On 15 September, the ethereum blockchain is planning to switch off its mining rigs. If it happens, it should reduce the carbon emissions of the entire ethereum ecosystem by orders of magnitude overnight, leaving bitcoin as the only major cryptocurrency to be built on the destructive proof-of-work concept. But the switchover could also throw some of the largest institutions in the sector into chaos, and seems likely to evolve into a cold war between the new version of ethereum and the diehard followers of the old. And thats if it happens at all.

A brief refresher on cryptocurrencies. The two biggest in the world, ethereum and bitcoin, are based on an idea called proof of work. This and Im simplifying involves the networks outsourcing their security to a decentralised network of miners, who compete to burn ludicrous amounts of electrical energy to generate lottery tickets. Each time a winning lottery ticket is generated, the miner who did so gets a reward (for bitcoin, that is currently 6.25BTC about 110,000), and gets to verify all the transactions that have happened since the last winner, packaging them up into a neat block, and adding them on to the chain made up of all previous blocks. They stamp the block with their lottery number and the process begins again.

Nearly all of the above paragraph is false, so please do not write to me. It is true enough for what follows: this proof-of-work model is at the root of everything youve heard about the environmental impact of cryptocurrencies. And ethereum is planning to drop it.

The replacement is called proof of stake. Conceptually, it is more complex, but with the same broad brushstrokes we can describe it like this: rather than burning electricity to generate lottery tickets, you instead use your ethereum to buy premium bonds, and the system picks a winner in proportion to the amount of bonds theyve bought, who then gets to do all the validation stuff as normal. You can cash out of your premium bonds, but the process is slow, so you are motivated not to abuse your validation privileges.

A version of ethereum has been running on those principles for a while. Its had different names over the years, from testnet to Eth2, but on 15 September its going to become simply ethereum. This switchover, dubbed the merge because the old and the new networks will be merged together has a good shot at being the single largest technological event ever to happen in the crypto space. Which means it has a good shot at being messy as hell.

To start, theres the date. If youve noticed a soupon of scepticism, its because Ive been burned before. I wrote about the forthcoming merge being months away in May 2021:

The switch to proof of stake has been planned for several years, with a host of problems, both technical and organisational, delaying implementation. But now, according to Carl Beekhuizen, a research and development staffer at the Ethereum Foundation the change will be complete in the upcoming months.

It was not.

But this time, the switch is rather more final. For one thing, theres an actual hard date; for another, the preparation for the merge is now live in the code that runs the ethereum network. It could still be delayed, but the default case, if no further action is taken, is that the merge will happen as planned.

Whats at stake

That doesnt mean the merge will be smooth. The first stumbling block will be the forks: clones of the old version of ethereum, spun up to keep the proof of work system alive.

This wont be the first time this has happened. Theres untold bitcoin forks, with names like bitcoin cash, bitcoin satoshi vision, bitcoin classic and bitcoin gold, but none have ever toppled the originals dominance.

So why might the ethereum fork have more of a chance? Because it will almost certainly have the backing of a powerful constituency: ethereum miners. After years at the centre of ethereum infrastructure, the miners face their industry being simply switched off overnight, and many of them arent happy with that proposal. They have real, physical assets invested in the continuation of a proof-of-work cryptocurrency, from expensive graphics cards to electrical hookups, and its not easy to repurpose it for something else.

Due to the open-source nature of cryptocurrencies, its easy enough for the miners to simply pick up where they left off, and carry on running Nu-thereum, or whatever it gets called, on 16 September as though the merge had never happened. The question is, what happens next?

Everyone who has a balance of ETH will suddenly find that they have two balances, one on each blockchain. And everyone who has a smart contract running on ETH will suddenly find they have two of them, as well: there will be the proof-of-work version of the Bored Ape NFTs, and the proof-of-stake version, and so on.

Some of those duplicates may happily coexist. Others might try to talk down the forked version, but never quite kill it how much would someone who wants to own a killer NFT pay for an unofficial version on the forked chain? If its not zero, then the trade could continue for some time, even if the developers of the Apes disown the forks.

But for other projects, there can only be one. Each USDC token is backed by $1 of hard assets held by Circle, the company that develops the stablecoin. If there are suddenly twice as many USDCs because of the fork, Circle doesnt have twice as much cash, and it will have to choose one network to support and the other to reject.

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It seems unlikely that the big stablecoins, like USDC and Tether, will back the rebel chain. And that, in turn, means the entire rebel ecosystem will come into existence in a slow-motion collapse, as forked projects fail one by one. But it will still provide a base for new creation, and one that is ultimately more similar to the ethereum developers know and love than the environmentally friendly version it is about to morph into.

Whats next

The upstart miners arent solely acting out of self-interest. There is a point of principle at stake, as well, which is the decentralisation that underpins the crypto economy. That decentralisation is, at heart, the only real reason for cryptocurrencies to exist: a centralised conventional database is faster, cheaper and safer to run, but requires you to trust whoever is running it.

A decentralised cryptocurrency cant be interfered with by big business, or big government, which makes them great for well, crime and evasion of government regulations, in the main, but also loftier concepts like permissionless innovation and uncensorable speech.

Some of the backers of the proof-of-work (PoW) concept including the bitcoin maximalists who look down even on upstarts like ethereum worry that proof of stake (PoS) ultimately results in Dino: decentralisation in name only. The nature of the system involves handing control of the network to those with the most money held within the network. Worse, it hands extra power to those who look after other peoples money: centralised exchanges like Coinbase or Binance, and centralised notbanks like Celsius or Voyager, if theyd survived that long. Those exchanges can offer staking services where they do the hard technical bit of making proof of stake work (buying the premium bonds, in the terms of my fantastic analogy), and their customers get the rewards.

The rise of the Dinos is more than just a theoretical concern. In a post-Tornado Cash world still dealing with the fallout of North Koreas favourite decentralised app being accused of money laundering and sanctioned by the US Office of Foreign Assets Control (OFAC) it isnt at all clear whether it is legal under US law for a validator, the PoS replacement for miners, to approve a block that contains a transaction to or from a sanctioned address.

Ethereums developers are trying to force the matter, proposing a credible commitment to punish censors. What that means is not yet clear, but the hope is that it doesnt have to be that the credible commitment means that organisations who have to comply with OFAC simply do not stake ethereum in the first place.

It is not entirely clear what an ethereum with no validators who are trying to remain in compliance with US sanctions would look like. But that is the world were heading to.

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TechScape: How a major change to ethereum could change cryptocurrency forever - The Guardian

One of the biggest innovations that has altered the world in ways no one could have anticipated is technology. Although inventions such as industrial growth played an essential part in getting the world where it is, the invention of the internet and thus technology has shaken everything that its predecessor did. It has diversified many sectors, especially those that would have been considered unchangeable such as the finance sector. No one would have imagined that people would trust their money and wealth to be new, unknown, and unverified inventions. Stock market investing was the epitome of where all these started.

However, as time goes on, terms such as cryptocurrency have become very popular, especially with the emergence of Bitcoin in 2008. Unfortunately, although most people have heard about bitcoins, most do not understand what it is and entails. In most cases, cryptocurrency is confusing. The main question by some people is why is everyone talking about bitcoin, and how do those who understand it suddenly make much money in a short time? This leads most people to jump into the deep end blind, not knowing what they are doing. Therefore, this article will highlight the top must-know things about Crypto that you should know before investing.

The first step in understanding the operation of cryptocurrencies is understanding their definition to remove the vagueness surrounding them. Cryptocurrency, also known as Crypto, is a digital currency designed to work through a computer network as a medium of exchange that is not tied to any bank or government to maintain or uphold it. Therefore, unlike normal bank operations where there is a central authority, there is no higher power to answer to in the cryptocurrency world. The coin ownership of every individual is stored in a computerized database secured using strong cryptography and blockchain technology. Therefore, in a simple definition, cryptocurrency is a digital currency that circulates without a central monetary authority. Like physical money, one can use cryptocurrency in trading, buying, and selling, but unlike physical money, it is held in a digital wallet, and its exchange is done online.

In its inception, the creation of cryptocurrency was begun by Bitcoin in a primary process known as mining. Mining is an intensive energy process where a computer performs an intensive series of complex puzzles needed to verify the authenticity of transactions in the blockchain. As the computer solves these puzzles, the owner will likely be rewarded with a newly created token of a specific cryptocurrency. However, as miners of these cryptocurrencies increase, the likelihood of a reward decreases. For cryptocurrency mining, a computer needs specialized hardware called application-specific integrated circuit ASIC. Apart from Bitcoin, other cryptocurrencies use different methods of creating and distributing tokens.

There are thousands of types of cryptocurrencies available in the market. Since it was first launched in 2008, Bitcoin has been the most popular, followed by alternatives such as Dogecoin, Ethereum, Ripple, and Litecoin. However, it is essential to note that, although most cryptocurrencies use the same decentralized system and blockchain technology, each type has its differences. The differences are mainly due to the coding and algorithms used.

Now that you know the fundamental aspects of cryptocurrencies, the next important question is whether it is a worthwhile investment. Although it is commonly mentioned in the financial sector, getting into the cryptocurrency scene is not as automatic. Therefore, it is essential to consider if it is a worthwhile investment. Whether or not investing in this field is for it mainly depends on your goals and, secondly, what you want to achieve.

Therefore, before starting this investment, consider the following;

The first step that will help answer the question of whether you invest in cryptocurrency is outlining why you want to do it. Many investment opportunities in the market may offer less risk and more excellent stability than cryptocurrency. Therefore, why are you considering these digital currencies as an option? If you are considering gaining a new skill and exploring something new, this may be better since it will teach you many things about digital currencies. On the other hand, if you want to invest your cash to grow it, it is advisable to note that the cryptocurrency market is very volatile, and its shifts are primarily unpredictable.

Once you decide to invest, the next step is getting the feel of the industry. As an investor especially, since you are new to digital currencies, it is better to know how the sector operates before investing. Therefore, take your time to learn the different currencies offered. Which one is best depends on your standing, and especially look beyond the most prominent names such as Bitcoin, Ripple, and Ether? Since there are other new upcoming currencies, they may have benefits that the older ones lack.

In addition, explore the blockchain technology in depth to grasp how this part of cryptocurrency works. Fortunately, there are many primers on blockchain technology written for those who do not have a coding or computer science background.

You can find anything on the internet, which is one of its main benefits. Since digital currency is occasionally one of the most trending topics, things tend to develop quickly. The primary reason for this being a trendy area is a robust and active community of cryptocurrency investors and enthusiasts talking about it around the clock.

Find a community to learn from what happens in the industry to educate yourself on what is happening and, most specifically, how it will impact the market. Additionally, by answering your questions, the community will help you understand parts of the market that seem hard.

Besides finding a community, finding the time, and reading the cryptocurrency projects white papers are crucial. Each digital currency project should have one that is easily accessible. The white paper should tell you everything there is to know about the developers and specific about the project. If the white paper is unavailable or has scarce details about the project, that is generally considered a red flag.

The digital currency space is an exciting one.Research and timing, however, will determine whether you succeed or fail. Do continuous research on anything you dont understand, have a knowledgeable support system to help navigate the roads, and pick the best time to invest since timing is vital.

Disclaimer: Any information written in this press release or sponsored post does not constitute investment advice. Thecoinrepublic.com does not, and will not endorse any information on any company or individual on this page. Readers are encouraged to make their own research and make any actions based on their own findings and not from any content written in this press release or sponsored post. Thecoinrepublic.com is and will not be responsible for any damage or loss caused directly or indirectly by the use of any content, product, or service mentioned in this press release or sponsored post.

For publishing articles on our website get in touch with us over email or one of the accounts mentioned below.

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The Top Must Know Things About Cryptocurrency - The Coin Republic

It wont be wrong to say that this has been the harshest crypto winter of all time. For the first time, companies like WazirX and Binance fought over the ownership of the company. Not to forget, the regulatory uncertainty from global regulators has deepened the wound of investors who have lost their entire life savings.

So, if you plan to leave the the world of cryptocurrency, heres a step-by-step guide on exactly what to do.

To leave the crypto space, one thing you should do is sell all your digital assets and liquidate them via a crypto exchange. Any crypto platform that holds your cryptos should be able to help you withdraw your assets.

If your portfolio is bleeding red but you dont plan on quitting crypto yet, then the best option is to send your cryptos to a safe and secure hardware wallet. Store them until the bear market reverses. However, make sure that you always remember your private keys (equivalent to your crypto password). Keep it in a safe place so that you always have access to them. Cryptocurrencies are stored in your crypto wallets built on blockchain technology that stores digital assets cryptographically, making it impossible for someone to hack your private keys.

Without private keys, you cannot claim ownership of any crypto assets. Court orders or any other legal document wont be worth it if you dont have private keys.

Crypto market is volatile. Every day you see a potential investment opportunity. What makes it difficult to leave crypto space is when you keep on tracking new coins. You have to prevent a change of heart. Try exiting all crypto groups on Telegram, Reddit and everywhere on social media. These groups can build false narratives and promote new coins.

The best investment option for a distraction could be a regulated space like the stock market. If youre keen on investing your money, learn more about the stock market, portfolio building, and switch your interest from crypto to equity markets. It is worth noting that while the stock market is subjected to volatility as well, it has something called a daily lower circuit which safeguards you from losing out on your investment.

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Want to leave crypto? Here's a quick guide to quit cryptocurrency world safely - The Indian Express

After reports that merchants and holders of Zugacoin cryptocurrency are unable to make withdrawals, the founder of the Nigerian crypto, Sam Zuga responded by accusing unnamed ignorant people of working to tarnish the project. One Nigerian expert has advised prospective zugacoin investors to prioritize learning finer details about the project before investing.

As promoters of zugacoin a Nigerian cryptocurrency ostensibly created to end poverty in Africa continue to tout the token as a legitimate digital currency, there are growing reports on social media of merchants and holders of the coin who have failed to withdraw. These reports have sparked allegations that the project is yet another scam which is cleverly disguised as a complex cryptocurrency project.

The complaints and allegations against the project have, in turn, prompted Archbishop Sam Zuga, the founder of Zugacoin, to issue a flurry of Facebook posts condemning ignorant people peddling false information about the project. In one of his latest posts, Zuga said he was not engaged in cryptocurrency trading but was instead building a digital financial system to correct a financial future. He added that his crypto, which automatically gives you 200% profit of any amount you transfer to it, is only being used as a driver of the system into that future.

In the lengthy August 25, 2022 post, the founder denies allegations of manipulation within the Zugacoin ecosystem. Zugas post also explains how the ecosystem works and why some holders may be having problems withdrawing. He said:

The only challenge is lack of knowledge from the users. Anyone can withdraw conveniently if the people that are withdrawing are less than the people who are depositing. No system can survive if what is going out is more than what is coming in.

There is no problem anywhere in the Samzuga ecosystem. The only problem is your ignorance of how the system has been designed to work. Merchants can transfer money from the Merchant area of the merchant app to the Merchants wallet and from there to P2P conveniently.

In his earlier Facebook posts, Zuga similarly attacks unnamed individuals whom he accuses of besmirching the noble project with their ignorance.

However, despite Zugas spirited defense of the crypto project, influential players in Nigerias blockchain industry told Bitcoin.com News they remained unconvinced. They point to the projects lack of transparency or its apparent exploitation of Nigerian peoples affinity to religion or their religious leaders as red flags.

One of the players, Ophi Rume, aka Cryptopreacher, told Bitcoin.com News that unless the Zugacoin founder reveals the rest of the team behind the project it will be difficult to make a judgment about the projects legitimacy. Noting that scammers often exploit peoples desperation and ignorance, Rume, a blockchain analyst and educator, said ordinary Nigerians should only consider investing in this project after doing some basic due diligence. He noted:

As basic as searching for the words; Is Zugacoin a scam or a Ponzi scheme via Google, Nigerians can read and learn a lot of things about this project. Also, before investing Nigerians need to know those involved in the project. They need to know the board of directors, the developers and whether the project is on Github.

According to Rume, when prospective investors learn or become aware of such details about this project they will likely decide against investing and thus preserve their meager savings.

Meanwhile, another expert who wished to remain anonymous lamented scammers growing use of religious titles when marketing their projects to unsuspecting victims. According to the expert, when a dubious cryptocurrency project is fronted by a religious leader, people will refrain from criticizing it. The expert explained:

I have found that no one wants to be seen as the prophet of doom or enemy of progress when it comes to big and questionable projects like Zuga. Besides, the founder is a Christian leader with a considerable following who has also used his influence to project Zuga out there. Remember Inksnation.

For Paul Ezeafulukwe, the former president of Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) and the team lead at Bitget Africa, zugacoin is the most volatile cryptocurrency and one that has totally failed to deliver on its promises. Some of the promises include claims that the cryptocurrency will end poverty as well as help Nigeria reduce its debt.

Another promise they have made which is like tales by moonlight is their ability to pay $97 billion dollars worth of Nigerias national debt and also help Africa clear her debts. From their position it is clear they dont understand how cryptocurrencies work, I believe the promoters were sold a lie that your ability to mint a token could translate to instant monetary value without building an ecosystem to support the utility of the token, explained the ex-SIBAN leader.

Ezeafulukwe said it is unfortunate that some poor and gullible individuals have invested in zugacoin based on these promises. For investors who are still thinking of buying zugacoin, Ezeafulukwe said they must look at these two promises [poverty eradiction and paying off Nigerias debt] and do simple research to find out if these things are possible by a single individual.

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What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Zugacoin Controversy: Supposed Poverty Eradicating Cryptocurrency Criticized as Just Another Complex Nigerian Ponzi Scheme Featured Bitcoin News -...

Vitalik Buterin, the co-founder of Ethereum, recently discussed the advantages of cryptocurrency over traditional payment methods on Twitter. Buterin claims that considering its convenience and resilience to censorship, the bitcoin sector is still underappreciated.

The 28-year-old programmersaid that crypto offers a

Big boost to international business and charity, and sometimes even payments within countries.

People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they're so much more convenient.

Big boost to international business and charity, and sometimes even payments within countries.

Some influential figures in the sector responded to Buterins Tweet.

The thing that makes cryptocurrency payments super inconvenient is taxes

John Squire, a supporter of cryptocurrency, responded to the co-founder of Ethereum and stated that cryptocurrencies are here to stay. Squire declared:

No matter how much they start, no matter how much they try to control crypto, they have come into our lives to stay and nothing and no one can stop it.

Particularly since the 2021 bull run, cryptocurrency has entered the mainstream. When big coins like Bitcoin (BTC) and Ethereum (ETH) made enormous gains immediately, many new and youthful investors flocked to the growing asset class.

Additionally, donations made in cryptocurrencies are now more prevalent than ever. To date, $54 million in bitcoin donations have been used to combat Russia in the conflict in Ukraine. Additionally, as of April 8th, daily contributions to the cause totaled $114 million. Fiat money has historically been expensive and slow to handle international payments.

The bulk of individuals still do not fully comprehend the cryptoverse. Only a small number of people have made an effort to comprehend the inner workings of how transactions occur over a blockchain. Many also worry about hacks and exploits because they frequently plague space.

Bitcoin, Ethereum, and all the specialized assets in between are examples of cryptocurrencies that are still regarded as a marginal trading option. Millions of traders, even those who have dealt in fiat money for decades, nevertheless seem hesitant to accept cryptocurrencies widely. Even more so, the positions of many major corporations and countries remain dreadfully obscure.

Governmental involvement also happens from time to time. People turned to crypto donations, for instance, when the Canadian Truckers protests bank accounts were frozen. However, the private keys to the wallets were somehow obtained by the Canadian government. Many governments are also opposed to the use of cryptocurrencies because it undermines the authority of central banks, a key control mechanism.

There are several excellent reasons to begin using cryptocurrencies inbusiness and to begin investing in it altogether. There are many things thatcan bedoneto profit from its advantages while waiting, even though it can take some time beforestartingto see any significant beneficial adoptions.

Nevertheless, the use of cryptocurrency for payments is growing. Even nations that can control and regulate a cryptocurrency have indicated interest in such a system. One of the cornerstones of the concept, the anonymity aspect of cryptocurrencies, is removed. One thing is for certain, though: crypto is here to stay, and there isnt much the powerful can do to halt the spread of ideas.

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Has Cryptocurrency Been Undermined? Here's What The Ethereum Founder Has To Say - TronWeekly

Companies with significant ESG commitments to shareholders will not be able to hold investments in cryptocurrencies or NFTs and still meet theirsustainability goals; public companies with these technologies in their portfolios will be responsible for the emissions created by their investments.

Blockchain has become the go-to technology solution for enabling traceabilitythroughout circuitous product supply chains most notably infoodandtextiles.But in the finance world, blockchain has become inextricably linked to the risein popularity of cryptocurrency and non-fungibletokens (NFTs).

While blockchain has proven its value as an emerging solution for certainapplications, there is more to consider about the techs implications specifically, as we think about the role future iterations of blockchain have oncarbon-reduction goals for a rapidly changing climate.

Thats not to say that these technologies will never be carbon neutral; but intheir current iterations, market leaders such as Bitcoin and Ethereumare not sustainable. New currencies and NFT development processes claim to begreener because they dont rely on the same Proof ofWork system that involveshuge amounts of calculations (and thus, processing power) to produce a singletoken. Cryptocurrencies that instead use a Proof of Storage or Proof ofStakesystem use far less energy, as do currencies using a technology called blocklattice which doesnt requiremining.Similar processes are being applied to the NFT market in an attempt to reachcarbon neutrality. At this point, however, it's hard to tell if thesetechnologies, were they to scale, would be any better or even worse for theenvironment.

Therefore, everyone from the everyday individual to the global corporation should welcome the continued evolution of these types of energy-consumingtechnologiesand how theyre created; since, as of now, most cryptocurrencies and NFTs areproduced by methods that are completely at odds with efforts to mitigate climatechange, which affects every living thing on the planet.

These technologies require massive computing power to generate, resulting in anoutsized and irresponsible carbon footprint. In fact, the process is purposelydesigned to be highly energy inefficient, to make it harder to tamper with afiles legitimacy. Bitcoin alone uses as much electricity as an entirecountry.The same goes for NFTs, the security and value of which hinge onenergy-intensive processes a single transaction can use as much electricity asthe average household uses overdecades.

Every cryptocoin mined uses more energy than all those mined before and about21 million Bitcoins have been mined so far. After its mined, cryptocurrencycontinues to generate a vast network of computer connections with everytransaction. Bitcoin and Ethereum activity combinedconsume as muchelectrical energy as an entire nation nearly 290 TWh per year.

2023 could be the tipping point for these technologies as new federal rulesaround carbon accounting are slated to take effect next year. An SECproposalseeks to improve transparency among funds that purport to take Environmental,Social and Governance (ESG) factors into consideration when making investingdecisions. This new reporting regulation will require any publicly tradedcompany to disclose their full carbon footprint and enforce carbon-offset fineson those that greenwash theirprogress.

Companies that have significant ESG commitments to shareholders will not be ableto hold investments in cryptocurrencies or NFTs and still meet theirsustainability goals. Corporations that continue to embrace NFTs andcryptocurrency will face expensive carbon-offset costs and negative brandperception. And once every publicly traded/reputable company pulls out of cryptoand unloads their NFTs to meet their ESG goals, there will be nothing left toprop up these markets.

Sustainability experts might see this on the horizon; but ideally, individualsand corporations will also have the foresight to not continue throwingadditional money into these notoriously energy-intensive technologies until theycan truly be sustainable. Cryptocurrency and NFTs use mind-boggling amounts ofcomputer energy and create substantial greenhouse gas emissions, outweighing anycurrent perceived value. Public companies with these technologies in theirportfolios will be responsible for emissions created by their investments. Thenew federal reporting regulations might mark a fork in the road for thesedigital currency trends.

Published Aug 24, 2022 2pm EDT / 11am PDT / 7pm BST / 8pm CEST

Andrew Blauvelt is Senior Product Director at Atrius part of the Intelligent Spaces Group, a division of Acuity Brands revolutionizing spaces to sense, think and act.

Jol Dsir is Connected Building Solution Manager at Distech Controls, which connects people and companies with intelligent building solutions.

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The Hidden Cost of Cryptocurrency and NFTs - Sustainable Brands

Australia is set to be the first country to do a virtual stocktake of the cryptocurrency sector, in a move that has global commentators buzzing.

The initial focus for the government will be token mapping, which refers to grouping types of crypto assets based on their technological features and underlying code. Announcing the move on Monday, Australian Treasurer Jim Chalmers called it a first step in a reform agenda.

Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt with the crypto asset sector, he said, in a statement released by the Treasury.

As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers.

Australia is the first country to take the step of token mapping. Is that surprising?

Professor Tan says moves like this demonstrate that Australia (despite any assumptions to the contrary) has regulators who are future and action oriented, and often look to do the right thing when it comes to an ecosystem of emerging technologies.

Heres why Australia is looking to crypto regulation and what impact it could have on crypto investors and businesses alike.

Why does Australia want to regulate the Wild West of the cryptocurrency gold rush?

While investors might be worriedabout the impact regulation could have on the popular blockchain technology, Professor Tan points out there are lots of benefits of regulation, including establishing a framework for equal taxation,helping to prevent fraud and providing stronger protection for investors.

It also could help when it comes to anti-money laundering (AML), engaging in counter-terrorism financing (CTF)and preventing other financial crimes, he says. This is about regulating the 'Wild Wild West'and protecting investors from themselves, even as they are joining what they see as the gold rush on the cryptocurrency exchanges.

How would regulation impact the 'crypto gold rush'? Photo: World Spectrum / Pexels

When it comes to regulating the traditionally decentralised cryptocurrency space, there are fears from some retail investor (a term for a nonprofessional investor) as to what the tax implications could be from new Australian laws and how it might impact how much Capital Gains Tax (CGT) they would have to pay on their exchanges. But the Australian Taxation Office (ATO) can already tax this type of financial productand has been tracking cryptocurrency transactions for years.

For the investors of established crypto assets, nothing has changed as cryptocurrencies like Bitcoin have been regulated and taxable for some time, says Professor Tan. The planned token mapping means that new and emerging forms of crypto assets can be identified, and the government can determine if our existing financial services laws are adequate, or if they require their own special cryptocurrency regulation.

The government doesnt want crypto assets that fall through the cracks in our current regulatory framework.

What impact would regulation have on Australian financial services and fintech companies in the crypto space?

Professor Tan says that the recommendations set down by the Select Committee on Australia as a Technology and Financial Centre will also impact service providers, digital currency exchanges, issuers of crypto assets and other businesses operating in this space.

They will have to offer more transparency about the crypto assets they are offering, he says.

Professor Tan says new regulations would impact businesses in this space. Photo: Alesia Kozik / Pexels

Their revenue may also be affected on two fronts the market may be cautious about investing in those crypto assets, and the increased regulatory scrutiny may mean that some of their existing revenue streams are simply no longer viable.

Will regulations impact all types of crypto?

The token mapping exercise is not meant to be one-off, he explains. It will be ongoing and co-evolving as new forms of crypto assets emerge. Technology could evolve ahead of regulation in the short term, but regulation will also co-evolve so that the objectives of the regulators are met.

Is regulation in the spirit of crypto?

So, a regulatory regime clearly has benefits. But it is not exactly in line with the libertarian principles of cryptocurrency enthusiasts. But Professor Tan says Australia is already a lot more permissive than other regimes (such as those found in Russia, India, China and Turkey).

Some cryptocurrency users might be suspicious of attempts to regulate the digital assets. Photo: Rodnae Productions / Unsplash

l think complete decentralisation is a bit of a pipe dream, he says. Most mainstream investors would still want some extent of recognition and legitimation from the government for their investments.

Very few governments in the world will have an appetite forcomplete decentralisation or its risks associated with terrorism financing or money laundering.

Will other countries follow Australias example?

With Australias move to cryptocurrency regulation being widely covered by the worlds press this week, Professor Tan says the interest in Australias moves in trying to regulate this section of the financial markets isn't surprising.

But he also warns that whether they follow suit will depend on their attitude to crypto in the first place.

As a world first, other countries will likely be looking closely at the outcome of this exercise. But in some, less crypto-friendly jurisdictionswhere crypto assets are banned outright, there is no need to token map as there is already a blanket ban in place. They have already decided that crypto assets offer no societal value, so there is no need for the balance that the Australian regulators are striving for.

Professor Barney Tan is the Head of School and a Professor at the School of Information Systems and Technology Management (ISTM) of UNSW Business School. Professor Tan is available to speak on the above topic, as well as regulations and innovations in Fintech and can be reached on barney.tan@unsw.edu.au for media comment.

Reach out to k.bettes@unsw.edu.au for further media comment from other academics of the School of Information Systems and Technology Management (ISTM).

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What will Australian regulation mean for cryptocurrency? - UNSW Newsroom

Bitcoin may be the biggest cryptocurrency by popularity and market cap, but are there better alternatives that can produce even bigger gains?

Some of the best ICOs have provided massive returns for investors, and IBAT is getting ready for its listing on PancakeSwap (its IDO).

The global lockdowns led to financial market turmoil, but that period proved to be the best time for investing. Bitcoin (BTC) dropped to just over $4,000. That shook the market, but investors who bought BTC at the time went on an epic rally in the next 18 months.

Bitcoin reached its all-time high (ATH) of $69,000 in November 2021. A massive market crash followed, with BTC losing 73% of its value. The worst part is that many investors expect further downside. The market is very bearish at the moment, and Bitcoin seems to be out of steam to make a new ATH.

Bitcoin has slightly recovered since its crash, but it seems that its latest price action is a bounce from the ATH set in 2018. So the market expects a short-term rally before Bitcoin turns on itself and continues a multi-year bear market.

If Bitcoin isnt due for a massive rally, then which coin could be?

The crypto market has revealed that a tokens biggest volatility usually happens during major listings and catalyst events. Battle Infinity will have both of those soon. The first big news is that Battle Infinitys token, IBAT, will be listed on PancakeSwap on 17 August 2022 at 16:00 UTC.

The other major news is that big celebrities are joining this crypto game. Battle Infinity founder Sureshi Joshi stated, I can confirm today that Irfan Pathan, the international cricketer, and Bollywood actress and former Miss Universe turned actress Urvashi Rautela, will be joining me at our Battle Infinity launch party in Delhi on Wednesday.

So whats the big fuss about this NFT-based fantasy sports game?

Battle Infinity enables players to earn rewards on six platforms. Players compete in the IBAT Premier League by building up teams while monetizing land. To make the game even more appealing, the developers enabled loyal players also to earn.

This crypto project transfers a portion of IBAT tokens earned from transaction fees to a global staking pool. Its from there that Battle Infinity coins get distributed to active players as a reward for their contribution to the ecosystem.

Although players can earn by playing Battle Infinity, they can also use Battle Swap to exchange their rewards for other currencies. The Battle Arena is where players meet and interact in real-time with their avatars.

The NFT Marketplace has tokenized assets and characters to attach a value to them. Players can use these NFTs to enter the IBAT Premier League and stylize their avatars with unique hairstyles and fashion accessories.

This NFT project is destined for big things, so investors can get in on the action by keeping up with the latest alerts via the Battle Infinity Telegram (admins will not DM your first).

Battle Infinitys presale sold out within 24 days of launch, but investors can get in on the Tamadoge (TAMA) presale. Its selling out fast, so its best for investors to get in immediately.

TAMA is also destined for an exchange listing. LBank tweeted that it will list TAMA, and a decentralized exchange, Uniswap, will also list it.

That means more trading volume for the coin. More information about Tamadoge can be found on the Tamadoge Telegram channel.

Battle Infinity and Tamadoge have combined metaverse and P2E elements to make themselves an attractive investment.

Visit Battle Infinity Now

Link:
Thinking to Buy Bitcoin? New Cryptocurrency Battle Infinity Lists on PancakeSwap and is Better Alternative - NewsBTC

Decisions made by companies during effects of bear markets are expected to play a role in determination of the cryptocurrencys ecosystem. Fanny Philip, COO, Sato Technologies, a Canadina Bitcoin (BTC) mining firm, has spoken about the anecdotes necessary to sustain the bearish loom as the market prepares for the next bull run, as reported by Cointelegraph.

According to Cointelegraph, during the Surfin Bitcoin 2022 event in France, Philip emphasised on the impact of bear markets on business, and for mining companies to build and understand. Sato is a digital assets mining company, publicly traded on the Toronto stock exchange (TSXV) since September, 2021, and mines both Bitcoin (BTC) and Ether (ETH). Philip further told about the initial challenges of arranging the industry, despite entering cryptocurrency ecosystem during a bull market. High demand for miners in the Quebec region, where the company originally had set-up its base, created a temporary stoppage on new mining facilities and unrest from the local residents. When asked about the effects of bear market, Philip had a positive outlook towards it, while commenting on the price relationship between BTC, mining and purchasing mining equipment.

Moreover, Cointelegraph noted on Sato Technolgies new agreement Foundry Digital LLC (Foundry). The two companies signed a deal to make it possible for Sato to host an additional 4,300 miners at center one in Quebec, and the programme will reportedly be supported by renewable energy. Whats going to happen, nobody really knows. Thats why we decided to diversify. Mining is our core business but we develop a lot of applications on top of the Lightning Network, Philip said, on diversifying and learning about options. At the concluding part, Philip highlighted that the Merge could be seen as a way to look at the possibilities to build and earn within the Ethereum ecosystem. Its all part of the evolution, Philip mentioned.

(With insights from Cointelegraph)

Also Read: Binance halts access to one million dollars cryptocurrency account for a Tezos contributor

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Sato Technologies Fanny Philip on the impact of bear market over cryptocurrency businesses - The Financial Express