich and ancient roots, with the Great British Pound dating back to 775 AD. It is considered the world’s oldest currency still in use.

The differences in anonymity between the two currencies

When using fiat currencies, you must go through a user identification or verification process. You are requested to upload your recent photograph and some of the required documents to be issued as per the public authorities. You don’t need to go through any of the necessary processes with cryptocurrencies. Although your personal information and confidential data do not become public, but all your transactions are recorded and tracked in both fiat and crypto currency.

Fiat Currency vs. Cryptocurrency: Level of Transparency

• The level of transparency with crypto-type currencies is considered higher. This is because revenue streams are displayed on a public chain. Everyone can witness their own and other people’s transactions.

• The decree or the government. currencies are not transparent as there are no public chains to see people’s income streams.

Relatively historical roots

If you compare crypto money with that of its counterpart, fiat or government currency, you will find that its existence and creation makes the difference. Fiat or government currency dates back to 775 AD with the introduction of the Great British Pound. This is why fiat currency is easily accepted by people everywhere.

On the other hand, the crypto coin was perhaps first introduced only a decade ago, with the introduction of Bitcoin in 2009. The challenge facing Bitcoin and other cryptocurrencies is to match the massive popularity and growing fan base of fiat currency. Cryptocurrency is undoubtedly gaining more and more importance and popularity in the economic market, but it is still not widely accepted in society as a fiat currency.

Comparative history of the two currencies:

• It was in the 11th century that China’s Song Dynasty was perhaps the first to issue paper money. They were not allowed to be exchanged for valuables such as gold, silver or silk.

• There were tally sticks which were introduced as fiat or government currency. 1100 Tally sticks were introduced as a battle for the scarcity of gold.

• 1971 was the year fiat currency gained worldwide recognition. President Nixon introduced it to eliminate the system of tying the dollar to gold.

• It was in 1998 when the idea of ​​an anonymous e-money system came from Wei Dai. Bitgold – the first cryptocurrency was created by Nick Szabo, but it did not receive as much attention as Bitcoin.

• In 2009, Bitcoin was introduced to the market, which became the first cryptocurrency to be accepted worldwide. A series of several other cryptocurrencies were introduced in 2011 and thereafter. Some of the popular ones include Litecoin, Dogecoin, Ethereum, Ripple, Zcash, Dash and so on.

The characteristics of the two currencies

The potential of cryptocurrencies and fiat currencies, access to their features is important. You will find that in some of the criteria Bitcoin and other cryptocurrencies outperform fiat or government currency, and in some cases the latter outperforms. It is absolutely your decision to choose the type of currency (cryptocurrency or fiat currency) based on your personal needs and requirements.

Let’s compare their traits in terms of certain factors.

• Both crypto coins and fiat currencies are interchangeable in nature.

• As far as portability is concerned, both currencies provide more or less equal position.

• Regarding non-consumable criteria, crypto-currency and fiat-type currency have the same status.

• Crypto-type currencies have high durability compared to fiat currencies which have a moderate level of durability.

• Both crypto or virtual currencies and fiat or government currencies provide safe and secure transactions and exchanges.

• Crypto or digital currencies are highly divisible in nature. On the other hand, fiat-type currencies are moderately divisible.

• In terms of transaction process, cryptocurrencies are easy and hassle-free. While on the other hand the traction process associated with fiat currencies is easy but not like crypto.

• Crypto-based currencies are decentralized and global in nature, unlike fiat currencies, which are centralized and operate under government laws and regulations.

• Crypto-based currencies are highly scarce, while fiat currencies are unlimited because the government can issue coins and paper money whenever it needs to.

• Cryptocurrencies are based on mathematical algorithms and are programmable. Fiat currencies are not programmable at all.

• Fiat currencies are sovereign in nature while crypto currencies are not.

The process of functioning of currencies

You can find the significant differences between crypto or digital currencies and fiat currencies in the way they both work and the transaction process that takes place. They are contrasting in nature. Transferring money using Bitcoin is very fast and you absolutely do not need a third party association.

On the other hand, if you are involved in the exchange of money using fiat type currency, a mobile wallet is used. You can exchange an amount of electronic money that is transferred to an amount of equal electronic value. Both fiat and crypto currency allow you to buy anything you want. But the processes involved are absolutely different from each other.

Depending on the things you buy, you will find that one form of currency is better than the other. It’s absolutely your choice.

Is Bitcoin, a cryptocurrency, better than fiat currency?

The long-term benefits and possibilities of Bitcoin are yet to be established. But cryptocurrency gurus and experts have predicted that they will go a long way, especially by revolutionizing the way online transactions are done. In the current market, Bitcoin is mainly included in online casinos and gambling, but it is not limited to it.

Also, when comparing fiat currencies, Bitcoin allows you to wrest power and authority from banks and government because it is not controlled. Cryptography-based currency has the ability to create or offer free market capital. Fiat currencies are affected by inflation and market changes, unlike crypto-based currencies. Such aspects lead people to believe that crypto-based currencies will soon take over mainstream currencies and bring about a transformation in the way money is used.

Why is Bitcoin considered a better aspect than fiat currencies?

• Bitcoin enables you to recreate free market capitalism.

• The power to control money rests entirely with individuals, not banks, as with fiat currencies.

• When there is inflation, Bitcoin is not affected. But fiat type currency will be easier to lose and will be affected by it.

• Bitcoin currency is simple and easier to exchange and transfer than fiat or government currencies.

• Transaction fees associated with Bitcoins are much cheaper and easily available.

Cryptocurrencies seem to be a favorable option among people

Fiat currencies are the centralized and legal way to exchange money. But cryptocurrencies have gained immense popularity in the past few years. There will never be anyone to act as an intermediary as in the case of banks. Moreover, cryptocurrencies are much cheaper and cheaper than conventional fiat currencies.

Send money anywhere directly without waiting for bank approval

You can send money directly to anyone in the world and it’s super fast. The money is cleared within a few minutes. You don’t have to wait for the traditional clearing and verification processes of banking systems, which can take up to several days to get permission. Since it is decentralized and does not fall under government laws and regulations, no one has the power to do anything with your account.

Blockchain technology has a very big role to play

Thanks to cryptocurrencies, it gives us the power and authority to become our own bank and take control of our finances. This is due to blockchain technology, which offers a higher level of sophistication when dealing with finances. In fact, there are some major financial industries that have started to incorporate the idea of ​​technology.

Gold is not dead.

Just ask Germany.

Germany’s Bundesbank recently announced that it had completed the transfer of $13 billion in gold bullion that had been stored in vaults beneath Lower Manhattan, returning the metal back home. The country began repatriating its gold in 2013 with the aim of once again storing 50% of its reserves in Frankfurt.

When the gold transfer was complete, Germany would have removed all the gold it stored in Paris, leaving only 13% of its reserves in London and roughly a third of its reserves in New York.

With the rise of cryptocurrencies – such as Bitcoin – and digital cash such as PayPal, Apple Pay and other applications, there has been a steady decline in the use of physical cash, making the yellow metal feel downright archaic.

But gold has a special status, stronger than even the few twenties in your wallet right now. The precious metal offers a blanket of safety and security. It is considered more reliable than any government-issued currency.

Just look at the euro, a currency for a union of countries that threatens to break up. (Germany certainly feels better about having a golden home again.)

Or even the US dollar, a currency backed by some $20 trillion in debt.

Not only is gold alive and kicking, but it should play an important role in your portfolio…

Let me just start with this: I am not a gold bug.

I am a trader first and foremost and I usually have a short time frame as my target. I was brought up on the variety of options and fast trading for good profits. I don’t care if the market is bull, bear or – shudder to think – range bound. There is always a way to win if you know where to look.

But gold is a complicated thing.

It does not pay dividends, so there is an opportunity cost associated with the metal.

However, when there is market uncertainty, faltering economic growth or geopolitical controversy, gold shines as a safe haven in the storm. When stocks crash, investors will turn to gold as a safe way to store some of their greenbacks instead of simply converting them to cash and tucking them under their mattresses.

And given the way gold is trading, it seems that many investors are not too sure about this rally in the market.

The hedge

In 2016, the price of gold rose more than 8%, almost in step with the stock market, as the S&P 500 gained 9.5%.

In fact, the World Gold Council reported that gold demand rose 2% in 2016 to 4,309 tonnes, marking a new three-year high.

And less than two months into the new year, we have gold up another 8%, outpacing the S&P’s roughly 5% gain – which is remarkable.

When stocks are strong and investors believe in a market rally, they are happy to ditch gold for securities that promise much better returns.

For example, during the dot-com bubble, the S&P 500 rose from January 1995 to September 2000 by more than 200%. In contrast, gold stumbled 27% over the same time period.

Or look at the market rally from October 2012 to January 2016, when the S&P 500 gained 37% while the yellow metal crashed 35%.

In short, when times are good, gold is the forgotten child left in time-out until it learns to play nice with other assets.

And when times are bad, gold is the prodigal son, offering security and protection.

So if the stock market is trading at all-time highs and regularly setting new records, why does gold still shine as the favorite?

The financial market has its fair share of potential stumbling blocks that could bring everything down sharply. Let’s go through a quick list:

• Stocks are overvalued. We recently explained that stocks are painfully overvalued by traditional measures and we are preparing for a reversion to the mean.

• Washington in turmoil. Our new president has promised a series of extreme moves that could have significant consequences for both the US market and the global market, which could start with a sharp slowdown in earnings.

• The next outlet in Europe. The EU and the UK are stumbling through Brexit, as well as major elections coming up – Italy, Germany, the Netherlands and France. Moreover, Europe’s growth has been largely ignored by many investors and could become the next hot trade as they tire of the drama in the US

• The derivatives nightmare. The US is facing a meltdown that could rival the effects of the housing bust as America’s five biggest banks have piled up interest-rate-linked derivatives.

• The Fed’s wild card. The latest minutes from the Federal Open Market Committee meeting revealed that the Federal Reserve is looking to raise interest rates “relatively soon.” Higher interest rates will suck money out of the economy as it costs more to service our growing debt. Higher interest rates also tend to dampen equity gains.

Investors are watching these issues closely, waiting for one or more of them to knock the stock off its current path.

Your disaster insurance

Of course, that doesn’t mean the market will fall off a cliff tomorrow.

I think the one quote that every speculator is fighting over is, “The market can stay irrational longer than you can stay solvent.”

In short, just because a stock or index has risen to all-time highs doesn’t mean it can’t keep going higher, even if it doesn’t make logical sense to you and me.

But it doesn’t hurt to have a hedge to protect yourself when it all goes down.

Gold remains that perfect hedge: your insurance against the Fed, Washington, reckless banks, Europe, and even that black swan that hasn’t hit our radar yet. That’s why gold still shines as a favorite even during this year’s stock market highs—investors know they need a safe haven, just in case.

Physical gold is your best option instead of investing in “paper gold” such as exchange-traded funds.

No matter how you choose to add physical gold to your portfolio, the important part is that it’s there, ready to be your safe haven when everything falls apart.

Bitcoin is a cryptocurrency that can be spent, saved, invested, or stolen. Bitcoin trading used to be considered risky, but current trends show that it has become a big hit in the binary options sector. This decentralized currency is not regulated by any government or any central authority.

What determines the price of bitcoins?

The price of Bitcoin is determined by the ratio of supply and demand. Prices rise when demand rises, rates plummet when demand falls. Bitcoins in circulation are limited and new ones are created at a very slow rate. Since there is not enough money reserve to drive the market price, its price can be extremely volatile.

Bitcoin trading is popular because of –

• Low inflation risk – Inflation is the biggest problem for traders because all currencies lose some of their purchasing power when reserve banks keep printing more currency. Since the bitcoin mining system is limited to only 21 million bitcoins, it is hardly affected by inflation.
• Low risk of collapse – Currency fluctuations depend on government trade policy, which sometimes causes hyperinflation and even causes the currency to crash. Bitcoin is a virtual universal currency that is not regulated by any government.
• Simple, safe and cheap – Bitcoin payments are peer-to-peer without a middleman, making them simple and cheap.
• Easy to carry – Millions of dollars worth of bitcoins can be carried in your pocket, in memory. This cannot be done with gold or money.
• untraceable – Bitcoin issuance is not regulated by any government, so the risk of seizure is zero.

Binary Options Bitcoin Trading Platform

Binary options brokers are familiar with the popularity of these bitcoins and their constant fluctuations in values. Therefore, they use this opportunity to offer merchants the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers providing cryptocurrency as a trading option include –

• One Touch Option – Bitcoin trading can be done with AnyOption or One Touch Option. For example, the current popular currency pair is BTC/USD.

• SetOption – The latest asset trading option available is BITCOIN/USD.

Bitcoin brokers provide a simple online trading platform. All you have to do is visit their website, enter your details and create an account. You can start with a demo account to understand the action of the market.

The trading screen is simple.

• Choose price direction (UP/DOWN)

• Select the time frame

Is Bitcoin Trading Safe?

The Bitcoin network is probably the most widespread computing project in the world. The most common weakness here is user error. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other digital file.

However, users can use reliable security strategies to protect their money. Alternatively, you can choose the service providers that offer a high level of security as well as insurance against loss or theft.

Cryptocurrency or cryptocurrency (Saxon cryptocurrency) is a virtual currency that serves to exchange goods and services through a system of electronic transactions without having to go through an intermediary. The first cryptocurrency to be traded was Bitcoin in 2009 and since then many others have emerged with other features such as Litecoin, Ripple, Dogecoin and others.

What is the advantage?

When you compare cryptocurrency to the money in the ticket, the difference is that:

They are decentralized: they are not controlled by the bank, government or any financial institution

Are anonymous: Your privacy is preserved when making transactions

They are international: everyone operates with them

They’re safe: your coins are yours and no one else’s, stored in a private wallet with non-transferable codes that only you know

It has no intermediaries: transactions are done person to person

Fast transactions: to send money to another country, they charge interest and often take days to confirm; with cryptocurrencies in just a few minutes.

Irreversible transactions.

Bitcoins and any other virtual currency can be exchanged for any world currency

They cannot be forged because they are encrypted with a complex cryptographic system

Unlike currencies, the value of electronic currencies obeys the oldest rule of the market: supply and demand. “It is currently worth over $1,000 and like stocks, that value can go up or down with supply and demand.

What is the origin of Bitcoin?

Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to launch a new currency

Its feature is that you can perform operations only on the network of networks.

Bitcoin refers to both the currency and the protocol and red P2P it relies on.

So what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is, you cannot touch any of its forms, as with coins or banknotes, but you can use it as a means of payment in the same way as these.

In some countries, you can monetize with an e-debit card page that exchanges money with cryptocurrencies like XAPO. In Argentina, for example, we have more than 200 Bitcoin terminals.

Undoubtedly, what makes Bitcoin different from traditional currencies and other virtual means of payment like Amazon Coins, Action Coins is decentralization. Bitcoin is not controlled by any government, institution or financial entity, whether public or private, such as the Euro controlled by the Central Bank or the dollar by the United States Federal Reserve.

Bitcoin actually controls, indirectly through their transactions, users through P2 P (point-to-point or peer-to-peer) exchanges. This structure and lack of control make it impossible for any body to manipulate its value or cause inflation by producing more quantity. Its production and value are based on the law of supply and demand. Another interesting detail in Bitcoin is the 21 million coin limit that will be reached in 2030.

How much is a bitcoin worth?

As we stated, the value of Bitcoin is based on supply and demand and is calculated using an algorithm that measures the amount of transactions and Bitcoin transactions in real time. Currently, the price of Bitcoin is 9300 USD (as of March 11, 2018), although this value is not much less stable, and Bitcoin is classified as the most volatile currency in the foreign exchange market.

Bitcoin peaked about a month ago, on December 17, at a high of nearly $20,000. As I write, the cryptocurrency is below $11,000… a loss of about 45%. That’s more than 150 billion dollars in lost market capitalization.

Notice a lot of hand-wringing and gnashing of teeth in the crypto-comments. It’s neck and neck, but I think the “I told you so” crowd has an edge over the “apology makers”.

Here’s the thing: unless you just lost your bitcoin shirt, it doesn’t matter at all. And chances are, the “experts” you might see in the press aren’t telling you why.

Actually, the Bitcoin crash is wonderful… because it means we can all stop thinking about cryptocurrencies in general.

The Death of Bitcoin…

In a year or so, people won’t be talking about Bitcoin in line at the grocery store or on the bus like they are now. That’s why.

Bitcoin is a product of justified frustration. Its designer has explicitly said that the cryptocurrency is a reaction to government abuse of fiat currencies like the dollar or the euro. It was supposed to provide an independent peer-to-peer payment system based on a virtual currency that could not be devalued because there was a limited number of them.

That dream has long since been discarded in favor of raw speculation. Ironically, most people are interested in Bitcoin because it seems like an easy way to get more fiat currency! They don’t own it because they want to buy pizzas or gas with it.

In addition to being a terrible way to do electronic transactions—it’s agonizingly slow—Bitcoin’s success as a speculative game has rendered it useless as a currency. Why would anyone spend it if it’s going up in price so quickly? Who would accept it when it depreciates rapidly?

Bitcoin is also a major source of pollution. It takes 351 kilowatt hours of electricity just to process one transaction – which also releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough to power an American household for a year. The energy consumed by all the bitcoins so far could power almost 4 million American households for a year.

Paradoxically, Bitcoin’s success as an old-fashioned speculative game – its unintended libertarian uses – attracted government repression.

China, South Korea, Germany, Switzerland and France have introduced or are considering bans or restrictions on bitcoin trading. Several intergovernmental organizations have called for concerted action to contain the apparent bubble. The US Securities and Exchange Commission, which previously seemed likely to approve bitcoin-based financial derivatives, now appears hesitant.

And according to Investing.com: “The European Union is implementing tougher rules to prevent money laundering and terrorist financing on virtual currency platforms. It also addresses restrictions on cryptocurrency trading.”

We may someday see a functional, widely accepted cryptocurrency, but it won’t be Bitcoin.

… But a push for crypto assets

Okay. Breaking Bitcoin allows us to see where the real value of crypto assets lies. This is how.

To use the New York subway system, you need tokens. You can’t use them to buy anything else… even though you could sell them to someone who wanted to use the subway more than you.

In fact, if metro tokens were in limited supply, a lively market could arise for them. They may even trade for much more than they were originally worth. It all depends on how many people want to use the metro.

This, in a nutshell, is the scenario for the most promising non-Bitcoin “cryptocurrencies”. It’s not money, it is tokens – “crypto-tokens” if you will. They are not used as a common currency. They are only good within the platform they are designed for.

If these platforms provide valuable services, people will want these crypto-tokens and that will determine their price. In other words, crypto-tokens will have value to the extent that people value the things you can get for them from their associated platform.

That will do them real assetswith intrinsic value – because they can be used to get something that people value. This means that you can reliably expect a stream of income or services from owning such crypto-tokens. Crucially, you can measure this stream of future returns against the price of the crypto-token, just as we do when we calculate a stock’s price-to-earnings (P/E) ratio.

Bitcoin, by contrast, has no intrinsic value. It only has a price – the price determined by supply and demand. It can’t generate future revenue streams and you can’t measure anything like a P/E ratio for it.

One day it will be worthless because it brings you nothing real.

Ether and other crypto assets are the future

The Ether crypto-token is secure It seems as currency. It is traded on cryptocurrency exchanges under the code ETH. Its symbol is the Greek capital letter Xi. It is mined in a similar (but less energy intensive) process to Bitcoin.

But Ether is not a currency. Its designers describe it as “the fuel to run the Ethereum distributed application platform. It is a form of payment made by the platform’s clients to the machines performing the requested operations.”

Ether tokens give you access to one of the most sophisticated distributed computing networks in the world. It’s so promising that major companies are pitted against each other to develop practical, real-world applications for it.

Since most of the people trading it don’t really understand or care about its true purpose, the price of Ether has swelled and frothed like Bitcoin in recent weeks.

But eventually Ether will return to a stable price based on demand for the computing services it can “buy” for people. This price will represent real value which can be evaluated in the future. There will be a futures market for it and exchange-traded funds (ETFs) because everyone will have a way to estimate its underlying value over time. Just like we do with stocks.

What will this value be? I have no idea. But I know it will be much more than Bitcoin.

My advice: Get rid of your bitcoin and buy ether on the next dip.

Cryptocurrencies have been in the news lately because tax authorities believe they can be used for money laundering and tax evasion. Even the Supreme Court appointed a special team to investigate black money recommended to discourage trade in such currency. While China has reportedly banned some of its largest operators from trading in bitcoin, countries such as the US and Canada have laws that restrict trading in cryptocurrency stocks.

What is cryptocurrency?

Cryptocurrency, as the name suggests, uses encrypted codes to make a transaction. These codes are recognized by other computers in the user community. Instead of using paper money, the online ledger is updated through regular accounting records. The buyer’s account is debited and the seller’s account is credited with such currency.

How are cryptocurrency transactions made?

When a transaction is initiated by a user, their computer sends a public cipher or public key that interacts with the private cipher of the person receiving the currency. If the recipient accepts the transaction, the initiating computer attaches a piece of code to a block of several such encrypted codes that is known to every user on the network. Special users called “miners” can attach the additional code to the publicly shared block by solving a cryptographic puzzle and earn more cryptocurrency in the process. Once a miner confirms a transaction, the block entry cannot be changed or deleted.

BitCoin, for example, can be used on mobile devices as well as to make purchases. All you have to do is let the receiver scan a QR code from an app on your smartphone or bring them face-to-face using Near Field Communication (NFC). Note that this is very similar to regular online wallets like PayTM or MobiQuick.

Die-hard users swear by BitCoin for its decentralized nature, international acceptance, anonymity, transaction permanence, and data security. Unlike paper currency, no central bank controls inflationary pressures on cryptocurrency. Transaction logs are stored on a Peer-to-Peer network. This means that each computer includes its computing power and copies of databases are stored on each such node in the network. Banks, on the other hand, store transaction data in central repositories that are in the hands of private individuals employed by the firm.

How can cryptocurrency be used for money laundering?

The very fact that there is no control over cryptocurrency transactions by central banks or tax authorities means that transactions cannot always be traced back to a specific person. This means we don’t know if the transactor received the store of value legitimately or not. The store of the recipient of the transaction is also suspicious, since no one can tell what reward is given for the currency received.

What does the Indian law say about such virtual currencies?

Virtual currencies or cryptocurrencies are generally considered to be pieces of software and are therefore classified as goods under the Sale of Goods Act of 1930.

Since they are good, indirect taxes on their sale or purchase as well as GST on services provided by the miners would be applicable to them.

There is still a lot of confusion about whether cryptocurrencies are valid as currency in India and the RBI, which has authority over clearing and payment systems and prepaid negotiable instruments, has certainly not allowed buying and selling through this medium of exchange.

Thus, any cryptocurrency received by a resident of India will be governed by the Foreign Exchange Management Act, 1999 as an import of goods into that country.

India has allowed Bitcoin trading on dedicated exchanges with built-in safeguards against tax evasion or money laundering and enforcement of know-your-customer norms. These exchanges include Zebpay, Unocoin and Coinsecure.

Those who invest in bitcoins, for example, are subject to tax on dividends received.

Capital gains received due to sale of securities involving virtual currencies are also subject to tax as income and subsequent online filing of IT returns.

If your investments in this currency are large, it is better to get the help of a personalized tax office. Online platforms have greatly facilitated the process of tax compliance.

1. Over the past decade, the size of seed rounds has stagnated and the number of deals has declined. To the untrained eye, there appears to be more competition for seed dollars. Beneath the surface, however, startups recycle the experience of their founders. The reason the number of deals has decreased is because teams are better prepared, more financially savvy, have access to support at better prices, waste less time and resources, use other forms of funding BEFORE seed rounds and changing or deciding to exit early – at the pre-seed stage. (The founders will embark on exploring new opportunities).

The founding teams are recycled

2. More companies seeking seed rounds already have sales, expressions of interest and some form of market validation as a result of the circular economy of entrepreneurial mind and action. Companies looking for seed rounds are more advanced than they were 10 years ago. Founders use other ways to get funding (as they should! Because seed funding is very expensive!), and they also recycle experience from founding, co-founding, advising, and/or early employees at previous firms. This creates a circular economy of entrepreneurial experience. Not just serial entrepreneurs, but a wide range of people who have had experience growing a startup (failed, successful and everything in between, in so many roles!).

Supplier of means to be recycled

3. More investors are entering each round and seed rounds have become more collaborative. More and more small funds, angels and angel groups are co-investing. This means more eyes are evaluating trades (GOOD), but BAD trades get passed over too because the impact of each trade on the overall portfolio is lower and FOMO (fear of missing out) can get that signature! Think Theranos (ouch).

TIP: Nobody talks about herd mentality and there will be some lessons to learn going forward. Because of the cycle and recycling of funding, early investors can scan deals early, with lower amounts, and if they want to play in future rounds, they have to get in early with other: pay to play.

Recycling founders and funders also changes outcomes:

4. Outputs are recycled too! Companies get acquired, go public, break up, resell, privatize, go public, and there are many emerging exit opportunities. This is actually a break-ready zone. Welcome to the world of recycling outlets.

And the funding process has become more interesting and complex.

5. As both entrepreneurs and financiers become more comfortable navigating the many funding options for startups or mature companies, new funding opportunities are emerging: there is better knowledge of crowdfunding, cryptocurrencies, hybrids (vaults/convertible notes ) and SFI types (can we call these special financing instruments?). Capital providers borrow from SPVs, SPEs and SVIs. I can’t wait to see what new options come out of this.

All of this recycling and repurposing has an impact on investment returns and capital markets

6. Cycles are longer: It takes longer to climb a bigger mountain, especially if there have been some quasi-exits, spins, more and bigger loops along the way. It affects the way we negotiate funding that comes into the company because there is light at the end of the tunnel, but the tunnel is getting much longer. Combine that with the uncertainty of how investors exit. Again, this is an area that is ripe for disruption and I can’t wait to see new options emerge. With longer cycles, investment returns diminish, so firms are forced to find new and disruptive ways to excite investors and NEW investors who are supposed to be more risk-averse and adventurous, but in reality are reckless.

Longer paths require more resources,

But the supply of capital does not exist in a vacuum

7. Public markets are shrinking and investors – especially institutional investors – are riding the rollercoaster of political madness. Mostly stemming from a surprising interest in protecting borders rather than having healthy global economies, financial and economic illiteracy permeates the political arena, where decisions are reckless and financial managers focus on reducing foolish risks rather than creating and sustaining new ones. wealth.

Overall, a combination of healthy recycling of talent, capital and technology is fueling the economy despite policy mistakes.

For investors, the signals are clear: get in early, back lots of startups, learn and collaborate.

For entrepreneurs, the signals indicate: Use multiple forms of funding, use dynamic funding, ask investors for support (not just money), and build dynamic teams.

Oh, and for small business owners who believe that “small is beautiful”, now more than ever, my famous quote 100% of 1 is 1, but 1% of 1000 is more, is more valid than ever. Sort yourself out, discard the illusion of “security” and embrace a “growth” mindset. If we stop growing, we start dying. Small IS beautiful, it’s just not sustainable.

For government and economic development agencies, the puzzle is getting more complex… Hang on!

We really don’t know what we’re doing, but we’re doing it!

The world is changing rapidly lately and so is the currency system. With the use of cryptocurrencies such as Bitcoin in vogue, people are curious to gauge the possible future of Bitcoin, which needs to be established and supported by facts and insightful rationality.

In 2009, there was a new currency concept that was introduced to the financial world. It was a bit confusing for people, but within a year or two it emerged as a trend. Today, more and more people and business ventures are using Bitcoins for various reasons. The digital currency is still undergoing regular updates to improve it in every possible way.

A FEW OPINIONS ABOUT BITCOIN

People all over the world have become quite aware of crypto currency. In addition, there are many more opinions about it from experts. It is quite common to find pro-Bitcoin currency experts claiming that the currency is expected to reach between $250,000 and $500,000 per coin in the next few years.

On the other hand, you will find several well-known financial analysts and specialists who do not hesitate to warn people about the problems they may face when investing in Bitcoin. Experts accept the fact that this currency called Bitcoin and other crypto currencies may have a lot to give to the public, but the day is not far when investing people will suffer and take a significant hit.

There are several advantages and disadvantages of Bitcoins. In the event that the negatives are removed, there is a huge chance that the entire international financial system will undergo a transformation. Let’s take a look at them:

SOME ADVANTAGES OF BITCOIN

• You really have full control over money and can send and receive any amount 24X7. This is possible because transactions are not executed by central or commercial banks or other centralized organizations.

• The transaction fee is minimal compared to any other online money transaction. The mining service that records the transactions in the respective blockchain charges the fees in reality and they are quite low.

• Since no personal information is traded, it is the most secure way to transact money. Other than that, no problems at all.

• With minimal processing costs, everyone can rely on the most reliable and fastest way to transfer money.

• Bitcoin is not affected by price fluctuations in any of the world’s economies unlike other currencies.

THE CONS OF BITCOIN

• Bitcoin should have a better impact on global and local financial markets.

• Bitcoin price stability should focus on more people and businesses using cryptocurrency.

• There is still no guarantee of Bitcoin’s purchasing power that can be provided to investors or users.

Bitcoin’s future is all about speculation

The downsides of bitcoins cannot be easily ignored, but in some ways they can be easily deterred. With a stronger market presence and more price stability, this could be the easiest form of online currency in the future. The future of Bitcoin is really nothing but speculation. It has received positive feedback from people all over the world and has the potential to become the next big thing.