The very well known and in charge of the crypto-payment startup Abra – Bill Barhydt, optimistically predicts that better days are coming for the very famous crypto-phenomena while riding the wave against the various reports on bitcoin’s death.
During an for Business Insider, Bill Barhydt stated that the same gold-craze and hype that did run over the crypto-market back in December last year will return soon enough and the bearish sentiment will be broken soon enough.
The reason to support his opinion is that billion-dollar hedge funds and institutional investor have still not stepped in but did decide that the asset is very worth investing and their time.
“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. He added: “Once the floodgates are opened, they’re opened.”
Cryptocurrencies exploded in popularity and price before Christmas but the market has declined in size from over $800 billion at its peak in mid-December to $300 million today. Leading cryptocoins felt it very heavily with Ethereum dropping to the level of $383.38 against the US Dollar, Ripple testing the major $0.50 support before declining even further while Litecoin [LTC] is nearing the important $100 [$115.82 LTC/USD per time of writing].
While a half percent investment would fail to reshape the market, which accounts for more than $134 billion, it would be enough to instill confidence in the minds of cryptocurrency observers. Barhydt pointed out that some Japanese financial institutions began investing in crypto at the end of last year and that was partially behind the price rally at the time.
“There really is zero large-scale institutional money from the west in crypto right now,” Barhydt said. “That is happening in Japan. Once a large sizable chunk of Western institutional money starts to come in – watch out.
If only individual investors with some Japanese financial institutions hoisted the prices to rocket to all-time highs which were only dreams once, what will happen if the action of a far greater collective rise of European and American financial institution investment is taken in account.
Barhydt said institutional investment in assets like bitcoin or ethereum will create a “halo effect” for the wider crypto market and he said: “That’s going to happen this year I think.”
The post appeared first on .
Although there has been a growing amount media attention given to cryptocurrency, there is still a lack of understanding over how to best define it in the mainstream. Technically speaking, in terms of blockchain, cryptocurrency is a unit which can be programmed and attached to a blockchain as part of a smart contract.
Beyond that, a token (cryptocurrency unit) is just another form of privately issued currency. While governments issue currency and therefore set the terms of use, blockchain allows for new organizations to issue their own forms of cryptocurrency and set unique rules around its use. This then creates self-sustaining min-economies, also known as ‘token economies.’
One weakness of token-based models is the way through which they interact with the business models laid beneath them.
With greater focus put on designing ICO’s to be optimal for token economies, the usage of such currencies and the relationships formed by these transactions will be of greater importance than the way that underlying economics structures are designed. In other words, although an ICO can launch successfully, the long term health of its particular economy depends on how well its business model functions.
All token-based economies depend on each party interacting with one another in a manner which is in accordance with the rules of that community. Owning tokens gives one rights, such as having a say in its value, access to the marketplace and any associated products. Some tokens will allow participants to have part ownership in a company and others may be purchased and exchanged for proprietary goods.
In some instances, a company may encourage a pay-per-use model in order for users to use the product or jump onto the blockchain. This may entail using smart contracts to purchase products, transaction fees or paying for such things as a security deposit on tokens or a wallet.
Generally speaking, a token enables transactions to be secure and easily verified within closed environment. Companies can set up their own methods of payment processing and completely avoid the costs of using traditional financial institutions.
Taken as a whole, while tokens may be a relatively new form of currency, but their use is changing the way people do business and interact with one another making understanding them a critical component of success for businesses of all sides and in every industry.
BLMP ©2018, Singapore
BLMP (Blockchain Licensing Marketplace) is a blockchain technology company working to remove obstacles and facilitate trust in the complex issues surrounding Supply Chain Management transactions in the virtual goods industry.
BLMP Network uses blockchain technology to connect digital platforms around the world with global brands to monetize officially licensed virtual goods across any digital platform; from games to streaming services & social media, allowing millions of users access to a whole new world of branded virtual products.
Contact us:
