Crypto

Is cryptocurrency a good investment?

Published

2 years ago

June 13, 2022

India’s message needs to be loud and clear, we welcome the innovation and know-how, however this is not a playground for fraud

There is no such thing as a dearth of points within the monetary world with sharply dividing opinions. Please welcome the brand new entrant, Cryptocurrencies, quickly rising as essentially the most distinguished bell climate of the worldwide financial system.

For many years, market pundits have stored a hawk-eye out on 4 asset courses – Inventory & bond indices, Oil, Gold and Currencies. It has taken centuries, geographies, discoveries, innovations, complicated provide chains, thousands and thousands of jobs and lots of of worldwide monetary establishments to construct these markets, that are right this moment valued in trillions. Immediately, the world sees this new child (learn asset) on the block, constructed with a software program code, authored by a mysterious and untraceable soul (Satoshi Nakamoto) driving their century outdated markets. Only a few individuals perceive cryptocurrencies. Even fewer have truly transacted in a single. However right this moment everybody has an opinion on it.

Globally talking, the jury remains to be out on whether or not cryptos are a digital digital asset or a digital foreign money. Even essentially the most superior economies are nonetheless to develop laws or discover a regulator for this trade. Main monetary doyens, for one, Warren Buffet, has gone on file to say that cryptocurrencies are usually not a productive asset and he would not purchase the entire of bitcoin even for $25.

European Central Financial institution President Christine Lagarde has mentioned that crypto-currencies are “primarily based on nothing” and needs to be regulated to steer individuals away from speculating on them with their life financial savings. On the opposite facet of aisle, there’s this enormous momentum constructed by international icons like Elon Musk (Dogecoin), Snoop Dogg (Rapper) and Lebron James (US Basketball participant), Mark Cuban (billionaire investor & Shark Tank icon) and Gwyneth Paltrow (movie actress), who has been the face of Bitcoin since 2017. And naturally, it is not endorsements alone. Understanding that you could possibly purchase a Tesla with Dogecoin or store for a meal at Burger King or Subway, or that Wikimedia Basis accepts donations in crypto, makes one really feel that Cryptos are effectively on their method of operating alongside fiat currencies as a peer-to-peer digital money system. Whereas one shouldn’t dare to forecast whether or not and the way quickly this could possibly be a actuality, the continued meltdown, extra generally being known as crypto-winter (however not loss of life), has shaken the religion of most.

All of it started with the meltdown of Luna and TerraUSD, additionally known as stablecoin, which meant that it was all the time purported to be value $1. Nonetheless, Luna tokens, as soon as value greater than $100, stored falling until they had been under a penny. Inside few days, wealth of US$ 60 billion had vanished. At one time limit, TerraUSD holders had been provided yields of 20 per cent. Elsewhere, Coinbase International Inc., a crypto trade, which had made a grand debut on the inventory trade in April 2021 has seen its inventory value shrink by 80 per cent, wiping out $51 billion. By the way, Coinbase describes itself as a distributed firm; all workers (reportedly, over 3700 in 2021) function by way of distant work and the corporate lacks a bodily headquarters. It’s the largest cryptocurrency trade within the US by buying and selling quantity.

The Wall Avenue Journal has eloquently summed up the continued rout by reporting an evaporation of some $1.5 trillion from cryptocurrency markets up to now six months. That’s greater than 50 per cent of their worth and successfully units the stage for its greatest survival check but. Bitcoin, essentially the most well-known of cryptos (nearly a synonym for crypto-currencies), had peaked at$67,802 in November 2021 and is at the moment buying and selling at $28,350, having misplaced over 60 per cent of its peak worth. Ether, the opposite large boy on the block, is at the moment buying and selling at $1,501, having fallen from its peak of $4,865. It’s not to be forgotten that Ether’s journey started at 42 cents, some 5 years in the past

The truth that on this market setting Bitcoin, Ether and a few others are holding out, one can unmistakably predict that these devices very a lot right here to remain. We are going to in all probability witness a significant trade shakeout, the place 90 per cent of the gamers are going to vanish, with related pains for buyers. This lesson portends to be very significant for regulators, have a look at crypto as akin to a safety or scrip (definitely not a foreign money) and shortly construct a regulatory framework.

US legal guidelines impose elaborate laws and detailed disclosure necessities on issuers and intermediaries that promote securities, shares and bonds. SEC legislation additionally creates severe legal and pecuniary liabilities on anybody who skirts the statute.

Cryptocurrency platforms have managed to sidestep SEC regulators in US arguing that the tokens are commodities, like gold, which don’t have any federal regulator (as an alternative underneath Futures & Commodity Commerce Fee). The regulatory hole has allowed ponzi schemes to proliferate, as dangerous actors rush to skim from the hype generated by the brand new asset class.

The Indian authorities has, in reality, emerged as a world thought chief by legislating that cryptocurrencies, together with non-fungible tokens, are a “digital digital asset” (Part 2(47A) of the Revenue Tax Act). India has taken a definitive stand by classifying crypto as an asset in face of an opinion of concerning them as a “digital foreign money”. With almost 40 crypto exchanges in India, already organised into an trade affiliation known as the Blockchain & Cryptoassets Council, this was a well timed transfer. Whereas the definition just about turns into the constructing block for different laws, specifically, taxation underneath GST and appointment of a regulatory company, we’re nonetheless to see definitive statements rising from the Ministry of Finance.

Contemplating the imperatives and want for investor safety, one sees a transparent path for bringing intermediaries underneath regulation by SEBI. With some regulatory improvisation, there must also be some cross-controls by RBI, with a view to match the speedy innovation happening by re-packaging crypto into unique monetary devices out there. There’s a compelling case for countering a repeat of the Lunar & TerraUSD sort of debacle. Rules as are utilized for monetary establishments like licensing and SLRs, can minimise dangers for buyers.

Publish the modification underneath earnings tax legislation, the crypto trade is anxiously anticipating authorized readability underneath GST for crypto currencies. Since India has taken the stance of defining cryptos as a “digital digital asset”, it logically follows that every one related companies, whether or not these of intermediaries and even crypto-miners, are monetary ancillary companies, liable to GST of 18 per cent. The oft heard debate that whether or not the whole worth of crypto-coins will likely be taxed, appears fairly inconceivable from the place taken by the lawmakers to this point.

And eventually, we come to the oxymoronic facet of crypto commerce, KYC. Cryptocurrencies had been inherently designed with the notion of decentralisation, cryptography and anonymity. However in final three years there’s a flurry of reviews regarding hacking, ransomware, dangerous actors involving nationwide safety and Ponzi schemes.

In a report revealed on April 12, Bloomberg mentioned {that a} cryptocurrency skilled was sentenced to greater than 5 years in jail after pleading responsible to serving to North Korea evade US sanctions.

In one other article revealed by Bloomberg on Could 13, it was reported that tax and monetary crimes officers from the UK, US, Canada, Australia and the Netherlands, a bunch often called the J5, met in London to share intelligence and to determine sources of cross-border unlawful crypto exercise. The officers particularly targeted on rising developments in decentralized finance and nonfungible tokens, or NFTs and had recognized a billion greenback Ponzi scheme.

The report goes on so as to add that the convenience with which crypto transactions can cross worldwide borders has necessitated nearer collaboration between nations. It additionally mentioned that the US IRS has pivoted to creating crypto one of many company’s prime enforcement priorities. India can not afford any compromise on all these fronts.

Cryptocurrencies and buying and selling in digital digital belongings must be introduced inside the ambit of FEMA and all intermediaries mandated to take care of full KYC information. India’s message needs to be loud and clear, we welcome the innovation and know-how, however this is not a playground for fraud.

(Satish Reddy is a former Commissioner (Customs & GST) and presently founding accomplice of SKR Tax & Expertise Consultants LLP)

Crypto

How the Fed's Rate Cuts Could Shave Millions in Stablecoin Issuer Income

Published

8 hours ago

September 27, 2024

Press Room

How the Fed's Rate Cuts Could Shave Millions in Stablecoin Issuer Income

Key Takeaways

The Federal Reserve’s recent decision to cut interest rates will lead to lower revenue for stablecoin issuers, according to a new cryptocurrency industry report.
Issuers of stablecoins have held U.S. Treasurys as a way to earn a return on the reserves backing the digital assets they issue.
Stablecoin providers hold nearly $125 billion of U.S. Treasurys, and each 50 bps rate cut is expected to lead to a $625 million drop in annual interest income derived from these assets.
If rates continue to fall, as expected, stablecoin providers may need to look into alternative reserves to back their digital assets, a crypto industry executive forecast.

Stablecoin issuers could be looking at lower income as the Federal Reserve (Fed) kicked off its first rate cut cycle since 2020.

Each 50 basis point cut by the Fed could lead to a $625 million drop in total annual interest income for stablecoin issuers, according to a new report from digital asset data provider CCData.

Those hits could quickly add up as the Fed itself expects cuts totaling 50 basis points by the end of this year, and another 100 basis points by the end of next year.

Why Would A Rate Cut Affect Stablecoins?

Stablecoins are cryptocurrencies whose value is pegged to another cryptocurrency. Some of the most popular stablecoins have their value pegged to the U.S. dollar and keep a reserve in cash or equivalent investments—often U.S. Treasurys—to maintain that peg.

Centralized stablecoin providers, such as Tether (USDTUSD) and Circle (USDCUSD), have relied heavily on their holdings of U.S. Treasurys earning interest over the past few years as high interest rates drove up Treasury yields.

U.S. Treasurys make up the vast majority of reserves held by stablecoin issuers, at just over 80%. This amounts to holdings of nearly $125 billion worth of Treasurys.

Tether, the largest stablecoin by market cap, alone holds $93.2 billion worth of U.S. debt, which accounted for much of that digital asset company’s $5.2 billion of profits in the first half of 2024, the CCData report said.

Bitcoin.com Director of Engineering Andrei Terentiev speculated on social media that lower interest rates could eventually push stablecoin providers and other financial institutions into riskier assets in an effort to earn a return on their reserves.

“With lower yields on safer assets, institutions often shift their focus toward ‘risk-on’ assets,” Terentiev posted on the platform X. “Think stocks, crypto, and other investments that offer higher potential returns but come with greater risk,” he wrote.

Crypto

Which Cryptocurrency Under $0.50 Can Turn a $150 Investment Into $150,000 by 2025? Expert Top Picks Are… – Brave New Coin

Published

15 hours ago

September 27, 2024

Press Room

Turning a small investment into a fortune is the dream of many crypto enthusiasts. With various coins priced under $0.50, the opportunity is tantalizing. This article dives into the top expert picks that have the potential to transform a modest $150 into a staggering $150,000 by 2025. Discover which cryptocurrencies are poised for explosive growth.

CYBRO Presale Climbs Past $2.5 Million: A One-in-a-Million DeFi Investment Opportunity

CYBRO is capturing the attention of crypto whales as its exclusive token presale quickly surges above $2.5 million. This cutting-edge DeFi platform offers investors unparalleled opportunities to maximize their earnings in any market condition.

Experts predict a potential ROI of 1200%, with CYBRO tokens available at a presale price of just $0.03 each. This rare, technologically advanced project has already attracted prominent crypto whales and influencers, indicating strong confidence and interest.

Holders of CYBRO tokens will enjoy lucrative staking rewards, exclusive airdrops, cashback on purchases, reduced trading and lending fees, and a robust insurance program within the platform.

With only 21% of the total tokens available for this presale and approximately 80 million already sold, this is a golden opportunity for savvy investors to secure a stake in a project that’s truly one in a million.

>>>Join CYBRO and aim for future returns up to 1200%

LUNC: Terra Classic’s Role in the Global Payments Ecosystem

Terra Classic, known as LUNC, is a blockchain protocol utilizing stablecoins for price-stable global payments. Combining stability and adoption of fiat with Bitcoin’s resilience, Terra aims for efficient transactions. Its mainnet launched in 2019, and expanded with stablecoins linked to several currencies. In 2022, Terra Classic emerged after a rebranding, with its native token LUNA renamed LUNA Classic. While the new Terra chain focuses elsewhere, LUNC draws parallels to historic blockchain splits. With its unique approach to stablecoins, LUNC offers potential for those seeking an innovative payments system. The design seeks to balance stability and speed, reflecting lessons learned from past crypto market challenges.

Stellar (XLM): A Bridge for Global Fund Transfers

Stellar (XLM) offers a platform for fast, affordable fund transfers by connecting diverse financial systems. It uses blockchain technology to support currencies from around the world, including cryptocurrencies like Bitcoin. Stellar Lumens, its own currency, helps facilitate these transactions. The network aims to improve existing financial setups, not replace them. Both individuals and businesses can benefit, using Stellar for global money transfers or building blockchain apps. The Stellar Development Foundation encourages using the network for things like NFTs and smart contracts. Over the years, Stellar has built meaningful partnerships and processed a massive number of transactions, creating a promising stage for its future growth.

Kaspa: The Future of Fast and Secure Transactions

Kaspa is a proof-of-work cryptocurrency using the GHOSTDAG protocol. Unlike typical blockchains, GHOSTDAG lets blocks coexist rather than reject them. It organizes them while keeping them all. Kaspa uses a blockDAG structure for high-speed and secure transactions. It can currently process one block per second, with goals of increasing that significantly. This allows nearly instant confirmations. Kaspa includes features like Reachability, SPV proofs, and plans for subnetwork support. These enhance its scalability and could simplify layer 2 developments. This innovative approach positions Kaspa as a promising player in the crypto landscape. With this setup, Kaspa offers quick and secure transactions, making it an exciting option for users.

VeChain’s Blockchain Powers Real-World Solutions in Enterprise

VeChain is a blockchain platform that is transforming how industries track goods. Known for its supply chain solutions, it lets companies monitor products like food, fashion, and cars. With its native token, VET, ranking high in market cap, it’s clear that VeChain has significant use and acceptance. By assigning IDs and sensors to products, it helps verify authenticity and manage recalls, proving vital for luxury and automotive industries. Founded by Sunny Lu, it moved from Ethereum to its own blockchain, VeChainThor. This switch introduced a dual-token system and a proof of authority for better transaction validation. Major partnerships demonstrate its practical applications, making VeChain a key player in blockchain solutions.

Dogecoin’s Rise: From Meme to Major Cryptocurrency Player

Dogecoin started as a light-hearted alternative in the crypto world. Its Shiba Inu logo became a popular symbol online. Unlike Bitcoin, Dogecoin has no supply limit, which means coins are always being produced. It gained attention when its value soared, influenced by Elon Musk and social media buzz. Dogecoin’s playful origins didn’t stop it from becoming one of the top cryptocurrencies by market cap. Its journey shows how community support and online trends can shape financial markets. With many fans worldwide, Dogecoin remains an interesting part of the digital currency landscape.

Conclusion

LUNC, XLM, KAS, and VET have less potential for short-term gains. In contrast, CYBRO offers a unique advantage. As a DeFi platform, it uses AI-powered yield aggregation on the Blast blockchain. This provides lucrative staking rewards, exclusive airdrops, and cashback on purchases. It ensures seamless deposits and withdrawals, focusing on transparency and compliance. CYBRO has attracted strong interest from crypto whales and influencers. Its advanced technology and superior user experience make it a promising project to watch.

Site: https://cybro.io
Twitter: https://twitter.com/Cybro_io
Discord: https://discord.gg/xFMGDQPhrB
Telegram: https://t.me/cybro_io

This is a sponsored article. Opinions expressed are solely those of the sponsor and readers should conduct their own due diligence before taking any action based on information presented in this article.

Crypto

PayPal Introduces Cryptocurrency Trading for US Merchants – Brave New Coin

Published

23 hours ago

September 27, 2024

Press Room

PayPal Introduces Cryptocurrency Trading for US Merchants – Brave New Coin

Global payments giant PayPal will allow U.S. business account holders to buy, sell, and hold cryptocurrencies directly from their accounts.

Global payments giant PayPal has unveiled new features allowing U.S. business account holders to buy, sell, and hold cryptocurrencies directly from their accounts.

The move comes as more business clients seek access to crypto services available to consumers. PayPal also intends to expand its cryptocurrency features into regular business operations. According to the statement, this feature will be unavailable in New York State.

PayPal’s peer-to-peer payments app Venmo initially allowed clients to manage cryptocurrency in 2020. Since then, they have “continuously made significant steps to increase cryptocurrency utilization,” the statement read.

“Business owners have increasingly expressed a desire for the same cryptocurrency capabilities available to consumers. We’re excited to meet that demand by delivering this new offering, empowering them to engage with digital currencies effortlessly,” said Jose Fernandez da Ponte, senior VP of blockchain, cryptocurrency, and digital currency at PayPal.

According to PayPal’s statement, the new features of crypto services for business accounts aim to boost crypto’s real-world utility. The company’s latest move is a response to business owners who have been asking for access to crypto services since the platform launched its consumer-level digital currency services.

“Since we launched the ability for PayPal and Venmo consumers to buy, sell, and hold cryptocurrency in their wallets, we have learned a lot about how they want to use their cryptocurrency,” Fernandez da Ponte added.

PayPal stock has climbed roughly 26% this year, suggesting positive sentiment from investors.

Businesses can Now Transfer Cryptocurrency On-Chain to External Wallets

In addition to the new buying and selling ability, U.S. merchants can now transfer cryptocurrencies to third-party wallets. This new functionality extends the flexibility of digital currency transactions for businesses.

“PayPal business account holders can now send and receive supported cryptocurrency tokens to and from external blockchain addresses,” the company mentioned in its statement.

Last month, Crypto.com teamed up with PayPal to allow US users to make purchases through cryptocurrencies. This alliance expands on earlier joint ventures between the two businesses, which included allowing PayPal to recharge Crypto.com Visa Card. Besides Crypto.com, PayPal’s stablecoin is available within selected exchanges including Coinbase, Bitstamp, and Kraken.

PayPal Cuts Fees by Expanding PYUSD to Solana

In 2023, PayPal launched its own US dollar-denominated stablecoin (PYUSD), in August 2023. PYUSD was issued by a US-regulated entity named Paxos Trust Company. Initially, PYUSD was launched as an ERC-20 token through the Ethereum blockchain.

One limitation of Ethereum-based stablecoins is their high transaction fees. PayPal expanded PYUSD to the Solana network in May 2024 to minimize the cost. This move led to a significant fee reduction (sometimes over 90%). These lower transaction rates on Solana made PYUSD more attractive for regular purchases like coffee or groceries, which boosted the demand for PayPal to introduce crypto services to businesses.

“The Solana network’s speed and scalability make it the ideal blockchain for new payment solutions that are accessible, cost-effective, and instantaneous,” said Sheraz Shere, General Manager of Payments at the Solana Foundation. “Continued adoption from industry participants like PayPal helps realize the next generation of fintech innovation.”

According to BraveNewCoin data, PYUSD’s market capitalization has expanded dramatically since its introduction over a year ago, rising from approximately $45 million in September 2023 to around $700 million at the time of writing.