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Bitcoin Takes Nosedive After Investors React to IMF Ruling

  By David Drake   In its World Economic Outlook published last month, the International Monetary Fund (IMF) cited that vigorous growth of digital currencies and the premature celebration of the cryptocurrency movement could potentially create vulnerabilities within the international financial system (IFS). Immediately after the IMF made this announcement, prices of major cryptocurrencies, including bitcoin, plummeted, resulting to a $13 billion loss in total market capitalization within minutes. Skeptics of this viewpoint are of the opinion that these ‘vulnerabilities’ come in the form of a system of cross-border payments which are outside the control of the IMF. This challenge has left the 189-member group considerably nervous about the future considering the rapid growth and acceptance of cross-border payment systems in influential countries such as Singapore. Key Vulnerabilities As governments and individuals rapidly take to digital financial assets, world bodies fear they will not be able to manipulate or control ... Read More »

What are Reasons Behind IMF’s Warning Against Cryptocurrencies?

  By David Drake   This past month, the International Monetary Fund (IMF) became the first global financial body to raise alarm over the fast growth of virtual assets and the impact this new asset class could have on the global financial market. The IMF warning comes just a month after the UK government issued a statement that branded the cryptocurrency industry a ‘wild west’. This is not the first time the IMF is raising concerns about cryptocurrencies. In February of this year, IMF’s Chief, Christine Lagarde, went on record saying the Fund was concerned with the fact that digital currencies can be used in illegal financial transactions with ease. This means that global regulatory actions are critical in the industry. According to the Fund, delays in enacting and implementing such regulation only makes the industry more vulnerable to financial risk. John Hoelzer, founder and CEO of ONe Network, agrees ... Read More »

What are the Long-term impacts of IMF’s Announcement on Digital Currencies?

  By David Drake   Growth of the crypto market has largely been viewed positively by many players in terms of its contribution to the global economy. However, to other economic players, cryptocurrencies are increasingly becoming a risk to both consumers and investors. Just recently, global financial institution, the International Monetary Fund (IMF) stated that there are possibilities that virtual currencies could ‘create new vulnerabilities in the international financial system.’ While noting the possible benefits of cryptocurrencies, the IMF narrowed its concerns to security and their possible utilization in illegal activities. According to the financial agency, the regulatory control issues, hackings and online security threats facing the cryptocurrency industry make it highly vulnerable and that there is likelihood that this could challenge international payment structures and interrupt exchange of goods and services. Short vs Long-Term Impacts To a large extent, the IMF considers the cryptomarket as relatively young, one that ... Read More »

Will IMF’s Recent World Economic Output Report have a Long-term Effect on the Crypto Market?

  By David Drake   One sector that is set to experience revolution since the emergence of digital currencies is the financial industry. This is because blockchain, the technology that underlies cryptocurrencies offers several advantages to the sector.  Unlike the current centralised financial systems that are costly, time-consuming and highly dependent on intermediaries, blockchain-based systems tend to be cheaper, fast and intermediary free. With increased popularity, blockchain technology has captured the attention of global financial institutions. In April this year, International Monetary Fund (IMF) head acknowledged that distributed ledger technology behind bitcoin and other digital currencies could increase efficiency of the current financial systems. But in a surprising turn of events, the IMF has recently issued warnings over digital currencies. The global financial institutions has stated that digital currencies “could create new vulnerabilities in the international financial system” in its world economic output publication. Key Concerns In the publication, the ... Read More »

How Google’s Ad Ban Reversal Could Spur Crypto Market Growth in US and Japan

  By David Drake   Earlier this year, Google, Facebook, Twitter and Snapchat banned all advertisements on initial coin offerings (ICOs) and cryptocurrencies owing to increased hacking and fraud incidents in the cryptocurrency space. The ban was aimed at protecting investors from cryptocurrency scams aimed at defrauding them. However, six months later, tech companies seem to be changing their stand over the cryptocurrency advertising ban. Facebook became the first tech giant to reverse the ban and barely a month later, Google has followed the same path. The latter announced last month that it will lift the ban on cryptocurrency advertisements in October. In its revised policy, Google stated that it will only run adverts from cryptocurrency exchanges that are regulated in the United States and Japan. Crypto companies in other countries can, in the meantime, submit applications to place adverts on Google as the tech giant puts in place plans ... Read More »

Colombia’s President Petitioned to Create Favorable Banking Environment

    By David Drake   Soon after Colombia’s President, Ivan Duque, took office and committed to create a favorable environment for cryptocurrencies to thrive, industry players are already challenging him to keep his word. Buda.com, one of the cryptocurrency exchanges in South America, has written to the President seeking assistance to resume business in the country after being forced to cease operations this past June. The letter signed by the general manager and the legal manager of the cryptocurrency exchange requests the President to nullify the blanket ban that was put into effect by the banking industry on businesses in the cryptocurrency space. Further, the exchange cited that the actions by banks have pushed numerous users into trading on peer-to-peer markets that are vulnerable to scams and fraud. Tech Revolution The cryptocurrency sees the ongoing ban as an attempt to hamper the revolution in the technological space in Colombia and ... Read More »

Bitcoin’s Price Remains Low Despite an Optimistic Outlook

  by David Drake     The volatility in bitcoin prices has led to marked ups and downs in the value of the leading cryptocurrency. This has raised questions on whether the bitcoin bubble has finally burst for good. Bitcoin’s total market capitalization dropped from $800 million to $200 million in just a few months, according to data from CoinMarketCap. At the beginning of September, Bitcoin traded at $6,450 and closed the first week of October at $6,576. But as the value of Bitcoin remains low, blockchain, the technology that powers Bitcoin and other cryptocurrencies, has been gaining popularity. In the business world, the technology has powered platforms such as Noiz Chain that facilitated interactive advertising, Qupon that allows for marketing of virtual coupon, URAllowance that facilitates family interactions using smart contracts and ONe Network that enhances  security in social media. Causes of Devaluation The drop in the value of Bitcoin ... Read More »

Why Some Industry Players Think The Cryptocurrency Bubble Could Burst Soon

  by David Drake     A review of  cryptomarket performance in 2017 indicates a capitalization growth that peaked during the last quarter of the year exceeded $650 billion by the 21st day of December. The increase in total market capitalization was a result of the rising value in Bitcoin’s capitalization which recorded more than 1400% growth, rising from $15.5 to $236.7 billion. Altcoins were not left behind. Their capitalization rose by more than 17,000%, from a low of $2.2 billion at the beginning of the year to 376.2 billion. The year also reported an increase in digital assets and cryptocurrencies launched, from 617 to more than 1,300. At the same time, blockchain, the technology underlying cryptocurrencies, created possibilities for developers to come up with innovative tech solutions to problems facing different sectors. Notable Changes Some notable solutions include digital asset portfolio management platform, BlockVest, peer to peer hedge fund trading ... Read More »

Why Colombia’s Move Could Make It the Next Crypto-Friendly Country

      By David Drake   The emergence of blockchain has presented huge opportunities for governments and businesses to enhance transparency, do away with intermediaries and reduce transaction costs. But beyond this, blockchain technology has fueled development of innovative solutions in different sectors. Some notable innovations include LiveTradr for portfolio optimization, Qupon for marketing of digital asset coupons and ONe Network for securing social media interactions, URAllowance for family smart contracts. Others are HFC Coin, a mortgage lending and investing platform for mortgage backed securities and Noiz Chain, a platform that is focused on interactive marketing. As the cryptocurrency industry grows, government interest in the industry is increasingly becoming evident. While some countries have reacted hastily to stifle the cryptocurrency industry in their borders, several governments have taken steps to create a conducive environment for the industry to thrive. One such country is Malta Island that has already put ... Read More »

Bitcoin is Going Through a Rough Patch, But its Not Out Yet

  By David Drake   Cryptocurrencies, especially Bitcoin, became popular in 2017. Blockchain, the technology behind cryptocurrencies, was not left behind. In the past 18 months, the technology has captured the attention of individuals and businesses in equal measure due to its ability to facilitate secure and fast transactions. As a result, numerous projects are being developed on blockchain. They include ONe Network, a project that seeks to secure social interactions online, IOU that allows e-commerce businesses to measure customer satisfaction, BQT for hedge fund trading, LiveTradr for portfolio optimization and URAllowance that uses family smart contracts. The Paradox Despite the growing popularity of blockchain, the price of Bitcoin has remained significantly low at this time of the year than it was last year. The year started off on a low note following a period of panic selling triggered by regulatory uncertainty in China and South Korea. Having closed the previous year at an all time high of close ... Read More »

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