Bitcoin exchange mtgox
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Technocash bitcoin exchange rate
This year has been markedly different. The faces of the virtual currency rally — bitcoin, Ethereum, Litecoin, and Ripple — have completely stalled. Front and center among the many catalysts that could drive brand-name virtual currencies higher is the emergence of blockchain technology.
Blockchain itself evolved from the idea that the current banking system was inadequate. Blockchain resolves this by settling transactions considerably faster sometimes in real-time , as well as by circumventing banks altogether, which may lower transaction fees. It can be used to manage supply chains, create digital IDs, maintain loyalty points programs for retailers, and so much more.
Another major catalyst for bitcoin, Ethereum, Litecoin, and Ripple has been the lack of institutional investor participation. With retail investors leading the charge, and access to short-selling — i. Yet, in spite of these key catalysts, I have zero intention of investing in bitcoin, Ethereum, Litecoin, or Ripple. Here are five reasons behind that decision. Arguably the biggest issue is that blockchain technology is still a long way from being a viable real-world solution.
Meanwhile Ripple, which is laser-focused on selling its blockchain software to financial institutions, has no less than five major partners.
The problem really boils down to a Catch In short, you have a recipe for short- and intermediate-term investor disappointment. Another reason not to buy?
All it takes to join the ever-crowded field is time, money, and a team that understands how to write computer code. There are now well over 1, different virtual currencies that investors can buy into most of which have their own tethered blockchain , along with numerous blockchain projects being developed by brand-name companies themselves. Why buy into the concept if a next-generation blockchain comes along a few months later? Replacing and upgrading can be a costly and time-consuming process.
The Securities and Exchange Commission SEC has come out on more than one occasion and cautioned investors about the dangers of virtual currencies. In particular, decentralized exchanges may record or process transactions outside the borders of the U. Investors appreciate the perceived anonymity that comes with virtual currency investing, and regulating the market would likely mean putting an end to any form of anonymity.
Last, but not least, I have absolutely no desire to deal with Uncle Sam. Investing in cryptocurrencies means the need to keep track of capital gains and losses for each and every transaction.
Even using your tokens to buys goods and services becomes a taxable event, according to Internal Revenue Service IRS tax guidelines. The IRS recently won a court case against cryptocurrency exchange Coinbase that may allow it to go after thousands of tax evaders.
Now, all sales should be reported as a capital gain or loss. The eCoin does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. Notify me of follow-up comments by email. Notify me of new posts by email.
Blockchain is a long way from being a real-world solution Arguably the biggest issue is that blockchain technology is still a long way from being a viable real-world solution. The barrier to entry is exceptionally low Another reason not to buy? The tax situation is a nightmare Last, but not least, I have absolutely no desire to deal with Uncle Sam.
In sum, there are plenty of good reasons to keep your distance from cryptocurrencies. Bitcoin Cryptocurrencies Ethereum Litecoin Ripple.