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CEO of the world’s largest cryptocurrency said that financial assets like cryptocurrencies only come along once in a generation

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  • Grayscale Investments CEO Micahel Sonnenschein said that financial assets like cryptocurrencies only occur once in a generation.
  • Now that the “genius” is out of the bottle, Sonnenschein believes that multiple digital currencies will grow and thrive side by side in the future.
  • In his opinion, the regulation will be good and validate against cryptocurrencies as an asset class.

Grayscale Investments is the world’s largest cryptocurrency asset management company. And their Chief Executive (CEO), Michael Sonnenschein, believes that it is too late to put the proverbial crypto “genius” back in the bottle.

“Crypto is kind of analogous to … The genie is out of the bottle, right,” he told Business Insider during a Twitter Live.

. @ ashwinraghunath in conversation with @Grayscales Michael Sonnenshein (@Sonnenshein) & @WazirXIndias Siddharth M… https://t.co/PeIXYnDHPt

– Business Insider India (@BiIndia) 1624620600000

Grayscale had more than $ 30.4 billion in assets under management as of July 1, with the bulk of the basket being Bitcoin. And Sonnenshein, who runs the company behind the world’s largest crypto fund, is betting big. He believes cryptocurrencies are not going anywhere anytime soon. “The idea of ​​decentralized currency is something that will stay, it’s an idea that has intrigued investors all over the world,” he said.

Sonnenschein argues that crypto is in no way a “missed bus”. According to him, new financial assets are only created once in a generation, and cryptocurrencies are still in their infancy. “For an investor, it’s about the value that is being created,” added WazirX co-founder and Chief Operations Officer (COO) Siddharth Menon.

Here are the 12 best quotes from Sonnenschein from the interview, slightly edited and condensed for clarity:

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  1. Most would argue that crypto is similar to … The genie is out of the bottle, right? It’s here to stay The idea of ​​decentralized currencies will remain. It is certainly something that has caught the attention of people all over the world.
  2. From the investors we speak to, there is no question for them that cryptocurrency will persist as an asset class. With that in mind, they want to make sure they are paying attention to the asset class, understanding it, and then finding the right allocation for it.
  3. If you zoom out, cryptocurrencies only really got their start in the last 10-12 years. New asset classes are not born every day or every year. They are usually a once in a lifetime opportunity. So if people remember how young this asset class actually is, there is still the potential for a lot more use cases to be developed, more individuals and investors involved, and a lot more utilities to be tapped around the asset class for sure.
  4. Sometimes people reject Bitcoin and other cryptocurrencies because of their accessibility. When you look at places like India, you have Paytm and all these other ways that value moves. While Bitcoin is very different. The way digital currencies are moved is done in different ways – through these secure networks that require a little more technological know-how. As the asset class evolves, the ease with which individuals can move Bitcoin is only getting easier.
  5. El Salvador is only the first of many governments to fail to do the best job controlling their currency or to have to rely on reserve currencies like the U.S. dollar – which could consider Bitcoin and other value mechanisms to help their citizens participate in their economies.
  6. There is a very low barrier to entry to create new cryptocurrencies. And that’s why we have so many of them today. We certainly believe in a world where multiple cryptocurrencies coexist. If you look at gold versus silver versus platinum – all of them belong to the precious metals family with different use cases, prices, and addressable markets. Similarly, we’re going to see what looks like this in digital currencies, where multiple digital currencies thrive and grow together, but are suitable for different use cases.
  7. We have seen both responsive and prohibitive policies around digital currencies. Much of this is rooted in knee-jerk reactions to trying to get ahead of what is going on – to stifle some of the excitement and excitement.
  8. It’s a very powerful idea – the idea of ​​people using currencies that were not created by the government – so I’m not surprised to see some of these prohibitive guidelines. But ultimately, I know that some of those countries that are more forward-looking – that want to embrace technology and innovation – will bypass digital assets like Bitcoin, Ethereum, and others.
  9. Many people still think that digital currency or bitcoin is a good use for illegal activity. In fact, it’s probably the worst mechanism you can use for any illegal activity. Every transaction you make in Bitcoin leaves a trail of breadcrumbs.

10. Many investors have rejected cryptocurrencies because they don’t understand them. Assets like Bitcoin are not necessarily cash flow assets as they can appear when investing in common stocks. It doesn’t really fit as a commodity or currency. And so it combines many concepts that investors are familiar with. 11. It wouldn’t surprise me to see people keep thinking about their local currencies and what that could mean for their ability to save money, pass money on to the next generation, fund a business, fund education, etc. Bitcoin and other assets helping them become part of financial inclusion. 12. U.S. regulators are looking for some degree of maturity in the crypto market – a market that can be tamper-free and where they can have agreements to share surveillance. And ultimately, more regulation will be good and validating for this asset class.

For a more in-depth discussion, visit Business Insider Cryptosphere – a forum where users can dive deeply into everything related to crypto, have interesting discussions, and stay up to date.

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Cryptocurrency

Afghans Embrace Cryptocurrency Amid Financial Crisis

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In view of currency bottlenecks and bank closings, the Afghans are relying on cryptocurrency as security

* Afghans take cryptocurrency as a currency crash

* Crypto is particularly beneficial for women and people without a bank account

* Growing acceptance in failed or poorly governed countries

By Rina Chandran

(Thomson Reuters Foundation) – When Roya Mahboob started paying her employees and freelancers in Afghanistan with Bitcoin almost 10 years ago, little did she know that the digital currency for some of these women would be the ticket out of the country for some of these women after the fall of Kabul in August.

Mahboob, who co-founded the non-profit Digital Citizen Fund with her sister, taught basic computer skills to thousands of girls and women in their centers in Herat and Kabul. Women also wrote blogs and made videos that were paid for in cash.

Most girls and women didn’t have a bank account because they weren’t allowed to or because they didn’t have the documentation, so Mahboob used the informal hawala broker system to send money – until she discovered Bitcoin.

“It wasn’t feasible – or safe – to send cash to everyone, but mobile money wasn’t used as widely and options like PayPal didn’t exist. Then we heard about Bitcoin, ”Mahboob, 34, told the Thomson Reuters Foundation.

“It was easy to use, cheaper, and safer than other options. So we taught the girls how to use it and started paying our staff and contributors – we told them it was an investment in the future, ”she said.

About a third of the nearly 16,000 girls and women who learned basic computer skills at Mahboob’s centers also learned how to set up a crypto wallet and receive money – and, if they felt like it, how to trade and invest in Bitcoin and Ethereum another major cryptocurrency.

Several of these women left the country after Kabul was captured by the Taliban on Aug. 15, and some used their crypto wallets to withdraw their money, evacuate their families and settle in new lands, Mahboob said.

Cryptocurrency adoption is growing rapidly around the world, with El Salvador becoming the first country to adopt Bitcoin as legal tender last month, despite fears of excluding the poor of nations.

Even if major institutional investors have pushed Bitcoin to record highs this year, it is increasingly being adopted by those without access to the formal banking system, by those in conflict zones or in countries with poor governance, technology and financial experts.

“In failed or challenged states, it gives people an opportunity to support family members,” said Keith Carter, associate professor at the National University of Singapore School of Computing, citing Venezuela, where people bought essentials with Dogecoin after the local currency had gone into free fall.

“Cryptocurrency goes, if at all, where there is a lack of digital infrastructure and promotes the development of the infrastructure through the increasing demand for digital services,” he said.

‘GOOD OPTION’

Cryptocurrencies are shifting from the edge of the financial world to the mainstream, with large investors, corporations, and even countries adopting them as an asset and routine currency.

But it is precisely in countries like Afghanistan, where the majority have no bank accounts, where banks are closed for a long time and the currency has taken a nosedive, that their most passionate fans appear.

Like 22-year-old Farhan Hotak, who helped his family escape to Pakistan from the southern province of Zabul, he then returned to monitor his home and post vlogs on Instagram about the developing situation for his more than 20,000 followers .

Hotak got into cryptocurrency around 2019, he said after hearing about the huge profits that could be made with Bitcoin. With last year’s lockdowns to contain the coronavirus pandemic, he was online most of the time and started investing.

He made quick profits at first, then began following crypto users elsewhere and investing in newer coins like Matic, XRP, and xHunter.

“It’s a good option for me and for others like me,” said Hotak, who posted vlogs about crypto on his Instagram account and was also interested in his friends.

“I would like to set up a crypto course for Afghans – help them understand it better so that it can help them. In the meantime, I’ll be talking about crypto in every province I visit, ”he added.

While advocates of cryptocurrency point to benefits including as a hedge against political uncertainty, hyperinflation, and a way to send remittances without commissions or brokers, governments remain cautious, and China banned all crypto-related activity last month.

Researchers at the University of Technology Sydney found that almost half of all Bitcoin transactions from 2009 to 2017 were related to buying and selling illegal goods and services, with about one in three users involved in such activities.

While a report by research firm Chainalysis showed that the criminal share of all cryptocurrency activity fell from 2.1% in 2019 to 0.34% of total transaction volume last year.

Despite the challenges, the cryptocurrency has provided a lifeline for Mahboob and her former students, as well as for the growing user base of mostly young men in Afghanistan.

“I think now – why didn’t we teach more aggressively about crypto so that more Afghans have crypto wallets and can now access their money,” said Mahboob, who was named Time Magazine’s 100 Most Influential People in 2013.

“The human traffickers and kidnappers will always find a way to abuse a system. But the power of crypto is greater – especially for women and those who don’t have a bank account, it is very beneficial and so empowering, “she said.

Reporting by Rina Chandran @rinachandran; Adaptation by Zoe Tabary. Credit to Thomson Reuters

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Cryptocurrency

All you need to know about smart contracts

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NEW DELHI: Smart contracts are the new technological favorites in the crypto world.
Top cryptocurrencies like Ethereum, Cardano, Polkadot and Solana have adopted them to improve their performance and competitiveness.
How do contracts help you achieve all of this? Here are some essential technical facts ”
What are smart contracts?
Smart contracts may sound like a new kind of technology, but they have been around since 1994 when Nick Szabo, an American computer scientist, developed them with the idea of ​​self-executing digital code in mind.
Basically, these are computer programs that run on blockchain and that execute contracts or agreements if the contracting parties agree on the specified conditions.
These terms are the terms of the agreement between two or more unknown parties. The best part is that executing a contract doesn’t require any paperwork or intermediaries.
Activities such as exchanging funds, stocks, valuables and even property are intelligently carried out between the parties after the requirements have been met with the help of technology. However, transactions with smart contracts are irreversible or immutable.
How does the technology work?
To understand how the technology works, it is important to understand three crucial components of smart contracts. These are the signatories, subjects, and terms.
* Signers are simply the parties who sign the contracts after agreeing to mutually agreed terms, which include the process that follows after the contract is executed.
* The subject matter is the ownership or rights over the transaction of goods and services that the party who bought or acquired a certain value receives after paying a certain amount in cryptocurrency.
Smart contracts work with the if this / then the language that is coded in the blockchain. This means that when the necessary conditions are met, the mutual agreement is automatically enforced through computer codes.
Advantages of smart contracts:
* Smart contracts are inexpensive as there are no paperwork and fees involved in initiating the process.
* You save time as there is no need for complex administrative and official processes.
* You eliminate the need for third parties or intermediaries who grant the parties great independence and decentralized platforms.
* You are efficient and trustworthy with traceable transactions and technology that consistently duplicates the documents to rescue in case of data loss.
Other uses of smart contracts:
Smart contracts are popularly known for being used in cryptocurrencies and the DeFi world. But they are also used in other areas:
* Health – It is used in health insurance to securely record the insurance amount and insurance policy, which are automatically activated and reach the hospital when the patient needs them for a medical procedure.
* Insurance – Used here to prevent fraud and to link the customer directly to their insurance contract.
Fizzy, a flight delay product launched by French insurance company AXA, automatically pays customers for a flight delay of more than two hours.
* Trade – It can be used as a substitute for manual laborious work, such as
However, smart contracts are not immune to cyber vulnerabilities, some of which are:
* Denial of Service – Repeated attacks result in the shutdown of services for the users.
* Random Access Memory Exploitation – This involves the occupation and blocking of RAM, which discourages users from using RAM-based operations.
In order to prevent such errors in the contracts, the best programming language should be used to write the smart contracts on the respective blockchain. Ethereum, for example, prefers the Solidity computer language, while NEO uses JavaScript.
(For the latest crypto news and investment tips, follow ours Cryptocurrency page and for live price updates for cryptocurrencies, Click here.)

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Cryptocurrency may be tender of choice in future, but is risky investment now | Opinion

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Cryptocurrency is taking the nation by storm, with digital currency attracting the attention of large companies and meme traders trading based on popular internet trends. Some financial advisors advise their clients to buy in, while others are not as optimistic.

Although crypto is likely to grow in importance in the future, it currently remains a risky investment as it is too unstable and overshadowed by many uncertainties.

Crypto was developed as a payment method that can bypass traditional banking systems. New crypto is created through mining, a process by which computers solve difficult math problems. There are thousands of flavors of crypto, but Bitcoin is dominant, taking almost half of the market share.

One problem with cryptocurrency is that certain coins are available indefinitely, which means that an infinite amount of crypto could be mined at infinite time. This has led to inflation in the crypto markets, which can also happen with physical currency.

This problem alone is not enough to warrant a hold or sell rating, but what is even more worrying is that cryptocurrencies are being propelled by meme trading. This trading style is named after an online community of merchants who have gathered around “stonks” like GameStop and AMC Entertainment Holdings who have supported low-value companies through the Reddit site r / wallstreetbets.

When meme traders focus on one company, they are quick to invest to drive the stock price higher. Then, when the stock appears to have peaked, investors quickly sell their holdings in a process known as “pump and dump”. This type of trading is detrimental to the markets and can result in significant losses for both large companies and individual traders. Crypto has become a preferred investment for meme traders, making it riskier and less reliable.

Another factor to consider before investing is how quickly crypto values ​​can go up and down. When Elon Musk tweeted about the Dogecoin cryptocurrency, the price fluctuated sharply. This is a bad sign for cryptocurrency coins because if negative news got out about them, their prices could go down and the investment would be lost.

Some companies are optimistic about crypto as an investment, including the El Salvador government, which introduced Bitcoin as its national currency. The move showed that cryptocurrencies are likely to be widely used in the future, but it also highlighted some of the risks associated with investing at this early stage.

When El Salvador started using Bitcoin, the government had to take its e-wallet offline for several hours when the server was overloaded, which revealed a bug in the system. Crypto is only good if it can be used, and if the servers are overloaded it cannot be used. In the future, this problem could be resolved, but until then, crypto is still an unreliable and dangerous investment.

Another major problem with crypto platforms was uncovered when they mistakenly gave users nearly $ 90 million worth of various crypto coins during a routine update in late September. The error was caused by a bug in the computer code and prompted the workers to recover the lost coins.

Both incidents show that this technology is too new and unreliable to be a safe investment. There are thousands of other investment options with far less risk and almost the same return, including stocks and options.

For now, investors should stay away from crypto, but it will become a viable investment in the future. Technology is improving rapidly and culture is changing. One day cash may be a thing of the past and crypto may be the king of currencies, but that day is not here yet.

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