Category: Bitcoin

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Active and unique address from Ethereum present a threat to Bitcoin

Categories Blockchain, Cryptocurrency, Bitcoin, Ethereum

Active and unique address from Ethereum present a threat to Bitcoin

Ethereum is, in terms of market cap, the second-largest cryptocurrency in the world as well as claiming more unique and active addresses than its main competitor, Bitcoin.

Since December 2017, Ethereum has almost doubled in size and the Ethereum network is now host to 35 million unique addresses with an incredible 100,000 being logged each day.  There is no doubt that these figures are pretty impressive but the growth of Ethereum nonetheless stands in the shadow of its previous all-time high of around 300,000 new addresses during January 2018. Since then it has tapered off as we moved into Q2 but its overall growth trend has not declined.

A blow to Bitcoin

Whilst its growth does deal a bit of a blow to Bitcoin, it’s important of these figures only apply to on-chain transactions. Those users that choose to make use of a centralised exchange such as Binance or Coinbase, often avoid using addresses entirely and are therefore not represented in the figures.

However, just because there are 35 million unique addresses, this does not mean that there are 35 million active users. Those that use the Ethereum network can have multiple addresses for the execution of smart contracts or transactions.

The number of unique addresses

To get a more accurate idea of user numbers we should consider looking at the number of active unique addresses as well as the number of transactions per day. This may allow us to paint a more accurate picture of the total number of true users as this would pertain to the number of wallets that are actually sending and receiving assets in any given day.

Using these metrics, Ethereum is still number one with an impressive 513,000 addresses compared to Bitcoins 443,000. It also soars ahead in terms of transactions with 832,000 compared to BTC 209,000.

The Flippening

Some say that these figures could be marking the beginning of something that is referred to as ‘the Flippening”-  a term coined by the cult-like internet community that firmly believes Ethereum will dethrone Bitcoin in the near future.

Whilst most of this community consists of staunch backers of ETH, there could be some truth in their predictions. Recently Roger Ver, a prominent BTC investor and advocate said that he has every reason to believe that Ethereum has the potential to overtake Bitcoin by the end of 2018. Whilst this is just speculation, the numbers are difficult to dispute. Whilst the market cap of Ethereum only consists of around 44.7% of Bitcoins $167billion, it is undoubtedly outpacing the original ambition of blockchain technology.

 

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Contact us directly on +356 20103020 or by mail at [email protected] to find out more.

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Doing business in Africa to be simplified using Bitcoin

Categories Economy, Blockchain, Cryptocurrency, ICOs, Bitcoin

Doing business in Africa to be simplified using Bitcoin

Despite what some of the critics say, Bitcoin has the ability to make a truly positive impact on the financial industry. A start-up called BitPesa is doing its best to infiltrate this tricky economy and to disrupt the African financial cycle by introducing Bitcoin-based solutions.

The African market is one of the global leaders when it comes to remittance transfers. Many Africans travel abroad for work and send a percentage of their earnings back home. This business has boomed over the last decade and companies such as MoneyGram and Western Union are leading the market across the board.

Remittance providers far from perfect

Despite their incredible popularity and slice of the market share, these remittance providers are far from perfect. More often than not, users need to travel hours to pick up their money and the fees that are associated with transfers can be expensive, especially to those in a third world country. In other words, the price that these people pay for convenience is quite steep and many have an issue with the fact that these firms are profiting from the desperation and poverty of millions.

This is where Bitcoin and other virtual currencies come in. The fact that cryptocurrencies don’t recognise borders and have no requirement for an intermediary means that they are a super cheap and efficient equivalent. Companies such as BitPesa are definitely in the right place at the right time but there are still challenges and setbacks that they will need to overcome before they can compete with the more established players.

Bitcoin paving the way

BitPesa uses Bitcoin as a way of settling between different brokers. Unlike fiat currencies, using Bitcoin can remove friction and offer a much higher degree of liquidity in the African market. By embracing the truly decentralised nature of this new technology, BitPesa is proving just how useful Bitcoin can be in the future.

Whilst the volatility of Bitcoin is something of a thorn in its side, there are certain African currencies that experience similar if not higher levels of volatility. The CEO of BitPesa, Elizabeth Rossiello recently stated how Bitcoin can be easily purchased and sold within a matter of moments and on demand. Due to this, the issue of its volatility is not such a big deal as many make out.

BitPesa aims to help out local individuals and businesses by using Bitcoin. By offering a solution to the friction that is traditionally associated with conducting business on the African continent. BitPesa certainty has their work cut out of them but the potential that Bitcoin and other cryptocurrencies have for Africa are too great to be ignored.

 

Interested in Learning More about ICOs Legislation in Malta? Contact us directly on +356 20103020 or by mail at [email protected] to find out more.

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Can you pay your staff with Bitcoin?

Categories Blockchain, Cryptocurrency, Payments, Bitcoin

Can you pay your staff with Bitcoin?

The world of cryptocurrencies is going from strength to strength and it is becoming more obvious that it has the potential to substantially disrupt the way we live our lives. With governments now jumping on the bandwagon and a huge under-the-table -payment process for freelancers, many are wondering- is it legal to pay employees or freelancers with Bitcoin?

The simple answer is “maybe”. The IRS in America considers and treats Bitcoin like property and there is every possibility that the Department of Labour will not consider it in the same way as the American dollar. This means that if you pay your staff with Bitcoin or another cryptocurrency, there is the likelihood of you getting into trouble for not paying them the minimum wage. This would apply in any jurisdiction where the definition of cryptocurrencies and whether they are a security, a currency, or property, is something of a grey area.

There are however tax issues to take into account if you do decide to risk it. First of all, you need to be aware that as crypto coins are considered property by the government, you need to file for them as such. This will also depend on how your coins were acquired.

What does the future hold?

Even with these issues, the concept of cryptocurrencies fulfilling the role of a proper form of payment is not unrealistic and it could be on the way quicker than we think. Companies such as Ecobank have managed to amass over 3 million clients in just 6 months- a clear indicator that regardless of the governmental standpoint on such coins, the tides are continuing to turn.

The truth is that the overall implications and the potential of such technologies truly transcend borders and eliminate the divides that exist between human beings. Companies such as Bitwage and Unocoin are working hard for cryptocurrencies to become the new means of international payment, and with no issues like hefty transaction fees or sky-high conversation rates, it is not hard to see what the attraction is.

The impact that cryptocurrencies are having on our culture is impossible not to notice. Governments, corporations, and stakeholders from almost every sector are beginning to use blockchain technology for a wide range of purposes. Financial companies such as Quickbooks have even started creating new ways for cryptocurrencies to be able to be included in invoices. Not only is cryptocurrency tech being used, but it is being developed, evolved, and innovated on to make other systems more efficient. There is no doubt that it is just a matter of time before all currencies are treated in exactly the same way

How will it happen?

Quite simply, the systems are not quite in place to be able to take a final decision as to whether cryptocurrencies can be considered as actual currency or not. This means that by paying your staff with Bitcoin or the like, is risky. With that in mind, how on earth is it going to happen? There seems to be a lot of progress in the right direction when it comes to Bitcoin and the like, but for them to be used successfully as an actual form of wage-payment, quite a few things need to happen.

In America for example, the Department of Labour will have to make an official decision on whether it is good enough to be considered as a cash equivalent. Secondly, the semantics need to be properly thought out. For example, if a company decides to pay its staff in cryptocurrency, they should consider outsourcing their payroll. Consideration also needs to be given to the fact that the value of coins such as Bitcoin is extremely volatile. Some people do not want or like change and such a drastic shift from traditional methods could result in some needing a lot of convincing.

 

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