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The institution of banking has traditionally been the regulatory body that has overseen the economy of a country. Its role solidified further with the introduction of paper money as official currency. Now, with the entry of cryptocurrency in the economy – where do banks stand with it?

Cryptocurrency was devised to improve upon the flaws in traditional currency. When Bitcoin was minted first in 2009, it was done in response to the economic crisis of 2008 as a viable alternative to the existing banking system.

How Banks Responded to Cryptocurrency in the Heydays

When cryptocurrency was first introduced, the banking sector refused to give it any importance as they expected it to fizzle out. But it didn’t. It grew in popularity and is now a safer currency alternative to traditional currency. Many cryptocurrencies have developed since Bitcoin and registered a growth in value. Banks around the world have now woken up to the disruptive power of cryptocurrency, reacting differently in different parts of the world. Certain countries like China have clamped down on crypto-exchange operations while others have been quite receptive as has the Netherlands and other Nordic countries.

How Can Banking Regulate Cryptocurrency?

Prima facie, banks have little space to regulate the minting or trade operations of cryptocurrency. Why? Cryptocurrency is based on a decentralized system where individuals can transact amongst themselves without involving a third party. Secondly, it is highly volatile and so is unlikely to replace flat money anytime soon. Of course, the market value of the regular currency is subject to ups and downs as well, but these aren’t as sharp as with crypto. Naturally, if cryptocurrency is to become the primary currency in our society – banks will have little role to play as they will be helpless in the face of such volatility.

All hope isn’t lost though. If the banking system was to modernize itself by adopting blockchain technology, it could function the same way a crypto exchange does.

Additionally, if cryptocurrencies became more media-reliant than simply value-reliant, banks would find it easier to deal with them.

It is too soon to rule out the bank’s role in a world dominated by cryptocurrency. At the same time, traditional banking as we have known it may be looking ahead to a decline. Nations, now, should probably mull the idea of introducing cryptocurrency for official monetary exchange to draw it into the folds of the banking system.

Gedi is passionate about fast cars, video production, travels and the Internet. He has years of experience working as User Interface Engineer with a demonstrated history of working in the information services industry. Skilled in Web Applications, NodeJS, React, Redux and UI. Growing interest in Bitcoin and cryptocurrencies, he joined TheDailyCoins as a writer.

Cryptoeconomics is a portmanteau word made of the two words – “cryptography” and “economics”. If one wishes to understand how blockchain technology works, one needs to familiarize themselves with cryptoeconomics. Cryptoeconomics refers to a framework where economics interacts with cryptography. The cryptography is responsible for securing the communications over this network. The economic aspect ensures that the network functions in the desired manner without any hindrances.

Blockchain cannot become the decentralized network it aspires to be without a stable cryptoeconomics in place that thwarts attacks by malicious infiltrators.

The Role of Cryptoeconomics in De-centralized Blockchain

Cryptoeconomic principles facilitate a consensus between the involved parties without the need for a central authority. If this agreement was not reached, decentralized blockchain networks like Ethereum and Bitcoin would simple not work. Cryptography and economic incentives drive the development of a decentralized network and their ability to reach a middle ground regarding the state of the blockchain.

Possible Challenges

Cryptoeconomics stakes claim to the ambitious task of trying to combine technically implemented rules with unpredictable human behavior. Building incentive mechanisms into such a decentralized system becomes quite difficult.

It is unfair to compare traditional economics with cryptoeconomics as economics has been revised and subject to evolution over ages, cryptoeceonomics on the other hand necessitates construction from ground zero. It involves being able to predict how people will interact with this completely new system of payment and design rules governing the use accordingly.

Cryptoeconomics becomes complicated here as we aren’t really used to designing economic systems from scratch. We’ve always adopted the one handed over to us by our forefathers and manipulated it to suit contemporary times. Never before have we built a completely new economic system from nothing. Also, predicting human behavior is no easy task.

The need of the hour is improvisation. Yet, these rules need to be well-defined for a decentralized system to hold its own and not crumble in the face of pressure. Mechanism design i.e. a crucial subset of economics can be employed here to incentivize/disincentivize behavior in line with the system.

Use of Tokens

A token is used as a tool to regulate the micro-economy of an enterprise. If a system has been designed well, it conveniently manages the distribution and incentivization of these tokens. If incentivized tokens can be used optimally it aids the overall growth and well-being of a decentralized network. It is important to note that ICOs are beginning to replace the importance of tokens more and more in the current system.

Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.

Many cities all over the world have taken to cryptocurrency since its inception a decade ago. The 17th million BitCoin, the most recognized cryptocurrency of them all, was mined last April. Now, there are only about 4 million BitCoins left unmined. There are close to 2,500 BitCoin compatible ATMs around the world now. The number was as modest as 500 as little back as 2016. One can only imagine the rate at which the common populace is adopting BitCoin by these figures. Some cities have begun to now allow you to pay for services and goods via BitCoin. Want to know which cities these are? Read on:

San Francisco, US

– California’s tech mecca boasts of almost 60 crypto ATMs, 29 of which are BitCoin ATMs. The city has 177 merchants and retailers who accept BitCoin as currency. It is also home to the company that developed the world’s most popular BitCoin wallet – Coinbase.

Los Angeles, US

– Los Angeles counts 145 BitCoin ATMs within its boundaries. More than 800 businesses accept BitCoins here. It also holds some 45 BTC meetups across the city for BitCoin aficionados to mingle and share the latest updates and trends about the cryptocurrency.

New York, US

– New York contains 117 BitCoin ATMs and over 500 businesses that accept BTC as payment. One of the oldest BitCoin exchange firms – Coinsetter was founded in New York. NYC also has its very own cryptocurrency – the New York Coin.

Vancouver, Canada

– Canada was the first country to come up with a law to regulate BitCoin exchange. Hence it is not a surprise that the place has a significant BTC community to boot. Vancouver has 48 BitCoin ATMs of itself and about 86 merchants that deal in BTCs. It was the first city to welcome a BTC ATM. The Quadriga CX BitCoin exchange is headquartered here.

Zug, Switzerland

– Although very little known, Zug is one of the most technologically progressive cities in the world. It is home to the headquarters of many top crypto companies. It is the first city to accept BTC as payment for taxes.
So now you know where to head for a slice of crypto-tourism. Many cities around the world accept cryptocurrency now, but the five mentioned above are the most welcoming of the virtual currency and encourage BitCoin commerce among its citizens.

Surprised to hear about Bitcoin ATMs? Oh yes, they are very much a thing. Bitcoin is a fungible virtual currency that can be exchanged for other currencies such as the GBP, USD, and Euro. Bitcoin ATMs or BTMs (Bitcoin Teller Machines) facilitate exchange between Bitcoins, Altcoins and flat cash. What this means is that any cryptocurrency trader can visit a Bitcoin ATM and purchase his/her share of Bitcoin tokens by depositing money into the machine. It works as an exchange platform which changes cash into virtual currency. Bitcoin ATMs can usually also disperse regular cash. Some of these ATMs offer the option to sell Bitcoins too but not all of them.

Bitcoin ATMs allow the unbanked to gain an entry point to international commerce by enabling access to digital currency.

Bitcoin ATMs also offer anonymity like nothing else, not requiring the user to submit KYC or AML for identification purposes making the transactions even more secure.

These ATMs had come a long way from when they were initially introduced. They now come loaded with high tech security features like biometric scanners used to authenticate users and verify their transactions. Fingerprint scanners are also used to allow users to access their wallet. An additional scanner that verifies QR code on the ticket generated before enabling the user to proceed with their transaction is also in place.

How does BTM work?

Most BTM machines tend to differ with the manufacturer. However, how they process flat currency to bitcoin is the same.

Only those with an authorized Bitcoin wallet can operate a BTM. The wallet enables access to the many services offered by the machine. The steps involved in using a regular ATM and a BTM are much the same. Let’s see what they are – You initiate the process by pressing the Start button. Then you choose the language of your preference.

Next, you enter your mobile number for authentication.

-You receive a verification code on your mobile which you are needed to insert into the machine.

-You can scan your fingertips now.

-You will be able to see the “Buy Bitcoins” option at this point, choose it.

-You may either scan your existing Bitcoin wallet or generate a new purse at this stage.

-Feed your currency notes and press Send.

-Collect the printout of your transaction record.

Conclusion

Hope that gave you an insight on Bitcoin Teller Machines. BTMs are incredibly safe, fast and user-friendly and if you deal in cryptocurrency, there is no reason you shouldn’t be using one.

Cryptocurrency hype is for real and here to stay. Both institutional investors and corporates are betting big on cryptocurrencies. Despite the attention that cryptocurrencies are generating, many detractors believe it to be nothing more than a bubble. Their concerns stem from the various scams that have rattled the market during the past few years. These scams not just cost millions of dollars to investors but also exposed the chinks in the armor of cryptocurrency exchanges and blockchain startups. While there is no denying that now is the best time to jump on the cryptocurrency bandwagon, you must not let your enthusiasm shroud your judgement when investing in cryptocurrencies. To ensure your name does not appear in the list of cryptocurrency

fraud victims, keep an eye out for some common scams we have listed in this post.

1.Shady exchanges

While it may be tempting to deposit your coins with an exchange that claims to have an unrealistic fee, you must always remember that if it seems too good to be true it probably is. Watch out for exchanges that spring up overnight without any prior announcement. Cases of exchanges disappearing with investor money overnight without any trace aren’t unheard of. Before trusting a cryptocurrency exchange with your hard-earned money, make sure it has security mechanisms in place. Avoid storing your coins on the exchange. If you don’t have a cryptocurrency hardware wallet, shift your coins to an offline wallet every day after you decide

to call it a day.

2.Fraudulent ICOs

Holding Initial Coin Offerings has become a common practice among blockchain businesses to raise funds. Many ICOs are however anything but an earnest attempt to raise money to fund future projects. Scamsters behind fraudulent ICOs lure investors by promising them unrealistic returns and once unsuspecting investors take the bait, these tricksters disappear with the money. To avoid becoming a soft target, only trade with reputable companies. If you come across a promising new company, dig up important info related to the minds behind the project. Stay

away from companies that try to rush you into a decision.

3.Ponzi schemes

Ponzi schemes are the easiest to spot, yet many investors fall for them. Never invest in a scheme that encourages you to get more investors on board, promising you to offer a share in the profits. Watch out for schemes that promise unrealistically high returns. Scam artists are everywhere including social media platforms, which is why you might want to think twice before acting upon

any advice that you get from an unverified source on LinkedIn or any other social media website.

At the moment, cryptocurrency has got the world divided. While its proponents claim, cryptocurrency will usher in a new digital future, detractors often raise security issues that have haunted exchanges and traders in the past. Over the years, various scams and hacks have rattled the industry. While there is no denying that much needs to be done in this area, in many cases, it is the trader’s negligence that gives hackers the window of opportunity to execute their plans. To help you stay safe when trading cryptocurrencies, we, in this post, impart a few tips to avoid

common scams. Take a look.

1. Research thoroughly

Before opening an account with a cryptocurrency exchange or trading a particular altcoin, conduct a thorough research. Learn everything you need to know about the exchange including its operational history. Read trader reviews regarding exchanges and new products. To keep abreast of the changing regulations and trends, visit forums by and for cryptocurrency

enthusiasts.

2. Avoid placing altcoins on an exchange

Instead of placing all your altcoins on an exchange, consider transferring them to an offline wallet before signing off for the day. If time wastage is your excuse to not adopting this practice, let us tell you that it does not take much time to transfer altcoins back to your exchange. If you do not have any intentions to exit early, upgrade to a cryptocurrency hardware wallet. Before

starting to use an Android wallet, research thoroughly, as the market is flooded with fake ones.

3. Watch out for signs of fraudulent Initial Coin Offerings

Over the years, ICOs have gained traction. There is something in it for everyone. While blockchain startups conduct ICOs to raise funds, investors can reap profits once the crypto project starts producing good returns. That said, many ICOs are nothing more than a part of an elaborate plan to dupe traders. To steer clear of losses, only invest in ICOs with a credible team at the backend. Never rely on a company that tries to avoid questions. Go through the content on their website thoroughly and make sure there is no difference between what they say and promise. Avoid dealing with

companies that try to rush you into a decision.

4.Steer clear of impersonators

Many scammers create fake social media profiles similar to that of key industry figures. Watch out for such profiles. Never share your private wallet keys with someone you don’t know or can’t trust, even if they try to lure you by offering an unrealistically high ROI. If an impersonator

approaches you, report the account to the social media platform.

Bitcoin is the world’s first cryptocurrency. Its incredibly high exchange rate ensures that the decentralized digital currency is here for at least some time now. How do you acquire Bitcoin? You either purchase or mine them. Mining necessitates the use of dedicated hardware that uses software applications to manage these rigs. If you’ve made up your mind to get involved in cryptocurrency mining, consider the following Bitcoin mining software –

MultiMiner – The Graphic User Interface based mining software was developed as a piece of Windows 10 Bitcoin mining software. It can be used with Linux and MacOS too but will require additional software installation to make it compatible. The MultiMiner should be your bitcoin mining software of choice if you’re just stepping into the world of cryptocurrency mining. It is extremely user-friendly, but packs in enough advanced features all the same.
CGMiner – Often considered the best bitcoin mining software, the CGMiner has been around for a good period of time now and has been performing consistently to keep its standard intact. It is a cross-platform bitcoin miner that runs across Mac OS X, Linux and Windows with equal ease. It supports a variety of ASIC mining and FPGA hardware.
BitMinter – BitMinter, again, is compatible with a range of platforms. It does not require installation as its client is based on the Java Network Launch Protocol. It too has a very basic graphics interface which is incredibly easy to use.
BFGMiner – A lot like the CGMiner, BFGMiner, however, has been designed to be used with ASICs. It is perfect for mining bitcoin and other cryptocurrencies which are not ASIC resistant. The software allows for immense customization opportunities. One can use the software to connect to multiple mining pools.
Miner-Server – Miner-Server is a cost-effective solution for those eager to get into bitcoin mining, but do not want to spend too much on ASIC miners. Miner-Server is a cloud-based mining service. You can avail a variety of packages, all of which last for up to a year and allow you to check earnings and other details by logging into your account.

There is other bitcoin mining software in the market, but the ones listed above are your best bets. They can be accessed on a multiplicity of platforms and offer better ease-of-usage than most other available mining software. Go ahead and try for yourself!

How To Make A Profit When Cryptocurrency Markets Crash

Within a year, the total market capitalization of digital assets has soared from $18 billion to $180billion. The recent surge in cryptocurrency markets have got market pundits worried, many of whom believe that the bubble is heading for a burst. Given the volatile nature of markets, experts have every reason to be worried. Should their prediction come true, you must have a plan B ready to steer clear of the bloodbath. To help, we, in this post, impart a few tips to make profits when markets slump. Take a look.

1.Become a miner

Rather than remaining at the mercy of the markets, why not pursue opportunities proactively? Mining involves generating coins with the help of mining equipment traded on the market. Once you have enough coins, you can stock or sell them in the market. One of the major roadblocks that individual miners face when taking this route is the high costs involved.

You can address this problem by opting for cloud mining, a method that allows several miners to share resources and returns. Cloud mining helps keep a tab on energy costs. Look for a cloud based-pool mining platform that allows users to stake their tokens and later provides a proportionate share in the profits generated by the mining pool.

2.Invest in digital assets that are doing well

Just because the market is falling apart, does not mean every digital asset will nosedive. Experts believe that even in a tumultuous market, investors can find a few assets that hold well. These assets can do very well in the future. When deciding whether to invest in a particular coin, gather info regarding the promoters. Study the company’s business models and make sure the currency has a solid foundation.

3. Avoid rushing into decisions

When cryptocurrency markets crash, many investors try to exit the market by selling at whatever price they can get. To weather the storm, many experts recommend adopting what they call a HODL, or Hold on For Dear Life strategy. Simply put, the strategy involves buying and holding digital assets for a predetermined period no matter by how much or how frequently the market fluctuates. Many experts suggest that investors hold top five assets in their portfolio and sell them only when the market improves.

4. Migrate to fiat currencies

Many experts suggest that investors turn to fiat currencies when markets take a turn for the worse. That said, this strategy is not for everyone. The entrance and exit timing should be perfect. When adopting this strategy, use funds that you can risk.

Bitcoin – Is it a Bubble?

Bitcoin has always come under suspicion of being a bubble ever since its creation. The notion grew in strength even more after its sudden burst in popularity. Investors are always concerned about the risks of investing in the crypto market, especially now after the severe drop in prices. At the same time, everybody has a fear of missing, and nobody wants to lose all their money. Hence, everyone is asking the same question; is Bitcoin a bubble?

Before getting to the question, it is important to understand what an economic bubble is. Also known as speculative or market bubble, these are traded assets whose price during trade heavily exceeds the asset’s inherent value. It is a situation when the market price of the asset seems high enough without any basis to be viewed as problematic. A bubble can only be identified after it has burst, which means after the prices of the assets have suddenly crashed.

The main reason why Bitcoin is being considered as a bubble is due to the tremendous conflation of its price and the harsh drop. It has shown all the signs of being a bubble. According to Bloomberg, Bitcoin might have been a bubble that just burst. As mentioned above, bubbles can only be identified in retrospect. In the events leading up to the great depression, the New York Times reported that stocks had reached a permanent high. In a few days, the prices would fall by 89%. Something similar happened in the world of Bitcoin. While blockchain is a valuable piece of technology that will have many serious applications in the future, Bitcoin, as an asset, began to bloat in price. Many believed that just because Bitcoin is supported by the blockchain technology, it is immune to phenomena like bubble and corrections. The price of Bitcoin fell by more than 80%.

This in no way means the end of Bitcoin or cryptocurrencies. Their main value is that they are a much more efficient form of currency and work on more efficient and secure systems. Bitcoin has been through several crashes and bubble bursts in the past, such as the one in 2011. While the bubble may have burst, the price of Bitcoin at the moment is more than triple of what it was when the year 2017 began. Most of the early investors have not suffered critical losses and are in good shape.

Andrej Burcev got into Crypto while completing his Bachelor of Science at Kingston University in London. Andrej now works as Senior Software Engineer. He is currently collaborating and writing articles for TheDailyCoins with his focus in innovative technology and its cultural and social influence.

In the realm of cryptocurrencies, cold storage of Bitcoin or any coin refers to storage of the currency on offline hardware assets. Cold storage of bitcoins is primarily done for security reasons as storage on a network or online wallets can open it up to cyber threats.

Storing Bitcoin in exchanges is also risky without cold storage as these exchanges offer an instant withdrawal feature, and the limit usually is in hundreds of thousands. In order to keep the coins safe from attackers, a lot of exchanges and websites store the bulk of their clients’ cryptocurrencies in cold storage on offline data storage facilities. The cryptos in cold storage are not present on any other computer systems or networks. The entire reserve of one’s cryptocurrency does not come under threat as long as cold storage facilities are used. Some of the various cold storage methods include:

Portable cold storage wallets such as USB drives or other kinds of data storage devices located in safe facilities.
Paper wallets (although this physical method has a lot of downsides and has become quite unpopular now).
Converting into bearer items or tokens such as physical Bitcoin (physical Bitcoin wallets are a novelty item that can be used to store Bitcoins securely).
Using an offline Bitcoin hardware wallet.

While there are issues with cold storage, they can be easily solved. Most people who go for cold storage have a variety of reasons for choosing this option. Some of the various reasons for choosing cold storage over other methods of storing Bitcoin are mentioned below:

When one needs to store a large sum of Bitcoin in a secure location.
When the stored Bitcoins do not need to be accessed repeatedly.
When the owner wishes to protect their coins themselves without relying on any third-party services.
When privacy is of utmost importance.
When one can pay for the hardware required for cold storage.

Depending upon the method chosen, there are various ways of storing Bitcoin in cold storage. Most USB drives and other hardware come with easy-to-follow instructions that guide the users on how to transfer their Bitcoin into the wallets. Such cold storages are far more trustworthy when it comes to keeping Bitcoins safe from hackers. It is often recommended to use both kinds of wallets together, online wallets for regular transactions and cold storage for the safekeeping of the main crypto reserve.

Eleanor B. Stonebridge

Eleanor B. Stonebridge is a New York Times best-selling author renowned for her engrossing fantasy novels. With her masterful storytelling and vivid world-building, she has captivated readers worldwide and has won numerous awards in the literary sphere.

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