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China’s Blockchain hustle, hidden agenda and why the world needs to take a note

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China Blockchain News

Following is an opinion.

What to expect in this article?

  • A look at a possible hidden strategy behind China’s blockchain initiative
  • Was this all well orchestrated by China from the get-go?
  • What has China done in the blockchain space so far?
  • Is China preparing itself for the post COVID world?
  • Why the world should pay attention to blockchain
  • Are the public networks like Bitcoin and Ethereum an antidote to China’s dominance?

China may have been the villain in the mainstream media and even has been the butt of the jokes about China Distancing, but behind the scenes, it is business as usual in China when it comes to Blockchain Technology Initiatives.

With all the backlash in the manufacturing space, China has been doubling down on its Blockchain hustle.

Is there a hidden strategy behind China’s blockchain endorsement?

Some speculate that China’s overzealous endorsement of blockchain technology might have a hidden agenda.

Majority of the world economies use the US dollars. It is quite expensive to decouple from the reliance of the US dollar.  Even if a country tried to do that – it will draw attention of global players as to the ‘reasons’.   

Generally a country would attempt to decouple from the dollar when they fear the US sanctions or restrictions in participating in the global economy.

China in theory could be using blockchain technology as the trojan horse to bring their digital Yuan on to the global stage.  

While the rumors become stronger by the day that China has intentionally let the world be hit with COVID by withholding information, they may be suspecting some retaliation from the US in form of sanctions that will be hit in the dollar trade and that may have fueled their move to speed up the Digital Yuan plans.

Is this all orchestrated by China?

One could perceive that this is all well orchestrated by China. 

First they take the world’s attention away by ‘letting the COVID spread like a wild-fire’.

Second, they move forward with their blockchain and Central Bank Digital Currency (CBDC, Digital Yuan) plans, even revealing that they are going to pilot it in May 2020.

Third, China has been for a long time accumulating gold to back its Yuen while the US has been printing fiat that does not have enough (if any) reserves backing its value.  With COVID, the US has been forced to print an additional $6 trillion dollars to keep the economy afloat.  This brings the US’s debt to unimaginable levels.

Fourth, China is busy building the world’s biggest public blockchain networks to bring in as many global giants as possible.  Once the technology is built and becomes a staple in the blockchain space – China could easily create utility for its Digital Yuen.

What happens when China introduces Digital Yuen that is backed by real gold and it convinces its allies to take part in commerce using Digital Yuen in place of Dollars?  

While most of the world economies might resist from taking part in this coup, China has some strong allies from Russia, Pakistan, North Korea, etc.,

Even if the US doesn’t lose its dollar dominance as a global reserve, it could still make a big dent in the US’s power to implement sanctions and other disciplinary actions with an alternative to the US dollar in Digital Yuen.

Countries that want to undermine the US sanctions might end up joining forces with China.

How far has China’s blockchain initiative come so far?

Even during the midst of this COVID pandemic, China has been moving ahead with its Blockchain initiatives.  They recently announced that they will be piloting the Central Bank Digital Currency initiative and have listed out multinational companies like McDonald’s, Starbucks as participating members.

It is clear that China is not slowing down, in fact, it is doubling down on its Blockchain initiatives.  Here are few blockchain accomplishments: 

  • Blockchain Service Network

The Blockchain-based Service Network or BSN’s whitepaper describes BSN as “a cross-cloud, cross-portal, cross-framework global infrastructure network used to deploy and operate all types of blockchain applications

BSN aims to change the existing problem of the high cost of developing and deploying blockchain applications by providing public blockchain resource environments to developers, just like the internet, thus greatly reducing costs associated with the development, deployment, operations, maintenance and regulation of blockchain applications and, thereby, accelerating the development and universal adaptation of blockchain technology.” 

BSN wants to provide a global blockchain infrastructure platform for anyone in the world to deploy their applications. The framework will allow anyone from students to large corporations to deploy their applications without great overhead.  The operating costs to deploy on BSN is estimated to be under $300 which is 20% of traditional blockchain cloud services.

  • National Internet Information Office lists 500+ companies alliance

China has disclosed names of over 500 companies that are building their blockchain projects using the BSN.  The names include brand names like Baidu, Alibaba, Tencent, etc.,

  • Other developments

  • Developing Citizen Card, Citizen Cloud Platform, Municipal Public Service Platform, Point payment through Red Date Tech 
  • China piloting Digital Yuen payment system with government offices
  • ICBC Xi Blockchain Service and ICBC Fi­nan­cial Ser­vices blockchain projects facilitate transactions for the bank’s clients
  • Enlisting companies like McDonald’s, Starbucks, etc., in testing CBDC payment systems
  • China Merchants Port to build smart port

As we can clearly see, China is clearly ahead of most of the countries in the blockchain space.  To be fair, a lot of innovation happens in the US, however, the bureaucratic pressure weighs in on the innovation and stifles the speed at which the projects could launch.

While the US has adopted the ‘do-no-harm’ strategy, it is not enough.  

The US has to bring in the necessary changes to the law in all areas of commerce to help blockchain innovation to thrive in the US.

Switzerland seems to be at the forefront of nurturing innovation in the blockchain and crypto space. However, from a mere size of commerce – China far outweighs Switzerland. For this reason, we think an alliance between Switzerland and the US in this space could help both the countries and the world in general.

Is China preparing for the Post COVID new normal?

Zoom which is rumored to have been used by China to spy on the US businesses has integrated crypto payments.  Zoom’s move to integrate crypto payments comes in the wake of people calling to ban its use in the US.  Crypto payments will help the company circumvent any payment issues from the US based payment processors.

At the macro level, deployment of BSN comes at a time when the whole world will look to conduct most of the business activities over the internet in a post COVID world.  Blockchain offers a much secure platform to conduct business virtually.

With over 100 city nodes and an open platform that mandates government and IT Telecom companies to get onboard to further strengthen its network, China might be laying the foundations of the world’s most secure blockchain platform. In spite of the moral differences, companies may be forced to use BSN to leverage its sheer security and broad network, unless the alternatives emerge soon.

Advantages of China’s Blockchain Initiatives

Irrespective of the underlying intention or undisclosed agenda, the investments and direction taken up by China in the blockchain space has some advantages.

Validates the Blockchain technology: Multiple initiatives will act as a stamp of approval for the blockchain technology itself.  While many tout the awesomeness of the blockchain technology – it will mean nothing until it is put to use in real life. China’s push in many areas will help make Blockchain a part of our everyday lives.

Forces other countries to pay attention: China’s move in the blockchain space and their speeding up of CBDC will force the countries around the world to pay attention. The US has already hinted about their plans of digital dollars. The Supreme Court of India has lifted a ban on cryptos.  

Speeds up the legal framework: Innovation cannot happen amidst legal and political uncertainty.  In order to stay competitive, countries will have to introduce a sensible blockchain legal and business framework so that the companies can move forward with their initiatives.  

Disadvantages of China’s Blockchain supremacy

Lack of transparency: Blockchain’s original intent was to promote transparency. And if history is any proof, China’s appetite for transparency is almost non-existent. There is no free google or access to information within China.  Most citizens are privy to the information that the Government deems necessary for them to know. Do we want a country as this to dominate the blockchain space?  Personally, I wouldn’t. 

Domination of Centralized systems: China can easily force companies to adopt their home-grown centralized blockchain systems. When this happens, it could seriously hamper the true spirit of blockchain innovation. We have seen that just this week, McDonald’s, Starbucks and Subway have been on the pilot program to test China’s Central Bank Digital Currency, Digital Yuan.  Whenever a government like China proposes initiatives, it generally is not posed as a ‘choice’, it is usually a mandate for the companies to adopt.  Blockchain’s original design was to promote transparency and accountability but when few people control the entire aspect of blockchain in a centralized system and when that is forced upon others – it only deteriorates the current state of affairs further.

World needs to catch up with the blockchain times

Blockchain timeWith the world wanting to boycott Chinese products because of China’s authoritarian practices and total lack of transparency, one can argue that more of those same attributes will seep into anything developed in China.  

Then a global blockchain network developed by China may cement its position as global leader in a technology that could be leading us in all aspects of our life in the coming decades.

With over 100 city nodes across China the mere size of BSN is already gigantic, and growing by the day.

Instead of countries looking to develop their own blockchain systems, they can develop a legal and business framework to use blockchain technology, specifically public networks. This way, governments around the world can help strengthen the already strong public networks like Bitcoin and Ethereum to circumvent China’s plans to dominate this space.  

And in that effort, they can keep blockchain open, transparent and available.

Thank you for reading and sharing this article. Stay safe and healthy!

Also read:
China Distancing: What does it mean for Blockchain and Crypto?

IMPORTANT DISCLAIMER

We have used referral codes where available.

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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6 Massive Benefits of Cryptocurrency

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Benefits of Cryptocurrency

It is normal to be hesitant about using cryptocurrency as the medium of financial transactions. 

There is a school of thought which believes, it is a domain suitable for criminals, fraudsters, and terrorists. Cryptocurrencies allow them to maintain anonymity for discreet transactions and ransomware scams.

However, the increasing acceptance of Bitcoin as a digital currency has initiated a positive perspective around this mode. It brings a distinct set of pros for the users, making them overlook the risks tag along.

According to the Finder, a post on social media surfaces about Bitcoin every three seconds. If we do the math, it means 1203 posts pop up per hour, making it to 20 posts per minute.

A more general view on the crypto landscape speaks of its overall growth, too. Block Social tells us how cryptocurrency exchanges around the globe have exceeded 300 during 2020.

In fact, the success of crypto shows us the loopholes of the traditional banking system. If you, too, want to leap on this bandwagon and aren’t sure about your next move, this is the right place. Our blog sheds light on the positive aspects of cryptocurrency that make it a more established form of financial trade. 

Healthereum

1. Easy transactions

When dealing with brokers or legal representatives, you have to pay the transaction fee from time to time. This comes along with immense paperwork, commission, brokerage charges, and so much more. Using cryptocurrency eliminates the need for a middle man. The transaction changes into a one-to-one affair taking place on a secure network.

No wonder Forbes stated that adopting blockchain technology can save financial organizations around $12 billion yearly. A deduction of extra charges from third parties and reduced operations cost is saving millions for huge organizations.

Moreover, the transactions are transparent, making it easier for you to establish audit trials. There is no more confusion over who pays whom. All parties involved in the transaction know each other quite well. Accountability on each party grows.

2. Asset transfers

A financial analyst rightfully describes cryptocurrency blockchain to be a “large property rights database.” On the one hand, it helps execute and enforce two-party contracts on commodities such as real estate and automobiles. At the same time, it also facilitates special modes of transfer. 

As per Born2Invest, Bitcoin alone is responsible for an average of 350 000 daily transactions on the Blockchain. Meanwhile, Coinbase has 30 million cryptocurrency users (Block Social). The increasing figures of each crypto speak of its acceptance worldwide.

The parties involved in asset transfer can design contracts and add third-party approvals at a later date. It also helps to reference the external facts and gives the parties exclusive governance of their account. It reduces the time and money involved in asset transfers. Perhaps this is why US federal government spending on Blockchain shall reach $123.5 million by 2022.

3. Confidential transactions

Cryptocurrency purchases remain discreet. Unless a user voluntarily publishes his transactions, the purchase is never associated with their identity. In official scenarios, such as when you put your cars for sale, the parties must reveal an association with their cryptocurrencies. It helps to establish trust and relevance.

Within the cash/credit system, your entire transaction history turns into a reference document for the banks/credit agencies involved. On the contrary, cryptocurrency is a transaction that is a unique exchange between two parties. They can negotiate and agree on preferable terms. The information exchange takes place on the “push” basis. This means you transmit only that which you wish to send to the recipient and nothing else.

It keeps your financial history secure and guards you against identity theft. Chances of which are quite high under the traditional transaction system. 

On top of this, the combination of Blockchain with IoT is considered revolutionary by the experts. This has accelerated data exchange, lowering the operation costs, and improved the security of files. Your Tech Diet predicted that 75% of the IoT industry would adopt Blockchain technology by the end of 2020. Lack of exposure is, thus, something the entire industry is looking for.

4. Transaction Fee

You have probably faced hefty monthly account statements from your bank/credit companies. The transaction fee charged at every transaction you have made might leave you shocked. The whopping fee of multiple transactions can take you by surprise at the end of each month.

In the case of cryptocurrency exchange, the data miners receive their share from the cryptocurrency network involved. Transaction fee does not apply as the remote and separate computer systems that do the number-crunching get a pretty fair share. 

According to Investopedia, the Bitcoin reward for miners halves for every 210 000 blocks added to the chain. Nonetheless, this system has freed the transaction parties to pay the fee, making it the most feasible. 

However, there might be some external fee involved if you engage a third-party management service to maintain the crypto wallet. These charges are likely to be quite less than the transaction charges levied by the traditional banking system. 

5. Hold Ownership

The traditional banking system works in a manner where the amount goes to the nominee if a person passes away. The chances of the account closing are quite high when you infringe the terms of their services. Unlike this framework, digital currencies give you the sole ownership of private and public encryption keys. This makes it easier for you to identify the encryption network.

6. High security

Once a party authorizes the cryptocurrency transfer, they cannot reverse it. This is not the case in “charge-back” transactions allowed by the credit companies. Cryptocurrency gives you reliable encryption throughout the transaction process to keep it protected from bugs and malicious entities.

Systems like Binance Smart Chain are enabling people to do more with BTC.

Final Thoughts 

Cryptocurrency is taking the financial world by storm, and we know the reasons why. It is about time you kickstart your digital finances journey and make the most out of it. Who knows what surprises are about to come later in this landscape!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Cardano or PolkaDot? Which One to Invest In?

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Cardano vs Polkadot

There is a new battle in the crypto space.  Cardano (ADA) and PolkaDot (DOT) maximalists are headbutting as to which project is better and why.

The conversations are intense to say the least and we will try to provide our view on which one we are leaning toward and the reasons why, in this rather short article.

Just to be clear, we are invested in both ADA and DOT so we have a vested interest in both projects, however, we are now asked to pick one over the other and that brings us to this article.

Decentralization

The whole spirit of cryptocurrencies is the concept of decentralization, however, some of the more popular projects don’t seem to have a grasp of what that means.

Diem (previously Libra) or XRP etc., are controlled by a group for validators who could, in theory, easily collude, in our view.

With DOT, things are not as centralized as some other projects with about 1000 validators securing the platform.

However, ADA has the most number of nodes and has most of its circulating supply staked on its wallet. The community behind ADA has biggest proponents of decentralized frameworks.

ADA: 8 (top 10 is reserved for BTC)

DOT: 6

Team

Cardano boasts the maximum number of Ph.Ds on its team and has a more decentralized team structure.  You have teams that are working exclusively on wallet and staking while you have other teams focusing on interoperability. Yet, another team is focused on bridging projects from Ethereum to Cardano.

DOT has the ammunition of Gavin behind it. He is undoubtedly one of the brilliant minds in the space. 

However, as we learned in basic math, sum total is always greater than an individual unit.  This applies more aptly with these projects. In our opinion, Cardano has a greater edge when it comes to collective human capital.

Having Charles Hoskinson helps ADAs impression.

ADA: 8

DOT: 6

Social presence

There is no competition when it comes to social presence and engaging the community when it comes to the leaders of these two projects.

While DOT’s founder Gavin might come out as eccentric and polished in the social media, Charles takes the cake in engaging with his audience and making things sensible for the community.

ADA: 9 

DOT: 7

On a mission

Whenever you hear Charles speak about ADA you will immediately understand that he is on a mission to bring the marvels of blockchain enabled financial services to all corners of the world.

Cardano’s team is now focused on the South Africa continent to bring the under-previleged onto the world commerce through their platform. They are even close to signing a contract with Ethiopia government in 2021.

While DOT is catapulting the entire space forward it just lacks the same charm that comes with a project on a grandiose mission.

ADA: 8

DOT: 6 

Miscellaneous considerations 

Market cap: ADA has $20 Billion market cap while DOT has $19 Billion, as such they are on par with each other when it comes to valuation. The large cap is a stamp of approval from the crypto community.

Price: ADA is at around 60 cents while DOT has been stabilising at $20 at the time of this writing. When the newbies come to the market and they see they cannot afford Bitcoin or Ethereum, they will most likely go after the projects that are under $1. This does not mean DOT is inferior, it is just an edge that low priced tokens have over higher priced projects. It’s just a newbie mindset that drives higher demand during bull runs to lower priced projects.

Inflationary supply

DOT has an inflationary supply model while ADAs supply is capped.

Yes, DOTs supply is far larger than DOT, however, there is no new minting on ADA when compared to DOT.

Mainnet

DOTs technology is operational and is onboarding projects already.  ADA is scheduled to launch its mainnet this month (Feb 2021). ADA has been in works for many years now and if their product matches the hype and the wait – then it may not matter as much that they are late to the party. However, if there are issues with their mainnet – it may not bode well for ADA.

Conclusion: Total score

ADA: 33

DOT: 25

If you are a DOT fan you might think this score is skewed.   If you are an ADA fan you might think it should score perfect points in all fronts.

In fact, there are some areas where DOT is a clear winner like having a functioning platform. ADA, in our opinion, takes the prize with clear fandom, gigantic mission and a total brainiac project. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Best of the Best YouTube Channels to Follow for your Crypto Fix

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Best Crypto Youtubers

There are literally 100s of crypto-experts on YouTube who claim to have cracked the secret code that can make you millions in crypto riches. 

Who should you follow?  

We have followed many YouTubers, subscribing and unsubscribing to avoid the noise and after having been in this space for over 4 years, we have narrowed our favorite crypto YouTube channels to just a few.

In this article, we will show you our favorite YouTubers and what we like about each one of them. 

Overall number 1: Coin Bureau

coin bureau When it comes to deep analysis, composed demeanor and outright professional crypto channel in the entire space, we have not come across anyone better than Guy.  

Not only is he great at the reviews and in depth analysis, if you have followed the channel long enough you will realize that he reviews the gems long before others pick on the momentum.  

He picks solid projects, never shills a shitty project to his followers and is upfront about his views which he backs up with solid research.

This is the best no-shill and no bull crypto channel on YouTube in our view.

Best original content: Chico Crypto

chico crypto review

If you love a bit of quirky, goofy and somewhat out there viewpoints on the crypto space then there is no one better than Tyler at Chico Crypto. 

His investigation stretches the boundaries of research (and sometimes common sense) but he does do a bang up job on every video.  

I am yet to come across a boring video on this channel.  I will admit that his live streams can be a drag sometimes but his followers seem to relish his presence.

You may not like or agree with what Tyler presents on this channel but you will absolutely be floored by the originality.   

Best TA: TIED: Crypto Capital Venture & Tyler S

                         Crypto Capital Venture Tyler S crypto

With under 90K subscribers at the time of this writing, Dan may not be the most popular of the Crypto channels [yet] but his TA analysis is just so easy to follow.

Dan makes it easy for non-technical folks to understand what’s going on in the market in the language of TA.

There are other folks on YouTube who are good at TA but their videos are so obnoxious that they leave you with a massive headache.  

Not Dan’s Crypto Capital Venture channel.   Dan walks you through the markets in such a calm, composed and professional manner that you might start caring about those candles.

We are forced to share the Best Title for crypto TA on YouTube with Tyler S. 

Tyler’s expertise on TAs is quite awesome and he has a funny way of delivering it too.  

Best expertise on the markets: Alessio Rastani

Allesio RastaniIt doesn’t matter if you are just lurking around the crypto markets or if you trade in the traditional markets…Alessio is one of the best guys on YouTube for great insights into the broad market and its impact on Crypto.

While everyone on YouTube (not the people on this list, of course) is either quick to FOMO or FUD, Alessio is just grounded in fundamentals and technicals.

When you are high on FOMO, he can bring you to the ground.

When you are getting buried in FUD, he can lift you up with facts, not false hopium.

Alessio is personable, professional and an honest guy to follow to understand the markets ahead of others.

Best round up of the market: AltCoin Daily

Altcoin DailyWant to stay up-to-date on what’s happening in the crypto space but don’t have time to keep up?  

Fear not. AltCoin Daily got you covered.

This channel is just a gem among the channels that bring crypto market updates in a concise and palatable format.

You can sense the dedication in the way Austin brings the updates and his opinions in front of his audience. No wonder the channel has recently hit over 420K subscribers.

Best humble and honest take: Crazy 4 Cryptos

Crazy 4 crypto

What does Crypto mean to you?

Most people will say ‘Freedom’, yet, most of the YouTubers we see on the Tube will be broadcasting from their bedrooms or backyards (nothing wrong with that) but not Dave.

He has been in Thailand and streams his videos directly from the beach.

You will immediately connect with his simpleton style and honest reviews.  

He has been touting about Theta when it was trading in cents and now those who followed him are very happy.

Besides Theta, Dave talks about a lot of topics in terms of storing your coins, being careful with people and how to have a long-term plan in space.

Honorable mentions

Team Underground (TA)

We had too many channels to weed out for the TA category and that is why we had to pick two winners, however, Team Underground is a channel we cannot skip.

This underdog channel has been more right about the calls than any other mainstream channel. If you like your TAs and technical side of crypto – be sure to check this channel out.

BitBoy

People either love him or hate him.  There is no middle ground when it comes to BitBoy.  

Personally, we have to weed out a lot of noise while browsing through his channel since he picks a new project every few days (or weeks) and can become overwhelming. 

However, the fresh content is worth the watch.

EllioTraders

The guy behind this channel is truly vested in the space. So much so that he recently launched his own crypto project.

It’s definitely refreshing to see the YouTuber taking his expertise into a live project.  

The reason we did not list this channel on the BEST list is because of the constant feed of projects he pitches that is a bit overbearing for our taste.  

Nevertheless, a great channel and great recommendations.

Conclusion

There are 100s of YouTube channels out there but not everyone is worth your attention. We hope you found some channels of interest through this article.

Note: if we missed any gem of a channel, please let us know and we will be more than happy to add it after review.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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