Surprising Current Developments in the Cryptocurrency World
Cryptocurrency has been around for over a decade now, and the most surprising aspect of it is that things continually change and update. The technology has fundamentally not changed since the original cryptocurrency Bitcoin blasted onto the scene. What is changing all around that is the way technology and currencies are used. Here are some surprising developments we have seen in recent times in the cryptocurrency world.
Uses of Blockchain Technology
Cryptocurrency is fundamentally secured using blockchain technology. Blockchain works ingeniously; the chain is a ledger where all transactions on the network are processed and made secure. The beauty of this process is that it is as close to unhackable as a system can be; if a block in the chain is altered, or missing it would be immediately apparent. This impressive technology is being used in tracking and security in industries as surprising as the food and drinks trade.
Values Still Rise
Despite some notable dips, such as the famous Bitcoin fall in the value of 2017, cryptocurrencies continue to show some robustness and generally are still rising in value. We can attribute this to a few factors; cryptocurrencies are beginning to see a public acceptance, major retailers and financial institutions are starting to engage with them. By their very nature, cryptocurrencies are limited in number for each denomination, and scarcity always gives value.
As previously mentioned, the public profile of cryptocurrencies, especially Bitcoin, has risen exponentially. The very fact that something is subject to discussion in a positive light on major news networks and radio stations gives it more gravity than it previously held. Adding this to the fact that trusted big brands such as Microsoft, Tesla, and Burger King now accept Bitcoin, people see it as a legitimate payment method. Anyone can now easily buy Bitcoin with debit cards and spend them in a variety of settings. From a retailer’s point of view, you can now accept Bitcoin payments alongside other traditional methods via many card processing vendors.
Also Read: What are cryptocurrency exchanges?
The Law has its Say.
Governments, tax offices, and law enforcement didn’t know how to react to the new currencies when they first emerged, with many places not recognizing it, or even banning it. But what these strategies actually achieved was allowing cryptocurrencies to exist somewhat outside of the legal system. If cryptocurrency is not legally currency, then it must be classed as a possession rather than as funds, this presents certain difficulties for prosecuting crimes such as fraud; how can it be fraud if no transaction took place? Collecting taxes was proving to be difficult as well; if the crypto-coins are possessions then they could be argued to be either stock or assets, and not taxable profits. Governments are now beginning to tighten these loopholes to prosecute criminals and collect taxes from profitable businesses. A by-product of this tightening of legislation is that cryptocurrency is inadvertently given an official stamp while remaining an alternative option.
This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.