Will cryptocurrency survive?

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At this point, it takes an average of around 200 minutes to confirm a single Bitcoin transaction, according to the website Blockchain.com. However, the average time for December was an impressive 2,322 minutes, or about 38 hours, with many experts blaming unprecedented interest in the digital currency for congestion on the blockchain network.

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Will cryptocurrency survive?
Will cryptocurrency survive?

Slow transaction times

In addition, slow transactions led to a series of splits in the original Bitcoin blockchain. In August, the blockchain was forced to split in two in an event known as the “hard fork.” which led to creating a Bitcoin by-product called Bitcoin cash. Another fork occurred in October, giving rise to another branch of Bitcoin called Bitcoin gold, as the community tried to increase the number of blocks on the network that can accommodate up to 1,500 transactions every second. Other althorns are also capable of transacting in seconds. For example, a thorium transaction takes about 20 seconds to commit.

Higher fares

High-rise transaction fees are fundamentally changing Bitcoin. Initially, one of the biggest strengths of Bitcoin was that transaction payments would be fast, convenient, and, most importantly, cheap. “The cost of mediation raises transaction costs by limiting the minimum practical transaction size and reducing the possibility of small casual transactions,” wrote Satoshi Nakamoto, founder of Bitcoin, in a white paper announcing the technology. As a result, until early 2017, Bitcoin rates tended to be well below $1. However, the rise in popularity has outweighed the network’s ability to handle the growing demand in recent months.

As a result, the Bitcoin network as we know it today is radically different from what it was in its infancy. Will cryptocurrency survive? People are currently paying around $25 on average to transact using digital currency, far more than was seen in early 2017.

Can cryptocurrency last forever?

Cryptocurrencies have experienced one of their most explosive weeks recently. Cryptocurrencies are systems that allow secure online payments that are named in terms of virtual ‘tokens,’ which are represented by internal accounting entries of the system.
“Crypto” refers to the various encryption algorithms and cryptographic techniques that protect these inputs, such as elliptic curve encryption, public and private key pairs, and hashing functions.
The criptodivisas or cryptocurrency is a digital or virtual currency designed to function as a medium of exchange. These currencies have the same function as the money that we use daily since they serve us to pay for products or services. Now, how is digital technology money? This can be hackable, which is why cryptography comes into play. Cryptography is the science that encrypts a message so that only the appropriate recipient can read it. In this way, when we send a cryptocurrency to a person, we ensure that the currency cannot be intercepted and stolen through cryptography. If, until recently, the financial community admired the solidity of Ether or the incredible ‘flights’ of Dogecoin, everything has changed because of Elon Musk. The Tesla CEO’s decision to stop accepting Bitcoin as a form of payment for its cars after giving the cryptocurrency so much hype sparked a drop in the token’s price that spread to its smaller peers. Although these assets are favored children of volatility and a consistent rally again is something that cannot be ruled out outright, the debate has reopened strongly: are cryptocurrencies going anywhere, or can cryptocurrency last forever?
Faced with the concern of many investors that crypto currencies will become a real drag, Sebastian Gaily, senior strategist at Nordea Investment, suggests that the question to ask is not whether Bitcoin or other cryptocurrencies are going to fall zero. Instead, the question to ask, he underlines in Market Watch, is what comes after them.
“In theory, any good that can be replicated at infinity equals zero or its marginal cost from a supply perspective. However, the demand is there with the product progressing in the mainstream, and we postulate that it will no longer have an uptrend in a few years to follow a trend with inflation. So the question is what will replace this product, “explains the Nordea analyst. Faced with the prospect of lower growth and below-target inflation a decade from now in many aging and developed markets besides China, Galy believes the answer to his initial question is artificial intelligence. This technology ensures that cryptocurrency transactions are secure and control the creation of new units of a particular cryptocurrency.
In short, crypto currencies are limited entries in a database that no one can change unless specific conditions are met. Nevertheless, the expert did not hide his excitement about the future of Bitcoin. “The possible benefits of cryptocurrency range from the individual to the national and international level. They are truly revolutionary”, he assumes. At the same time, Kenneth highlights the risks. “It’s something that evolves fast, and its ‘novelty’ factor means there’s a big learning curve. Cryptography and math have been easy for the vast majority of humans; therefore, nation-states are quite far from the curve.”

Is cryptocurrency a good investment 2021?

After a period of fluctuations and corrections, market agents are pretty optimistic about the appreciation of Bitcoin (BTC). Some believe cryptocurrency could have reached $100,000 by 2021. Traded at $56,000 by Oct. 11, according to Coin Market Cap, Bitcoin may not be the only one to benefit from the crypto active boom cycle, experts say.
“Everyone needs to have something Bitcoin in their wallet,” says Helena Margarida, Monett’s cryptocurrency analyst. Here are the views of experts on where planning the best investment opportunities in cryptomonads for the final stretch of the year and an eye in 2022. We should experience a cycle of overvaluation of Bitcoin and other cryptocurrencies. She points out that this process is very similar to that in 2013, when, after a period of halving (cut in Bitcoin production) and corrections, it was time for recovery. “The crypto market is booming, and the 4th quarter will be decisive for that”, he defends. For Ray Nasser, a specialist in cryptocurrencies at Inverse and INV, the 4th quarter represents an excellent possibility for Bitcoin to reach the long-awaited US$ 100,000, with the leadership of the crypto actives market. The world’s first – and most popular – cryptocurrency remains at the top of investment preferences. Even with its well-known volatility, including losses in mid-September 2021
as a result of external crises, the fact is that this crypto active tends to beat appreciation records. More optimistic projections indicate that it should surpass the $100,000 mark by the end of the year.

Nasser argues that Bitcoin dominance is 45% higher than other cryptocurrencies. “We are looking at a possible approval of US ETFs that will accelerate the arrival of US$ 100,000”, says the expert. Among the main recommendations of the experts consulted, seven cryptocurrencies stand out as opportunities for 2022. According to experts, 2022 will be a year of market leadership for Bitcoin, with hyper valuation and the potential to reach US$ 100,000. For this reason, they advise every investor to have Bitcoin in their wallet. Cryptocurrencies are in, but figuring out which ones represent the best investments is no simple task. The intense volatility, with aggressive highs usually accompanied by sudden drops, scares the most conservative users, while their peculiar characteristics demand greater understanding and knowledge from people. Nevertheless, some of the leading digital currencies are already present in the primary means of communication and are beginning to gain space in everyday life.
Next crypto to explode 2021

The total market capitalization of cryptocurrency has passed the one billion dollar mark, with Bitcoin dominating 43.04% of the market. The crypto market has seen a massive increase in investors, many looking for the following 100 or 1000 times coin. This article will discuss the largest and most promising cryptocurrencies in the cryptography space. Having solid use cases, the cryptocurrencies mentioned below have the potential to become the next cryptocurrency to explode and witness an increase in demand and market value. With over 10,000 cryptocurrencies out there, many enthusiasts wonder what the next cryptocurrency will be to explode in 2021. To say that the crypto market has experienced volatility this year would be a vast understatement. However, the encryption market remains of interest to investors despite all the ups and downs. Socrates once said that the only true wisdom is to know that you don’t know anything. Unlike some modern cryptographic influencers who log onto Twitter and ask their followers to replace them, the Greek philosopher understood that more extraordinary powers are sometimes randomly activated. Understandably, this can make it challenging to develop a solid investment strategy. But not even the wisest investors in cryptography could have foreseen some of this year’s wild moments. DOGE, a “joke” coin that captured the affections of a capricious billionaire like a fairytale princess, would cost $0.002 last summer before going over 70 cents in a recent run. Suddenly, no one is laughing anymore.
The currency that isn’t even listed by Coin base — although, unsurprisingly, the exchange is now publicly debating a listing — somehow came out at the top, and DOGE’s success could turn into its self-fulfilling prophecy. With optimistic analysts theorizing that DOGE could eventually hit a trillion-dollar market cap at some point in the future, one must accept that it’s a distinct possibility. After all, the aforementioned capricious billionaire has unequivocally stated that he will not sell. And, as we’ve seen this year, strange things have happened – like Vitalik Buttering burning $7 billion in a new dog coin called SHIB. On the other hand, cryptocurrencies such as Bifrost (BFC), Solana (SOL), and Cardano (ADA) show positive trends with consistent gains. These examples are crypto-native to a blockchain or middleware program, ensuring them additional stability relative to competitors. While other digital currencies can explode and soar to the moon in the short term, many fail before offering more significant gains for a more extended period.
Which crypto will survive long term

The network effect helps Bitcoin, the most widely recognized cryptocurrency – more people want to keep Bitcoin, as Bitcoin belongs to most people. Bitcoin is now seen as “digital gold” by many investors, but they can use it as a digital form of currency. Bitcoin supplies are limited to just under 21 million coins, although they can produce central bank-controlled coins at the discretion of politicians. Many investors expect that Bitcoin will increase in value through the devaluation of fiat currencies. Those who believe Bitcoin is digital money think Bitcoin could become the world’s first real currency in the long run. Long-term investing is the ideal investment plan for crypto-active assets.

Shekhar of ZebPay adds: “There are solid fundamentals and several use cases for cryptocurrencies like Bitcoin and Ethereum. As you can hear a lot in the cryptographic domain, buying and maintaining (maintaining your cryptography) is the biggest investment plan for active crypto assets.” Experts suggest that a gradual and consistent approach should be followed at the beginning of investment in the cryptography market. Ether is the native token of the Ethereum platform for investors who want portfolio exposure to Ethereum. While Bitcoin may be digital gold, Ethereum builds a worldwide computing platform that supports numerous additional cryptocurrencies and a vast ecosystem of decentralized applications (“DAPPS”). In combination with the open-source nature of DAPPS, many cryptocurrencies on the Ethereum platform provide the potential for Ethereum to profit from the network effect and build long-term sustainable value in the future. Furthermore, the Ethereum platform allows the use of “smart contracts,” which are automatically executed based on terms directly in the contract’s code.
In exchange for intelligent contracts, the Ethereum network receives Ether from users. Brilliant arrangements can disrupt large industries such as real estate and finance and establish entirely new markets. With the Ethereum network widely used worldwide, the Ether is increasing in value and utility. Investors can directly benefit from the long-term potential of the Ethereum platform by keeping Ether. Owning any cryptocurrency can increase the diversity of your portfolio. Cryptocurrencies such as Bitcoin have historically shown near nominal prices linked to the US stock market. If you feel that cryptocurrencies are spreading over time, you will likely purchase cryptography directly as part of a diverse portfolio. Ensure you have an investment thesis for any cryptocurrency you invest in and why that currency will stand the test of time.

If it seems too dangerous to acquire bitcoin, you can investigate alternative strategies to take advantage of the potential increase in cryptocurrencies. For example, you can buy stocks from Coinbase, Square, and PayPal or invest in cryptographic futures to facilitate trade like CME Group. While these companies can make successful investments, they do not have the same upside potential as direct bitcoin investment. Modern cryptography, developed in the 1970s and based on the secure exchange of cryptographic keys using a method created by mathematicians Whitfield Diffie and Martin Hellman, is now essential to our online commerce, national security, and privacy.

Why is crypto not the future?

Simply put, cryptography is a set of techniques designed to protect information so that only the sender and receiver can understand it. The cryptographic protocol can be more or less elaborate, and techniques like these have been around since antiquity, with the first known cryptographic system having appeared in Egypt some 1900 years before Christ.
Encryption has a unique appeal for war-related matters. Still, traders and government officials may also see cryptography as a way to prevent unauthorized people from discovering information about your strategies, for example. The basic idea is that this system of techniques encrypts the info that authorized people will only decrypt without unauthorized access along the way.
And understanding how encryption works are simple: the sender of the message uses a protocol that will protect it, then it is transmitted to the recipient, who has a key capable of “solving” the problem of encryption and accessing its content. Confidential Computing provides hardware-level privacy assurance by encrypting data within secure keys that even cloud providers cannot see or access.

Think of confidential Computing like a secure hotel room. The hotel room is a private space within a building where other people are, in which you can expect a level of privacy to carry out your activities and keep your belongings when you leave the hotel.

Of course, hotel employees can still access four, but you’re trusting them not to violate your privacy. Belongings that require additional security are locked in the room safe, which only you have the code for. This way, even if hotel employees need to enter the room for cleaning, they cannot access these most valuable belongings. Despite the many benefits already expected from quantum computing, the technology’s superior ability to factor large numbers has many people worried about the security of current approaches to encryption as quantum computing matures.

Recognizing these concerns, IBM Research, the National Institute of Standards and Technology (NIST), and the cryptography community have explored new approaches to encrypting and securing data while keeping sensitive data on quantum computers safe.

One concern is that some may steal encrypted data and hold it until quantum computing advances go far enough to break current encryption standards.

The good news: researchers are developing secure quantum cryptography to curb efforts to crack encrypted data using quantum computers. Fully Homomorphic Encryption (FHE) allows data to remain encrypted during Computing – regardless of the cloud or infrastructure used to process it.
As a result, FHE can help drive better adoption of hybrid cloud architectures, allowing data to move between clouds without compromising security.

Unlike traditional encryption, FHE is based on different mathematical algorithms and is designed to do calculations directly on encrypted data.
This emerging encryption model allows third parties to process and analyze health, financial, or other encrypted data in the cloud and return accurate results to the owner’s data without exposing the original data as plain text.

Considering that the FHE model required hundreds of lines of code and hours to process a few years ago, the researchers announced that it can now be executed as an API call to the cloud with 12 lines of code in fractions of a second.

IBM is helping to bring FHE from research to early customer adoption – by open source publishing developer toolkits. In December, IBM Security launched Holomorphic Encryption Services to start experimenting with the technology.
In the face of such essential gaps in positive law, it is inevitable to suggest the obvious. A new approach, new rules, and institutions are needed to capture what users do with cryptocurrencies correctly. So far, however, it is not necessary to do it thoroughly. The risk of regulating by inhibiting disruptive innovation is high, and few gains from doing so. It seems a better strategy to limit yourself to trying to avoid illegal uses and prosecute imminent abuses as other jurisdictions do and to try to normalize the use of cryptocurrencies by facilitating their interaction with the legal system, especially in cases of consolidated cryptocurrencies. Just as you cannot collect personal taxes in economies with a high degree of informality, No regulatory objective regarding cryptocurrencies will be achieved if they remain artificially opaque and outside the legal system.
The best approach for the moment is, therefore, to wait. First, see how the conflicts between parties that transact in court cryptocurrencies evolve. The courts, which function in a decentralized manner and extend existing norms to supervening events, can collect cross-sectional information on potential conflicts such as those I described in the previous section regarding the exchange and forced execution, or determine the criminal operation in the cryptocurrencies that are wrapped. With a few years of conflict and the questions they bring, we may be in a position to understand what problems cryptocurrency transactions cause real people in actual transactions and design regulation that puts them at the center. After all, Cryptocurrencies may be a programmed good. Still, justice is a human institution that requires observing how people behave in the face of a new good that does not exist until today in human history.

Luis Gillman
Luis Gillman

Hi, I Am Luis Gillman CA (SA), ACMA
I am a Chartered Accountant (SA) and CIMA (SA) and author of Due Diligence: A strategic and Financial Approach.

The book was published by Lexis Nexis on 2001. In 2010, I wrote the second edition. Much of this website is derived from these two books.

In addition I have published an article entitled the Link Between Due Diligence and Valautions.

Disclaimer: Whilst every effort has been made to ensure that the information published on this website is accurate, the author and owners of this website take no responsibility  for any loss or damage suffered as a result of relience upon the information contained therein.  Furthermore the bulk of the information is derived from information in 2018 and use therefore is at your on risk. In addition you should consult professional advice if required.