Second and Final Part
Anand Mokashi
Regulatory and Social Concerns
Cryptocurrency, a quicker, cheaper, and more reliable form of worldwide payment than fiat money, is not tied to any country.
Users can “mine” cryptocurrency themselves, if they (and their computers) have the ability. Anyone can buy and sell the cryptocurrency through online exchanges, reselling websites, person-to-person and so on.
These have the potential to become a threat to the society.
Transactions using these altcoins are independent from formal banking systems, and therefore could make tax evasion simpler for individuals.
Governments worry about cryptocurrencies becoming a tool for anonymous web criminals potentially enabling criminals who seek to evade taxes and launder money.
Further exacerbating this concern is that tracking taxable income depends on what a recipient reports to the revenue service, making it difficult to account for transactions made, a mode of exchange that is complex (and in some cases impossible) to track.
The new player threatens
Cryptocurrency markets have new players entering regularly.
A quick look at www.coinhaunt.com will provide a list of most of the currently traded altcoins and their prices. Where are the markets headed? Where should one invest?
I have no idea. However, I am aware of the market whispers.
At press time, the market appeared to lean towards Ethereum as the next big thing that can potentially overtake Bitcoin. Ethereum’s main point of differentiation is the ability to leverage the application of ‘smart contracts’ within its code.
While the underlying currency, Ether, appreciates and depreciates in value, Ethereum’s value is largely driven by its increased utility and ability to eventually eliminate third parties’ involvement in determining contractual obligations (D’Alfonso et al Ryerson University, Oct 2016.)
Other cryptocurrencies closely monitored by enthusiastic followers are Litecoin, Stratis, Siacoin and Monero.
Expert comments
US Senator Thomas Carper said, “Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.”
Caleb Chen of the London Trust Media said, “In the next few years, we will see national governments take large steps towards instituting a cashless society where people transact using centralised digital currencies.”
Cryptocurrency Entrepreneur Erik Voorhees said, “It is that narrative of human development under which we now have other fights to fight, and I would say in the realm of Bitcoin it is mainly the separation of money and state.”
American author and speaker Sarah Granger said, “While it is still fairly new and unstable relative to the gold standard, cryptocurrency is definitely gaining traction and will most certainly have more normalised uses in the next few years.”
Apple Inc Co-Founder Steve Jobs said, “The ones who are crazy enough to think that they can change the world are the ones who do.”
Disclaimer: The above article does not constitute any type of financial and/or investment advice. Anand Mokashi is an IT Lecturer and a passionate Netizen. He is not a Registered Financial Advisor or a legal professional. Please seek proper legal and financial advice before dealing with cryptocurrency. He and Indian Newslink absolve themselves of all responsibilities and liabilities in this connection.
Email: anand_mokashi@consultant.com
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Photo Caption:
Ethereum, the new currency high on the cyberworld
(Image Courtesy: Venturebeat.com)
