Do Cryptocurrencies Need Rebranding?

16 Jan 2018 Uncategorized

Let’s face facts: cryptocurrencies have come a long way in a relatively short period of time. Even Bitcoin, which remains the poster boy for digital currency and has endured numerous peaks and troughs since its inception in 2009, is now a fully-regulated asset class that achieved a market capitalisation of $96.7 billion during the final quarter of 2017.

This was higher than both Goldman Sachs and Morgan Stanley during this period, while it highlights precisely how far cryptocurrency has come in a little over eight years.

Despite this, it can be argued that the image of Bitcoin and digital currency as a whole has not evolved at the same pace. This suggests that the time has come for cryptocurrency to be rebranded, so that users and potential adopters focus on its benefits and incredible possibilities rather than what has come before.

Then and Now – How has Cryptocurrency Evolved

Let’s start by recognising the chequered past of cryptocurrency. In the beginning there was only Bitcoin, and this unregulated currency was quickly adopted by criminal on the black market. As it became the unofficial currency of choice on the notorious Silk Road, investors sought flight while regulators from across the globe pledged to crackdown on the distribution of Bitcoin and its usage.

You don’t need to be a student of modern history to know that Bitcoin survived this, however, thanks to the implementation of stringent (but fair) regulatory measures and caps on the value of single transactions. The currency has also relied on its immense potential during dark and difficult times, enabling it to blaze a trail for others to follow in recent times.

Cryptocurrency continues to court controversy, of course, even as it has evolved and benefited from brand new applications. Most recently, the process of mining Bitcoin was presented as a potential risk to the environment, with experts suggesting that this consumed up to 32 terawatts of energy each year and will account for more as demand rises.

While this claim is factually true, it should not cast cryptocurrency in a negative light or detract from its immense potential in the future. Sure, there’s need for the mining process to be managed and adapted so that it does not consume as much energy in the future, but this is part of an evolutionary process that will bear fruit as the demand for Bitcoin rises.

Why, and how, Should Cryptocurrency be Rebranded

As we can see, there remains a resistance to the mainstream adoption of cryptocurrency in the modern age. This may simply be the result of the human mind’s in-built struggle with change, which prevents many from considering the benefits and potential applications of assets such as Bitcoin. Instead, they fall back on familiar and often outdated observations, such as the complex nature of cryptocurrency and its historic connection with crime syndicates.

This is where a sustained and consistent rebranding process would come into play, as the only way to sell the virtues of cryptocurrency is to change how it’s perceived by the general public. This would move away from the past issues experienced by digital currency and its perceived flaws, and instead encourage citizens to focus on its promising future and the practical benefits that it can deliver.

More specifically, innovators and adopters need to sell the most compelling benefit of cryptocurrency, which is its ability to wrestle control from central banks and create a more level playing field for households, consumers and investors alike. Cryptocurrencies are decentralised by nature, for example meaning that there’s no central body of control. As a result, digital currency transactions are unequivocally transparent, while they also negate the need for users to pay inflated interest rates or commission fees on their purchases.

This has a huge number of positive connotations, particularly for investors. As anyone who trades the forex market knows, individual transactions often require you to pay a brokerage fee or commission. Cryptocurrency would eliminate this fee, making this sector more lucrative and accessible to a wider range of people.

Beyond this, there’s even talk of the cryptocurrency Ethereum being used to power the world’s first, zero-house edge casino, which would allow gamblers to enjoy totally transparent gameplay on a level playing field with operators. This type of ground-breaking application offers a true insight into the widespread benefits of digital currency, while it also provides tangible evidence of its ability to restructure the financial landscape for the better (at least from a consumer perspective).

The Technology Behind Cryptocurrencies Like Bitcoin

16 Jan 2018 Blog

You’ve no doubt heard the buzz about Bitcoin. In fact, it has been difficult to avoid. And you’re probably wondering: how does it work? Or you might know more than your fair share about bitcoin, but would like to know how the rest of the cryptocurrency world operates. Either way, this guide is for you.

Because our focus is on all things digital, we’re going to dig a little deeper and do our best to explain what really goes on inside the top cryptocurrencies. So, let’s begin.

Bitcoin

The great grandparent of most of the cryptocurrencies in operation today, Bitcoin started life way back in 2008 (the stone age as far as cryptocurrencies are concerned) and is based on a paper authored by its creator Satoshi Nakamoto. Among other milestones, it is the first decentralised digital currency – meaning that it doesn’t require a bank or any other type of administrator.

Its peer-to-peer transactions take place directly between users and are verified by network nodes, which are computers connected to the bitcoin network. These transactions are then recorded in a public ledger known as the blockchain – a term familiar to anyone with a passing interest in Bitcoin. The coins themselves are created during the record-keeping process known as mining, which uses vast computer processing power to ensure that the blockchain is consistent and complete.

This revolutionary currency is used for the purchasing of goods and services, but where it is really making waves is among investors. For traders who want to invest directly there are the digital currency exchanges. More recently, Bitcoin futures markets have opened up. It is also possible to trade Bitcoin derivatives using a full-service brokerage firm.

Bitcoin Cash

Dating back only to 2017, Bitcoin Cash came out of a hard fork (a rule change not considered valid by older software) from Bitcoin which increased the block size limit from one megabyte to eight megabytes. What this change means is that Bitcoin Cash is a separate currency and not to be confused with Bitcoin. Upon launch it actually inherited the transaction history of Bitcoin, but from that point on all transactions have been separate. Bitcoin Cash has been widely adopted by digital currency exchanges and is frequently traded.

Ripple

Perhaps the second biggest name in cryptocurrencies, Ripple is a real-time global settlement network embraced by individuals and many larger banking institutions. The way it works is through a consensus ledger which doesn’t need mining.

Users make payments using encrypted signed transactions in either fiat currencies (such as the Euro) or Ripple’s internal currency called XRP. At first trust was required when it came to including fiat currencies, but Ripple is now integrated with various banking services and verification protocols. When a non-XRP payment is accepted, the system adjusts all along the network to record it – and this is what is known as ‘rippling’, the process which gives the currency its name.

Dash

This cryptocurrency started life in 2014 as ‘Darkcoin’, a more secretive version of Bitcoin. Even after being renamed it still offers users anonymity by working on a decentralized Masternode system which makes transactions almost untraceable. As with Bitcoin, miners are required to create new blocks, but on a level above them sit the Masternodes, which handle the transactions. This two-tier format is one of the reasons for the cryptocurrency’s success, but there are many other features which set it apart, including its Decentralised Governance by Blockchain (DGBB) system which allows operators to reach a consensus on issues such as proposed network changes.

Dogecoin

This may seem like a frivolous entry in the list, but Dogecoin has really taken off. It was launched in 2013 as something of a joke, with its symbol featuring the image of a dog popularly used in internet memes. However, it has since gained traction with the public as it is frequently used as an internet tipping system. It is also popular across social media, with a variety of Dogecoin-based initiatives (such as funding the Jamaican Bobsled Team and working to put a Dogecoin on the Moon) really capturing the popular imagination. When it comes to the tech behind it, one of the most important things to know is that unlike with Bitcoin and others, the supply of Dogecoin will remain uncapped.

This is just a short look at how some of the world’s biggest cryptocurrencies operate, but if you want to look deeper into the tech involved, it’s worth reading more. You could also simply follow the news, because cryptocurrencies are constantly grabbing headlines.

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