Year: 2021

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Bitcoin: How Beauty Can Benefit From Cryptocurrency

The popularity of cryptocurrencies and non-fungible tokens is tremendous. Because of cryptocurrencies’ ultimate benefits to their investors, many companies and organizations have already started investing and accepting cryptocurrencies. Multiple small businesses accept bitcoin evolution to get the advantages of low-cost and fast transactions. Recently in 2021, Elon Musk, CEO of Tesla Car Company, announced that the company has started accepting bitcoin payments to purchase Tesla Cars. Following this, many cosmetic brands and retailers have also announced that they will take the benefit of cryptocurrencies.

Lately, Jeffree Star endorsed his latest collection by sharing 3D animation portraying him in a pink box on Instagram to all his followers. Instead of a lipstick line or a makeup palette, Jeffree has started to use cryptocurrencies and non-fungible tokens (NFTs) by presenting his digital artwork by collaborating with the most popular artist named Marcelo Cantu. Cryptocurrencies are great alternatives to fiat currencies as these are digital currencies that are decentralized in nature and work independently of banks. After corporations and Car companies, the beauty industry has started to deal in cryptocurrencies.

Not only Jeffree Star but in January 2021, a U.K.-based beauty brand named Wake Skincare developed for connection generation publicized that the brand has begun accepting popular cryptocurrencies like bitcoin as a form of payment. Along with bitcoin, they have also added Ethereum as a payment method. The brand, Wake Skincare, has joined a plethora of labels capitalizing on the boom of the crypto industry through rewards programs or payment methods.

Why has Wake Skincare started accepting Bitcoin and Ethereum?

In one of the interviews, the co-founder of Wake Skincare named Alex Mavor said that “the reason behind their brand accepting cryptocurrencies is because no other beauty brand is doing it.” Alex even said that he started investing in bitcoin in 2016, and today, he started accepting it for the beauty brand because he sees bitcoin will help in the success of their company. He added that “It might be possible that at first, we will not get lots of customers, but some customers who are early adopters of bitcoin will at least make payments with Bitcoin and Ethereum.”

It is clear that the skyrocketing value of bitcoin is best to hold instead of spending it. But businesses and companies can earn profits by using bitcoin as a medium of exchange because of its volatile market and fluctuating price. 

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Norway Finance Minister Sees Great Interest In Cryptocurrency

Last week, in an interview, the finance minister of Norway named Jan Tore Sanner said that “Cryptocurrencies like bitcoin are known for their volatility and a period of breakthroughs, but it will move beyond this point of time. He added, “It is clearly visible that cryptocurrencies are developing over time, and these digital currencies, when they get more stabilized mechanisms, can lead to more upheavals and breakthroughs in a long period.” According to him, cryptocurrency isn’t a market, and that he would suggest all the industries or people enter.

According to him, the Finance minister also said that cryptocurrencies like bitcoin system could never make it to the mainstream unless and until they are regulated properly. He also mentioned that digital currencies are quite popular among criminals. Sanner added, people should study the crypto market and then make their own decision about whether they should invest in bitcoin or not. Still, he put more emphasis on describing the cryptocurrencies that aren’t ready yet to be replaced with regular money.

Sanner spoke out that there is a great interest in cryptocurrencies across the world, especially in Norway, but it isn’t suitable to be considered as the mode of payment. The incline and rivals of bitcoin have triggered a swing of warnings from both monetary authorities and government, who are pointing to cryptocurrencies’, being short of the original value. In the meantime, the central banking systems are being innovative and are planning to develop their digital currencies to complete the system and move towards being a cashless world.

Oystein Olsen, the governor of the central bank of Norway, is one of the disbelievers of Bitcoin. Still, he is the billionaire owner of the biggest corporate empire of the Norway country that has emerged as a great bitcoin enthusiast. A shareholder in Aker named Kjell Inge Rokke even said that Bitcoin revolution would definitely end on the right and positive side of history, which provides a hint that the company might start with bitcoin payments in the future.

The Finance Minister of Norway urged consumers to think and research before investing their hard-earned money into cryptocurrencies or digital arts, as these are associated with many risks. He said that bitcoin might experience more breakthroughs if its market and price stabilizes in the future. You must think a hundred times before investing in any crypto asset and must learn about regulations.

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BINANCE TRADABLE STOCK TOKENS

Binance has officially launched first of its kind, zero-commission tradable stock tokens which are denominated and collateralized in BUSD (Binance US dollar)  regulated stable coin pegged to the US dollar and issued by Paxos Trust Company. Binance US dollar is used to calculate returns quicker and easier into real money. These tradable stock tokens are fully supported by a depository portfolio of elementary securities that represent the omitted tokens.

TESLA is the first listed Binance stock token which was scheduled to open on 12th April 2021, wherein the Binance website will be the official platform to trade fractional Tesla stocks. Binance will be introducing more stock tokens and features to meet the current market demand.

Stock tokens, unlike traditional tokens, can be fragmented into small and much affordable parts which basically mean more people would be benefitted from capital returns on the shares. Binance –a cryptocurrency exchange has launched these marketable stock tokens so that a larger section of the public can earn capital returns on equities and incredible dividends without having to buy full and traditional shares. So a user is eligible to buy 1 percent of a share represented by a digital token.

“Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens.” Stated by Binance

Residents of Mainland China, turkey, the United States and other restricted administrations are not allowed to trade Binance stock tokens. Any interested trader must first pass the two levels of KYC (know-your-customer) including identification and face verification to be eligible to trade these stock tokens. For German users, a 3 level KYC (know your customer) verification is needed which includes address proof, advanced identity checks, risk assessment and suitability questionnaire. Binance is currently working with CM-Equity AG which is a licensed investment firm in Germany and Swiss-based Digital Assets AG, an asset tokenization platform.

Binance CEO Changpeng Zhao says that “digital stock tokens will provide a bridge between traditional and crypto markets and broaden access to equity markets, resulting in a more inclusive financial future.”

According to prnewswire, Binance stock token’s quarter one of 2021 has seen incredible growths with a 260 percent increase in the traded volume and a 346 percent growth in users. Besides the digital token, the Binance coin, also known as, BNB has been picked up by more than 900 percent as of this year.

Stock tokens are classic for the users who look onto diversifying their investment anthology beyond cryptocurrencies, more into traditional financial markets. People who don’t have enough funds to acquire a stockbroker or find it much difficult to trade stocks can opt for the option of trading stock tokens instead, which may help them get more experience and exposure into traditional money markets. Buying of stock tokens is compensation for the fully paid-up shares which are non-affordable to a few of the enthusiast investors as of now.

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Terrorists Still Raise Money Through Crypto, But The Impact Is Limited

The role of cryptocurrency in Terrorism would be minuscule. This is not a way that is embraced by people to finance for terrorism. In this digital world, there are a lot of frauds happening, including money laundering, terrorist financing and breach of data and so on. The United States Treasury Secretary, Janet Yellen stated that cryptocurrencies is considered to be a tool to fund for terrorism. There is a key turn that is taken to fight against terrorism and this has raised many questions. The main question is how dangerous is it if the crypto is in the hands of terrorists to the society as well as the government and the other question that is on the rise is how much risk it poses to the cryptocurrency and block chain industries.

The evidences that are submitted in the recent times proven that the role of crypto currency in the increase of terrorism would be very minute. The cryptocurrency was being used in many of the terrorist financial activities. However, this was not the primary way to receive funds to the terrorist groups. This was stated by the director of Jeanette and Eli Reinhard Program on Counterterrorism and intelligence. Gina Pieters, who is working as the assistant professor in the Department of Economics in the University of Chicago stated that the cryptocurrency can be a tool. However, Yellen chose to say the words carefully. It was stated that this is not a major tool, but is growing. With the growth of cryptocurrency, it will be used in many of the criminal activities.

Dave Jevans, who is the CEO of the Cipher Trace, expressed few of the uneasiness about the treasury secretary words. If some of the great leaders would consider cryptocurrency to be associated with many illegitimate activities, then the regulators would impose stringent rules on the transactions that are carried out through cryptocurrency. By banning blanket cryptocurrency, it would prevent mass adoption and innovation in this arena. The issue must be raised and bring it to the notice of the people. The misuse of this currency would be considered as a geopolitical issue with many trying to avoid the sanctions imposed like in Iran, Russian and Venezuela. The help that is done to the terrorist groups through this cryptocurrency would be worrisome. Though, the financing through cryptocurrency is happening in small amounts and it is traced that out of 37.35 bitcoins, a mere of around 0.00324% is spent on the illegitimate activity. The US has seized the cryptocurrency accounts of three of the terrorist groups in the Middle East. It is the largest seizure of cryptocurrency accounts so far.

There are many Jihadi groups, which are using cryptocurrency for years. The MEMRI observed that there are a few groups who are discussing the usage of cryptocurrencies. The news related to Jihadis and cryptocurrency has led companies to shut the accounts. However, not all the cryptocurrency would address the financial needs of terrorists. However, the cryptocurrencies like bitcoins have improved usability and there is a little evidence gathered and found that there are a few terrorist groups who would use cryptocurrencies. It is essential for these groups to get money without letting the government know about it. The cryptocurrency is found to be the best way to move funds without physical transportation and much risk.

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Prepare to Lose All Your Money’, Warn Crypto Investors

A British analyst has recently said that digital currencies are at a high-speculative risk. Many people have predicted since the beginning of the crypto revolution that investing in a digital currency can be highly risky.

The United Kingdom’s Financial Conduct Authority (FCA) has warned that electronic currency investors are at a danger of losing all of their money. As per an analyst from the UK, investment in digital currencies also pose a compounded risk of scam.

The last few days have been quite dizzying for many cryptic coins. In fact, yesterday, the value of Bitcoins depreciated by almost 20%. Thus, the value of Bitcoin came down to $30,000. Few days back, the value of bitcoin was more than $40,000 per unit. The high fluctuation in the value of Bitcoins may be a worrying situation if you are not an institutional and experienced investor.

Under the same framework, a British specialist and analyst claimed that investments and loan products related to cryptocurrencies like Bitcoins can be in the “Very high risk” category. As per a warning by FCA, if consumers want to make an investment in digital currencies, they must be ready to lose their investment and money.

FCA also opined that cryptocurrencies belong to the category of “High-risk speculative investments.”

Those who buy cryptocurrencies should try to understand what they are investing in and the risk associated with the investment. Consumers should also know that regulatory protections are not applicable in case one plans to invest in cryptocurrencies.

As per a statement by Laith Jalaf, who is a financial analyst, sudden growth in the rate of bitcoin can also create a marker bubble.

Regulators in the UK are clearly concerned about the high risk associated with the crypto asset. In addition to the highly versatile nature of the cryptocurrency, it also leads to scam activities. Many unregulated companies are also targeting customers with different types of marketing collateral.

On one hand where many analysts are saying that investment in bitcoins may be risky, big companies like JP Morgan are promising a future for cryptocurrencies. Asper Analysts at JP Morgan, the price of bitcoin can rise as much as $146,000 and it can easily compete with the value of Gold. It has also the potential to become an alternative currency.

Thus, making an investment in bitcoin should totally depend on the customers and their personal will. Or else, they won’t have any regulatory backup that will save them after the scam and high-scale loss.

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