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Mark Tencaten | The benefits of using cryptocurrencies for business

A growing number of businesses all around the world are adopting cryptocurrency and other digital assets for various operational, transactional, and investment needs. Like every investment, there are uncharted hazards as well as compelling attractions. Mark Tencaten has examined the concerns and information businesses should take into account when deciding whether and how to employ digital assets.

What can cryptocurrency do for your business?

Ø  Here are some of the reasons given by Mark Tencaten for why some businesses are now embracing crypto to get your firm thinking about it:

1. Crypto may make new demographic groups accessible. Users frequently reflect a more modern, tech-savvy consumer with extra money to spend on upscale goods and services. In fact, according to a recent poll, 77% of retailers said they take cryptocurrency because of its cheaper transaction costs, and 85% of them stated they do so in order to attract new clients.

2. Introducing cryptocurrency today could encourage internal awareness of this technology in your business. Additionally, it may position the business better in this new market for a time when central bank digital currencies (CBDCs) might be used.

3. By tokenizing existing investments, a broader understanding of the cryptocurrency market and blockchain technology might open up new liquidity and investing alternatives.

4. Cryptocurrency offers several alternatives that are simply not possible with conventional money. Programmable money, for instance, can enable correct revenue sharing in real time while boosting transparency to ease back-office reconciliation.

5. More businesses are discovering that key clients and suppliers want to conduct business using cryptocurrency. Consequently, in order to ensure seamless transactions with important stakeholders, your company may need to be set up to accept and send cryptocurrency.

6. A variety of more conventional Treasury tasks can be improved via cryptocurrency, including:

·        Enabling quick, safe, and easy money transactions.

·        Assisting in enhancing control over the company's capital.

·        Managing the potential and dangers associated with making digital investments.

7. Cash, which may lose value due to inflation over time, may not be a good substitute; hence cryptocurrency may be a good balancing asset. Cryptocurrency is an investable asset, and some of it has done quite well during the previous years. Unmistakable volatility concerns do exist, and they should be carefully evaluated.

Ø  Mark Tencaten suggests that a different style of thinking than that used to decide whether to utilize cryptocurrency for investing may be necessary when deciding to use it for operations:

1. Investing in cryptocurrencies is often a longer-term strategy, and employing it in operations frequently necessitates even more careful decision-making.

2. Utilizing cryptocurrencies in day-to-day activities may encourage the creation of new, creative forms of trade. Along with that, the company's market reach might be expanded to include new counterparties as well as consumers.

3. Companies employing cryptocurrencies must manage crucial onboarding difficulties, including accounting, regulatory, and tax problems for which there is now limited regulatory guidance.

Conclusion

Implementing the usage of cryptocurrencies and digital assets in general—in all of its forms and configurations—represents a considerable investment. It's a lot more critical choice than switching to a new payment method. The company's approach to managing operational complexity and key strategic issues must be thoroughly revised in light of using crypto.

The good news is that a corporation may gradually incorporate cryptocurrency into its operations. When the business is ready to go forward, it's critical that both internal and external participants start putting in the time and effort needed to succeed. The risk, finance, treasury, accounting, tax, technology, operations, communications, and legal departments should all participate, as well as the board and its committees.

New department-wide procedures and controls will probably be needed as a result of adoption. Players both within and outside of the firm must adapt their thinking and become at ease with new realities while participating in crypto activities. Strong C-suite leadership is essential to every endeavor for the same reason.

According to Mark Tencaten, several businesses are starting to accept and make use of cryptocurrencies and, more broadly, digital assets. The potential advantages of cryptocurrencies are starting to become more apparent to both consumers and service providers. Therefore, businesses should consider embracing crypto and investigating its applicability to their industry. Administrators should also be ready to present a convincing argument and well-supported suggestions for a suitable course of action.

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Mark Tencaten | Why Economics Nobel Prize winner criticizes cryptocurrency

Since its conception, cryptocurrency has mostly been a source of discussion. On the one hand, it has been hailed as the currency of the future, a safe, decentralized method of conducting transactions without the need for middlemen. On the other hand, critics have called attention to its vulnerability to use in terrorism funding and money laundering. Paul Krugman, a Nobel Prize-winning economist, has made some harsh criticisms of cryptocurrencies, calling them primarily worthless and overrated. Here are his justifications.

·        Cryptocurrency is unstable and not widely utilized

A new analysis from the Federal Reserve shows that cryptocurrencies like Bitcoin have not yet gained widespread adoption despite the fact that they were created to satisfy consumer payment demands. He thinks that the volatility and instability of cryptocurrencies make it challenging to use them for routine transactions.

Consumers may encounter fraud, theft, and loss when using cryptocurrencies, which can be challenging to navigate. For investors and speculators, cryptocurrencies are typically employed as more specialized assets.

·        Cryptocurrency is overpriced

According to Krugman, the price of several cryptocurrencies is higher than their true value or economic value at the moment. The absence of inherent value in cryptocurrencies is Krugman's main defense.

He contends that, unlike conventional assets with inherent worth, such as gold or real estate, the value of cryptocurrencies is wholly arbitrary and solely determined by market opinion. Even further, Krugman refers to cryptocurrency as a "Ponzi scheme." He contends that overblown hype and careless speculation are mostly responsible for the value of cryptocurrencies. As a result, the value of cryptocurrencies remains unpredictable and erratic.

·        Illegal usage

Krugman also emphasizes the frequency of illegal behavior, such as money laundering and terrorism funding, in the cryptocurrency industry. He contends that the anonymity of cryptocurrency transactions makes it simpler for criminals to engage in unlawful activity and endangers the financial system's stability.

·        Cryptocurrency is uncontrolled

Stablecoins are a standard option for lawful crypto transactions. The guarantee to exchange these coins for conventional dollars supports them. It's crucial to keep in mind, though, because stablecoin issuers basically function as unregulated banks. They don't have the security and assurance that traditional banks offer.

In reality, there have already been huge failures in the stablecoin industry that cost coin holders their whole investment.

How to securely buy cryptocurrency?

As Krugman points out, there have been accounts of people who have gained a lot of money through trading in cryptocurrency, but there have also been numerous accounts of people who have lost a lot of money.

Mark Tencaten suggests that if you want to invest in any type of digital currency, it is crucial to conduct your research and ensure that you are aware of both the underlying technology and any market factors that could have an impact on the currency's value. Mark Tencaten also says that understanding your risk tolerance and investing objectives clearly is also essential.

According to Mark Tencaten, which sort of cryptocurrency to invest in is an important thing to consider because several possibilities are available, each with certain advantages and hazards. Additionally, it's crucial to do your homework on the many exchanges and storage wallets that are accessible and only to utilize trusted platforms that are safe.

If you share Krugman's opinion on cryptocurrencies, Mark Tencaten says that there are plenty of other alternative investment opportunities available. You can consider investing in commodities, real estate, or private equity if you have enough money. However, if you are still drawn to cryptocurrencies, you could find non-fungible tokens (NFTs) intriguing. Despite the possible hazards, NFTs are distinctive, original digital assets with high potential value.

Since the outset, Paul Krugman has criticized cryptocurrencies. For cryptocurrency to realize its full potential, genuine worries about the absence of inherent value, illicit usage, and restricted acceptance must be addressed. But, like with any newly developed technology, being aware and open to the future's potential is critical.

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Mark Tencaten - Step-by-Step Guide for Minting Your NFT

NFTs, or Non-Fungible Tokens, have recently gained attention in cryptocurrency! These distinctive assets have made a stunning 2021 debut and are capturing the attention of investors worldwide. Mark Tencaten says that NFTs simulate the digital representation of real objects like any artwork, music, digital characters, and even virtual space. Additionally, NFTs offer authors and consumers impenetrable proof of ownership, unparalleled rights, and a secure licensing system. NFTs have the ability to completely change the auction house sector as a result of these characteristics!

Understanding how to mint NFTs can open the door for business owners and creatives to sell their digital creations for prices that outperform the market. The NFT industry allows content producers to self-auction their works of art while serving a worldwide market. The NFT industry allows content producers to self-auction their works of art while serving a worldwide market.

What exactly does it mean to mint your NFT?

Simply said by Mark Tencaten, minting NFTs refers to the process of publishing your finished NFT on multiple NFT marketplaces. Selecting the NFT marketplace and posting the materials to be minted into an NFT are the initial steps in the NFT minting process. The process of minting on a blockchain network turns the submitted material into a cryptocurrency collectible that can be sold.

Connecting one's cryptocurrency wallet with the preferred marketplace before advertising is crucial, after which one should submit the NFT for sale as either a one-time purchase or with the possibility to earn royalties on subsequent transactions. Artists may select the latter approach to ensure future revenues from their minted NFTs, although one-off NFTs often attract a higher price because of the special rights offered to the buyer.

Guide to Minting NFTs: Step by Step

The process for minting NFTs differs depending on the market you decide to host your NFT. Any market you choose will, in some way, be influenced by the following steps:

·        Open a wallet on a cryptocurrency exchange.

·        After enrolling, be sure to send money and set up a cryptocurrency wallet.

·        Transfer ETH to your wallet.

·        Register with the NFT marketplace of your choice and connect your wallet.

·        Select your username and email address

·        Set up and validate your account

·        Go to the marketplace and search for the create button.

·        Upload the NFT in a format that is accepted.

·        Enter your NFT's name

·        and choose "create."

·        You've succeeded! The last step is to list the NFT you own on the market.

How much time is required to mint NFTs?

There are no time limits because an NFT's production solely depends on the artist who makes it. It may take several days or perhaps a few hours to develop your own NFT. Because each NFT is distinct, you may make one master NFT and add other features to the same outline. For instance, one of the most costly NFTs ever sold is the CryptoPunk series. Coined NFTs may be purchased or traded on specialized websites known as NFT markets, much like digital currencies.

Mark Tencaten explains that a buyer receives a certificate of ownership permanently stored on the blockchain, even if a sale may not entail the physical transfer of the represented asset. The purchaser may then retrieve this certificate from their digital wallet using browser add-ons, which provide access to distributed apps for Ethereum. An NFT may be sold equally straightforwardly by having the seller relist it on the same or a different NFT marketplace until a buyer comes along who will pay the stated asking price.

What does it cost to produce NFTs?

According to Mark Tencaten, transaction or "gas," costs are included in the price of minting an NFT. Depending on the employed Blockchain protocol, this can range from a few cents to a significant sum. Additionally, commissions are owed to the NFT marketplaces, which may levy around a 2.5% service fee on all purchases and approx 10% royalty fee that goes to the NFT's original developer. Despite the commercial costs involved, the prices of popular NFTs have skyrocketed, and crowds of investors continue to pour money into this budding industry.

Mark Tencaten says that the likelihood of NFTs dominating the digital world in the future is high, given the broad range of applications and the current spread of the metaverse.

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Mark Tencaten | How to Evaluate the Worth and Value of NFTs

Saying that the cryptocurrency market never stops would not be an exaggeration. There are constantly fresh innovations happening. Assets of new sorts are continually emerging. While Bitcoin served as the industry's foundation, there are now more than 9000 other cryptocurrencies. Non-fungible tokens, or NFTs, are another significant cryptocurrency asset discussed in every technical and financial conversation besides cryptocurrencies.

Since last year, NFTs have exploded, breaking records in 2023. Million-dollar transactions occurred on a new NFT marketplace in its first month of operation. Adidas, Nike, Tech Mahindra, Microsoft, Disney, and other large corporations have entered the NFTs sea. New projects create their NFTs daily, each selling for millions of dollars.

But, in Mark Tencaten's opinion, the most important question is: How should one evaluate the worth of an NFT? Is the offer price appropriate for the NFT type you are purchasing? What details should you check before purchasing any NFT? As you read all the headlines around NFT, you must ask yourself these things. Please continue reading, as Mark Tencaten will answer all your concerns there.

Let's examine the variables that influence an NFT project's value.

How to Determine an NFT's Value

Why is it difficult to calculate an NFT's exact value? Given that this asset class is very new. While there is a set price for tangible treasures like the Mona Lisa artwork or physical collectibles like NBA player cards, investors may have to grit their teeth while determining whether the NFT they purchase is worthwhile and needed.

However, there are a few key elements explained by Mark Tencaten that one must take into account when determining the value of NFTs, given their quick and steady expansion into a number of industries within a short period of time and achieving high valuation levels.

Five Elements that affect an NFT Project's worth

1. Rareness

This factor determines the rarity or scarcity of the particular NFT. The original artwork from several renowned artists in the digital art business is a great example of a rare NFT. This category of NFTs occasionally includes NFTs produced by famous people. The impact an NFT will have, such as in the case of video games, is another element that contributes to its rarity. This category includes rare gaming objects that are NFTs.

Because of the intrinsic worth that these NFTs contain, people frequently find themselves drawn to them. The blockchain proof of ownership is in the control of the NFT's owner. This establishes the distinctiveness of those NFTs and establishes the premium value of those NFTs.

2. Utility

Any NFT's utility value depends on how it may be put to use. The two main NFT categories with the highest utility value are tickets and game assets. For instance, Coachella has begun to offer NFTs for lifelong access to its event, which also come with benefits like front-row festival seats, tickets to every show, etc. A strong and uncommon Crypto Space Commander battleship sold for $45,250 in 2019 is another illustration of such an NFT. Utilizing an NFT in various applications is another approach to assessing its usefulness. Consider how valuable a battleship might become if used in a different game.

Interoperability in the game industry is still a long way off, though. This is due to the fact that game creators must first create expansive game ecosystems and appealing use cases. A relationship with another company that offers benefits to the owners of those NFTs is another option to boost the usability of the NFT.

3. Liquidity

The worth of an NFT increases with more liquidity. The fundamental factor that should cause an on-chain token to be worth more than an off-chain asset is liquidity. Due to the lower risk associated with owning NFTs, investors always choose to invest in NFTs with substantial trading volumes. NFTs created per the ERC standards can be purchased by potential purchasers who own Ether (ETH) and exchanged effortlessly across various platforms. This considerably raises those NFTs' worth. Non-Ethereum NFTs frequently have a lack of liquidity, which causes their value to be lowered. According to experts, businesses need to develop token economics to encourage users to interact with their NFTs more and exchange them, developing liquidity.

4. Future Worth

Future cash flow and valuation are the resultant elements that determine the NFT's future value. While speculation is the primary factor in valuation, it may also be the primary factor in price growth. For instance, in December 2017, the cost of CryptoKitty #18 increased thrice, from 9 ETH to 253 ETH. Few experts contend that price movement exclusively determined by valuation harms NFTs. Still, given human nature and the existence of speculation in the current financial system, this cannot be denied. Two key factors influencing the value are supply shortage and speculation.

Incorporating the price-performance charts for the NFT items into your speculative analysis is a terrific method to steer it. Future cash flow may come from interest or royalties collected by the NFT's original owner. In order to generate more cash flow, NFTs are frequently leased and collateralized. This is the case with game NFTs frequently when another player needs a rare NFT to create a particular quest, which raises the value of that NFT.

5. Ownership History

In some circumstances, the real identity of the seller and the past investors in an NFT will determine the value of that NFT. NFTs with a high ownership history valuation tend to be the creations of well-known artists or businesses with a strong brand identity.

Conclusion

Value, in general, is a function of individual judgment, yet intrinsic worth does adhere to some market principles. The rules for NFTs are predetermined by the five points Mark Tencaten mentioned above. These elements in and of themselves are dependent on the NFT issuer. The numerous possibilities that may be investigated are amplified by the adaptability that NFTs bring with them. NFTs are unquestionably more than just digital replicas of an object or collectibles. NFTs may be applied to practically everything in the real world, from marking goods to prevent theft to verifying voting rights and boarding passes.

Before buying any NFT, Mark Tencaten always advises doing your research. Before making a purchase, consider the NFT's rarity, utility, potential worth, liquidity of the system it is based on, and ownership history.

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Mark Tencaten | How to keep your crypto exchange account secure?

According to Mark Tencaten, you are in charge of ensuring the security of the money. Even when the exchange has taken all the necessary precautions, the trader must still take some steps to guarantee the security of the funds in his wallet. Although the provider can ensure that the locks are impenetrable, it is nevertheless recommended that you take precautions by keeping the location of your keys and your keys' location a secret. Mark Tencaten states that users must follow a series of rules to guarantee the security of their cryptocurrency accounts. Please adhere to the following recommendations:

1. Configure two-step authentication - Set up two-factor authentication to make sure that no one can enter your cryptocurrency account without knowing both your password and the one-time password (OTP).

2. Verify the address bar - Always verify the URL you're viewing by looking at the address bar of your browser. You can fall prey to phishing and lose control of your account if the website you view appears even slightly different. Save the URLs for your exchanges. Keep your guard up!

3. Never share any sensitive information - Even while the administrators and customer service representatives of the cryptocurrency exchanges frequently speak with consumers through phone or chat, none of them will ever request any personal information from you. Your email, phone number, and Support Ticket ID will be all that any support representative will want of you.

4. Use a secure password - We advise using a secure password for your cryptocurrency account. Choosing an easy-to-guess password makes you susceptible to "guess-hackers," even though crypto platforms have the greatest levels of digital currency security in their platform.

5. Verify the recipient's address - It is crucial that you double-check the recipient's address and the amount since once it has been delivered, it cannot be withdrawn and cannot be recovered.

6. Be on the lookout for scammers – Many hackers may attempt to utilize fraudulent methods to get sensitive information by assuming the identity of a reliable business. They use phishing/social engineering to send convincing emails acting as a cryptocurrency exchange in order to get login information and individual passcodes. These particulars can be used by hackers to harm you by gaining access to your cryptocurrency wallets. You may avoid this by exercising caution.

7. Phishing Scams - In a phishing scam, an attacker attempts to pass as a reliable entity in order to deceive you into disclosing personal information that will authorize them to access your accounts and devices and steal your money. Therefore, it is crucial that consumers exercise extreme caution and adopt excellent practices to prevent falling for these frauds.

8. Scams through email or phone – Crypto account administrators never divulge your credentials to suspicious third parties. Never consent to requests to modify or eliminate your security settings. Never ask someone to call you on the phone and seek access to your gadgets. It is a fraud if you come across a phone number posing as exchange help. Avoid dialing it. Send an assistance request instead, along with details about the scammer, so that they can respond appropriately.

9. Prevent using Public wifi - Using public wifi should be avoided since it may direct your web browser to a page that looks like your exchange or wallet. The information you provide to them and any data sent over the network can then be collected by hackers using that method. If you're utilizing a public wifi network to access your account, use a VPN (Virtual Private Network).

10. Ensure the Security of Your Device - It is crucial to maintain the security features on your devices, such as a firewall and antivirus software, by regularly updating them. Additionally, you must be careful to avoid downloading and installing any software that you are unsure of.

11. Keep The Holdings and Details Private - Because digital currencies offer anonymity, stealing them is very alluring to hackers and criminals. It is important that you keep the specifics of your holdings a secret at all events, get-togethers, and meetups.

Mark Tencaten recommends using two-factor authentication every time you access your cryptocurrency account.

Typically loaded on a smartphone, an authenticator software creates a 6–8 digit passcode after 30 seconds. The password can be used for login, withdrawals, or as a master key. Password strengthens account security by restricting attackers from transferring funds into or out of your account, even in the case of trading. You may use two-factor authentication (2FA), an additional safety measure, to ensure that only you can use your cryptocurrency account. Setting up two-factor authentication (2FA) for deposits and password/username ensures that only you have access to your account to make deposits, withdrawals, or trades.

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An Overview of How to Buy NFTs

What are NFTs?

Non-fungible tokens, or NFTs, are made up of two components. Mark Tencaten first defines tokens. A token is essentially a component of a blockchain network that may be used to transfer value, such as Bitcoin. As a result, a token is fungible, meaning that if you exchange one Bitcoin for another, you effectively get the same thing. In the blockchain, every token has precisely the same value.

NFT coins are now non-replaceable due to their non-fungibility; they are the sole unique token on the whole blockchain. That NFT can only exist in a single instance. There may be a group of similar ones, but every single one in the group is entirely distinct, and only that unique one may be given any value. A different way to think of it is as a one-of-a-kind trading card.

For instance, the Bored Ape Yacht Club, or BAYC, has likely one of the largest and most expensive NFT collections. It is simply a group of bored-looking apes, each distinctively unique and representing a different concept. Many well-known celebrities, such as Justin Bieber and Snoop Dogg, possess a number of these NFTs, giving them access to a group of powerful individuals and a number of additional advantages that come with being in such a group.

Where do NFTs come from?

Mark Tencaten says that NFTs are simply produced using systems like NFT marketplaces, where you have to register, submit your digital artwork, and then post it for sale. It's that easy.

How do NFTs are PURCHASED OR SOLD?

NFTs are arguably the biggest story of the last two years of this decade, topping everything from CryptoKitties to Bored Apes. Operating the NFT marketplace isn't as simple as running an Amazon or any other online shopping site, but it's also not all that challenging either. Everyone wants to have their own NFTs, but how do you actually do that?

Mark Tencaten outlines the methods for purchasing NFT on a marketplace for NFT.

1. Add money to your wallet.

You would need money in your digital wallet in order to purchase an NFT. You require Ether (ETH) to purchase NFTs on the NFT marketplace. Beware of phishing attempts, and always double-check the website URL if you haven't installed the wallet yet and are testing it out for the first time.

The signature request and the marketplace where you've decided to utilize your wallet must be signed. Once the link has been set up, you may browse the NFT collections offered on the market. If you don't have the necessary cryptocurrency to purchase NFT, go to your wallet and select Buy. Direct credit or debit card payments can be made for the cryptocurrency deposit.

2. Check out the NFT collection on a website for sale

You must first choose the NFT collection you want to purchase after being presented with the range of NFT collections. Countless NFT collections are available if you visit the explore section of the market. You may even narrow down your search results by selecting several categories, such as Latest Art, Domain titles, Trending, collectibles, games, utility, Photography, etc.

3. Offer to Purchase or Buy Now

Once you've located the item you want or like, you may immediately make an offer or purchase NFT. Few are direct buys, while few also provide the chance to put in bids. For the ones with the put bid option, the user must submit a purchase proposal to the actual NFT owner. If you come across a similar NFT, be sure to look at the number of bids that have previously been submitted for it. This will give you a clear sense of the amount of money to offer on the NFT.

When you put money in your wallet, you can get all the information you need about the purchase, including the expected cost of the gas and the time needed to complete the transaction. Although the gas fees may be modified using the edit option, the lower the gas fees, the longer the transaction will take. When you're ready, press the confirm button and wait for the transaction to be completed. You may just return to your profile and wait for it to appear.

What purpose are NFTs used for?

As is already explained by Mark Tencaten, these non-fungible tokens are distinct cryptographic tokens that only exist on a blockchain and cannot be duplicated. NFTs can serve as a key to a "club" or a representation of anything in the actual world, such as artwork. Thus, "tokenizing" these physical assets results in a more efficient purchasing, selling, and trading experience while significantly lowering the fraud risk.

Which NFTs should you select?

ü  Always put money into NFT initiatives that you are interested in.

ü  Always do independent research on

·        The History of the Creator

·        The Community

·        The Venture

ü  Mark Tencaten suggests that you don't risk a greater amount than you can afford to lose by investing.

Conclusion

All you have to do to purchase your own NFT is this. Mark Tencaten constantly suggests conducting research before buying or selling any NFT. Never succumb to FOMO, and always take your time choosing which cryptocurrency or NFT to invest in. Before purchasing a certain NFT, consider its rarity, usefulness, and other crucial aspects.

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Mark Tencaten - Should you invest all your Money in Cryptocurrency?

As per Mark Tencaten, the major draw of cryptocurrency investing is the potential for a significant return on your investment. Since cryptocurrency is so erratic, it may make you wealthy. Alternately, you may lose virtually all you invested in a matter of seconds.

If you follow cryptocurrency news, you've certainly read accounts of people who invested all their money there. The fortunate individuals have even succeeded, with some earning millions of dollars. During bull markets, success tales like this become far more prevalent and are sufficient to leave you wondering, "What if?"

Mark Tencaten says to imagine that you choose to invest all of your money into cryptocurrency. You may expect a couple of things with absolute certainty, despite the fact that it is impossible to forecast what the outcomes would be.

Even greater emphasis is placed on secure storage.

Choosing a storage location for a cryptocurrency is one of the issues it presents. There isn't a perfect answer, which is concerning if you invest all of your savings in cryptocurrencies.

Storing your cryptocurrency with the application, exchange, or stock trader where you purchased it is the easiest choice. From a convenience standpoint, this is ideal because you don't need to move your cryptocurrency anyplace. Additionally, you may reset your password to gain entry to your account if you forget it. But according to Mark Tencaten, there are certain drawbacks to doing this with your cryptocurrency:

·        Scammers frequently target crypto exchanges. You must safeguard your login credentials and be on the lookout for phishing schemes.

·        You might lose your cryptocurrency if the exchange fails. Exchanges aren't often nearly as secure as they look, as the fall of FTX has demonstrated.

Alternatively, Mark Tencaten suggests you might utilize one of the several crypto wallets as storage. Your cryptocurrency is totally in your control when you use a wallet. This implies that even if the platform where you purchased it closes, you won't lose it. However, if you lose your wallet and the recovery password for it, you will also lose access to your cryptocurrency and will not be able to retrieve it.

Even if you are fortunate, you will still need to make difficult choices.

The ideal situation is for your cryptocurrency investments to be profitable. This is clearly a long shot. Even if it does, what happens next may be far more difficult than most individuals realize.

Suppose you decided to invest your entire $50,000 in cryptocurrency. Your choice was successful, and your assets are now worth $100,000 six months later. The question is, what do you do right now? You might:

ü  Just leave things untouched and keep everything the same. After all, if the value of those cryptocurrencies continues to rise, you don't want to lose out.

ü  Profits should be kept, but some money should also be invested. For instance, you may sell $50,000 worth of cryptocurrency to recoup your initial investment and keep the balance of $50,000.

ü  You should sell everything and pocket the $50,000 profit. You won't be in danger if the value of those cryptocurrencies drops this way.

Even when you're in a fantastic situation, choosing what to do is not simple. You'll also be subject to short-term capital gains taxes if you decide to sell something since you didn't keep your investment for a minimum of a year. Ordinary income is taxed like ordinary capital gains. You can wind up owing crypto taxes equal to 30% or more of your profits, depending on how much you earn and your other sources of income.

A lot of investors want to include cryptocurrencies as alternative investments in their portfolios. There is nothing improper about that, within reason. Mark Tencaten advises you can go for it if and invest 5% to 10% of your portfolio in cryptocurrencies because you believe it's future or you're motivated by the possibility of financial gain. But it's not advised to invest everything in cryptocurrency. This is the reverse of what you're looking for in an investment plan since it is just too risky. When it's all hypothetical or when you only have a tiny percentage of your cryptocurrency portfolio, the market's volatility is much easier to bear. When cryptocurrency makes up the entirety of your portfolio, the volatility is both less interesting and more stressful.

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Mark Tencaten | Cryptocurrency Scams you should be Aware of

With hundreds of cryptocurrencies debuting each month, the increased desire of investors in the blockchain world to place money in an extremely speculative market has rendered them more vulnerable to different cryptocurrency-related crimes. Losses from these scams totaled US$1.7 billion in 2018, with criminals defrauding unsuspecting investors using traditional and cutting-edge techniques.

Blockchain technology and cryptocurrencies are fields that are changing quickly; therefore, Mark Tencaten suggests it's critical to stay on top of new terms and effective safeguards for your money (cryptocurrencies).

The many cryptocurrency-related frauds are explained by Mark Tencaten here, along with tips on how to prevent them.

1. Fake Initial Coin Offerings

An ICO is a kind of cryptocurrency fundraising. It is the amount of cryptocurrency offered to investors or speculators in return for fiat cash or other cryptocurrencies like Bitcoin or Ethereum. If the project's financial objective is reached and the ICO's funding target is reached, the tokens sold are marketed as potential future usable units of money.

Fake initial coin offerings (ICOs) promise investors significant returns in very little time. To entice their investors, these con artists offer false white papers. Most ICO scams have been committed by convincing investors to invest, employing fake ICO websites and problematic wallets, or disguising themselves as legitimate cryptocurrency-based businesses.

2. Bogus crypto exchanges

One of the simplest methods to take advantage of inexperienced investors and traders is to pretend to be an affiliated branch of a trustworthy and lawful organization. By presenting prices that are incredibly competitive on the market, these fraudulent exchanges may deceive people into utilizing their services.

3. Counterfeit wallets

Choosing a wallet to hold and manage your digital currency is completely acceptable. The user-friendly layout of these wallets makes it simple for beginners to transfer cryptocurrency. But several fake wallets have been removed from the Google Play Store. Trezor was the most recent cryptocurrency wallet program to be copied. When a wallet is replicated, all its currency disappears, leaving your portfolio empty.

4. Pyramid scheme or Ponzi scheme

An investor is tricked into putting money in your concept, in this example, cryptocurrency, with the promise of extremely high returns. The only way an investor might receive his money back after the cryptocurrency transfers would be by convincing other investors to fund his business venture. This concept continues ascending to the top, where the scam artist who created it comes out on top.

OneCoin, which was made in 2015, is an example. OneCoins could be purchased by interested people by exchanging cash for this virtual currency, according to its inventors. A portion of this cash was used to cover the sums the other victims were anticipating receiving when they also purchased the investment. No other platform accepts this coin for payment. Over $50 million in illegal sales were plundered by this firm in one year.

5. Phishing

We all understand how phishing operates. Even in the blockchain sector, most individuals cannot defend themselves against numerous phishing frauds. In order to deceive us into disclosing our login, password, or payment details, scammers employ psychological manipulation. Simply put, scammers email links to their fraudulent websites. These pages are closely like any legitimate cryptocurrency trading website. Consumers are often instructed to send a specific amount of Bitcoins or Ether to a fake MyEtherWallet.

In 2019, two Israeli brothers were detained for allegedly running a three-year phishing scheme. During this period, they were accused of stealing over $100 million in cryptocurrencies by enticing buyers from popular cryptocurrency trading platforms like Reddit onto websites that looked just like well-known crypto exchanges.

6. Airdrop scam

The idea behind an airdrop is to give out free crypto tokens in limited quantities to certain wallets. Before the tokens are released, airdrops are a marketing strategy blockchain firms and projects employ to generate buzz. Users may sign up for airdrops through Google Forms or by directly enrolling through links on the project website. The cost of advertising for the developers is reduced because many users learn about airdrops through other means and earn referral tokens for drawing in new participants.

The most typical kinds of airdrop fraud include:

Dump Airdrop: A token's developers want to create a buzz about it right away so that when it launches on exchanges, people will be eager to purchase it. Once it happens, the creators swiftly sell (dump) every token they have for a tidy profit. The investors' tokens are now useless because the project was abandoned.

Private Key Scams: Private Key scams are completely fake and simple to spot. Instead of asking for the public keys to our wallets, these frauds request the private key via forms or links. The private wallet keys are never requested in genuine airdrops.

Mark Tencaten's Advice On How To Avoid Such Scams

·        Check to see if the exchange platforms you use abide by the laws of the nation where they are located. Please be sure that the wallets and platforms you use are reliable and built using blockchain technology. Reading the white paper of the blockchain venture or firm is crucial for spotting fraudulent initial coin offerings. Cloned versions of legitimate websites are created quickly by scammers. These websites are more likely to be scammed if there are any textual inconsistencies, blank website pages, or concealed team members.

·        Never invest in any endeavor without first conducting your own research. Any cryptocurrency's price increase, especially an altcoin, does not always mean it will become the next Bitcoin. Keep your confidential information, particularly the private wallet key, close at hand at all times. Such information is not required for real projects.

According to Mark Tencaten, it is a fast-expanding area with daily advances. As more people work in this industry, more people are likewise prone to commit fraud. Only by keeping up with the most recent news regarding cryptocurrencies and Blockchain Technology can you avoid being duped or conned.

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Mark Tencaten | Understanding terms related to cryptocurrency – IV

What are Altcoins?

The crypto sector officially began when the world was exposed to a decentralized token called Bitcoin in 2009. As per Mark Tencaten, more tokens, known as altcoins, came about as a result of several trials and attempts to offer answers to real-world issues. Since then, the cryptocurrency ecosystem has seen the creation of hundreds of brand-new altcoins, also known as alternative coins. Their innovation represents an effort to enhance Bitcoin by managing elements like the total amount of coins, confirmation time, mining algorithm, and other things.

Altcoins

Explained by Mark Tencaten in simple terms that altcoins are all cryptocurrencies other than Bitcoin. They were created using a peer-to-peer technology and a comparative blockchain framework to mimic the success story. Similar to Bitcoin, specific mining techniques are required for altcoins in order for consumers to conduct risk-free online transactions. The framework used to create altcoins generally resembles that of Bitcoin but has more functionality. Some features include better mining techniques and quicker or less expensive transactions. Although there is a chance that certain cryptocurrency characteristics would overlap, they differ from one another in a number of ways.

Cryptocurrency is rapidly evolving, and new features like anonymity, instant transactions, and various proofs are taking the stage. Even though Bitcoin is now competing with thousands of other cryptocurrencies, it has managed to hold onto the top spot. Some of the many well-known cryptocurrencies are OKCash, Litecoin, Dogecoin, and Zcash.

Classifications of Altcoin

With the development of alternative currencies, many classifications emerged. Stablecoins, utility tokens, cryptocurrencies, and security tokens are a few types of altcoins. A particular form of movement is used to separate the bulk of these predictions from altcoins. If the trend continues, it is suggested that in the future, altcoins may only apply to cryptocurrencies that depend on mining other than Bitcoin.

·        Mining-Based

These altcoins have a mining mechanism where the newest coins are produced by resolving the complex problems required for unlocking and releasing the blocks. Compared to other kinds of altcoins, they are quite similar to Bitcoin. The bulk of elite cryptocurrencies fall under this category at the start of 2020. During the month of February 2020, Ethereum was the best and most well-known altcoin that was dependent on mining.

·        Stablecoins

By reducing instability, stablecoins aim to improve Bitcoin. This is acquired by determining the value of coins in use in today's currencies. The category of backing cryptocurrencies with well-known choices includes the U.S. dollar, gold, and euro. Despite not starting until after January 2020, Libra of Facebook is considered to be the most widely used stablecoin.  

·        Security Tokens

Security tokens are thought to be equivalent to conventional equities. In reality, they typically guarantee certain payouts, such as payment or possession, when trading. These alternative coins not only have a business connection but also got their start in initial coin offerings (ICOs).

·        Utility Tokens

Utility tokens grant access to services. Additionally, they are provided as a part of an ICO. A great example of a utility token offered in an ICO is Filecoin. Filecoins are designed to be interchangeable in both distributed and centralized file storage environments.

·        Meme Tokens

Since 2021, a new category of cryptocurrency assets with active communities—often referred to as meme tokens—has experienced rapid growth. Shiba Inu or Dogecoin are two examples. When these currencies were first created, they lacked any substantial purpose other than a little amount of encouragement from notable figures like Elon Musk and others.

What makes altcoins significant?

There is a proverb that is a significant piece of financial advice about not placing all logic in Microcode. According to Mark Tencaten, anyone with a solid grasp of investing is aware that diversity and variance are effective instruments for success. Customizing the investments you make through a suitcase that includes bonds, equities, cryptocurrencies, and cash is crucial for lowering risks and gaining access to several winning opportunities.

When you succeed in many investments, the impact of failure on anyone's assets is reduced. This even enables investors to control risks. We are aware of the value of various investment dossiers. The maintenance of Bitcoin income is not much simpler. Mark Tencaten suggests that as a cryptocurrency investor, there is a potential that you would like to reduce your risk profile by investing in government securities and other low-risk options. In general, all of the investments you make with assets you built up at a risk level where you are comfortable and pleased will be stated in your paradigm dossier. Keeping all of your assets in the form of cash is not a good idea at all.

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Mark Tencaten | Understanding terms related to cryptocurrency – III

Initial Coin Offering

An ICO is a method new blockchain firms use to acquire money for product development, marketing initiatives, R&D, infrastructure expansion, and other business opportunities. In exchange for Bitcoin or Ethereum from investors, the corporations issue their own tokens. Mark Tencaten explains that these tokens may be used to purchase valuable assets, share dividends with stakeholders, and invest in new products. Although it has the same goal as an initial public offering (IPO), it is generally referred to as an ICO and follows a completely different approach.

As per Mark Tencaten, the main distinctions between IPO and ICO are: 

For a corporation to launch an IPO, it takes years of hard labor, ample resources, merchandise with a track record, and goodwill, but an ICO may be started from scratch. Companies are required to complete all IPO documentation tasks in accordance with government authorities instructions. A company that engages in corporate misbehavior, the pump and dump of huge numbers of penny stocks, the dissemination of misleading information, the use of Ponzi schemes, or other fraudulent acts is subject to harsh penalties while conducting an initial public offering (IPO). The ICO is decentralized, has no external borders, and no designated authority is in charge of examining its functionalities. In contrast to shareholders, token holders lack ownership; therefore, blockchain corporations are not obligated to uphold their pledges.

How do initial coin offerings raise money?

According to Mark Tencaten, making a whitepaper is each blockchain firm's first step to acquiring money through an initial coin offering (ICO). It will include all relevant information about the project, including its valuation, the amount of funding needed, the number of tokens reserved by the creators, and the length of the ICO project. The document is then distributed to businesspeople in an effort to draw possible investors. Those that are sold on the business concept purchase the tokens using Bitcoin or another cryptocurrency of their preference. A smart contract is used to issue the tokens. An agreement, including the terms and conditions, will be made between the blockchain firm and the investors.

In 2013, Mastercoin raised funds in the first-ever ICO. The following year, Ethereum entered the group and finished its ICO campaign with US$ 18 million. As of April 3, 2020, the price of Ether was US$146.03, up from its launch price of US$0.30. Ether is also amongst the five most successful ICOs with the highest return on investment. Since then, every blockchain firm has embraced the idea of an initial coin offering (ICO), and is now their primary source of financial investment. The last few years have witnessed a tremendous increase in this tendency. According to sources, a staggering US$ 10 billion in investment was raised in 2017. Additionally, it increases by 10% to 15% yearly.

Benefits of ICO

·        The possibility for the hopeful projects to be given a chance to flourish with the aid of ICOS. The best illustration shared by Mark Tencaten of this can be seen in Ethereum, whose recent successes have drawn attention to reality. Additionally, it has been a perfect foundation for the growth of additional ventures.

·        Because of the excessive documentation required for the procedure, a number of projects in the centralized world are unable to complete their IPOS. This is not the situation with initial coin offerings (ICO), as blockchain projects may join them by just submitting an excellent ICO whitepaper.

·        The ICO whitepaper is a piece of material that presents issues with the project and the approach that will be taken to address them. Potential investors might decide whether they intend to invest in the venture by reading this whitepaper before making their decision.

·        Another outstanding advantage of ICOs is their capacity to build relationships between the project and the community. Any ICO founder is fully aware of the challenges they must overcome for a strong community to form.

·        It is a fact that the blockchain crowdfunding industry raised $6.8 billion in 4.5 months. It amply demonstrates the buzz around these initiatives that have the potential to achieve miracles and also the desire for them.

·        With the aid of ICO funding, developers can also get significant incentives that encourage them to go above and beyond and create more intriguing and inventive ideas.

·        Ethereum is the ideal illustration of how ICOs provide investors the chance to learn about and invest in the next great thing.

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Mark Tencaten - Understanding terms related to cryptocurrency – II

Proof of Work vs. Proof of Stake

Mark Tencaten says that the goal of the decentralization ecosystem from the beginning has been to prevent fraud and eliminate the need for outside intervention. The developers created a consensus method to aid in the legitimization of these transactions in order to achieve this aim. That said, this phrase has been used a lot this year alone due to what is perhaps the most significant technological event to have occurred in the cryptocurrency field.

5 Different Blockchain Consensus Mechanisms

According to Mark Tencaten, a consensus mechanism is employed in blockchain to verify transactions and ensure everyone in the network agrees on the ledger's current state. Blockchain utilizes a variety of consensus processes, like as

1. Proof of Work (POW): This is the initial consensus mechanism used in Bitcoin. Pow requires network nodes to solve challenging mathematical problems to authenticate transactions and add blocks to the blockchain. It is regarded as very secure but uses a lot of computational power, making it an energy-intensive consensus mechanism.

2. Proof of Stake (POS): It is a consensus technique that's been utilized in a number of more recent blockchain networks, including Ethereum 2.0. With Pos, nodes confirm transactions and add blocks to the blockchain depending on how much cryptocurrency they have on hand and are willing to invest in the network. This makes it less computationally demanding and energy-intensive than Pow.

3. Delegated Proof of Stake (DPoS): This consensus method is similar to POS. Still, only a small number of nodes (known as "delegates" or "witnesses") are in charge of authenticating transactions and adding blocks to the blockchain in this case. As a result, DPoS is both more centralized and speedier than POW and POS.

4. Proof of Authority (POA): While considered quick and efficient, POA is seen to be less safe than other consensus techniques. It is employed in private or consortium blockchains, where a set of authorized nodes authenticate transactions and add blocks to the blockchain.

5. Byzantine Fault Tolerance (BFT): This consensus technique is employed in permissioned blockchain networks, where a few nodes approve transactions and put new blocks on the blockchain. These nodes are referred to as validators. BFT ensures that the network can agree even if some nodes fail or are malicious.

These consensus techniques are some of the most often utilized in blockchain networks, as explained by Mark Tencaten, and each has advantages and disadvantages depending on the use case.

What is a Proof of Work?

The most crucial consensus technique, proof of work, was developed in 1993 to stop spam and other service misuses. In 1997, it was given the formal name Proof of Labour. Before Satoshi Nakamoto utilized it to create Bitcoin, it was mostly underused. In this process, the reward's likelihood is calculated by calculating the amount of labor produced. Bitcoin employed this consensus mechanism to build a network amongst peers that was later used to protect the Bitcoin blockchain. The likelihood of receiving a reward increases with increased labor productivity.

Crypto miners must solve cryptographic riddles. Despite being a little challenging to complete, this puzzle is simple to check. When a solution is discovered, it is broadcast around the network, where other nodes verify it, and then the miner is paid. The output must begin with a specific number of zeros at the starting point of the hash value called The Difficulty for the block to be considered authentic. The network's computational power modifies the output. The increased difficulty of the Bitcoin network slows down the production of new blocks.

What is Proof-of-Stake?

Instead of competing among miners to determine which block to add, validators—the equivalent of miners in Pow—in the proof of stake system are selected to identify a block based on the number of tokens they hold. The amount "staked" by the user substitutes the labor a miner would generally undertake in a PoW system. This staking structure protects the network since it requires prospective participants to buy and retain the cryptocurrency asset until he is selected to construct a block to get rewards.

Cryptocurrencies use Proof of Stake by allocating tokens based on their Coin Age. The amount of time the tokens have been kept is known as the Coin Age. This is analogous to putting money into bank accounts where interest is produced based on the length of the amount that's stored.

Why is Ethereum shifting to Proof of Stake in the Ethereum Merge?

According to Mark Tencaten, this change will significantly accelerate the processing of transactions on the chain, making the Ethereum interface more rapid and effective. Ethereum is the largest blockchain network in the cryptocurrency market that is capable of supporting smart contracts.

·       The Ethereum network's high energy consumption as the biggest PoW smart contract-based blockchain is one of the leading causes. Thus, switching to PoS would result in the largest decarbonization ever by reducing the Ethereum network's overall energy usage by 99.95%, or a total of 0.2%.

·       Although several newer and more effective blockchains are swiftly catching up to Ethereum, which is still the largest blockchain, this step would help Ethereum maintain its position as the market leader.

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Mark Tencaten | What are Peer-to-peer Networks

P2P, or peer-to-peer, networks

Mark Tencaten says that you must first comprehend the terminology used in Bitcoin in order to comprehend how a blockchain functions. Peer-to-peer networks, sometimes known as P2P, are one such word. P2P networks are the foundation upon which blockchain technology is constructed; hence understanding P2P is crucial to comprehending blockchain. Even though it was illegal, Napster, a music-sharing program, invented peer-to-peer networks and paved the path for many other programs and ideas. Let's first examine the centralized system and its operation before attempting to comprehend the peer-to-peer network.

Understanding Centralized System

Consider a community from the past that operated on a barter system. People exchanged goods for goods in this system, and while trading, the promises grew and were forgotten or broken. Therefore, everyone decided to keep a record of all the commitments and transactions. But surely someone has to keep it up to date? So they designated a person to monitor it and update the database. It became a centralized system in this fashion. Everyone made commitments and transactions to the Tracker, who recorded them.

So, Mark Tencaten explains, in a nutshell, all other networks give their data to the Tracker, the center node in a centralized system, which subsequently delivers the data to the designated receivers.

Over time, the commitment tracker decided to misuse his authority and started charging a modest fee for maintaining track of everyone's commitments. He began taking bribes, wiping off pledges from the record, etc.

Your account is completely under the company's or bank's control in a centralized financial system. As they maintain track of all balances, the central server verifies the accuracy of your transactions. To choose who to trust, a centralized system must have a never-ending supply of personal information about the user, yet this makes them more susceptible to the hacking of sensitive information and gives the user no control over their data. The same is applicable to your social media account posts. Once you upload something, the organization that controls a social networking site owns your information and is free to do whatever they wish. They are also vulnerable to hacking attacks and data breaches. They often charge a fee, which over time, may become expensive.

So how does this relate to peer-to-peer networks?

Mark Tencaten continues to explain, in keeping with the previous illustration, the Tracker is abusing his authority by retaining a lot of private information on the residents of the community. One citizen determined that it couldn't operate this way once others noticed it. He understood that decentralizing the system was the only way to resolve this.

Keep everything completely open. It would be challenging for people to break their vows to one another if everyone owned a copy of the book. Similar to a peer-to-peer network.

Peer-to-peer networks are scattered and decentralized. The townspeople are a collection of separate computers, and each one is known as a node or peer. Without a central computer, they communicate with one another and share data. Since every node is equal to one another and has the same capabilities, they are referred to as peers.

A software developer named Satoshi Nakamoto created Bitcoin in 2008, during the peak of the Financial Crisis, and cryptocurrency was born as a result. It is an entirely electronic, mathematically supported payment system. The goal of the innovation was to create a method of exchange that could be electronically communicated in a safe, unchangeable, and verifiable manner while being decentralized.

Although all P2P networks are dispersed, not all of them are decentralized. Some P2P networks are slightly centralized. To direct network activities, they depend on a centralized authority.

Peer-to-Peer Network Types

Three different P2P network types exist Hybrid, Unstructured, and Structured.

1. Unstructured Networks

Peers are not organized in unstructured networks. Anyone can randomly get in touch with anyone else. Since the information is readily accessible, a lot of processing power is needed.

2. Structured Networks

Networks with structures are organized. Although more centralized, they are more effective.

3. Hybrid Networks

Peer-to-peer networks and the client-and-server architecture are combined in hybrid networks. Both are efficient and decentralized.

Data Propagation

Data is sent between nodes, i.e., from one node to another, during data propagation. The same data propagates slowly to all of the network's nodes.

Network latency

Network latency is the term for any lag in data transmission through a network. The amount of time taken by the data to move between locations, i.e., from one location to another, is known as latency. Low latency occurs when the delay is little, and high latency occurs when the delay is high. Data latency can be impacted by a wide range of variables, including physical distance, international communication across underwater cables, router problems, etc.

The core of blockchains is peer-to-peer networks. Blockchains are unique because they are decentralized and built on peer-to-peer networks. They function similarly to spreadsheets, continuously capturing, transporting, and storing numerous identical copies of network information. There is no central hub for blockchain technology because it is based on a P2P network. As a result, there is far less possibility of a breach or data loss. Since no central authority keeps records to verify the accuracy and integrity of every transaction, blockchain relies on a consensus process. Each peer in the network that mines and stores data must investigate the transaction, confirm its status, and come to an agreement.

Conclusion

According to Mark Tencaten, peer-to-peer networks have been effectively employed since 1999 to aid in developing software and ideas: Peer to Peer networks have served as the basis for a whole new type of money. The future of data ownership and storage has improved due to peer-to-peer networks and the blockchain.

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Mark Tencaten | Bitcoin Regains Its $30,000 Level. Should You Invest

For the first time since June of last year, Bitcoin (BTC) has been above $30,000, reaching a high of roughly $31,400 this morning. According to Mark Tencaten, the price of Bitcoin has increased by almost 80% from the year's beginning. It still has plenty of time to go before it reaches its 2021 high of roughly $69,000, which is astounding. Mark Tencaten explains the reasons behind its current price movement and the implications for investors.

What is driving Bitcoin's surge?

A number of factors have fueled the current increase in Bitcoin. The most prominent of them is the notion that the Federal Reserve may decide to cease raising interest rates. In an aggressive effort to rein in inflation, the Fed has been driving interest rates upward. This significantly influenced cryptocurrency values since it meant that investors withdrew from riskier investments like Bitcoin. If the Fed relieves its stricter policies, it is believed that investors may turn back to cryptocurrencies.

According to several analysts, concerns about traditional banking are a factor in price hikes. Another reason why people are drawn to cryptocurrencies, in Mark Tencaten's opinion, is that they are "an investment that lies beyond traditional banking and finance."

The price of Bitcoin is significantly influenced by sentiment. This market has a significant amount of speculative price movement. Investors frequently purchase when things appear to be going well, partly because of a fear of losing out, which drives prices even higher. Therefore, it is not unexpected that the Cryptocurrency Fear and Greed Index has reached dangerously high levels of greed. Since November 2021, the index, which considers several variables, including movement, volatility, and social media monitoring, has yet to see such high levels of greed.

Can it go up any higher?

Many cryptocurrency investors are curious if this may finally signal the final days of the cryptocurrency winter. It makes sense, given that many investors' portfolios have suffered huge losses. Unfortunately, no one possesses a crystal ball; therefore, predicting if and how long the present rise will last is difficult.

What we are aware of is that Bitcoin and other cryptocurrencies face significant short- and long-term obstacles. The whole sector has been the target of regulatory pressure. According to the SEC, many cryptocurrencies are unregistered investments and should fall under its purview. If it is able to win this lawsuit, it would significantly alter how we acquire and trade cryptocurrencies.

Additionally, there are rising worries that a recession is on the horizon. Consumers tend to become more risk-averse during recessions, which might be another factor weighing down Bitcoin's price. More broadly, the failure of multiple cryptocurrency sites has damaged people's faith in the whole sector. This is especially true when we discover more about FTX's inner workings and the extent of the company's financial mismanagement.

Should you invest?

If you're thinking about investing in Bitcoin, be aware that it is still a very volatile asset. Consider how it could perform over time, and ensure you know the hazards. Additionally, there are no certainties that rates will ever return to their peak levels because we no longer live in the stimulus-aided environment that sparked the crypto craze of 2020 and 2021.

It's also crucial to feel at ease with the effects of the industry's comparatively lax regulation. First, if your cryptocurrency platform collapses, there isn't much in the way of investor protection. Second, prices will probably decrease in the near future if and when regulators impose additional regulations. For instance, we will learn about other crypto players' reserves once there is greater openness. Stricter regulation could additionally reveal the accuracy of claims of dishonest actions, such as wash trading.

However, crypto evangelist Mark Tencaten contends that the dominant cryptocurrency may become the future of digital money and might revolutionize how we use money. If you agree with his reasoning and decide to invest in cryptocurrency, it's crucial to control the amount of risk that you take on and make sure it makes up a modest fraction of your entire portfolio. Abide by the fundamentals of cryptocurrency investing: Use a cryptocurrency exchange you trust and only invest money you can afford to lose.

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Mark Tencaten - Advantages of Cryptocurrency

A cryptocurrency is a form of digital or virtual money that is protected by encryption and virtually hard to duplicate or counterfeit. Blockchain technology, a distributed record enforced by a dispersed network of computers, is the foundation of many cryptocurrency-decentralized networks. In general, cryptocurrencies are not issued by any central agency, making them theoretically resistant to government intervention or manipulation. This is a distinguishing characteristic of cryptocurrencies.

Cryptocurrencies: Are They Legal?

Governments or financial institutions are the sources of fiat currency authority. But neither a public nor a private entity is backing cryptocurrencies. As a result, it has been challenging to argue for their legal standing in many financial jurisdictions across the globe. The fact that cryptocurrencies have generally operated outside of the majority of the current financial infrastructure does not assist the situation. Their legal status impacts the usage of cryptocurrencies in regular transactions and trading. The Financial Action Task Force (FATF) suggested in June 2019 that the Travel Rule, which mandates AML compliance, be applied to wire transfers of cryptocurrencies.

Mark Tencaten has highlighted instances from several nations regarding the government's ownership of cryptocurrencies.

For example, the Payment Services Act of Japan classifies Bitcoin as a legal asset. Exchanges that deal in cryptocurrencies in the nation are required to gather client data and wire transfer information.

Cryptocurrency mining and trading are not permitted inside Chinese territory.

A framework for cryptocurrency was reportedly being developed in India.

The European Union has legalized cryptocurrencies. The usage of cryptocurrencies in derivatives and various other products must meet the definition of "financial instruments."

Crypto derivatives, including Bitcoin futures, are offered on the Chicago Mercantile Exchange in the US, the world's largest and most complex financial market.

Advantages of cryptocurrencies

Mark Tencaten says that the goal of the introduction of cryptocurrencies was to transform the financial system. But there are costs and benefits to every change. A decentralized system with cryptocurrency is the theoretical ideal, and its actual execution diverges significantly at the current level of cryptocurrency development.

1.      In terms of money, cryptocurrencies represent a brand-new, decentralized paradigm. In this system, transactions between the two sides are governed by trust rather than by centralized middlemen like banks and financial organizations. As a result, a system based on cryptocurrency eliminates the chance of a single point of failure, such as a major bank, causing a chain reaction of global crises, like the one brought on by the failure of American institutions in 2008.

2.      With the use of cryptocurrencies, it is simpler to transfer money between two individuals without the need for a reliable third party, such as a bank or credit card firm. Public keys, private keys, and other incentive schemes, such as proof of labor or proof of stake, are used to secure such decentralized transfers.

3.      Cryptocurrency transactions between two dealing participants can be faster than traditional money transfers since they do not employ third-party middlemen. A great illustration of such decentralized transfers is flash loans in decentralized finance. These loans may be completed instantly and are utilized in trading since they are done without supporting collateral.

4.      Investments in cryptocurrencies can be profitable. Over the past ten years, the value of cryptocurrency markets has surged, reaching approximately $2 trillion at one time. Bitcoin had a market value of over $450 billion as of January 2023.

5.      One of the most well-known use cases for cryptocurrencies is being tested in the remittance industry. At the moment, cryptocurrencies like Bitcoin act as intermediary currencies to speed up international money transactions. As a result, fiat money is transformed into Bitcoin (or similar cryptocurrency), transported across international boundaries, and then converted back into the target fiat currency. This technique simplifies and lowers the cost of the money transfer process.

What Purpose Does Cryptocurrency Serve?

Mark Tencaten claims that cryptocurrencies represent a brand-new approach to money. They pledge to accelerate and reduce the cost of the current financial architecture. Additionally, their technology and design decentralize current monetary systems and enable parties engaged in transactions to exchange value and money without the need for third parties like banks.

Mark Tencaten concludes that cryptocurrency is a type of digital asset that is protected by encryption. They are very speculative because it is a comparatively new technology; therefore, knowing what risks are involved before investing is crucial.

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Why cryptocurrencies are still necessary for an ‘internet of value.’

Like any new technology, the cryptocurrency sector has had its share of failures and controversies over the past ten years despite seeing exponential growth. Every time Bitcoin has a setback, Mark Tencaten says that we, as supporters of the technology, must reaffirm its importance, our own beliefs, and the rationale for the project we're working on.

Following the collapse of FTX, the organization that ran a cryptocurrency exchange and hedge fund, there is a chance for institutions to band together to implement changes, regulations, and business alliances that will increase confidence in the cryptocurrency markets and open the way for a blockchain-based global economy.

Internet of value

Similar to how the internet revolutionized the flow of information, blockchain and cryptocurrencies are revolutionizing the exchange of wealth. The path will be quite similar. The idea behind the cryptocurrency movement was born out of the 2008 financial crisis and the idea that the financial system needed to be improved so that it worked better for everyone.

Mark Tencaten has done a lot of work in researching how common people and companies utilize cryptocurrency through Chainalysis's research team. We've discovered that use cases vary globally and include games, art, and even war relief donations, notably during the last year, as support for the Ukrainian people flooded in. Additionally, cryptocurrency enables instantaneous cross-border money transfers without the bureaucratic restrictions of conventional banks.

In addition to these uses, there are developing web3 technologies that could:

·        Unlock new financial use cases that are now impractical because traditional assets are so illiquid.

·        Boost openness and encourage more direct interactions between vendors and customers.

·        By permitting community ownership, decentralization may be applied to business.

Bear markets help to build advancements and breakthroughs in the crypto industry. The global economy has already grown, become more equitable, and become more thoroughly linked due to cryptocurrencies. And the potential of these technological innovations is still untapped.

Sharing recipes online has been feasible for decades, but movie streaming is a relatively new addition to the internet. The development of Web3 will also take some time. The development of new systems supported by Web3 technology offers a rare chance to enhance the lives of those left behind by our present financial system and create a more equitable world.

Point of inflection

However, at this time, any conversation on the future of cryptocurrency must take into account the downfall of FTX. FTX was not a failure of the crypto industry; it was the collapse of a company characterized by a lack of transparency and tightly controlled, concentrated, and reckless authority. This situation has occurred in practically every business and is not specific to cryptocurrency. Unfortunately, the FTX case had far-reaching effects, destroying many individual investors and businesses.

Our larger economic systems are experiencing challenges and unpredictability as we reach this inflection point for cryptocurrencies. The cryptocurrency business and the financial sector as a whole should take advantage of this chance to reflect on our beliefs and make sure we are supporting a better, safer financial system without restricting innovation.

Most individuals find the current financial system ineffective; 1.4 billion people worldwide are still without a bank account. The macroeconomic environment only serves to highlight the enormous demand for new ownership structures in the economy.

The key to cryptocurrencies is transparency.

The cryptocurrency sector must use the blockchain's inherent transparency to create an economic structure that is more accountable than traditional finance. Mark Tencaten says it's simple to get caught using cryptocurrency to launder money.

Less than 1% of Bitcoin transactions in 2021 were associated with illegal behavior. The Bitcoin sector can hold its companies and employees accountable by designing consumer protection into their operations with the correct data, tools, direction, and partnerships.

"Decentralized finance" (DeFi), where all transactions are accessible and the underlying code protocols are available for inspection, is the area of the cryptocurrency ecosystem that most exemplifies transparency. According to Mark Tencaten, this kind of transparency should be the goal for the whole crypto sector, and there are currently many beneficial use cases.

Mark Tencaten concludes that there is a possibility for the cryptocurrency and broader financial industry, as well as its governing bodies globally, to work together towards norms of conduct involving stating reserves and other information to make sure that this sector is doing its best to protect consumers.

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Mark Tencaten | How to be Secure from Cryptocurrency Scammers

For many investors, bitcoin has been an incredible investment. Since 2013, it has increased by 2,500%, rising from $99.99 to over $25,000. However, cryptocurrency is complicated, and con artists like preying on those who are unaware of how to make investments in Bitcoin.

According to Mark Tencaten, between 2021 and 2022, scammers stole over $1 billion worth of cryptocurrency, mostly Bitcoin. The romance itself isn't safe from con artists; one of the most widespread types of cryptocurrency fraud is the romance scam.

Major cryptocurrency frauds

Cryptocurrency is unregulated. People are unsure about whom to believe. The worst cryptocurrency frauds that traders should be aware of are listed in the 2022 FTC report:

·        Financial investment-related fraud

·        Romance fraud

·        Business fraudsters

Scam activity totaling more than $500 million can be boiled down to bogus investments. Americans interested in cryptocurrencies are contacted by fraud artists who promise them great financial returns.

A scammer pretending to be one of your favorite YouTube accounts may state that they are testing out "free crypto." To prove your identity, all you're required to do is transfer some Bitcoin. (It is a huge red flag.) You must consider the possibility that this might be a fraud before sending the Bitcoin!

These days, we are all digital natives. We spend more than half of our lives online. You've probably encountered scammers; they steal money from elderly family members who are less tech-savvy than we are. Despite having so much online expertise, we still fell for a spam profile that must have taken five minutes to set up. The FTC study states that the typical victim loses cryptocurrency valued at around $2,600. If you are not vigilant while investing in cryptocurrencies, you can fall victim to these cyber criminals and lose your cryptocurrency assets, which could have served as your emergency funds.

Finding cryptocurrency scams

Scammers loiter in the messages of your favorite social media feeds, like clinging ex-boyfriends. Mark Tencaten shares that Forty percent of fraudsters contact victims using social media. (mainly Instagram and Facebook). These con artists employ the same strategies that make them simpler to identify.

Mark Tencaten gives three general guidelines:

·        Someone is trying to con you if they promise you a return on your investment.

·        Someone is tricking you if they beg you to purchase cryptocurrency.

·        Any online date who requests that you transfer cryptocurrency anyplace is a fraud.

The normal investor could decide to leave and patiently wait out the entire "crypto thing" after sorting through the rubbish, missing out on diverse rewards. However, outwitting con artists and acquiring your Bitcoin securely is feasible.

Subscribe to cryptocurrency exchanges.

Scammers might work very hard to get your money from you. They'll profit from your ignorance of cryptocurrencies and digital wallets.

How can one prevent getting conned?

The simplest way is to use the same exchange for all your crypto needs. Avoid sending money from one wallet to another to online strangers. Directly buy and sell currencies on reliable exchanges. To prevent rug pulls, a sort of cryptocurrency fraud that results in the collapse of cryptocurrency prices, stick with thoroughly researched cryptocurrencies like Bitcoin or Ethereum.

Cryptocurrency exchanges will never beg for money and won't promise exorbitant profits either. Additionally, they won't try to get you to give them your privates in exchange for money. The top cryptocurrency exchanges provide information on how to invest in your preferred cryptocurrency as well as the tools you need to decide whether a particular investment is suitable for you. Mark Tencaten says that no cryptocurrency can guarantee a profit with absolute certainty. Even Bitcoin cannot.

Mark Tencaten advises those who don't want to deal with fraud to use Bitcoin exchanges to acquire cryptocurrencies responsibly. Diversifying your investments is one of the simplest and safest methods for ordinary people to do so. Investors have a variety of possibilities, no matter what they choose to do.

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Mark Tencaten - How the digital pound might interact with cryptocurrencies

The UK has developed a strategy for a central bank digital currency, like many other nations. A digital pound will function as a regular online payment method. Although it wouldn't pay interest like a typical savings account (or even certain current accounts), it might make financial services more widely available in the Nation.

Recently, the Bank of England put up a fundamental framework for the operation of a digital pound. A bold schedule for launching one by 2025 has been proposed.

The viability of a UK CBDC, according to Mark Tencaten, would largely depend on whether the advantages of providing a digital currency offset the expenses of developing and implementing the infrastructure necessary for supporting the new payment system.

CBDCs have definite advantages, such as promoting financial inclusion by making it simpler for the 1.2 million unbanked citizens of the UK to sign up for banking services. The government could also utilize the online wallets that will store people's digital pounds to make "fiscal transfers" like giving tax breaks or assistance payments to people's homes and companies.

But, the present proposal from the Bank of England also poses some questions concerning a digital pound. Especially how (or whether) it may interact with other digital currencies like cryptocurrency assets. Although the bank offers a number of models, in general, this could assist lower systemic risk in the cryptocurrency industry and broaden the range of banking options available to UK clients.

Stablecoins are particularly mentioned in the CBDC consultation document from the Bank of England. In contrast to traditional currency, which the government issues, private corporations create and distribute digital assets. A stablecoin's value is tied to a reliable asset, such as the US dollar or British pound, unlike other digital currencies like bitcoin. But what about the British virtual pound?

Why could stablecoins be a good addition to digital pounds?

Mark Tencaten discusses how a stablecoin and a digital pound have certain similarities. They could "coexist" in a hybrid payments economy. It compares to how we currently utilize bank accounts and cash in the same payment system and highlights how technological advancements like ATMs have made this coexistence even simpler over time.

Mark Tencaten also states that to support a digital pound, stablecoins would need to be "completely supported with high-quality and liquid assets ."Additionally, it offers a scenario in which these underlying assets may be "kept exclusively with the central bank," saying that doing so would enable the stablecoin to be "economically identical to the digital pound" and lower financial risk.

If a stablecoin was backed by digital currency, the issuer would issue holders stablecoin tokens according to the worth of digital pounds, which holders could use for domestic and international payments as well as cryptocurrency trading. These private currencies would function on the blockchain that facilitates and lowers the cost of payments. Stablecoins are already being utilized in several nations as a hedge against rising prices and macroeconomic unpredictability.

The control of cryptocurrency

The crypto sector may gain from this as well. Unregulated, unaudited private banks and organizations currently control stablecoins. Yet, a stablecoin supported by a digital pound kept in a central bank account would be considerably more transparent and reliable. The central bank could periodically audit the reserves of stablecoin providers. Lawmakers may also impose capital restrictions, such as a requirement that a certain proportion of issuers' reserves be maintained in an account with the banking system.

Extreme capital needs, however, may have a negative impact on stablecoin viability. They can profit from their holdings or the assets stored against the stablecoins they issue, as they are often tied to interest-bearing commodities like Treasury bonds.

In contrast, a stablecoin issuer that is backed by the digital pound is unlikely to see interest on its central bank account. It seems improbable that the Bank of England would grant a stablecoin provider the same type of account. This would mean adhering to the same rules, which might have an impact on the freedom that cryptocurrency asset producers prefer.

There is little question that stablecoins supported by a digital currency kept at the central bank could help with some of the systemic problems associated with this kind of crypto asset. A significant stablecoin's value has fallen dramatically over the past year. This often occurs when a market incident leads investors to quickly sell their holdings, and the issuer has trouble handling the large volume of simultaneous redemptions.

It would be possible to conduct redemptions and withdrawals while preserving the coin's value relative to the virtual pound if issuers held a specific proportion of liquid digital currency deposits at the central bank. A central bank might offer insurance to stablecoin users to preserve their holdings to a certain extent, even in issuer insolvency.

In his conclusion, Mark Tencaten says that similar to cash and bank accounts, it's conceivable that stablecoins and digital assets can coexist and benefit one another. A digital pound might also highlight the expanding importance of individual money in the economy. This would promote financial inclusion while also assisting in making the financial institution safer.