Twitter founder: Bitcoin to become the world’s single currency in 10 years

Jack Dorsey, founder of Twitter and its current chief executive, does not exclude the future scenario in which Bitcoin becomes the world’s single currency. This extremely bullish statement on Bitcoin has been cited by Times.

“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin,” Jack Dorsey said.

The representatives of central banks at G20 summit might have to say a word or two about this view, as they have just discussed the matter of Bitcoin regulation and among other conclusions reached agreement that Bitcoin is not an efficient currency today. However, Jack Dorsey thinks Bitcoin has a long road ahead to become a good currency as the quantity of user will grow over time.
Meanwhile, the price of Bitcoin is growing and has returned to $9000, gaining +6% in 24 hours. The G20’s balanced approach towards digital currencies demonstrated at the aforementioned discussion might have played a part in this growth – no country categorically demanded to cease all Bitcoin activities tomorrow, as some investors could have feared.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Stellar Lumens [XLM] Might Go Up To 275% By The End Of 2018

For the last few weeks, cryptocurrency market has become a nuisance for all investors involved; some selling their holdings, some taking the chance to buy more while the prices are low- but all in need of good news. In this case, experts being concerned and trying to be prudent, are constantly attempting to find satisfying information to bring motivation and hope on the market. Somebody that was noticed trying to do such thing has been the CEO of WishKnish, Alisa Gus. Gus has taken into consideration Stellar Lumens, claiming that the value of this specific cryptocurrency might have the capacity to go up to 275% by the end of this year.

“The price might rise along with that of Bitcoin, but unless it corners a huge piece of the market it hasn’t been known for before, an independently powered rally is unlikely to materialize, although it really should. I like what they are doing a lot,” Gus told Finder.com

Are trustworthy enough Gus’s speculations?

Being the CEO of WishKnish, Gus seems to have much experience on this field; she has an outstanding reputation in the cryptosphere and also she has been requested to analyze many cryptocurrency issues for many years. Nonetheless, there is also information that she has record tracks of acclaiming some cryptocurrecies and when the predictions failed to develop, her side changed immediately.
A few of months ago, she showed praise for the future development of Dogecoin, and after a couple of months, no development was seen, consequently, slightly she moved to Stellar Lumens.

What Gus actually means?

Gus’s information on Stellar Lumens doesn’t seem to be much reliable, but her prediction is based on the underestimation of its value. Most cryptocurrencies have maintained to resist the recent descent on the market and also have handled to secure substantial investment and also partnerships from other developers.
The vast majority of these have been traditional financial institutions that inadvertently had caused stress among cryptocurrency observers. Currently, there are some expectations that Stellar Lumens might receive backing at any moment. Accordingly, it is not very clear where Gus expectations of the coins growth, are based on.

Cryptocurrency market constantly surprises us, therefore, the chance that Gus could be right is possible. However, currently, it is hard to see where exactly these gains will come from.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Reddit user says he owes the IRS $50,000 thanks to bitcoin — here’s how to avoid a surprise tax bill

The rise and fall of bitcoin during recent months has been eye-popping. The digital asset’s price shot from below $1,000 at the beginning of 2017 to over $19,000 in December, before plummeting in early 2018 to close at $8,630.65 on Monday, according to CoinMarketCap.com.

But investors who cashed out around the height of the frenzy were left with a big tax bill. Without advance planning, it was an expensive shock to some.

In fact, trading cryptocurrencies reportedly left one Reddit user with a $50,000 debt to the IRS, which he says he’s unable to pay.
“I feel like I might have accidentally ruined my life because I didn’t know about the taxes,” Reddit user Thoway, who says he earns $47,000 a year as an office assistant, posted March 14.

Thoway says he first got involved with cryptocurrency in the beginning of 2017 and bought eight bitcoin for $7,200. By December of last year, says Thoway, that initial investment soared and he decided to cash out.
Since the IRS views cryptocurrency as property — not currency — that sale triggered a “taxable event,” leaving Thoway obligated to pay taxes on the appreciation of his investment. The income tax he owes, “adds up to about $50,000 if I add up state (California) and federal,” according to the post.

Unfortunately for Thoway, it appears he didn’t set aside any money to pay those taxes. In fact, he writes that he then invested his windfall into other cryptocurrencies.

“I got caught up in the alt-coins frenzy,” he wrote, referring to alternative digital coins like litecoin or ethereum, “and sold most of my bitcoins (about $120k worth) to buy a bunch of different coins.”

Many cryptocurrencies have since fallen sharply, leaving Thoway too broke to pay the tax bill. “I added up my alt-coins and I only have like $30,000 worth. I only have about $5k in other savings,” he writes.

Thoway did not respond to CNBC Make It’s requests for comment.

Thoway’s mistake is an expensive lesson to learn, says Ryan Losi, a certified public accountant and the executive vice president of Virginia based accounting firm Piascik, but not an uncommon one.

“[If] you’ve come into a large amount of wealth … by having an asset appreciate that you acquired at a low value, and you think you do not have large tax consequences, you’re fooling yourself,” he tells CNBC Make It.

That rule applies not just to cryptocurrencies, but any income you make — selling stocks, cashing out of bonds or even selling your house. Generating wealth means you owe the IRS.

But for many inexperienced investors, tax repercussions can be a surprise. Cryptocurrency in particular attracts younger investors, Bloomberg reports, with 58 percent of bitcoin investors falling between the ages of 18 and 34 years old.

“For younger people who don’t have taxes top-of-mind, or have never invested before, they’re shocked,” Cathie Wood, CEO & CIO at ARK Invest tells CNBC. “People had huge gains last year, and they [now] don’t have enough in crypto to pay those.”

To avoid finding yourself in a position where you can’t pay the IRS, Losi has some straightforward advice: If you’ve seen a large increase in wealth in a calendar year, from cryptocurrency gains or the appreciation of other assets, set a portion of it aside in anticipation of tax payments.

“If your business is doing well, or you sell property or whatever it is — set 30 percent aside of the gross amount of the proceeds,” he says.

Put the cash in something liquid like a money market account, says Losi, so that you can easily take it out when you need to pay taxes, but you don’t have to worry about it decreasing in value.

“If you do that, you’ll never be surprised,” he says.

Spending the entirety of your windfall or reinvesting it in something risky can leave you in a lurch come tax time.

“If you don’t [put 30 percent aside] and you spend on personal [items] like a house or a car, or if you put it in securities, you’ve really got only yourself to blame,” Losi adds.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Litecoin (LTC) and 4 other Coins to HODL until 2020

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1) Bitcoin (BTC)
As you may have heard before, Bitcoin is King. That’s true, Bitcoin still the top 1 coin to HODL for the long run. Being the first major cryptocurrency, the biggest one in market cap and also the pioneer of the blockchain technology behind its project makes it the referent for all other cryptocurrencies following.

Although Bitcoin has had a tough time over the last few months it is going nowhere. Once the transaction times and high fees went drastically down after soaring during the all-time highs in prices in December of 2017 there are no more reasons to fear scaling issues. Also, it is important to realize that in order to have some kind of scaling issues a coin has to scale and, the majority of coins haven’t reached anywhere near the daily volume that Bitcoin did and so it is impossible to compare it to altcoins on this matter.

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2) Etherum (ETH)

Ethereum is our second pick to HODL for the next 2 years:

The edge Ethereum has over Bitcoin is the ability to use smart contracts. These are contracts that are automatically executed without any human intervention the instant their terms are met.
However, Ethereum also permits developers to build decentralized apps, also know as dapps, on top of its blockchain technology. So, the more apps are built and got successful, the more valuable the Ethererum becomes.

Moreover, Ethereum demand is also a key to its great expectation. Demand will be driven by one of the two things: Either for its functionality as a currency that is built on a blockchain with several applications. Or as a possible investment vehicle that keeps appreciating in value.

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3) Ripple (XRP)

Our third pick is Ripple. We have to agree that Ripple superior technology makes it an excellent candidate to replace the antiquated SWIFT system, resulting in more and more banks getting on board. Besides, while Bitcoin can process seven transactions per second, Ripple has the ability to process 1500 transactions in the same second.

Furthermore, there have been rumors that Coinbase, the famous cryptocurrency exchange, is planning on adding Ripple to its list of tradable coins. Considering the fact that Ripple is now in the third spot as cryptocurrency this prediction is more than realistic. If this happens, would make Ripple more accessible to public investors, which will increase its adoption rate.

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4) Litecoin (LTC)

Called the silver to Bitcoin’s gold, Litecoin emerged onto the scene in 2011 by its creator, Charlie Lee envisioned as a currency used for transactions whereas Bitcoin would become used as a tool to store value. In addition, Litecoin is also being used to test new implementations and like this help remedy some of the flaws if Bitcoin.

Additionally, the amount of time required to carry out a transaction with Litecoin is a fourth of the time required for the same transaction using Bitcoin,  which makes this coin the perfect one for daily payments and transactions.

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5) Stellar (XLM)

Stellar Lumens, popularly known as Stellar, is an open-source network that facilitates digital asset transfers. It was created by the ex-Ripple cofounder, Jed McCaleb. So, Stellar and Ripple are similar as they are based on the same protocol. While Ripple targets transactions between large financial institutions and banks; on the contrary,Stellar targets smaller transactions between individuals.

The famous partnership with IBM and the increasing demand for cryptocurrency in general skyrocketed the price of Stellar by more than 900 percent in December last year; and, eventually will continue to grow and be one of the top 5 coins in 2020 with a higher capitalization and adoption rate.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Tron (TRX) Skyrockets Prior to Test Net Launch

Tron (TRX) is seeing significant gains on the cryptocurrency market today. Justin Sun, Tron’s founder, and the Tron Foundation have steadily tweeted on the countdown to the test net launch. Tron’s test net is set to launch in just ten days and the community around the project are ecstatic.

The founder has been receiving heavy critique from the community as the coin hit a sharp record high with the rest of the cryptocurrency market but has since dropped significantly. Since its high of $0.259 a coin, it has dropped over -85%.

Many who got in on the cryptocurrency market at that time, had not actually researched any of the projects and simply bought coins based on their sudden spike in price. However, when TRX launched back in September of last year it did not have a “working” product. Many ICOs that concluded, had only a whitepaper and a vision but many new crypto investors don’t realize that its actual value comes when it has a working project in place.

>> Tron Puppies Unleashed

As TRX continued to plummet, crypto investors were calling Tron a scam without doing any sort of research into their roadmap and foundational components they were setting up. Many of these blockchain projects can take YEARS to execute. However, Justin Sun’s tweeting coin “pump” tactics gave the community a bad rep, as he was announcing partnerships in hopes that the coin would rise. Still, the Tron Foundation focused on building a strong team and when investors are investing in an “idea” the team is absolutely crucial.

While the ICO space is a completely new strategy for fundraising for your startup, crypto investors need to do their research and understand what they are putting their money into. If the ICO just has a whitepaper and a roadmap, you’re investing and betting if the team behind the project can execute it.

The test net should prove if this highly stacked team of Tron Developers delivered or not. If the test net is deemed successful you could see a major spike in TRX’s price.

At press time, TRX is trading at $0.0384 a coin, up 20.21%, in 24 hours.

Concerns? Thoughts? Comments?


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Chelsea Roh

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Telegram’s Native Token Gram Could be Worth $200B in 5 Years, Thinks Aaron Brown

Though there is still not so much precise information about Telegram’s ICO and its Gram coin, experts are already making predictions about its fortune.

Telegram’s cryptocurrency called Gram is predicted to reach a $200 billion market cap in five years. Nevertheless, some experts believe that Telegram’s ICO is still overvalued. There is different information on how much the company hopes to raise, some reports say Telegram team has a goal to attract $2.6 billion during its ICO while some others believe that their aim is $4–5 billion.

That was Aaron Brown, a former managing director at quantitative investment firm AQR Capital Management, who supposed that the native token of the Telegram Open Network could achieve a $200 billion market cap in quite a short period of time, which will bring ICO investors good profits. Being an experienced player on the crypto arena, Brown doesn’t gamble on the Telegram deal for himself personally. And one of the reasons is that it’s overvalued.

According to Brown’s forecasts, in 5 years there will be 300 million users of cryptocurrencies and their aggregate market cap will increase to $5 trillion. In such conditions, Telegram has a potential to attract 4 percent of these people to its platform.

Brown said that Telegram has chances to become one-third the size of giant internet companies while crypto will get a share of one-third of the value of internet businesses. Nevertheless, such a situation is just a best-case scenario and there is a wide range of obstacles for making it a reality.

In accordance with Brown’s most positive estimates, Gram can reach a $1 billion valuation at launch or even more. The expert said that Gram’s value will be derived from the users’ transactions balances, it means from the sum that they have in their accounts.

Telegram provides an encrypted-messaging service that has gained popularity with people interested in crypto trading and investing in ICOs. As it has reported in the beginning of the year, the platform has 180 million active users and can boast 500,000 new sign-ups and over 70 billion messages sent per day. And now the team plans to create the ‘third generation’ Telegram Open Network offering support to thousands of decentralized applications, the raised funds will be allocated namely to the development of this initiative.

It’s worth mentioning that in the pre-sale round Telegram has already managed to raise  $850 million which significantly exceeds their initial target. There were also talks about a second secret pre-ICO sale aimed to raise exactly the same amount as the first round.

But the opinions of experts on this issue really differ. Some of them do not consider it right to offer an opportunity to buy Gram only for accredited investors with at least a half a million dollars and not to approach the public directly in a crowdsale method. Others do not understand why Telegram need to attract such a huge sum of investments for its project and think that Telegram is just cashing its image.

Nevertheless, the hype around Telegram may contribute to attracting more money into another startups’ ICOs which are predicted to reach combined $18 billion in 2018.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Alt-coin bear market is over, but bitcoin is still the best bet: Wall Street’s Tom Lee

Thomas Lee, head of research at Fundstrat Global Advisors, said the bear market for small-cap cryptocurrencies is over. But he said he still thinks bitcoin is the best bet for investors.

“Increasingly, I think investors are comfortable that bitcoin is likely to be viewed as a commodity,” Lee said Tuesday on CNBC’s “Fast Money.” “Whether regulations change around security tokens and registration, bitcoin sits in its own sphere.”

“I’d still be buying bitcoin,” he said.

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In a note on Tuesday, Lee wrote, “We believe the alt-coin bear market is over,” referring to cryptocurrencies other than major ones such as bitcoin and ethereum.

Lee, who was the chief equity strategist at J.P. Morgan before co-founding Fundstrat, said his firm has an indicator to measure alt-coins, which is “the percent that have tripled over 90 days.”

On Jan. 13, the indicator hit 78 percent, “which is normally a top,” he said.

“In January, we thought you need to rotate back into the large caps because that’s what happens,” he said. “And this indicator has been falling, but yesterday it fell to 3 percent.”

He said he expects the lesser-known, smaller coins will remain in “purgatory” and not begin rallying until at least the middle of August, if not mid-September, due to regulatory uncertainty.

The U.S. Securities and Exchange Commission has taken a tougher stance on cryptocurrencies in recent weeks, issuing dozens of subpoenas and calling for some digital asset exchanges to register with the agency.

In a late February report, Lee said investors should avoid alt-coins until late March or early April based on historical performance of previous sell-offs and subsequent rallies. The value of all cryptocurrencies excluding bitcoin has roughly halved from $376 billion in late December to $193 billion Tuesday, according to CoinMarketCap.

Lee still expects bitcoin to reach $20,000 by the middle of the year and $25,000 by the end of the year, he said.

The bitcoin bull, who is the only major Wall Street strategist to issue formal price targets on bitcoin, pointed out that the amount of time that bitcoin fell below $6,000 this year was relatively short.

“If you count the number of hours we’ve spent below $6,000 recently, it was less than an hour,” he said, adding that, in February, investors only had an hour to buy bitcoin below that price.

The “fully-loaded cost of bitcoin” around the world, Lee said, is around $8,000.

“So you’re buying bitcoin around cost today,” he said. Bitcoin prices hovered just under $9,000 on Tuesday evening.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Who Will Be The World’s First Crypto Nation?

Make no mistakes, bubbles or not, cryptocurrencies are here to stay and will represent a huge wave of wealth creation –some estimate in the trillions of dollars.

The really burning question right now is whether nations will be able to adapt to this new economic reality fast enough and become true Crypto-Nations: a nation where cryptocurrencies are embraced, clearly and fairly regulated, taxed, powering multiple level of their economies, capital formations, and workforce, while improving overall value creation and political impact on a global scale. This, of course, won’t happen overnight, but some countries are further along, or more disposed to the future than others.

Nation-states can toy with the grand idea of a national digital currency, but it’s far from clear yet that this will actually be adopted . It will be particularly difficult for those national digital currencies that are not decentralized.

Still, there are many areas where governments could, today, invest in blockchain-powered projects that could impact their citizens positively. Estonia, for example, is showing the way with e-residency, Identity and credit registry and certification, which could be perfectly decentralized and run on the blockchain straight to citizens. Innovative projects like Civic, uPort and Thekey could even be leveraged to empower governments and citizens. Donations in case of national emergencies could be made in cryptocurrency.

Becoming a crypto nation matters because, if your country doesn’t compete for the value and wealth that will be generated, and if it doesn’t promote and harness the talent needed, it will fall behind others who are. Some “smaller” countries have understood this opportunity.

Singapore, Hong Kong, Estonia and Switzerland are becoming crypto powerhouses. Switzerland alone has attracted half a billion dollars worth of fresh ICO capital in the first half of 2017, a close second to the USA .

So what does it take for a nation to become ‘go crypto’?

  1. The first step for a nation trying to embrace this wave is to responsibly encourage –and not just warn– its own citizens to own cryptocurrency. The way to do this is to set an example. Owning crypto is the very first step to understanding crypto, and demystifying all the negative press (which is sometimes deserved) around the industry. Governments should encourage its offices and officials to own a crypto wallet, and even provide them with some crypto assets to learn about the space.
  2. Then, governments will have to beef up their tech capabilities, tech staff and budgets, and also invest massively in future talent, which is dangerously in short supply. The education system needs to train a lot more engineers in all fields at the youngest age. Children trained by games and mobile apps understand more than anyone else the value of digital assets. The education system cannot ignore that. Investment in infrastructure to support the industry is also necessary, for instance, in electricity (crypto consumes a lot of power).
  3. Banks and Central Banks have to be brought on-board. They need to understand that not all crypto businesses are shady, and that it is OK to run a crypto-related business, provided some key rules are respected. Banks are not going to go away anytime soon: as a matter of fact, the opposite may be true, since banks could become key players to onboarding crypto users, who currently don’t trust the system because they lack basic information, understanding, or even the time to learn. Cryptocurrencies are not a replacement for money or the banks’ business, but fuel for a new type of economy being built in front of our eyes.

Of all the developed economies, Japan seems well ahead, declaring Bitcoin legal tender and showing support for registered exchanges, making cryptocurrency a viable business opportunity for their entrepreneurs, a viable investment for retail and institutional investors, but also a true popular digital asset accepted in tens of thousands of shops across the country. This government is an example in many ways but not necessarily a replicable example: Japan has a consensus based culture which dovetail naturally with the core principles of a blockchain, and the country has a long tradition of adoption at scale of digital cash and rewards which makes cryptocurrencies a perfect match.

At the opposite end of the scale there’s Israel, a Hi-Tech powerhouse, but where banks make it virtually impossible for investors to deal with anything related to cryptocurrencies, and make life difficult for crypto entrepreneurs and services. This is due mostly to misinformation and the lack of a clear regulatory framework.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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European Brokerage Robomarkets Adds Cryptocurrency CFDs for 24/7 Trading

Robomarkets, a brokerage that operates in the European markets, has added access to trading CFDs based on cryptocurrencies for its clients. Some of the most popular cryptocurrencies such as bitcoin, bitcoin cash, dash, ethereum, litecoin, and ripple, have been added to the list of available trading instruments.

24/7 Trading

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Robomarkets offices in Cyprus

Robomarkets, a Cyprus Securities and Exchange Commission (CYSEC) registered investment company, has announced that the following CFDs (contracts-for-difference) are now available to its clients: BTC/USD, ETH/USD, BCH/USD, DASH/USD, LTCUSD, and XRP/USD. With a maximum admissible leverage of 1:5, the above-mentioned instruments may be traded on the Metatrader 4, MetaTrader 5 and Webtrader platforms as well as on the company’s own R Trader terminals. In addition to that, the R Trader platform now offers clients with an option to buy cryptocurrencies without swaps (overnight fees common in FX) with a leverage value of 1:1.

Introducing the new concept to its clients, the company explained that unlike the trading instruments most CFD traders are used to, cryptocurrencies may be traded 24/7, including on the weekends when fiat currency pairs, commodities and stocks are not available for live trading operations. The brokerage says that this factor provides traders with an opportunity to use more trading strategies, which require some extra time to add to a usual business week.

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Screenshot of BCH on R Trader terminal

Keeping Up With the Times

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Konstantin Rashap, the company’s development manager in Europe commented: “RoboMarkets always keeps up with the times and implements cutting-edge technological solutions. Continuing our expansion on the European market, we’re pleased to offer our clients a new class of trading assets. By adding cryptocurrencies to the list of more than 8,700 instruments that are already available to RoboMarkets clients for trading, we’re not only responding to their demands, but also systematically expanding the list of our services and improving their quality.”

The European brokerage’s international sister company Roboforex first launched bitcoin and ethereum trading back in September 2017. The Belize-licensed firm also added CFDs based on bitcoin cash, dash, litecoin, and Ripple’s XRP earlier this year.

Images courtesy of Shutterstock.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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MASTERCARD OPEN TO CRYPTOCURRENCY, BUT THERE’S A CATCH

An executive confirms that Mastercard is open to the use of cryptocurrency, but there is a major catch involved.


Banks have notoriously been steadfast in their opposition to cryptocurrencies, and this is for a very good reason. The peer-to-peer economic marketplace of digital currencies is a direct threat to the current financial monopoly held by banks and other financial institutions. Which is why it was surprising when an executive at Mastercard said that the credit card issuer was open to the overall use of cryptocurrency. However, there is a major catch to this announcement.

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CRYPTO COLD FEET

Mastercard has put a lot of time and effort into blockchain technology, but they’re not exactly a fan of virtual currencies like Bitcoin. This was clearly evident when Mastercard and Visa classified the buying of cryptocurrency as a cash advance instead of a purchase.

At the time, the credit card giant stated:

Over the past few weeks, we have clarified to acquirers – or the merchant’s bank – the right transaction or merchant category code to use for these type of transactions (cryptocurrency purchases). This provides a consistent view of such purchases for both merchants and issuers.

The result was that using credit cards to buy Bitcoin and other cryptocurrencies became more expensive. Exchanges charged a higher fee, and users began accruing interest from the moment they used a card.

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THE CATCH

It appears that the financial juggernaut has now changed their tune, but the reality is that they have not. Speaking to the Financial Times, Mastercard executive Ari Sarker says that the company is “very happy” to consider helping the use of cryptocurrencies, but only as long as those virtual currencies are issued by central banks.

Ari Sarker says:

If governments look to create national digital currency we’d be very happy to look at those in a more favourable way [compared with existing cryptocurrencies].

He goes on to add:

So long as it’s backed by a regulator and the value . . . it is not anonymous, it is meeting all the regulatory requirements, I think that would be of greater interest for us to explore.

Right now, the financial institution is running a pilot program in Japan and Singapore.

Customers can cash out of Bitcoin and other cryptocurrencies onto their cards. However, Sarker says that the program is not a crypto trading one and that strict controls, such as anti-money laundering and KYC, are in place.

This action by Mastercard should come as no surprise. Banks want to get their mitts on their share of the vast amount of revenue flowing through the crypto sphere, but they want to do so while exercising full control. Hence, the desire to only support cryptocurrencies issued by central banks.

Images courtesy of Bitcoinist archives, Flickr/@reynermedia, and Adobestock.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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