El Salvador which is known as the Republic of El Salvador is a country that is located in Central America. The country has a population of more than 68 lakhs. El Salvador has accepted bitcoin as a legal tender and will be accepted in 90 days starting from 9 June 2021. Let’s look at how El Salvador became the first country to accept bitcoin as a legal tender.
El Salvador has become the first country in the entire world to accept Bitcoin as a legal tender after the country’s congress had approved it on 9 June 2021. The proposal was laid down by President Nayib Bukele in order to accept the cryptocurrency, this was a move that has delighted the supporters of the digital token.
In respect to the law to adopt Bitcoin, around 62 out of the 84 votes had voted in the favour of the law even though there was a concern about the potential impact on the country’s programme with the International Monetary Fund.
Reason Why El Salvador declared Bitcoin as Legal Tender
The President of the country had stated the various uses of Bitcoins. He has conveyed that through the potential held by Bitcoins the citizens of Salvador who live abroad will be able to send remittances back home. He added that Bitcoins would bring financial inclusion, tourism, innovation, investment and economic development to the country.
El Salvador is a country that relies heavily on the money that is sent back from the workers abroad. The cryptocurrency offers a quick and a cheap way to send money across borders without relying on the remittances firms. According to a data from World Bank, the remittances received in the country have made up a fifth of its GDP which is one of the highest ratios in the world.
He had stated all these shortly before the vote in Congress which is controlled by his party members. It was conveyed through a tweet and he also added that the US Dollar would also continue as a legal currency of the country. El Salvador does not have a currency of its own.
The President later had conveyed to La Geo which is a state owned geothermal electric firm to develop a plan in order to provide the Bitcoin mining facilities using the renewable energy from the volcanoes of the country.
He has stated that the idea was to build a mining hub around the geo thermal potential of the country. However, the idea is stated to be an overnight one. He also stated that El Salvador would provide citizenship to the people who show evidence that they had invested in at least 3 Bitcoins.
Acceptability of Bitcoin in El Salvador
The acceptability and the use of Bitcoins for the individuals are optional and would not bring any risks to the users. The President has conveyed that the government will guarantee convertibility to the US Dollars at the time of transaction through a trust that was created using USD 150 million at the development bank of the country, BANDESAL.
Under the law, the cryptocurrency should be accepted by the firms when they are offered as a payment for various goods and services. The Government has conveyed that the Tax can also be paid using the cryptocurrency.
The President of the country through an online conversation has conveyed that, if an individual visits McDonald’s and wants to pay through Bitcoins, then they will have to accept the Bitcoin and will not be able to tell that they won’t accept it as the Bitcoin is a legal tender of the country.
Response to the announcement of declaring Bitcoin as Legal Tender
In the capital of the country, it was found that there were mixed emotions when it came to declaring Bitcoins as a legal tender. Some of the individuals were excited about declaring it as a legal tender and the increase in the financial options and prosperity of the new currency, while the others were quite skeptical about it.
Analysts have conveyed that the move from the country would cause certain complications with the IMF, where the country has sought for more than USD 1 billion programme.
Estela Gavidia had questioned about, How he is going to accept the Bitcoins when he hasn’t seen it not even in photos and added that he doesn’t know nothing about it and understanding your currency is very important.
Conclusion
The supporters of the cryptocurrency have claimed it as a move to validate the emerging asset but also added that the regulation on Bitcoins, taxation, or the adoption in other countries is yet to be seen. However, there are no immediate signs that the other countries would follow El Salvador’s acceptance of Bitcoin.
FAQ
Is El Salvador a poor country?
El Salvador is one of the poorest countries, with low per capita income, chronic inflation, and high unemployment.
Does El Salvador have its own currency?
The official currency used in El Salvador is the US dollar.
What is El Salvador known for?
El Salvador is a country in Central America which is Known as the Land of Volcanoes, as it has frequent earthquakes and volcanic activity.
Cryptocurrencies have a separate fanbase that loves to mine, possess and trade in them. Ever since bitcoin, the open-source software, was released as the world’s first cryptocurrency, the era of this new form of digital currencies began.
The craze of cryptocurrencies is nothing new and is the drive that is increasing more than ever, pushing this generation of people towards possessing more of them. And why would it not be there?
Bitcoins and other cryptocurrencies have been well-known to offer healthy amounts of profits and with the adoption of these currencies as payment methods by organizations like Square (SQ), CashApp, Venmo, and the latest by PayPal, the cryptocurrencies are scaling new heights.
Furthermore, these currencies are also beginning to act like safe-haven assets.
Cryptocurrencies were relatively new in the past but with the turn of the last decade, they have been growing in popularity like never before in all the major countries of the world.
However, this new scam involving cryptocurrency in Africa is to put legions of people around the world in doubt where the founders of the African bitcoin investment and exchange company, Africrypt, vanish into thin air along with all their investors’ money!
What is Africrypt and How it Started?
Africrypt is an African cryptocurrency firm founded by Raees Cajee and Ameer Cajee. This company was established in 2019 by the two brothers, aged 20 and 17 years respectively, and aimed at providing bumper returns to their investors.
Soon after the company started its operations, it began to quote exceedingly profitable returns to its investors, which was allegedly at 10% per month. However, not a single person was to raise any questions with regards to the same until the case where the founders took flight occurred, to the shock of all of them.
With the New Year Came New Signs of Troubles
The investors were getting a palpable profit and that’s what helped them go further with Africrypt.
There wasn’t a single instance where they felt insecure even amidst the pandemic, until the month of April 2021, when the company’s CEO Ameer Cajee informed the clients that the company was struck by hackers.
He further implored them not to inform the lawyers and other legal authorities to take any steps because that would result in slowing down the recovery process of their money.
This aroused the suspicions of many of their investors, who immediately roped in the law firm, Hanekom Attorneys along with another group to start with the liquidation against Africrypt. However, the suspicions were only meant to stay.
Africrypt, which was otherwise deemed to be a profitable and reliable venture, revoked its employees‘ access to the back-end platforms. This added more panic to the anxiety that was already ripe and then, after seven days, it completely vanished untraceable along with bitcoins that are estimated to be worth around $3.6 billion.
What’s more shocking is that there is no single trace of the firm, its founders, and all the celebrity investors who were involved in it!
According to the recent Bloomberg report, any calls to Africrypt, where Ameer’s mobile number was on display, are being redirected to the voicemail service.
The value of the bitcoins saw a recent surge in the past year and with the loss of 69,000 coins through Africrypt, which would have amounted to 4 billion dollars in April, would represent a huge loss, and in fact, one of the biggest cryptocurrency scams in recent times.
Bitcoins and their traders are witnessing enormous losses and most of them in recent years are incidentally with the companies based out of South Africa. It was only in 2020 that the South African Bitcoin trading company, Mirror Trading International led to the loss of 23,000 cryptocurrencies, which amounted to around $1.2 billion and was reported as the biggest scam involving cryptocurrencies. However, with this latest Africrypt scam, losses are predicted to be three times as much.
Looking at the Latest Proceedings
Hanekom Attorneys, the Cape Town-based law firm that the investors approached fearing the hack, initially worked for the liquidation against the company. However, as the case took a new turn after the disappearance of the founders of Africrypt, they were unable to locate the brothers but have already informed other crypto exchanges requesting a quick revert in case they make any attempts to convert the digital coins.
Furthermore, Hanekom has further escalated the matter to the Hawks, an elite branch of the South African police force.
According to the reports, the coins with which the company has vanished were untraceable because Africrypt has already transferred its share of pooled funds to tumblers and mixers or other large pools of bitcoin.
While the founding brothers’ mobile phones and other numbers are being redirected to the voicemails, calls seem to be pouring in on the phone number of the cousin of the Cajee brothers, Zakira Laher, who was also a former fellow director of Africrypt. The investors, police as well as the media are seemingly calling her for updates regarding the scam.
Laher, who has a week-old baby at their residence, is scared of the situation that the brothers left their family in and is exceedingly worried about the safety of her family. Speaking about the position that she used to hold at Africrypt, Zakaria mentioned that her designation was peripheral and she didn’t gain anything out of the same.
Why is the Investigation of Cryptocurrencies Difficult?
Though the investigation is in progress, nothing is yet to come out that disclosed any whereabouts of the founders of Africrypt or the money lost. It is quite difficult to run an investigation involving cryptocurrencies even when it comes to a scam as colossal as the present case of Africrypt.
Brandon Topham, head of the Finance Sector Conduct Authority of South Africa said that the cryptocurrency assets are still not considered legal as financial products by the government, which is why they cannot launch a formal investigation for the same.
Conclusion
The cryptocurrency market has huge potential for the future, however, the road to success with these digital currencies is also fraught with frauds and losses. Besides, the latest rise in the prices of digital currencies ushered in a whole new world of risks.
With China announcing the latest ban on cryptocurrencies after their prices soared recently, it appears to be adding to the list of other countries like Bolivia, Algeria, Morocco, Saudi Arabia, making the future murkier for these currencies.
FAQ
Who are the founders of Africrypt?
Africrypt was founded by two brothers Raees Cajee and Ameer Cajee.
When was Africrypt founded?
Africrypt was founded in 2019 aimed at providing huge returns to their investors .
Did Africrypt founders left the company?
The founders of the company vanished with bitcoins that are estimated to be worth around $3.6 billion.
Bitcoins have been criticized by a lot of people from the beginning of the launch of the cryptocurrency. Many of the investors and economists believe that the coin is worthless and does not have any valuation and the increase in the price is mainly due to skepticism. Paul Krugman who is a Nobel Peace Prize winner for one of his works on global trade theory in 2008 is also a critic of cryptocurrency. In this article let’s look at why he claims the cryptocurrency to be a cult.
Paul Krugman who is one of the prominent critics of digital coins and digital assets had posted a tweet on the microblogging platform predicting the downfall of the world’s most famous and one of the favourite Digital tokens, Bitcoin. He also described the digital token as a cult that cannot survive for an indefinite period.
Paul Krugman who is a Nobel Peace Prize award received economist and an author who contributes to the New York Times has publicly criticized the cryptocurrency, bitcoin. Even in the past, it was noted that the famous economist has described the digital asset bitcoin as an evil.
In the latest tweets that he posted on Twitter; Paul Krugman has conveyed that even though the coin has been present since the financial crisis of the last decade it had failed to build up its reputation as legal currency.
I don't write much about Bitcoin because there aren't any fundamentals to discuss. 1/ https://t.co/G7WtGDYv3Q
He also added that the cryptocurrency, bitcoin has a cult-like support base which would keep it going further. He also said on Twitter that he has stopped predicting what is going to happen to the crypto asset and added that all the time the digital currency would have a new set of believers. He also added the statement to think of the digital currency, bitcoin as a cult that would be able to survive indefinitely.
Other Major reasons Why he criticized the popular cryptocurrency, Bitcoin
Paul Krugman who is one of the world’s most credible economist has cited two major reasons behind the skepticism claimed by him. He has conveyed that the cryptocurrency, bitcoin has a lack of tethering and have high gas fees.
A certain article that was published by Paul Krugman in the past has argued that digital assets like cryptocurrency have a higher rate of transactional fees while compared to the traditional fiat currencies. He also argued that when compared to the financial assets that are backed by the Government of certain countries the cryptocurrencies or digital assets do not have a body that governs them or backs them or provide reinforcement.
He wrote in a column that instead of creating a smooth transaction the people have high costs of doing the business because transferring cryptocurrencies or bitcoins will require providing a complete history of the previous transactions.
What did Paul Krugman predicted about Bitcoin in 2018
In the year 2018, Paul Krugman had a view that there was a total possibility for a complete collapse of bitcoins due to an absence of a backstop. He had conveyed that the value of the cryptocurrency depended completely on self-fulfilling expectations and stated that the total collapse is completely possible.
He added that if the speculators have had a doubt or a collective moment on the value of the bitcoin and a sudden fear or a feeling that bitcoins are worthless, then bitcoins would become worthless according to his prediction.
Conclusion
However, when compared to the statement his view point on bitcoin has changed since then but the other qualities have been intact and have not seen much changes in his opinions.
FAQ
Who is Paul Krugman?
Paul Krugman is an American economist and journalist who received the 2008 Nobel Prize for Economics for his work in economic geography and in identifying international trade patterns.
Where did Paul Krugman go to college?
In 1974, Krugman earned his BA in economics from Yale University. He then pursued a PhD in economics from Massachusetts Institute of Technology (MIT). In 1977, he successfully completed his PhD in three years.
What is Paul Krugman’s theory?
Krugman developed New Trade Theory as an alternative to older theories that explain patterns of international trade as based on comparative advantage and natural resource endowments.
A cryptocurrency is a digital or virtual currency protected by encryption, making counterfeiting and double-spending practically impossible. Many cryptocurrencies are built on blockchain technology, which is a distributed ledger enforced by a network of computers.
Ethereum is the second most demanded cryptocurrency after Bitcoin. Ethereum is a blockchain-based open-source platform for developing and sharing corporate, financial, and entertainment applications. To utilize dapps, Ethereum users must pay a charge. Its cryptocurrency is now only second to Bitcoin in terms of market capitalization.
Well, we’ll have to delve a little further to learn more about Ethereum as a cryptocurrency and its algorithms. Let’s hop into this.
Ethereum is a decentralized, open source, and distributed computing platform that allows smart contracts and decentralized applications, or dapps, to be created.
Vitalik Buterin, a programmer, proposed Ethereum in 2013. The network went live with an initial quantity of 72 million coins on July 30, 2015, after development was crowdfunded in 2014. Developers can utilize the platform to create and run decentralized applications that users can engage with.
Decentralized finance (DeFi) applications allow cryptocurrency users to borrow against their holdings or lend them out for interest without the need for traditional financial intermediaries like brokerages, exchanges, and banks.
Ethereum’s Brief History
A review of Ethereum’s historical upgrades and hard splits, with an eye toward the future.
From the vantage point of a bird’s eye view, blockchain technology is relatively new. Though the fundamental principles (cryptography, decentralization, peer-to-peer networking, and transaction) had been studied for decades, it wasn’t until the release of Bitcoin in 2008 that all of those components could be reliably seen as having come together to create a practical product.
Only since 2015 has Ethereum been available in a useful, public format. Despite the fact that the dates and specifications of its planned evolution have changed, Ethereum has remained committed to upgrading the protocol on a regular basis to ensure increased usability, security, functionality, and decentralization.
Ethereum is based on a blockchain network, just like all other cryptocurrencies. All transactions are verified and recorded on a blockchain, which is a decentralized, distributed public ledger.
It’s decentralized in the sense that the network isn’t run or maintained by a single entity, but rather by all of the distributed ledger owners.
To make the network safe and validate transactions, blockchain transactions require encryption. People use computers to “mine” or solve difficult mathematical equations, which confirm each transaction on the network and add new blocks to the blockchain, which is at its core. Cryptocurrency tokens are given to participants as a prize. These coins are known as Ether in the Ethereum system (ETH).
Ether is a digital currency that can be used to purchase and trade goods and services. It has also seen dramatic price increases in recent years, thereby making it a speculative investment. However, Ethereum is unique, in that it allows users to create apps that “run” on the blockchain in the same way that software “runs” on a computer. Personal data can be stored and transferred, and sophisticated financial transactions can be handled with these programs.
What is Ethereum’s purpose?
Ethereum, the world’s second-largest cryptocurrency by market capitalization, was founded in 2013 with the express purpose of facilitating the creation of smart contracts. It is currently the most widely used platform for doing so.
Outside of Ethereum, smart contracts aren’t commonly used, and some are doubtful that they’ll ever become ubiquitous as a mechanism to manage transactions. Proponents of Ethereum, on the other hand, hope that it will eventually become the standard for executing and safeguarding online connections.
Hundreds of smart contract-enabled apps have already been released. Smart contracts are at the heart of popular Ethereum apps MakerDAO and Compound, which allow users to earn interest by lending money.
A smart contract is exactly what it sounds like: it’s a self-executing, programmed agreement that’s stored on the Ethereum blockchain. It works on the basis of an if-then logic, which states that if x happens, then y happens. The Ethereum Foundation has a helpful definition:
Smart contracts are apps that execute exactly as they are programmed, with no downtime, censorship, fraud, or third-party interference.
Let’s take a look about what this means:
Downtime: There is no downtime because the programs never shut down suddenly and cannot be turned off.
Censorship: Ethereum nodes (computers that run the protocol) are scattered all over the world, censorship is no longer an issue.
Fraud: The contract can’t be altered, hacked, or manipulated in any way.
Third parties: The contract self-executes, there is no need for an intermediary.
What are the benefits of Ethereum smart contracts?
Although they(Bitcoin) are incredibly limited in comparison to Ethereum. Bitcoin, the world’s first cryptocurrency, was the first to implement rudimentary smart contracts key Because the network will only authorize transactions if specific requirements are met, such as the user providing a digital signature showing that they own the bitcoin they claim to own, each transaction is a smart contract. A digital signature can only be created by the owner of a Bitcoin private key.
Ethereum, on the other hand, substitutes Bitcoin’s more restrictive vocabulary with code that allows developers to use the blockchain to execute transactions other than cryptocurrency. The language is “Turing-complete,” which means it can handle a wider range of computations. Programmers are free to create almost any smart contract they can imagine.
Is it a good time now to invest in Ethereum?
Bitcoin is the big name in town when it comes to cryptocurrencies. However, Ethereum has had a fantastic year. Ethereum’s price has increased by 435 percent since the beginning of the year. It has climbed by more than 1,700 percent in the last year. By comparison, the price of Bitcoin has climbed by about 100% this year and 518 percent in the last 12 months.
To begin, it’s critical to understand the distinction between Ethereum and Ether. Ether is a cryptocurrency that works similarly to Bitcoin. Ether is based on Ethereum, a blockchain technology. Either and Bitcoin have a lot in common. Both are digital currencies that may be used to make purchases. You may invest in Ether directly, just like Bitcoin, by purchasing coins. However, Ether is substantially less expensive than Bitcoin.
It’s also feasible to put money into the Ethereum platform. Some of your choices should be:
1. Investing directly in Ether, 2. Purchasing specific stocks, 3. Investing in a professionally managed fund.
Ethereum is a widely utilised technology with a wide range of uses. However, before you invest, you should be aware of the benefits and drawbacks.
Talking into the account benefits:
1. The Ethereum blockchain’s versatility is one of its most appealing features. While it is best recognised for hosting the cryptocurrency Ether.
2. To put it another way, it has uses outside of the bitcoin industry. Ethereum might be used in a variety of ways even if cryptocurrency as a whole fails in the long term.
3. Furthermore, one of the most common criticisms about cryptocurrencies, particularly Bitcoin, is how energy-intensive it is. Ethereum, on the other hand, aspires to be more eco-friendly. This might provide Ethereum an edge over Bitcoin, particularly among eco-conscious investors.
4. Additionally, as the Ethereum network evolves, some Ether coins may be lost in the process. However, a reduced supply of Ether might make it more valuable and drive up its price, which might be beneficial to investors.
Recognizing the dangers:
1. Investing in Ethereum and Ether comes with dangers, despite its flexibility and vast range of applications.
2. For one thing, if you invest directly in Ether, you’ll almost certainly see tremendous volatility. Furthermore, new rules and regulations could jeopardise Ethereum’s future.
Conclusion
Consider your risk tolerance before investing in Ethereum. Would you be able to sleep at night if the value of your investment dropped by 20%? What about a 50% discount? Ethereum is a risky investment, so be sure you’re ready to take it on before you invest.
Finally, if you decide to invest in Ethereum, make sure your strategy is quite good, and only invest money you can afford to lose. You can reduce your risk if Ethereum takes a turn for the worst by investing the majority of your money in safer investments.
Ethereum may turn out to be a wise investment, but it isn’t for everyone. Consider the benefits and drawbacks, as well as your own risk tolerance. Whether you decide to invest or not, make sure you’re making an informed decision.
FAQ
Who founded Ethereum?
Vitalik Buterin is the creator of Ethereum, the blockchain platform that acts as a world computer for decentralized applications.
Who is the richest Cryptocurrency owner?
Brian Armstrong is the richest Cryptocurrency owner who has a net worth of US $ 6.5 billion. He is the founder and CEO of crypto exchange Coinbase.
What will Ethereum be worth in 2030?
As per CoinPrice Ethereum will hit a whopping $5,000 (£3,598.75) by the end of 2030.
Cryptocurrencies have been gaining popularity and with cryptocurrencies, in the recent times, a new crypto asset called the Non-Fungible Token (NFT) had amassed a huge amount of popularity. Many believe NFTs to be the future for art and other valuable items. But Fred Ehrsam has a difference in his opinion regarding to that and in an interview had conveyed about it. In this article let’s look at why Fred Ehrsam had conveyed that the 90 % of the NFT Collectibles would be worthless.
Fred Ehrsam who is the co-founder of Coinbase conveyed in an interview that he feels that the NFTs are going to lose their worth. On 16 June 2021, he had conveyed in an interview that 90% of the NFTs would eventually become worthless. He also added in his interview that he believes that people shouldn’t dismiss the doge coin.
He also added that decentralized finance would be a riskier technology of the blockchain world and conveyed that the United States would get the regulations of bitcoin wrong and there could be a danger in that.
Fred Ehrsam also added that criticism made on the bitcoin’s energy use must be reconsidered by Elon Musk and Bill Gates.
Fred Ehrsam is an American based business man and an investor. He was the co-founder of one of the largest cryptocurrency exchange Coinbase. He had left Coinbase in the year 2017 and the company had gone public with a valuation of USD 100 billion.
Fred Ehrsam is currently the co-founder and the managing partner of the cryptocurrency investment firm Paradigm. As of 2020, the company had made more than 25 investments in cryptocurrency related companies. He was born in the year 1988 in Boston.
Fred Ehrsam’s take on NFT
Fred Ehrsam conveyed in his interview that people are going to try all sorts of stuffs and added that in the coming future there would be millions and millions of cryptocurrencies and crypto assets. He compares cryptocurrencies and crypto assets to the millions and millions of websites that were developed during the boom of the .com phase in which the most of them wouldn’t work.
He conveyed that around 90 % of the NFTs will have no value in the next 3 to 5 years just like the early internet companies in the late 90s. He added that the value of NFTs would probably be the same as those companies.
Fred Ehrsam conveyed in the interview that if cryptocurrency has taught us something it is not to dismiss a good meme and adds that it could display much more progress. He refers to dogecoin and other crypto assets.
Speaking about decentralized finance he added that one thing that totally changed in the year 2017 was that the doors suddenly opened to much broader applications. He added that Ethereum came out of nowhere and proved that various applications and projects could be build using the blockchain technology. He said that in the coming future we will be able to see a lot of mainstream consumer applications.
Market Cap of NFT
What Fred Ehrsam said about Bitcoin’s energy consumption?
Speaking about the criticism of the environmental impact of cryptocurrencies he conveyed that Elon Musk and Bill Gates will have to examine the issue much more closely and added his personal view which stated that it would be much more energy efficient in order to use these digital coins and transfers in the coming future. He added that it is totally understandable that there would be a lot of confusion in the beginning stage.
He added that, the world doesn’t change overnight but he said that we will be able to see the seeds of exponential growth that is already occurring. He added that we would live in a future where we would not require central currencies or a central system in order to co-ordinate with each other.
He added that it has already been proved by the financial services where we do not require a central system in order to hold our money or transfer our funds and we could be our own banking system.
Conclusion
Fred Ehrsam conveyed that history is yet to be written and added that in his view he is at a very strong place where the brand is trusted not only by the users but also the regulators. He added that being that bridge in the world of cryptocurrencies is a really great place to start.
FAQ
What is the net worth of Fred Ehrsam?
The net worth of Fred Ehrsam is 290 crores USD.
What does NFT mean?
NFT is non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files.
How does NFT prove ownership?
Nonfungible tokens prove ownership of a digital item – image, sound file or text – in the same way that people own crypto coins. Unlike crypto coins, which are identical and worth the same, NFTs are unique.
Cryptocurrencies are on the rise and as normal individuals, it is high time we acknowledge their potential and worth. Bitcoin hit its highest so far in April 2021 hitting $63,729.5 for 1 BTC. Most people have heard of Bitcoin but are unaware of other types of bitcoin in the digital market. Bitcoin and Bitcoin cash are not the same. We’ll be looking at exactly how different they are, the pros and cons, and what you should invest in.
Bitcoin was made in 2008 as a decentralized digital currency by an individual or group by the name Satoshi Nakamoto. Since the beginning of its use in 2009 when the project went open source, Bitcoin has been gaining popularity. As more people started using this new currency the amount of time needed for transactions to complete was increasing. It took from hours up to days for larger transactions to complete. This led to groups of developers finding their own solutions to this problem. One group went onto developing a new kind of Bitcoin that had up to 8MB of block size allowing more data to be processed which meant the transaction would be faster.
This hard fork from the original bitcoin code was called Bitcoin cash, a new currency and was represented by BCH. Bitcoin cash had a much lower transaction fee, was faster, and still based on the original Bitcoin. In 2018, the maximum block size for BCH was increased to 32MB. Although it has its advantages BCH is less known and lacks the capitalization of BTC. Bitcoin still has a higher hash rate compared to Bitcoin cash.
When Bitcoin cash came into use it offered several advantages over Bitcoin. Although it had technical advantages the people who invest in cryptos mostly invested in what they knew best, what they had experience with. Few people were using Bitcoin cash for transactions and this made it less secure compared to Bitcoin. Looking at the statistics we can easily see the similarities but also the differences.
Chart comparing Bitcoin and Bitcoin CashChat comparing Bitcoin and Bitcoin Cash hash rate
From these charts it’s clear that BCH has never come close to the value of Bitcoin and transactions were always less. BCH had a rise in transactions during its initial days but it has been low since then. The more value a currency has affects its transactions. Currencies with more transactions are relatively more stable and hence reliable. This means that small changes in the market or event affect BTC way less than BCH.
Bitcoin vs Bitcoin Cash: What should you invest in?
The most important question any investor has is which crypto to invest in. This depends on the investor and how they wish to play the market. Statistically, Bitcoin has been doing a lot better than Bitcoin cash, but it has its own advantages. When it comes to day trading, most people prefer a currency with stability. Bitcoin has been mostly stable if we take a look at the trends and this is what most investors look for. The transaction fees for Bitcoin are still a lot higher compared to Bitcoin cash and it takes a while for transactions to complete.The prices of both are expected to go up in the future. So it is up to the investor to choose their currency taking in both the pros and cons.
Bitcoin vs Bitcoin Cash: Conclusion
Bitcoin has always been the currency that everyone knows and everyone talks about. It still maintains its high market capitalization and continues to dominate. Places that accept cryptocurrencies are more likely to accept BTC than BCH. Although Bitcoin cash offers a faster and even better blockchain solution, its value has a long way to go.Technology keeps getting better and new currencies arrive along with it. However, market price and hash rate are key when it comes to investing in cryptocurrencies. For meanwhile, it seems like Bitcoin is the choice to make.
A new kind of Bitcoin that had up to 8MB of block size allowing more data to be processed which meant the transaction would be faster. This hard fork from the original bitcoin code is called Bitcoin cash, a new currency and is represented by BCH.
What is the highest value that Bitcoin has ever reached?
Bitcoin hit its highest so far in April 2021 hitting $63,729.5 for 1 BTC.
What advantages does Bitcoin cash have over Bitcoin?
Bitcoin cash has smaller transaction fees, faster speed and the Bitcoin Cash node is easier to setup.
What indicators should one look for when investing in crypto currencies?
Market price and hash rate are key indicators when it comes to investing in cryptocurrencies.
The cryptocurrencies have been receiving a lot of regulations. A lot of Government’s has been banning certain digital coins are a certain type of transaction with the latest news being from China. The most recent news is from Thailand where the government has banned a set of digital coins introducing a new regulation for the cryptocurrency market. Let’s look at the reason why Thailand banned meme coin and other NFT’s.
Thailand had conveyed that they have introduced a selective ban on the cryptocurrency market which focuses on meme coins, Fan tokens and Non-Fungible Tokens. The Securities and Exchange Commission Board has set a prohibition for the exchanges dealing with the digital assets from providing the services related to these assets.
On 9 June 2021, there was a meeting held by the Securities and Exchange Commission where the new resolution was passed. The new law that was passed was under the Rules, Conditions and Procedures for undertaking Digital Asset Business as per SEC Secretary General Ruenvadee Suwanmongkol.
The new law had been come into effect from 11 June 2021 following the publication in the Government Gazette.
What is the the Law laid by Thailand regarding crypto exchanges
The new law has laid down restrictions regarding the crypto exchanges in the country from listing the Utility Tokens and certain types of cryptocurrencies on the exchange. This will include the meme coins, Fan tokens, Non-Fungible tokens and Digital Tokens.
The new law will be effective from 11 June 2021 and the Securities and Exchange Commission of Thailand directed the Digital Asset exchanges to remove the listing of such currencies within the time period of 30 days.
Number of Dogecoin Transactions
Reason Why Thailand banned Dogecoin and other Crypto exchange
The new regulation is focused to protect the interest of the cryptocurrency or digital asset traders as stated by the Thailand Securities and Exchange Commission. The SEC of Thailand had conveyed that the Meme coin has no specific objective or an underlying principle and added that the price of the coin is entirely dependent on the hype created on the social media platforms.
The price fluctuates according to the trend on the social media platforms. Some of the famous examples of meme coins include Dogecoin, Shiba Inu Coin and SafeMoon.
The SEC of Thailand has also conveyed that Fan tokens are just based on the influence of certain influencers in the society and considered them to be unfit for the traders.
The Thailand Securities and Exchange Commission had also mentioned that they have banned the Non-Fungible Tokens that are issued by the Cryptocurrency exchanges or Digital Asset exchanges and also from the related persons known to the traders as exchange tokens.
Non-Fungible Tokens act as a certificate of ownership for the unique Digital art and exchange tokens are offered by the cryptocurrency exchanges to the traders or their users for further investments or transactions.
The Thai SEC had also defined another Norm where the there is a requirement that is imposed in the event that digital tokens that are issued by their own exchange or related persons are listed on the stock exchange.
It was also mentioned that any issuer of the token who would fail to comply with the white paper and the relevant rules will have their tokens being removed from the listed token in the exchange.
As mentioned earlier Thailand is one of the earliest countries to have been laid down regulation on the cryptocurrency market. Earlier China had laid down a set of regulations into the digital asset market which was specifically targeted on cryptocurrency mining which focused on bitcoin.
Conclusion
However, it is seen that the Government of different countries has taken their efforts to tackle down on the cryptocurrencies with a lot of cases coming up against the digital assets. The blockchain technology on the other hand has proved to be really effective and useful for the Governments’. We will have to look forward to knowing what the future holds for these digital assets.
FAQ
Why did Thailand ban Dogecoin and other NFT’s?
Thailand Securities and Exchange Commission stated that they have imposed a ban to protect the interest of the cryptocurrency or Digital Asset exchanges.
Who is the owner of Dogecoin?
The popular meme coin dogecoin was created by Billy Markus, he claimed that he created the crypto in just two hours.
Why is dogecoin called a meme coin?
Dogecoin is often referred as meme coin because it was created as a meme on the popular meme dog Shiba Inu.
The Enforcement Directorate has announced that it has sent a notice towards the largest cryptocurrency exchange of India, WazirX and its directors regarding a money laundering investigation. Let’s look at the information regarding the money laundering case and the amount involved.
On 11 June 2021, the Enforcement Directorate had issued a show cause notice to the largest cryptocurrency exchange in India, WazirX. The notice provided is for going against the law of FEMA 1999 (Foreign Exchange Management Act). The cryptocurrency exchange has been said to be involved in the transactions involving cryptocurrencies which are estimated to be a worth of INR 2,790.74 crores.
The Enforcement Directorate had mentioned in a statement that it had initiated the statement regarding FEMA due to the ongoing investigation regarding the investigation of money laundering which involves various betting online applications that are owned by the Chinese.
Names mentioned in the notice issued to WazirX by ED
WazirX is a cryptocurrency platform that is registered under the company name Zanmai Labs Pvt Ltd. The company was registered in the year 2017 in the month of December as a domestic cryptocurrency startup.
After the completion of the investigation, the central probe agency had issued a notice in which the name of the company and the name of the directors Hanuman Mhatre and Nischal Shetty have been mentioned. The global cryptocurrency exchange Binance had acquired WazirX in the year 2019.
WazirX Trading volume Growth
The Allegations on WazirX
During the duration of the investigation, it was found that the Chinese nationals who were accused of the money laundering case had laundered the proceeds of the crime which is said to have a worth of INR 57 crores.
The laundering of the amount is said to be converted into cryptocurrencies from the Indian National Rupee. The amount was exchanged to the Tether cryptocurrency and was then transferred to the wallets on the Binance Exchange that is registered in the Cayman Islands.
The wallet transaction was expected to be based on the instructions that were received from abroad. The Enforcement Directorate also alleged that the cryptocurrency exchange WazirX also allows a wide range of transactions with cryptocurrencies which include the transactions to the exchanges or INR and vice-versa, peer to peer transactions, exchange of cryptocurrencies and even the transaction of cryptocurrencies that are held in its pool accounts to various other exchanges.
The wallets can be held by anyone who can be foreigners in foreign locations.
What did ED found through Investigation upon WazirX
The ED had alleged that WazirX does not collect any required documents which is a proper violation of the basic mandatory Anti-money laundering (AML). They also added that it was against the Combating finance of terrorism (CFT) norms and also FEMA guidelines.
During the investigation, it was found that WazirX had received cryptocurrencies through its pool account from Binance exchange which had a value of around INR 880 crores and it was also found that there was a transfer of cryptocurrencies from WazirX to Binance exchange which had a value of around INR 1,400 crores. However, these transactions were not recorded on any blockchain and could not be audited or investigated.
The investigation also found that the cryptocurrency exchange WazirX could also transfer cryptocurrencies to people from any location or any nationality even without proper documents which makes it a safe haven for people who are involved in illegal businesses and money laundering. It makes itself a crypto exchange supporting illegitimate activities.
WazirX founder stated on Twitter they didn’t receive any show-cause notice till now from the Enforcement Directorate and they comply with all applicable laws.
1/3
WazirX is yet to receive any show cause notice from the Enforcement Directorate as mentioned in today's media reports.
WazirX is in compliance with all applicable laws.
— Nischal (WazirX) ⚡️ (@NischalShetty) June 11, 2021
Conclusion
WazirX one of the largest cryptocurrency exchange has been alleged for promoting illegal and illegitimate activities through their exchange and even the parent company of WazirX, Binance exchange has also the involvement in the case. The Indian Government has conveyed that they were open to exploring the new technologies like cryptocurrencies for improving their governance.
FAQ
Why did ED issue notice to WazirX?
ED has issued a notice to WazirX, and its Directors Nischal Shetty and Sameer Hanuman Mhatre for alleged violation of the Foreign Exchange Management.
Is WazirX owned by Binance?
Yes, WazirX is owned by Binance and is often acknowledged as the world’s largest cryptocurrency exchange by trading volume.
Who is the CEO of WazirX?
Nischal Shetty is the CEO and Founder of WazirX who founded WazirX on march 2018.
The Anonymous group which is a decentralized international activist has uploaded a video on their YouTube channel aiming at Elon Musk. The new video which was released on 6 June 2021, is considered to be a critical takedown on the billionaire entrepreneur.
Anonymous is a decentralized international activist group and hacker group that is known for its cyber-attacks against governments and organizations have released a video on their YouTube channel which sent a mysterious message to the billionaire Elon Musk.
The Anonymous group is known for its attack against the Church of Scientology. The group has conveyed that the CEO of Tesla, Elon Musk had enjoyed a reputation that was favorable because the world had a desire to live in a world of space exploration and Electric Vehicles.
Anonymous about Elon Musk
Anonymous group has conveyed through the video that the reputation enjoyed by Elon Musk is not deserved by him and added their viewpoints through the video. They have conveyed that the public image that he had been carefully creating has been removed and people have begun to see him as a narcissistic rich dude who is an attention seeker.
They have added that the hunt for saving humanity which is proclaimed by Elon Musk is Naïve and not an actual concern he holds for the humanity. The group has shown the videos of his workers claiming that they have faced certain conditions under him for years which are intolerable and also added that he has children working on his lithium mines. They added that the lithium mines are also harmful to the environment and it damages the environment.
Anonymous on Electric Vehicles and Space Explorations
The Anonymous have also conveyed that Elon Musk has been creating a play in order to gain the power from Governments and installing dictators in the countries where the mining of his products is conducted. They also spoke about a newspaper headline that mentioned crowning Elon Musk to be emperor of Mars.
The Anonymous had also claimed that Elon Musk was not the only person on earth who is working behind space explorations or Electric Vehicles and the competition in the industry has been growing as days pass.
The group had also spoken about the Twitter messages of Elon Musk and conveyed that he was able to grow a fan follower and created a craze by trolling others on social media. They added that all his messages on his Twitter account were nothing other than trolls.
The group had even added that Tesla was not founded by Elon Musk and it was created by people who were much more intelligent than him. They added that Elon Musk had purchased or acquired the company from them and claimed them to be more intelligent than Musk. They mentioned the names of the founders of Tesla which were Martin Eberhard and Marc Tarpenning.
The group added that tesla’s earnings don’t come from selling cars but through the subsidies provided by the government. They also added that the company had earned money by holding bitcoins and criticized Elon Musk for playing games with the cryptocurrency which destroyed the lives of people.
They added that one of the reasons for the growth in the earnings of Tesla was due to the hype created by Elon Musk over the bitcoins.
What is the Reason behind the video by Anonymous?
One of the major reasons for the video is estimated to be the Tweets shared by Elon Musk over the bitcoins. It is considered that Elon Musk had hyped the price of bitcoins by making a lot of his followers believe that the cryptocurrency is valuable and investing in it.
Later the CEO of Tesla had announced that the company would start accepting bitcoins as a payment method for purchasing their cars and after a few weeks, the company and Musk took to Twitter tweeting that the company is no longer going to accept bitcoins as a payment method.
The reason given by Elon Musk for this move was that the mining of bitcoins consumes a lot of energy and it is harmful to the environment. Another point to be noted was that before the announcement Tesla had sold a part of their bitcoins. However, they still hold bitcoins and Elon Musk had conveyed that the company will accept bitcoins as a payment when the mining is done through a sustainable source of energy.
However, Anonymous has claimed against this in the video saying that Musk was already aware of the environmental damage caused by bitcoins and he took this move when he realized that the subsidy that was provided by the government was held as Tesla was harming the environment.
FAQ
Did Elon Musk manipulate Cryptocurrency?
It has always seen that Elon Musk’s tweets has affected bitcoin also bitcoin had a massive crash when he tweeted that Tesla will not accept Bitcoin as a payment.
Who is Anonymous?
Anonymous is a decentralized international activist group and hacker group that is known for its cyber-attacks against governments and organizations
What did Anonymous said about Elon Musk?
Anonymous in a video criticized Elon Musk for manipulating cryptocurrencies and also conveyed that Tesla was not founded by Elon Musk and it was created by people who were much more intelligent than him.
Global Market has been revolutionized through the Blockchain technology. The technology has disrupted the major sectors which include finance, agriculture, banking and health care. Ethereum is one of the largest cryptocurrencies in the market and a lot of decentralized apps and smart contracts have been build using the Ethereum network. Let’s look at what exactly is Ethereum 2.0 and Will it replace Ethereum?.
Ethereum 2.0 is the modified or an upgraded version of the already existing Ethereum blockchain. The main aim of Eth 2.0 is to increase the number of transactions by increasing the scalability and the speed of the previous Ethereum network. Ethereum is known as Eth2 or Serenity and it is the pseudo name for the new version.
As compared to the previous version of Ethereum network, the Ethereum 2.0 has some fundamental changes in its design and structure. The two major changes that were done in the Ethereum 2.0 are sharding and proof of stake.
What is Sharding?
Sharding is a process through which there is a multiple blockchain split through a single blockchain. The multiple blockchains will be known as shards and it would make the entire network of the Ethereum blockchain more efficient.
There will be an increase in the efficiency as the multiple blockchains will be handled by multiple validators which will reduce the workload. The information related to a particular shard will be maintained by a particular validator and there would be regular shuffling between the shards in order to avoid any kind of manipulation between the validators.
The communication and the coordination of shards are conducted and maintained through the beacon chain.
Proof of Stake
In the mechanism of proof of stake, the miners would be replaced with the validators. Their major role would be to validate the transactions by providing storage, computer power, maintaining the bandwidth and proposing new blocks.
The validators will be paid using ETH periodically and in order to reduce the malpractices the validators will have to provide a deposit of 32 ETH which should be locked in and the deposit will be forfeited fully or partially if the validators involve in a malpractice.
Working of the Ethereum 2.0
The most important aspect of the Ethereum 2.0 blockchain is the validators. They are the ones responsible for the maintenance and the infrastructure of the cryptocurrency. Every validator will have two keys with them which are the signing key and the withdrawal key.
Signing Key
In order to perform the work for the blockchain, a signing key is used. The sign in key must be active 24/7 as the validators have 3 main functions which include adding blocks and proposing the blocks to the beacon chain or the shard chain, to report if there are any malicious behaviors from the validators and to attest the validity of the shard chain or beacon chain.
Withdrawal Key
The actions on the funds are controlled by the withdrawal key. There is no necessity that the withdrawal key should be available 24/7 like the signing key. However, the validator needs to ensure that the withdrawal key is secure as it has control over all the funds and that is one of the major reasons why the validator has to lock up 32 ETH in the beacon chain.
However, the validators do not work alone, they work in a group of around 128 validators as a committee.
Price of Ethereum 2.0
Difference between Ethereum and Ethereum 2.0
The Ethereum and Ethereum 2.0 have a major difference in the mechanism they work on. Ethereum works on the mechanism of miners, where they have to solve a puzzle to record a transaction and whoever solves the math puzzle first will record the transaction, it is called proof of work. Whereas Ethereum 2.0 works on the basis of proof of stake where the validators record the transaction.
Ethereum consumes a lot of energy as it requires a high amount of computer power but Ethereum 2.0 uses a comparatively lesser amount of energy.
Price Predictions of Ethereum 2.0
There are a lot of price predictions related to Ethereum 2.0 PrevisioniBitcoin has predicted the price to be around USD 4740 for the year 2022. Coinpedia, Longforecast and Coinpriceforecast have predicted the price to be around USD 8000.
However the highest prediction is that of Brian Shuster who is the CEO, president and chairman of several companies. He predicts the price of an average single coin of Ethereum 2.0 to be around USD 100,000 and expects a market cap of 10 trillion which is that of gold.
When will Ethereum 2.0 launch?
The Ethereum network is already the second largest in the cryptocurrency market with around more than 1,400 Ethereum projects being built. The launch of Ethereum 2.0 will be in stages and is expected to be in the market by the year 2022.
The Eth 2.0 however has a lot of advantages and a higher scalability option compared to the Ethereum network and it is expected to increase the interest of the investors in the coming years.
Conclusion
Ethereum 2.0 is considered to be much more secure than the Ethereum network and will be faster as it is expected to have a transaction of around 10,000 per second. The Ethereum 2.0 will concentrate on building more projects.
FAQ
When will Ethereum 2.0 launch?
A full scale launch of Ethereum 2.0 is expected till 2022.
Will Ethereum 2.0 replace Ethereum?
No, Ethereum 2.0 will not replace Ethereum but It is an upgraded version of Ethereum.
Will Ethereum 2.0 affect Ethereum price?
The value of ETH goes up and down every day so its unclear to say Ethereum will affect the price or not.
Alan Joseph
