In recent years, the use of crypto currencies and China’s currency has become more and more common in everyday life. Increasing these applications will, on the one hand, make these technologies more popular and, on the other hand, more recognizable. On the other side of the coin, there are many applications that can only be promoted and cannot be relied on.
Looking at the history of crypto currencies, the truth is clearly visible: every time there is a surge of interest in the field, new developments have followed. Two factors that have had a significant impact on the development of crypto currencies at this time are: ICO madness in year 2 and the launch of currency exchanges.
The importance of currency exchange
Users of crypto currencies nowadays have many options to choose from for their preferred currency exchange, so it is difficult to explain to them how huge the emergence of these platforms was at the time. It is true that Bitcoin was released in January 2008, but it took more than a year for the Bitcoin Market, the first crypto currency exchange, to start operating in February. It was then that other currency exchanges, including the infamous MT.Gox currency exchange, started working. It took less than six months from the start of the Bitcoin Market until bitcoin reached $ 1.
A few years later, in the year, the ability to produce token (ERC-20) was provided on the etheric bed. Everyone could create their own token or crypto currency with the China Ethereum block. This quickly became the madness of Coin Initial Supply (ICO) in years 1 and 2. People invested heavily in worthless tokens, and prices went up without a hitch. Token’s initial supply madness, no matter how people felt about it, was probably the most important event in the history of the crypto currency industry. When tech entrepreneurs realized how easy it was to make their own crypto currency, bitcoin prices and China’s blockchain reputation soared.
Many had warned about the bursting of the original token bubble before bitcoin hit a high of $ 2.5. In such an emerging market that any company would build and sell for itself without any restriction, the failure of many would be unavoidable.
But the crypto currency market differs from others in that the value of the underlying technology is often assumed to be the same as the overall market value, and this time winter has been colder than ever. As prices remained low from the beginning of year 2 until the spring of the following year, the perceived value of the Chinese block fell along with the value of most tokens offered. One study at the time showed that only less than half of the projects remained active until five months after their token sale date.
crypto currencies cannot be kept alive by advertising alone
Ever since the market crash in 2008, it has become increasingly clear that the industry cannot be sustained only by advertising and exaggerating China’s block capabilities. A large percentage of the companies that promised to transform their existing industries by offering tokens failed, prompting many critics of the Chinese block to label it as “the solution to the problem”.
Of course, despite these criticisms, Bitcoin and many other peninsulas survived this winter. But what is clear is that many of these innovations failed because they were able to keep their promises and provide a tangible use for their tokens. There are many examples today that prove this claim.
Proof of authenticity
The supply chain is one part where the Chinese block has a lot to say by providing a clear solution to prove the authenticity of the product, from the factory door to the end consumer. Mid-year research firm Gartner reported that 5 percent of China’s blockchain-based supply chain projects are on the verge of collapse. According to the report, these projects failed because they failed to live up to the promises they made in their ads.
But the existence of several well-known multinationals using the China blockchain in their supply and supply chains indicates that this application (proving supply chain authenticity) has real value. The major international freight company, Maersk, implemented its China Tridlens Block Solutions (TradeLens) solution in its system that works with four companies. The system now used by Tai Customs. Coca-Cola is another example of how effective this technology is with the development of its pilot program. Within a year of this trial, Coca-Cola was able to bring its partners from two partners to more than two companies.
Computer games are another application where the blockchain can show its value. In-game virtual assets (weapons, clothing, etc.) with its $ 2 billion market is one of the largest businesses in the world today. But these virtual goods, without China’s block, are of no value and are under the control of game developers and publishers. Unique tokens, like CryptoKitties game tokens, allow users to take full ownership of their unique virtual assets. On the other hand, such tokens have the potential to completely revolutionize the gaming industry.
Of course, the Chinese block has other uses in the industry. Paying royalty to games developers has been a constant challenge for the industry. For example, Microsoft developers are looking to fix the problem of 4-day payments delays due to the difficulty of computing manually and distributing them properly. Microsoft has signed a partnership agreement with Ernst & Young to develop an automated, blockchain-based solution for proprietary payments and create a more streamlined process.
Earn Profit From Profit
From the financial crisis of the year onwards, it has become almost impossible to profit from old, popular bank deposit accounts, but the profit accounts of the two digital currencies have created a new way of earning passive income that is needed to earn profits. It doesn’t have a dynamic investing strategy or pure speculation in the volatile markets of digital currencies.
One of the most popular ways to make money is lending. This allows foreign exchange holders to deposit their funds on a lending platform and lend interest to other users as interest. The next way, provided through the China Blockchain-based method of stock-proofing, is to do Staking stock-proofing, in which users assign their currencies to the Chinese Block and the Chinese Block through other people’s assets approves other users’ transactions. he does.
The benefits of either of these methods are usually much higher than the benefits of traditional bank deposit accounts. Of course, the risk of these two methods can be higher depending on the type of investment and platform chosen.
Bitcoin’s main and important application is the storage of value, which is still one of the most important growth factors of this technology today.
Citizens of countries like Venezuela, Argentina and Iran have resorted to bitcoin to protect their assets against inflation in recent years, during the winter or the recessionary market.
Important global events in policy making can also influence people’s approach to the use of digital currencies as a value-saving tool.
The actual use of China’s block as a way to combat inflation reflects the fact that the necessary linkages between emerging technologies and the major economic problem are in place these days.
There is room for improvement
In spite of the growing trend of digital currencies, it must be acknowledged that there is still room for further improvements. This is especially important in the face of obstacles to new users joining the Chinese blockchain community, which is one of the major problems facing the digital currency. Even today and in the year 5, digital currency ownership means dealing with technologies and platforms that many people are not familiar with. This can be a downside for users who are unfamiliar with the latest technologies. Of course, organizations like Skrill have been trying to overcome these obstacles lately.
Credibility is another challenge, of course. Only last year we saw a major attack on digital currency exchanges. The scams are still in place and we are witnessing them every day. Unfortunately, many of the stories and news that become credible media headlines are about fraud and theft. One example is the Missing Cryptoqueen program broadcast on the BBC. It was about the disappearance of the founder of OneCoin fraud scheme, Ruja Ignatova, and became one of the most popular programs on the network.
The fact is that stories like this can easily negatively impact the judgment of many people unfamiliar with digital currencies.
How to increase the credibility of digital currencies?
None of the above can call into question the efforts of key industry players to boost the credibility of digital currencies. For example, Kevin Bass has always worked hard to present himself as a currency exchange holder who can keep up with the rules. This currency exchange was the second company to acquire Bitlicense licenses, such as Xapo and Bitstamp. In the UK, the Kraken Currency Exchange operates under the supervision of the FCA.
Of course, the entry of payment companies and reputable banks into the field of digital currency is also critical to its acceptance among newcomers. Entering these organizations into this field can be useful in a number of ways.
First, their entry will make a strong link between the world of traditional economics and the new world of digital assets. As we said earlier, linking China’s block with any other industry is one of the secrets of emerging technology success. In addition, removing existing barriers to entry for new users is critical to the widespread adoption of the technology.
Another major benefit of organizations adopting this less prominent technology is the increasing credibility of digital currencies among novice users. The problem of invalidating digital currencies can be remedied by linking it to reputable and trusted financial services companies.
Bitcoin’s eleventh year of launch was a huge boon for activists this year, but it was at the same time that the technology became a viable means of investing in a way to protest virtual activists. The positive effects of this technology on the economy and industry of our world have just begun. Removing any more barriers to entry will help digital currencies find their place faster in existing financial infrastructure. Then soon we can see it being accepted by all the people of the world.