Crypto Currency and Alternative Assets
With regulations and tracking of money across the countries by their respective agencies & govts, the demand for alternate currency has risen manifold in the last few years. The introduction of FATCA by the US and many signatories executing Inter Governmental Agreements (IGA) of type 1 where the tax data of the residents is reciprocated upon request, there is an increasing number of citizens trying to bypass their wealth through alternate routes.
Also, the doubters of the current financial system and it’s reliance especially after the financial meltdown have started to explore counter assets and currencies bringing to limelight the cryptocurrency.
Crypto Currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. This makes the availability to a limit unlike where the paper money could be printed at the whims of the govts.
It's designed to work as a medium of exchange using cryptography to secure the transaction and to control the creation of additional units of the currency. These are a subset of alternative currencies, or specifically of digital currencies.
Bitcoin was the pioneer in this field and theses decentralised cryptocurrencies now provide an outlet for personal wealth that is beyond restriction and confiscation.
There're a total of 747 currencies / 127 assets across 4117 markets with a total market cap of $114,538,216,356 while on an average bitcoin contributes about 40% of the trade volume. This is according to NVO, a cross-platform modular decentralised exchange.
After the successful Demonetisation drive by India, many countries coined the possibility of implementing similar strategies. This has spiked the demand for such assets and there has been a boom since the beginning of this year.
Bitcoin, the most widely accepted digital currency was valued at $963.38 on 1st Jan '17 and zoomed to $2965.94 by 12th Jun '17 while Ethereum, the next kid on the block with 2nd largest market cap has moved from $8.27 to $356.64 during the same period.
Ethereum is now penetrating the Bitcoin dominance and likely to pose a stiff competition to Bitcoin. While Golem is the largest asset with a mkt cap of $469,262,097 on the Ethereal platform with a price equivalent of $0.565886
Soon, Govts across the world would take notice of these as the usage increases and if found guilty of any illegal (read terrorist) activities through these transactions then the law enforcement agencies would swoop in and call for regulations. That would be the demise of this burgeoning movement.
Godspeed,  | 
Follow us on