The Future Of Payments: Will Crypto Take Dominance Soon?

The Future Of Payments: Will Crypto Take Dominance Soon?

Cryptocurrencies have been gaining popularity for several years now, and one can only wonder what the future of them looks like. Are they becoming the new primary payment method, or are they slowly being improved to help the financial system and economy of the different countries all over the world?

The growth of cryptocurrencies is inevitable as we note the different industries that have started to adopt them, such as casinos, retail, and e-commerce. Crypto makes it easier to make and receive payments, whether local or international. These digital currencies can also be seen as an investment by many people because they get the opportunity to enjoy typically larger gains when investing in crypto. Many investors are already researching new crypto projects here in anticipation of which one might be the ‘next Bitcoin’ in 2024.

Cryptocurrencies have undoubtedly attracted a lot of attention from celebrities such as Elon Musk, who supports the meme-derived coin, Dogecoin. With the growth of these digital currencies, people and companies need to pay attention to the benefits and potential risks that come with them before investing in them. What remains now is to know if cryptocurrencies will dominate and replace traditional fiat currency payments in 2024 and beyond.

All Things Crypto: What Is Cryptocurrency?

Cryptocurrencies are a form of digital tokens. They are a particular kind of virtual currency that enables direct online transactions directly between crypto users. Cryptocurrencies are only worth what consumers are willing to pay for on the market, as they have no set legal or inherent value. Crypto utilizes blockchain technology to create a decentralized network and employ cryptography for security. Cryptography enables safe spending online without the need for third-party bodies such as central banks which is one of the key reasons for cryptos’ rise in popularity over recent years.

To enable safe transactions and ownership, private and public keys are utilized. They allow for anonymity and security in all transactions, as the user has full control over their assets and funds. Blockchain technology also does not store any real names or physical addresses of users when they make transfers, thus a greater degree of anonymity can be achieved.

How Do Cryptocurrencies Work?

Blockchain technology supports cryptocurrencies by recording transactions and keeping track of people’s possessions in an inaccessible manner. By preventing users from copying their assets and trying to spend them twice, blockchain technology solved a challenge encountered by earlier attempts to create digital currencies.

Individual cryptocurrency units can be referred to as either coins or tokens based on their intended use. Certain types of crypto can be used to participate in software applications such as games and financial products, while others are meant to be stores of value or units of exchange for particular goods and services.

The Prominence And Rise Of Cryptocurrency

The enticing appeal of cryptocurrencies stems from an integration of innovations in technology, financial potential, and ideological principles, all of which have contributed to the continuous rise and popularity of crypto. While the appeal of various cryptocurrencies varies, the main factor driving the prominence and rise of cryptocurrencies is their decentralized structure, as they allow for relatively fast and anonymous international and local transfers without the necessity for banks that could refuse the transaction or impose additional transaction fees for users.

Types Of Digital Assets

Cryptocurrencies are a type of digital asset, similar to how any type of content or asset that has economic value and exists in a digital format is referred to as a digital asset. These assets are electronically managed and stored and can represent rights or ownership of material or immaterial objects.

As technology innovations become more integrated into our lives, digital assets have grown in popularity and value. Digital assets with ownership rights are understood to include written content, videos, data, and many more like blockchain and crypto. When something is digitalized, it could be transformed into tokens on a blockchain and used to generate value.

As established, there is a wide range of digital assets, however, our main focus is on digital assets that can be used as payment methods. The most popular and trusted digital payment assets used by many people around the world can be divided into a few major categories, which include the following:

Cryptocurrencies

A wide variety of digital assets that are privately issued are included under cryptocurrencies. They make use of a currency unit of their own. Instead of depending on a single entity to run the system, they use cryptography to store the ownership and transaction history of digital coins in a distributed digital ledger that is synchronized across several computers. It is estimated that there are approximately 22,932 cryptocurrencies that exist, which equates to a market capitalization of about $1.1 trillion, which shows what a huge digital currency asset crypto truly is.

Although such a huge number of crypto exists, not all of them may be active and trading. Considering that cryptocurrencies were just introduced in 2009, the number of cryptocurrencies to date is incredible. Although there are thousands of different versions of decentralized cryptocurrency variants, Bitcoin and Ethereum are the most well-known implementations of digital assets. Cryptocurrencies have no inherent value and rely on the users’ faith in the software that manages the system.

Although the word cryptocurrency may imply that cryptocurrencies are a type of currency or money, most people often conclude that current cryptocurrencies lack the essential characteristics of money. However, cryptocurrencies are increasingly becoming widely used by many people as a form of payment. However, crypto can sometimes become less suitable for day-to-day transactions, unlike traditional payment methods simply depending on the user and what they plan to purchase. Overall, crypto has been gaining popularity and its adoption is widespread.

Central Bank Digital Currencies

A Central Bank Digital Currency (CBDC) is a digital version of a country’s currency that is issued and managed by the central bank of that country. In contrast to cryptocurrencies like Ethereum and Bitcoin, Central Bank Digital Currencies are usually supported by the government or central bank monetary authority and are regarded as legal tender just like physical banknotes and coins.

The development of digital currency in the form of Central Bank Digital Currencies is a progression from traditional fiat money. The unit of CBDC would be its national currency, sometimes referred to as fiat currency. The Central Bank Digital Currency would be convertible on a one-for-one basis and would probably be designated as legal tender which can be used for several things such as paying for goods and services and paying off debts.

Although central banks would issue CBDCs, private sector organizations would typically be expected to handle dealing with the customers’ tasks associated with getting them to users. Countries making use of CBDCs take into account their distinct legal and economic conditions. The process of creating and implementing CBDCs is continuing to be developed, and the landscape will probably change in the future.

Stablecoins

Tied to an underlying reserve or asset, stablecoins are a kind of cryptocurrency designed to keep their value steady. Reducing the usual price volatility of other cryptocurrencies, such as Bitcoin or Ethereum, is the prime objective of stablecoins.

As a reliable unit of account, store of value, and medium of exchange, stablecoins act as a link between the conventional financial system and the cryptocurrency world. This is done to increase their similarity to money and their appeal as a means of exchange or store value. Keeping the assets that support the coins in circulation is one method their promoters try to keep the value steady.

Some well-known stablecoins like Tether, USD Coin, and Binance USD can be viewed as a link between cryptocurrencies and fiat money. In addition to being used as a store of value by individuals who may have traded in cryptocurrencies and now want to move to a fiat currency claim without leaving the distributed-ledger technology (DLT) ecosystem, they are also being used as payment or settlement for transactions related to cryptocurrencies or tokenized assets.

The next type of stablecoins are those that major banks are proposing. These are intended for use in more commonplace business or financial sector usage, such as international and treasury payments. These stablecoins could possibly be backed by deposits in central bank accounts.

Non-Fungible Tokens

Non-fungible tokens, better known as NFTs, are distinct digital identifiers that are registered on the blockchain which verifies their legitimacy and ownership. They represent digital or tangible objects like audio, video, and artwork. They also cannot be duplicated, replaced, or divided. NFTs are intended to be unique, scarce, and cryptographically verifiable. All of this ensures that NFTs are highly valued and sought after by many.

NFTs are found on blockchains, which are distributed public ledgers that record transactions. You may now be familiar with blockchain technology as the framework that enables cryptocurrencies. In particular, NFTs are generally maintained on the Ethereum network, though they can also be maintained on other networks.

They are typically encoded with the same fundamental software as many cryptos, and they are bought and sold online, often using cryptocurrency. They are used to produce, market, and acquire ownership rights to digital artworks, and they have grown in popularity in the field of digital art and beyond in recent years.

The 2024 Outlook: New Cryptocurrencies To Invest In 2024

A number of recently launched cryptocurrencies are being marketed as possible 2024 investment options. The cryptocurrency space is always changing and advancing, with new initiatives popping up all the time. Furthermore, opportunities for investments can be impacted by changes in regulations and the accomplishment of specific projects.

What Happens To Cryptocurrency Every Four Years?

According to Forbes, roughly every ten minutes, new blocks of crypto transactions are added, and after every 210,000 blocks, the crypto code requires that miners’ rewards be cut in half. This process is called halving, which refers to when the reward for mining a cryptocurrency is cut in half, and this occurs every four years during times when there is typically more volatility in the price of crypto. The next cryptocurrency halving is predicted to be in 2024. Although this is not set in stone, it has many crypto users talking about the possibilities.

Is Cryptocurrency Replacing Money?

Although cryptocurrencies such as Bitcoin and Ethereum have grown in popularity and usage for a variety of purposes, they still coexist with fiat currencies in our world today. The idea that cryptocurrencies will eventually replace money is a complicated and dynamic one, and there are some factors that have shaped the current landscape. Crypto provides benefits like decentralization, reduced transaction costs, and global transferability without the need for a middleman like a bank that traditional money cannot.

Even though cryptocurrencies have not completely replaced fiat money, their place in the financial system is still changing. The path that cryptocurrencies take in the future will probably be dependent on developments in technology, legislation, and public acceptance. In order to understand the changing role of cryptocurrencies in the global financial system, one must always stay up to date on the latest advancements in the crypto department.

Potential Implications Of Cryptocurrencies On The Banking Sector

Traditional banks are reluctant to embrace the use of digital assets, even though the world of cryptocurrencies is growing and becoming more and more popular. They believe that the risks associated with these cryptos outweigh any potential advantages. Financial institutions and their clients stand to gain greatly from digital currencies if they are willing to make the transition to using digital assets such as cryptocurrencies.

The Bank’s Concerns About Crypto

Traditional financial institutions and central banks have voiced a variety of concerns regarding cryptocurrencies, including their potential risks and challenges. Although these issues may differ between organizations and geographical locations, certain recurring themes exist, including the following.

KYC/AML Issues

With the help of cryptocurrencies, users can conduct peer-to-peer transactions without the need for any regulated third parties to serve as a middleman, therefore facilitating speedy and cost-free money transfers. All transactions are simply linked to the transaction ID using blockchain technology, rather than being identified by a specific bank account via a financial institution.

Many banks are concerned about this kind of anonymity because they do not think that digital currency transactions are subjected to know-your-customer (KYC) or anti-money laundering (AML) regulations. Banks typically believe that cryptocurrency transactions cannot be tracked for AML and KYC purposes, which may encourage fraudulent activity and other illegal activity on the network.

Decentralized Systems

Digital wallets such as cryptocurrencies were developed as a substitute for traditional banking systems because they are not dependent on a centralized bank, government, or agency and do not require a middleman. The decentralized nature of the blockchain and its code are trusted in these transactions, as opposed to depending on third-party bodies such as banks.

Some banks do not think that they can compete in the crypto market because they think a central bank-managed cryptocurrency will take away from the asset’s initial appeal. Some people think that because the currency is decentralized, central banks will lose their relevance or capability to regulate the money supply.

Volatility

A notable and highly discussed characteristic of cryptocurrencies is their extreme price volatility. Cryptocurrency values are subject to sudden, significant swings, which puts investors at risk and prevents them from being widely accepted as a reliable store value. Over the course of their short existence, the price of cryptocurrencies, especially Bitcoin, has been largely unstable. This can be attributed to a variety of factors such as market size, liquidity, and participant count. Because the price has not been steady in the past, banks view this as a risk and think that the currencies will not be a reliable investment over time.

Security Concerns

There have been several cases of fraud and hacking in the cryptocurrency space, even though the underlying blockchain technology is secure. Cryptocurrency exchanges and wallets are popular targets for hackers because there is a significant chance for financial gain.

Gaining acceptance and confidence requires addressing security concerns, thus banks are more concerned about the safety of their systems and customers. When using cryptocurrencies, private key security is essential. Unauthorized access and money theft may happen if a user’s private key is stolen, Banks are worried about managing and storing the private keys in a secure way.

Is Crypto Really Becoming The New Money?

In conclusion, although cryptocurrencies are currently seen as an innovative new digital currency, their rise to prominence in the payments industry is still in the early stages and dependent on a number of variables. Certain cryptocurrencies emphasize a particular use case within the larger blockchain sector, while others seek to function as digital currencies for regular transactions.

Keep up with the most recent developments in the cryptocurrency and financial industries to get a sense of the future of payments. The financial industry is dynamic and changes quite fast, so always keep updated to know what is coming next.

How to find new cryptocurrency projects?

One of the biggest challenges in the crypto space is to find the right projects at the right time. There are hundreds of projects launched each month and it’s very difficult to pick the right ones. Most of the projects won’t last a year and some of them are only launched to scam you out of your money fast. The only option you have to navigate through this jungle of crypto projects, is to Do Your Own Research. I’ve made a short list with tips on how to find new cryptocurrency projects and how to research them. Hopefully you learn some new tricks and pick the right project!

Where do I find new tokens?

1. Social media
Check the buzz on social media. What I usually do is going to the accounts on Twitter that have a lot of followers. Those followers take every chance to shill their investments in their replies to the ‘crypto influencer’. Click on the articles, links and cash tags (the project’s abbreviation > $ followed by a few letters) and start your research. Or take a look at sites that keep track of new or trending accounts, such as Semrush. You can also subscribe to different trading groups in which lots of new projects are shilled. Those groups are risky though, because there are a lot of scammers in there and people who want to dump their bags on dumb investors, so do your proper research before jumping in.

2. Crypto charts
There are a few websites out there that make charts for almost every token. A great example is dextools.io. If you go to the site you can see the trending tokens (top 10). Click on those and start your research.

3. Trending coins
Coinmarketcap and coingecko both have a trending coin section. These are usually the coins that are looked up the most on the sites. Go to these project’s pages and research the tokens.

4. Verified Ethereum contracts
Etherscan has a great little features that not many know about, an overview of the smart contracts that have their source code checked. You can check all the verified contracts here. This is a great start for your research. I look for a project with a normal name and high number of Txns and start from there. You click on the contract and on the contract page under ‘More Info’ you click on the Token Tracker ( if any). The next step is to look at the ‘Holders’ tab to see what the distribution is. The little document icon means that it’s a contract and contracts that look like this are burn addresses > 0x0000000000, so you can ignore those holders. You can check if the distribution is fine, not too many whales and not too many tokens airdropped via e.g. Disperse.app. I also check the tab ‘DEX TRADES’ to make sure the token is traded properly and is not being dumped (dextools is also good to check that).

5. Track whale wallets
To find these wallets you need to do some digging. There are multiple telegram and twitter accounts that show the big trades of whale wallets. When you have found these wallets, go to etherscan, check what they have in their bags and go from there. Always check if they bought these coins themselves or if they got them for advising or promoting, since this will make a difference in their ‘commitment to their bag’. You can also subscribe to certain services, such as nansen.ai, on which you can see all the trades of the wallets. Take into account that you aren’t the first to see those trades, so invest with caution.

6. Track newly registered crypto domains
This one requires a bit more knowledge of the existing crypto projects and their domains, but if you know what to look for you’ll definitely find some new projects early on! The trick is to go to websites like Whoisds or DNPedia and to research all the newly registered domains on a daily basis. Search for domains with tld’s like .finance or .app, depending on the current trend. Also look for domains that contain ‘token’, ‘swap’, ‘seigniorage’ or anything that is hyped. Make a list of all those domains and check them regularly for any updates and filter out the nonsense. I find about 2-5 domains each time that are promising. After you found the domains, start your research!

I’ve written multiple guides on whitepaper research, here’s one: Cryptocurrency Whitepaper Research for Beginners. We have thousands of whitepapers on file here.

How do I research these tokens?

1. Read the whitepaper :)!
For me this is always the first step. Don’t worry about the technical buzzwords, you just need to verify the following things.
– What problem are they solving?
– What is the token distribution/token economics? How much tokens are allocated to the team, used for marketing, % for public sale
– What is the token price for each stage of investments? Was their a seed sale and for how much? When do these tokens unlock (vesting)?
– What’s the public sale price? Fully diluted market cap? Runway for the team?
– Etc.

2. Social media
Search the project on social media. Go to their Twitter, Telegram, Discord etc. and read what the community says about the project. Focus on the people that are unhappy to see if there’s anything you should know, it’s ok to be skeptical, since you’re about to invest in the project. Follow the right people and ask questions.

3. Contracts
As explained above, you can get a lot of useful information by looking at the contracts and token on etherscan. Check if the contract is verified. You can also go to certain telegram groups to get them verified. Look at the trading patterns under DEX Trades, because when everybody is selling it’s usually not good news. Next thing is to check the holders and how the tokens are distributed and if there’s been a massive airdrop. Go to the wallets of the Whales (biggest holders) and see how they got their tokens, multiple buys or airdropped etc.).

4. Github
As a no-coder Github looks difficult. The best tip I can give is to check the number of commits. The more commits from different developers, the more work is done on the project and the bigger the chance is that they’re the real deal. Remember that Github is open source and most crypto projects will keep the most important parts of their code to themselves to avoid being copied, so when in doubt always ask the team if/when they’re open-sourcing their code.

5. Google is your friend
Google is your friend. Search the project’s name, the team, the token, partners etc. Make sure they are the real deal and can deliver what they promise. Google certain texts on their site and the whitepaper to verify that they’ve written that themselves and are not a copy or fork of a different project. Make sure to put the text between ” and ” to search for those exact words.

6. Ask questions
On discord, telegram, twitter you name is. There are no dumb questions and the team should be willing to answer them or to direct you to the right place with the answers. Do check pinned messages, medium articles and FAQ’s first since that would cover the most of your ‘dumb’ questions.

Conclusion

So that was my short list on how to find proper cryptocurrency projects and how to research them. I will update this list regularly and add things I missed!

John,

CEO All Crypto Whitepapers

Follow me on Twitter or Linkedin.

5 things you need to check before buying crypto

Read more below:

In this article I will give you 5 pointers on how to recognize scam coins & projects through whitepaper research. Although most projects that turned out to be a scam had a great whitepaper, some of them gave away their bad intentions in the whitepaper. So before investing in any cryptocurrency, you should always check the whitepaper!

What is a whitepaper?
So what is a Whitepaper exactly? When a company intends to launch a new cryptocurrency, they usually set out all the details in a Whitepaper. This document contains the technical, financial and commercial information about the project. This document normally explains in plain language what they’re planning to build, to attract investors and other interested parties. In other words, the whitepaper explains the project’s purpose and process, the Why and the How.

Not every project or coin starts with a whitepaper. Litecoin started by giving a video presentation on ‘Creating Litecoin’ at a Coinbase event. Loom Network decided not to write a whitepaper, but immediately started developing and delivering code. Others are just forks of existing projects, like Bitcoin, so they don’t have their own whitepaper. Some projects bring out a Pink Paper, Green Paper or Yellow Paper and other projects, such as Cardano, bring out multiple whitepapers to describe every part of the tech they are building. Luckily, 99% of the cryptocurrencies and ICO’s still release a whitepaper at some point to outline their project and tech. So if you thinking about investing in a new coin or ICO (and to avoid scams) your first stop is reading the whitepaper.

What parts of a whitepaper do I need to check before investing in a cryptocurrency?
Although scam projects are getting better and better in not raising any suspicion, there are some sections of the whitepaper which you need to take a closer look at to filter out unreliable projects.

1 – Technology
The most important thing is the project’s proposed (technical) solution to a real and relevant problem. It makes no difference if it’s something new or a better application of existing tech, when the problem they’re trying to solve doesn’t need solving, there’s a big chance the project will fail or is set up to raise a quick buck. This is usually the most difficult to verify, but keep an eye out for common buzzwords that are solely used to confuse u without really explaining what the project is about.

2 – Team, Advisors & Partnerships
The people behind the project should be easy to verify. Check their Linkedin, online profiles, company profiles, any addresses you find, advisors, partnerships etc. Don’t be afraid to openly ask them if they’re involved in the project. Fitrova, a project that did an exit scam, boasted about great partnerships, but after checking with those partners they denied even knowing the CEO. Declouds, also a scam, wanted to prove his alleged partnership with a bank, by photoshopping himself into a picture of the board members of that bank. And finally I almost participated in an ICO with fake team members, but just in time the community found out that all the pictures where stolen from some Australian School Board website. So always doublecheck the information provided to you about the people behind the project and don’t forget to do a reverse image search on their pictures.

3 – Roadmap
Technical development always takes longer than promised, but a roadmap gives you an idea if they’re realistic about their goals. If the roadmap states that a mainnet will be delivered within a few months, that would be great, but could also indicate that they’re trying to make a quick buck (unless the started the development way before the ICO/STO/IEO of course).

4 – Token Allocation & Price
Things to look at are the amount of tokens they are going to bring out. It’s a difficult factor, but it might give you an idea if they’re realistic about the project or just want to make a lot of money. If their total token supply and pricing results in a really high marketcap, you should be suspicious about their intentions. Other thing to look at: Will the tokens be locked up (vesting) for team members? Will they burn unsold tokens? Can they bring out extra tokens whenever they decide to do so? Normally the best token allocation for investors is projects with a low token supply, so you get a bigger piece of the pie when you invest, but this strongly depends on the other factors.

5 – The Rest
There are so many things that could be red flags. Make sure to also verify the information on their websites and social media, does it look real or are they just using empty words, fake testimonials and social media bots. It wouldn’t be the first time that you are let to believe they already have a nice User Interface for their wallet, but in reality that are just stolen pictures from another project. Also beware of dubious statements, like stating they’re SEC-compliant or already have secured listing on big exchanges. Or things like saying their product can be used in any store or with every bank. Watch out for Ponzi Schemes like Bitconnect, with promised returns on investment for holding their coins. Sometimes they bloat with big whales who have invested already. Always check out the contribution address and try to trace back those big whales, to make sure it’s not the team contributing to itself faking that they already have landed investors.

Conclusion
In the end, you must feel safe about the project’s intent after reading the whitepaper. A lot of projects that turned out to be a scam had a legit whitepaper at first sight. But after looking closer into the promises they make in the document, how they’re going to build it and with whom they plan to make it a success, it should’ve been possible for investors to pick out the red flags. Of course there are many other factors that could lead to the conclusion that the project is a scam, but researching the whitepaper is one of the most accessible ways for you to verify it yourself.
Fortunately, www.allcryptowhitepapers.com has the largest whitepaper database in the world. With almost 1700 projects in our database, it’s the best place to start your research. Also don’t forget to check out the Whitepaper of the Week and News section, so you don’t miss out on anything. Knowledge is power!

The SEC also has made a great website to warn people about risky ICO’s and scams and they also included a whitepaper about their fake-scamproject, in which you will recognize many of the pointers I brought up in this article, You can check that out here:Howeycoin.

Bakkt’s Cryptocurrency Exchange is Coming, But Will Institutional Investors Follow?

By Greg Adams from Blokt

The Bakkt cryptocurrency trading platform is due to launch this November. Many are hoping that it will bring institutional investors to the market, but will this really happen?

Cryptocurrency investors are patiently waiting for the arrival of the Bakkt cryptocurrency exchange, with the hope that it will bring institutional investors, more retail participants, and maybe even Bitcoin availability in 401k accounts. Its launch is planned for November of this year, and it is backed by the trading titan Intercontinental Exchange (ICE), owners of the New York Stock Exchange (NYSE), so there’s good reason to be excited. ICE has also partnered with Microsoft, Starbucks, and Boston Consulting Group.

With the SEC’s recent denial of numerous Bitcoin ETFs, the hope is that Bakkt will introduce a product which is appealing to institutional investors who have so far avoided the cryptocurrency markets, due to worries of manipulation or the lack of trustworthy custody options.

Bakkt Wants Institutional Investors
Bakkt has been touted as a potential onramp for institutional money. The company themselves revealed in a tweet this week that it is “designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility.” But are these pledges enough to attract investors who have so far steered clear of the cryptocurrency markets? Many believe that some institutional investors have already quietly entered the cryptocurrency markets, but can the NYSE owners bring them in droves?

Read the rest of this article at Blokt!