future for cryptocurrency?

Cryptocurrency is an innovation that is at forefront of everyone’s mind. These days, it seems like everything is based on Cryptocurrency, a new type of tender that uses Blockchain technology to secure and monitor transactions. But, like any investment in new capital, we at RDI know you have your doubts. You’d be quite right to ask what Blockchain is? And what exactly is the future for cryptocurrency? Well, we at RDI have a few predictions. 

 

Cryptocurrency

So, what exactly is Cryptocurrency and Blockchain?

First things first, to understand the future for cryptocurrency, you have to understand the terms themselves. Here, we aim to keep things short and simple:

  • Cryptocurrency – As it sounds, currency that has been encrypted digitally.
  • Blockchain – A decentralized locked database containing many “blocks” that record ownership and transaction details.
  • Bitcoin – a type of cryptocurrency.
  • HODLING – (taken from a cryptomeme) Holding onto your currency through market crashes and sales in hope of a larger opportunity later in the game.

So why do people use it?

As you’d expect, cryptocurrency has darker origins. As this type of currency is not technically tender, but rather currency that has a tender value – it is not regulated by the same rules that sterling or dollars adhere too. In short, when you purchase with cryptocurrency, as you are not in a trade of regulated tender for goods, you have not purchased these goods with legal tender and therefore have not done so illegally.

 

However, there are a number of less nefarious benefits for the future for cryptocurrency. For example, as it utilises Blockchain, transactions cannot be reversed, or subject to fraud. Money can be moved from one party straight to another without a middleperson. Crypto is coded uniquely, and specifically, to aid in the avoidance of identity fraud. It’s also a universal currency – which means it’s not subject to exchange rates or international transfer fees. 

 

Bitcoin

 

So, what are the disadvantages?

As with any deregulated institution, Cryptocurrency has had its fair share of ups and downs. Especially in terms of fraud, and access. Therefore, crypto is a juicy target for those on the hunt for a dishonest buck.

 

Many of the larger social media networks have banned adverts due to this. When Facebook banned crypto advertisement, the value of bitcoin and many other currencies fell instantly. More of the social networks have followed, with Twitter shadow banning crypto accounts. Twitter did so in March 2018, and Google June 2018. We all know that word of mouth is the best way to advertise, and, as crypto value relies on the amount of the currency in the system, the less people that use it, the less core value your selected cryptocurrency has.

 

Crypto platforms are also very open to hacks. We’ve seen many high-profile hacks of cryptocurrency platforms, and it seems as though access is being gained and capital stolen every third month. Again, this is due to the lack of felony charges around the crime. On 10th June 2018 Coinrail, South Korea’s largest cryptocurrency database, was broken into, and over $40M of crypto was stolen. Due to its finite nature, balances cannot be restored as they are in banks at the touch of a button, and this caused significant harm to the platform and the users. Miners of one of the two types of currency have pledged to restore user’s balances, but this will cause significant financial strain, as they must absorb the loss themselves.

 

Unsurprisingly, this sent the value of cryptocurrency on a rapid decline.

Our predictions

At RDI we see a bright future for cryptocurrency, as long as the platforms that trade them up their security and make their institutions impossible to hack. If measures aren’t put into place, then it spells the end for Bitcoin. The crux of the problem is this: when you create an exclusive, hard to access currency specifically to appeal to those who ride the wave of the technological age, then you also open the door to theft by those individuals, who are encyclopaedic in their knowledge of digitally infiltrating platforms.

 

In terms of investing, RDI recommends HODLING. In the wake of the Coinrail fiasco, we’d expect tougher security measures. There’s also evidence, at least in the UK, that crypto is headed towards regulation later in the year. This will rapidly increase the value of your stock! Say it with us now. HOD-LING. Well done. You’re now crypto-cool.

 

See a future for cryptocurrency? Then check out Raj Dhonota Investments. An Angel Investor; with a unique sense of business. RDI work with people to establish holistic development and turn ideas into businesses through investment, mentoring and our own unique philosophy. You’ll soon wonder where we’ve been all your life!

 

Disclaimer – Although we always endeavour to deliver accurate and insightful information, if you are seeking legal advice, please speak to a professional. All opinions within this blog are the writer’s, should you identify content that is incorrect, please get in contact.