Cryptocurrency: A Primer – Door County Pulse Tech Tribune France

Eliminate some of the crypto from digital currency

I first wrote about crypto and blockchain in a January 2016 article on Forbes.com.

At the time, I wrote that interest in bitcoin may have waned, but interest in the underlying registration process—distributed ledgers or blockchains—has in turn drawn the interest of banks and world stock exchanges, in particular the Nasdaq.

It was valued at $369 in January 2016. It reached $61,374 in October 2021 and was around $39,000 at the end of April this year. So, you may view my views on bitcoin with some skepticism.

Cryptocurrency – by definition a “digital currency in which transactions are verified and records maintained by a centralized system using cryptography, rather than a centralized authority” – is highly volatile and unevenly regulated, so any potential investor should consider the top picks over 1000 coins and also investigate brokers, exchanges, custodians, and regulations very carefully. The largest cryptocurrencies by market capitalization are Bitcoin, Ethereum, Tether, BNB, and USD Coin.

A the wall street journal The review of two recent books on cryptography asked if they are “the tales of a new, world-changing technology?” Or the stories of a utopian experiment that turned into a financial bubble? Only time will tell, and readers won’t miss much by waiting a few years for a book that reveals, in hindsight, how history unfolded.

A lot of people have made a lot of money in this space – some by investing in crypto, others by building infrastructure for it. The the wall street journalThe January 28 Mansion section reported that the latest wave of mega-mansion buyers are crypto-millionaires. Brian Anderson, CEO of Coinbase, the largest crypto exchange, bought a Bel Air estate for $133 million, and a $22.5 million penthouse in Miami was purchased with cryptocurrency.

The the wall street journal explained that real estate sellers typically use third-party platforms to transfer cryptocurrency to dollars immediately upon receipt to hedge against volatility. This is also true for the few retailers that accept crypto.

The the wall street journal also regularly publishes articles on crypto hacks. One of the latest was the popular Bored Ape Yacht Club NFT (non-fungible token) collection, with a loss of $3 million to $14 million, depending on the source. A chart of the six biggest hacks showed thefts ranging from $281 million to $611 million.

In a recent Forbes profile, Ken Griffin, who runs the $47 billion Chicago-based hedge fund Citadel, said his market maker company, Citadel Securities, will start offering crypto trading, but he doesn’t plan to. invest in it.

“I didn’t see the appeal of owning cryptocurrencies as a store of value,” he said. “But you know, there are assets that I own that people would make the same arguments about. I am an American abstract art collector.

Similarly, Andy Schmidt, a banking expert at global consultancy CGI, said he just doesn’t see the need for crypto. As payment systems move to real-time and cross borders, some of the advantages claimed for crypto are disappearing.

Matt Levin, a crypto-skeptic at Bloomberg, wrote recently that “much of crypto-economics consists of some version of ‘if you assume this thing has value, then it has value.’ This is also true in some sense for many other investments, but crypto has really succeeded on a large scale.

Like abstract art, crypto is largely unregulated in the US, which is far behind the UK, Australia, Hong Kong, Singapore and others, all of which have a single financial regulator.

In contrast, US regulation is spread across multiple agencies. At the federal level, we have the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. And don’t expect full legislation anytime soon.

Some states also have their own finance regulations, ranging from detailed and restrictive in New York to looser in states that want to attract crypto companies.

It becomes easier to buy cryptos. According to recent research, Green Bay has four crypto ATMs: BudgetCoinz Bitcoin ATM, DigitalMint Bitcoin ATM, CoinFlip Bitcoin, and Coin Cloud Bitcoin. Banks, including community banks, as well as some brokerages and mutual fund managers, accept cryptoassets. Fidelity announced in late April that it would allow bitcoins in 401(k) retirement accounts, up to 20% of the total, although the Department of Labor may have something to say about that.

A few hours online should give you an idea of ​​whether you like it and how to get started. Cryptography is highly volatile, and as hacks demonstrate, many sites are insecure. Buying some crypto can be a pleasant adventure, but it probably shouldn’t be more than 1-2% of your wallet.

Meanwhile, crypto firms are hiring specialist lawyers as fast as they can, and the industry is spending heavily on lobbyists: $5 million to lobby the Senate alone in the first nine months of 2021, according to The Economist.

For some of the latest crypto news, try these sources to get started.

• Fintech expert Chris Skinner has written several books on digital banking and closely follows the crypto scene globally. Find it on thefinanswer.com.

• Cryptojournalist Laura Shin has a crypto newsletter and hosts a podcast, Unchained, at unchainedpodcast.com.Axios, although primarily a political news site, recently launched a very good crypto newsletter on axios.com.

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Cryptocurrency: A Primer – Door County Pulse Tech Tribune France


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