Should I Buy Bitcoin Today? 1212

bitcoin investment

The market of cryptocurrency is not having the time of its life now. Many people, who made investments in November-December of 2017 because of hype, have suffered severe losses, and nobody knows when the situation changes for the better. Thus, a large number of people are interested in the global perspective of Bitcoin and other coins, whether is it worth investing in digital currency and what to wait for in the nearest future. In this article we will try to analyze the situation and share our thoughts on this matter with you.

Contents:
(please, click the topic to scroll down to it)

  1. What is happening to the market?
  2. Advantages and disadvantages of the leading cryptocurrencies
  3. Should you invest in cryptocurrency now?
  4. Conclusion

1. What is happening to the market?

Earning on investments in coins with a large capitalization in 2018 is, unfortunately, not really possible. The market lost about 75-80% of its capitalization in 6 months. In such a situation, only traders who speculate for fall (do shorting) or ICO-investors can earn on cryptocurrencies.

Now let’s take a look at the situation from a different angle and evaluate the growth rate of the cryptocurrency market over a longer period of time. As many experts say: “Investments need time, just like good wine.” And if you look at the 12-month graph of the cryptocurrency market capitalization, you can clearly see that the growth is about 280% per annum, and this is at the lowest point of correction. 

market cap1

According to https://coinmarketcap.com

Two years ago we could see an increase of investments by about 2200%. You can go deeper into the history of cryptocurrency, but these figures make it obvious that the market is still liquid and growing if you look at it in the long term.

market cap2

According to https://coinmarketcap.com

2. Advantages and disadvantages of the leading cryptocurrencies

Each coin is a separate company, with its employees (a team of developers), an idea, a technological base, etc. Each cryptocurrency has its own strengths and weaknesses. But if we are talking about the largest projects, we should single out two unconditional leaders: Bitcoin and Ethereum.

The most popular and the oldest cryptocurrency is Bitcoin, which has the most reliable and large blockchain. This coin can claim the title of digital gold, since it has some common characteristics with this precious metal (increase in the complexity of extraction, limited emission over time). The main disadvantages of the system are slow transactions (block generation takes about 10 minutes) and low bandwidth.

Ethereum has a much more advanced technological base than a cryptocurrency flagship. It is a huge platform, where you can run third-party decentralized applications. The main feature of the project is the technology of smart contracts, which can remove any intermediaries from the chain of interaction between the parties. Among the problems that Ethereum has, we can name inflation of the coin. The development team plans to switch to a new PoS algorithm in the future, which will help to reduce the inflation rate by about 20 times. However, nobody knows when it is going to happen.

3. Should you invest in cryptocurrency now?

There is no clear answer to this question, as no one knows what will happen to the industry in the future. However, if you analyze the news background more carefully, you can notice the global infusion of money into infrastructure development by the major market players (Goldman Sachs and other investment funds, as well as whole governments of individual countries, for example, India). It would seem that Bitcoin has fallen, the bubble has burst, but no, rich people are investing billions of dollars in new exchanges, farming farms, etc. Considering all this, we can conclude that the world’s major figures are betting on the cryptocurrency market and nothing bad will happen to the industry in the global sense at least in 3-5 more years.

4. Conclusion

The cryptocurrency market is not having the time of its life now, but if you look at it at a slightly different angle, it becomes clear that this is just another phase that will not last forever. What will happen to Bitcoin in the future is not 100% known to anyone, but the big players come to this field and, thus, we can conclude that we can be waiting for new historical highs in the coming years.

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Cryptocurrency Prices for the 20th of July: the Cryptocurrency is Showing Growth 317

crypto price

According to the online platform Coin360, Bitcoin (BTC) has added 1.48% over the past 24 hours. The price at the time of writing is $7463 per coin.

Unlike BTC, most of cryptocurrencies in the rating are in the red zone:

crypto kurs

Bitcoin Cash lost 2.72% over the day and is worth $797;

Ripple decreased by 4.82% and is $0.45 at cost;

EOS minus 2.68% and its price is $8.31;

Litecoin lost 2.10% and is worth $85;

Cardano dropped by 2.60% and $0.17 at cost;

Dash added 5.72% – its value is $279 per coin;

Ethereum has lost 2.72% in the last 24 hours. Its price is $465.

The total market capitalization is $284 billion. Bitcoin accounts for 45% of the total volume. In monetary terms, this is $128 billion.

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Where is it Better to Exchange Coins: On the Stock Exchange or In the Exchanger? 567

exchange coin

The vast majority of all operations with the cryptocurrency is carried out on exchanges with multi-million turnover. And what are the exchangers offering promising conditions for buying / selling the cryptocurrency? How do they differ from exchanges? We will consider it in this material.

Content:
(please, click the topic to scroll down to it)

  1. What is the exchanger?
  2. How does the online exchange of cryptocurrency work?
  3. Principal differences between the stock exchange and the exchanger
  4. Where is it better to buy/sell cryptocurrency
  5. Advantages of online exchangers
  6. What should a safe exchanger look like?
  7. Conclusion   

1. What is the exchanger?

The name gives the answer – it is the place where you can exchange the cryptocurrency for fiat or for other coins. There are two types of exchangers:

  • Online. This is a site where a visitor can make a purchase / sale of a cryptocurrency at a fixed rate.
  • Offline. Here, the currency can be exchanged for real money, having received a cache in the specified place – at the checkout or office.

Exactly the same is the work of known to all exchangers, working exclusively with fiat money.

2. How does the online exchange of cryptocurrency work?

The main condition for someone who wants to buy a coin is the presence of a cryptowallet. If any, the procedure is simple:

  1. Simple and not always compulsory registration;
  2. In the menu, find the currency you want to buy or sell;
  3. Fill in the fields with the requisites;
  4. Agree with the exchange rules and click “Exchange”.

You will be notified of the operation by e-mail notification. Cryptocurrency exchangers work in different modes:

  • Manual mode assumes that each operation is processed by an operator. It’s always long.
  • In semi-automatic mode, Bitcoin exchange can last half an hour or more, depending on the exchanger.
  • In the automatic mode, currency cranes operate with immediate withdrawal of funds.

The cryptocurrency exchanger has little to do with a stock exchange, with its adjustments, quotations, orders. But the investor is more interested in the price than the technical side of the exchange.

3. Principal differences between the stock exchange and the exchanger

At the exchange there are traders who determine the price of coins. In the exchanger, trading is inappropriate, because the course is determined by the owner of the resource. Is it good or bad?

On the one hand, there is no place for exchange speculation on the exchanger. On the other hand, there is always a real coin price on the stock exchange, which rarely coincides with the exchanger’s rate.

4. Where is it better to buy/sell cryptocurrency

If it is a matter of profit, then on the exchange with its market rate. The owner of the exchanger, of course, is guided by stock quotes, but his rate is always higher. By the way, the commission in the online cryptocurrency exchanger can differ from the stock exchange in the tens, and even hundreds of times.

In terms of convenience, the exchange also looks preferable, as it works around the clock without days off, which cannot be said about many exchangers.

An important point is the amount of currency reserves. If there are no problems for an exchange with a multimillion-dollar daily turnover  to make almost any transaction , then a poor exchanger can sometimes offer to wait an hour or two before the required amount of bitcoins or fiat appears. The security of the exchangers also raises doubts. If the top-level exchange is guaranteed to be protected against cyber attacks, then how this issue is decided by the owner of the exchanger is known only to him.

5. Advantages of online exchangers

All of the information mentioned above does not exclude the essential advantages of the cryptocurrency exchangers:

  • User-friendly interface. Registration procedure is extremely simplified, and often completely absent.
  • Any exchanger is fully integrated with all popular payment systems.
  • For registered customers, there is a program that provides an incremental discount for each subsequent exchange.

But all these advantages do not matter if the exchanger offers a disadvantageous course.

6. How should a safe exchanger look like?

A successful exchanger must work at least for a year. To be confident in successful exchange, you should take an interest in reviews on independent resources. In view of the volatility of the cryptocurrency, it is necessary to give preference to exchangers with automatic or semi-automatic mode. A good exchanger has enough reserves of cryptocurrency and fiat, it and its support work around the clock.

7. Conclusion

Online exchanger is a fast service for buying or selling coins. But it is completely unfit for trader strategies, since its commission can eat all the potential profits.

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Cryptocurrency Prices for the 19th of July: Bitcoin Balances at the Price of $7300 593

According to the online platform Coin360, Bitcoin (BTC) lost 0.54% over the last 24 hours, after a significant increase of 10%. The price at the time of writing is $7345 per coin.

price chart

Other cryptocurrencies in the rating also do not demonstrate stability and lose a little in price:

Bitcoin Cash lost 5.48% over the day; now it costs $816;

Ripple minus 5.52% and its price is $0.48;

EOS decreased by 3.18% and $8.55 in value;

Litecoin lost 4.24% and its price is $87;

Cardano on the background of the decline of the other cryptocurrencies is in positive territory – added 4.05% and is worth $0.18;

Dash plus 0.61% – its value is $263 per coin;

Ethereum has lost 4.33% over the last 24 hours. Its cost is $478 per coin.

The total market capitalization is $288 billion. Bitcoin accounts for 43.7% of the total volume. In monetary terms, this is $126 billion.

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Review of Smart Contract Technology: What Is It Used For and How to Work With It? 701

smart contract technology

If not all the representatives of the crypto world heard about smart contracts, then probably most of them did. Therefore, it is so important to know the details of the work of this innovative technology of “smart contracts”, the concept of which was announced a couple of decades ago, but was not fully realized in 2014. What is it, how can it be applied in practice, and what future, thanks to smart contracts, is the industry waiting for?

Contents:
(please, click the topic to scroll down to it)

  1. What is a smart contract?
  2. What is the advantage of smart contracts in practice?
  3. How to work with smart contracts?
  4. What is a smart contract for practice?
  5. How reliable is a smart contract?
  6. Conclusion

1. What is a smart contract?

A familiar look at the financial system changed in 2008 with the appearance of the first cryptocurrency, a coin that has a value that is not confirmed by physical assets. But year 2014 gave the mankind a way to regulate payments without the participation of intermediaries and such guarantors as lawyers, courts and other traditional institutions.

Intelligent contracts were enabled in practice by the blockchain. What is the essence of innovation? Smart-contracts are something like program code containing a complete package of information about an upcoming transaction. Logic is the simplest: it does not require the participation of a third party. If Mr. X wishes to transfer a certain number of coins to Mr. Y for a particular service, the transaction will occur automatically if the parties comply with the prescribed conditions. If they fail to be complied by any of the parties, the transaction will not take place.

Smart contracts do not provide for the presence and even potential participation in the relations of the parties of any arbitrator. Everything is extremely logical and simple – a smart contract, in fact, is no different from the usual contract, in which there are:

  • signatures of the parties that confirmed their agreement with the terms of the contract;
  • the subject of the contract;
  • the conditions under which the contract will be executed.

2. What is the advantage of smart contracts in practice?

The most important thing is the lack of the need to attract guarantors for the fulfillment of obligations. The parties do not need to apply to the notary, exchange and other third parties who by their signature / seal will attest to the intentions and obligations of the contract’s parties. Also, technology implies full transparency and security of information stored in the blockchain. As a result, the parties receive their benefits under the contract and do not pay the commission to intermediaries.

3. How to work with smart contracts?

In this regard, all the issues are fully answered by the Ethereum, known to all the crypto community. In it, the filling of a smart contract is intuitively understandable and accessible to everyone. On the official site Ethereum you need to download the purse, come up with your electronic signature and key. You can not only apply ready-to-use templates, but create code yourself.

4. What is a smart contract for practice?

The security guarantee provided by this technology allows investors not to risk when investing assets in the ICO. The investor had the opportunity not to rely on the success promised by the developers of the new coin, but to “insure” their funds by writing in the contract the condition for an automatic refund.

Technology is attractive in various areas, where contractual relations between the parties arise. Banks, companies involved in insurance, logistics, etc. are interested in it.

5. How reliable is a smart contract?

Since a smart contract is a program code, it is not without possible shortcomings. They can be associated with the complexity of its independent compilation, not always sufficient flexibility of the blockchain and insufficient scalability.

It should be noted that, in the event of an error in the contract, there are no methods for regulating the dispute. Everything is done by the program, and the court has no tools to evaluate the propriety of its incorrect work.

6. Conclusion

The technology of smart contracts has great potential. In fact, they can be used in absolutely any sphere of life. But in order to make smart contracts become commonplace, it’s still necessary to do a huge amount of work. To date, the most reliable and secure platform for entering into smart contracts is Ethereum.

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What Is the Process of Tokenization or How Can Any Person Create His/Her Own Token? 1440

tokenization

In this article, we will consider such a concept as tokenization. We will learn how it is used by various companies and how the technology of blockchain is used here.

Contents:
(please, click the topic to scroll down to it)

  1. The concept of “tokenization”
  2. The process of tokenization in the modern sense
  3. Tokenization in tandem with blockchain technology
  4. Conclusion

1. The concept of “tokenization”

Initially, tokenization technology was used to implement secure online payments. With its help, you can encrypt the data of real details and replace them with the generated hash code – a token. This is how the first concept of tokenization looked like, and the modern designation, which is now widespread in blockchain projects, has gone from there. Today the word “token” refers to a unit of an asset in a certain company.

2. The process of tokenization in the modern sense

Tokens can be compared to the labels that fill the desktop of each computer. Shortcuts are created in order not to litter drive “C” with heavy files, but at the same time to have quick access to them. Shortcuts are just the way to the program, folder, etc. If you delete a file where the shortcut leads, then the latter will not represent itself any more.

So, by analogy with the creation of shortcuts on the computer, in our time, the business is tokenized in various spheres of activity. Tokens can be created for anything (electricity, oil, gold, cattle, wheat, real estate, part of any enterprise’s funds, intellectual property, etc.). Tokenization works with both physical and virtual objects. This practice greatly simplifies and accelerates the mobility of assets, because you need logistics, a certain amount of documentation to move a real object, and the converting of the token is slightly more than nothing.

Tokenization of homogeneous objects is a fairly simple task. For example, one token is equal to 1 gram of gold, but it can be further divided into smaller parts. It is necessary to increase the liquidity of the asset. Tokenization problems arise if the items that need to be transferred to the digital space have different values ​​(real estate, art objects, etc.). In this case, this process becomes a little more complicated, since it requires the contribution of additional variables. Platforms that offer to tokenize heterogeneous objects already exist (Artex, Atlant, etc.), but each of them is confined to its own narrow niche.

3. Tokenization in tandem with blockchain technology

Probably, it seems strange, but in fact, the technology of blockchain is not mandatory to produce a tokenization of the project. Actually, anyone can make an issue of tokens, backing them up with any of their tangible or intangible property. To do this, you only need to run the platform, where you can transfer the rights to own the asset in the token.

Then why do the overwhelming majority of projects use blockchain technology for the tokenization of their own assets? It’s all due to the transparency that this technology provides. With its help, it is guaranteed that there is no third-party intervention in the data registry. ICO tokenization in tandem with blockchain eliminates the issue of confidence in the developers. Also, the undeniable advantage of using this technology is the absence of intermediaries between buyers and sellers of assets, which simplifies and significantly speeds up the exchange process.

4. Conclusion

The process of tokenization involves the transfer of tangible or intangible assets into the digital space (tokens). This significantly increases the liquidity and mobility of the asset. With the help of blockchain technology the process can be completely transparent and safe, and also you can remove any intermediaries from the chain.

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The Essence of the Blockchain Technology and Cryptocurrency 717

essence of blockchain and cryptocurrency

In the last couple of decades, technological progress has accelerated its full-scale expansion on pretty much all spheres of human life. Every year there appears something new that can change the world and make it a little easier and more efficient. One of such inventions is the technology of blockchain and the new payment system created on its basis – cryptocurrency. In this article, we will try to explain what the blockchain technology is and why cryptocurrencies will change the world in the next 5-10 years.

Contents:
(please, click the topic to scroll down to it)

  1. The essence of the blockchain technology
  2. Cryptocurrency types and their difference from other payment systems
  3. How are coins extracted?
  4. Forecasts for the cryptocurrency market
  5. Conclusion

1. The essence of the blockchain technology

Blockchain is quite a young technology, the first application that was launched on its base was Bitcoin, thus, blockchain is often referred to as a purely transactional network. In fact, the practical application of this technology is unlimited. Now there are blockchain applications that work in the fields of logistics, medicine, law, trade, rent, etc.

In short, blockchain is a chain, which consists of a large number of blocks, where various information can be stored. Each subsequent block stores data about each previous one in an encrypted form. The uniqueness of the technology lies in the fact that the entire register of data is decentralized, and its copies are simultaneously stored on tens of thousands of computers around the world. This provides the highest level of protection from third-party interventions. The data stored in the system is almost impossible to compromise, replace or delete.

Let’s review an example of where you could introduce a blockchain system. In order to achieve full transparency in the presidential elections (parliament, senate, etc.), they can be held on blockchain. If the government of any country dares to take such a step, it will be possible to consider that these are the first 100% non-falsified elections in the history of mankind. The technological base is already there, the matter remains for the world leaders, but most likely they will not be quite happy about such prospects.

With the help of this technology, intermediaries can be removed from the chain of interaction between buyers and sellers of goods and services, which makes cooperation more profitable and effective. The technology of blockchain has a great future, many analysts compare its importance to humanity with the invention of the Internet. It will be able to fully reveal its potential in the third decade of the 21st century.

2. Cryptocurrency types and their difference from other payment systems

As it has already been mentioned above, cryptocurrencies became the first mass applications that were built on the basis of the blockchain technology. The first one was Bitcoin, but in almost 10 years since its creation, about 2500 different coins and tokens having different value and performing different functions have been released. Some coins are designed purely for making payments, others can act as the domestic currency of a certain application, the third are able to guarantee dividends from developers for their holders. Types of coins are too numerous, you can read more about them in our article.

The main difference between cryptocurrency and traditional payment services is their decentralization. That is, coins do not have a specific center that can monitor the network. All participants of the system interact on the principle of equality, where each member of the community acts as a user and as a server at the same time.

Advantages over traditional payment systems:

  • Significant reduction of the commission and time of international transfers due to the absence of intermediaries. For example, a transcontinental payment for $99 million was recently made in the Litecoin network, the commission was only 40 cents, and the transaction took 10 minutes. Within the traditional payment systems, this would require 7-10 working days, and commission fees would be at least $100k.
  • Anonymity. Digital technologies both give us freedom and take it from us. Using a MasterCard or Visa, a person stops being anonymous. If you want, you can track the entire history of his/her purchases, his/her location, etc. Some cryptocurrencies guarantee total anonymity.
  • Absence of outside intervention. Any bank can freeze its client’s funds if it sees it fit. Since cryptocurrencies do not have a single center, such intervention in the work of individual wallets is almost impossible. Of course, it all depends on the type of wallet. For example, you can freeze your account at the exchange, but if the coins are on a hardware cold wallet, no one else has access to it, except its owner.

3. How are coins extracted?

Bitcoin is often compared with precious metals, in particular gold, because they have a number of similar characteristics:

  • limited amount (a total of 21 million BTC will be released);
  • the need for extraction (mining) and the gradual increase in the complexity of this process.

Some coins (such as Bitcoin, Ethereum, Litecoin, etc.) need to be mined. Let’s discuss what kind of process it is and how it works. So, coins are awarded to the miners who installed a certain amount of computer equipment and provided it for the system’s operation. You can obtain cryptocurrency in a variety of ways, even using a PC, but you should not wait for any serious earnings in this case. Miners often use more powerful hardware, such as video cards or ASICs. The computing power of miners ensures the operation of the system and the timely conduct of transactions.

4. Forecasts for the cryptocurrency market

It is worth noting that the market is now in a phase of deep correction in comparison with its peak values, which were observed in the January this year. But even if you look at the annual chart, you can see that the assets are showing good growth (about 250%). According to the two-year chart, the growth rate of capitalization is 21760%, and so on. So do not panic like most of the media. The fact is that there are many people who invested in late November-December 2017. Their outrage is justified, they lost 70-80% of their contributions, but it is unfair to make a conclusion from this that the cryptocurrency industry is collapsing.

Many analysts predict growth for this year by 20-30 times of today’s value. In general, analyzing the cryptocurrency market is a rather difficult task, and nobody can say for sure what rate will be at the end of the year. Let’s just say, there are no fundamental reasons for the collapse. As soon as the news background improves, the market should start to grow and possibly even reach new historical highs.

5. Conclusion

Many people interpret the technology of blockchain as a transactional-only network, but this is not true. The application spheres of this technology are numerous. Cryptocurrency is only the tip of the iceberg. Analysts predict the widespread introduction of decentralized applications in the 2020s.

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