Best Cryptocurrency Exchange

Cryptocurrency continues to boom, but questions remain

Cryptocurrency continues to boom, but questions remain
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Cryptocurrency boomed in 2021.

According to crypto exchange Coinbase, the market has grown by more than 250% annually as of December 15. The market has always grown to more than 11,500 coins with different functions and uses.

While many investors see great potential in cryptocurrency, questions still surround the market, from its complexity to its volatility and lack of regulation. And while it has not yet taken off as a major form of currency, both in Arkansas and beyond, some authorities and investors see great potential going forward.

Internet digital currency
Cryptocurrencies – which belong to a broader group of assets that use blockchain technology known as crypto-assets – are digital tokens that are exchanged via the blockchain. This distributed database acts as a complex virtual ledger that can quickly and efficiently verify the ownership of an asset while ensuring secure and decentralized transactions.

“Totally peer-to-peer, no middlemen, no banks, no government,” said Carol Goforth, a law professor at the University of Arkansas who has become a leading scholar in crypto asset regulation. No censorship, no fees, no delays.” “It was originally designed to be a currency alternative, where the government knows everything they are doing.”

“It’s the digital currency of the Internet,” said Chad Yus of Bentonville, general partner at Centurion Crypto Fund 1.0, a digital currency fund that simplifies and provides easy access to crypto investing for authorized clients. “It’s a very complex market, and there are a lot of nuances with it.”

Cryptocurrencies and crypto assets serve a variety of uses, from coins intended for use in video games to the broader use of blockchain technology that can monitor and provide transparency in areas such as supply chains. Goforth noted Walmart’s collaboration with IBM to work with farmers to track their products using blockchain technology.

“If something is contaminated, they can quickly and safely track it down and avoid throwing away fine food while they quickly get rid of anything that is contaminated,” she said. “It took two weeks to do this using traditional tracking methods and a few seconds to do it once we had everything on the blockchain.

“The uses are really limited by human imagination and ingenuity,” she added. “We’ve really only scratched the surface of what can be done.”

The Crypto utility has attracted more than 100 million investors worldwide, but the lack of regulation carries risks. The Arkansas Securities Exchange (ASD) views cryptocurrency as a “speculative investment for retail investors looking to purchase digital currency or derivative products for a profit” and urges investors to exercise caution.

“Recent large price swings in crypto-related investments can easily tempt unsuspecting investors to rush into an investment they may not fully understand,” said Eric B. Munson, ASD Commissioner. “Cryptocurrencies and related investments are high-risk products with an unproven track record and high price volatility. Along with the high risk of fraud, investing in cryptocurrencies is not for the faint of heart.”

NASCENT stages
Yoys said the cryptocurrency is still in its “early stages” of use in Arkansas and has not yet been used as a widespread payment method. The lack of service is partly due to the fact that cryptocurrency owners hold their tokens instead of selling or trading them, and the price of cryptocurrencies in general fluctuates, leading to instability in their use as a means of payment for services.

Currently, the Arkansas Securities Department does not plan to accept cryptocurrency as a payment method due to this volatility. But Yoss said there is a fixed cipher to choose from.

“If that is your fear, whether on the part of the merchant or the consumer, there are coins where you can be more stable and less volatile,” said Yos.

For cryptocurrency to spread as physical currency rather than just a commodity, Yoes said sellers must be “sick of paying merchant fees to the credit card company.

They’ll realize, ‘Wait a minute, I can save 3.5% with this code,’ he said.

non-separable symbols
While blockchain technology is currently used in various ways across the state, the crypto-asset itself has yet to see any widespread use in Arkansas. One area that may see adoption soon is non-fungible tokens (NFT), which use the blockchain to represent ownership of real-world items such as music, art, and other media.

According to Yoes, the technology has a practical use, especially in areas such as ticketing.

“The most practical use of the NFT marketplace is to verify ownership and authorship,” Yoss said. “So if you have something you want to block from some kind of counterfeit asset — think tickets to a sporting event or concert — the venue can scan it and determine if it’s a legitimate ticket.”

According to Kevin Trainor, senior director of athletics for public relations at the University of Arkansas, the athletics department is exploring NFTs but has no immediate plans to adopt the technology.

“We are reviewing its position and expectations in the industry, its various applications, and its position at the conference level,” Trainor said. “However, I wouldn’t say that anything is imminent about that at this point. We are just looking at the space, as we do with other emerging trends in the industry.”

Regamarol Regulatory
According to Goforth, crypto assets face challenges that may threaten their proliferation in the coming years. The crypto market offers a new opportunity for money laundering and other financial crimes that have caught the attention of the federal government. The new infrastructure bill expands tax reporting requirements for cryptocurrency transactions, requiring brokers to issue 1099-B forms to investors. Federal officials such as Federal Reserve Chairman Jerome Powell and Securities and Exchange Commission Chairman Gary Gensler have voiced concerns about cryptocurrencies and are urging additional regulations.

Carol Goforth

But Goforth sees the regulations as vague and potentially stifling.

“We need to clarify organizational structures and environments and make sure they are balanced,” she said. “I understand the risks of fraud and the criminal elements, but I’m not sure regulators are doing more than just lip service to the fact that this is also a very exciting and potentially positive technological development that we need to avoid stifling. And I think the regulatory system we have now is close to stifling innovation, I hope that changes.”

Looking ahead, Goforth sees Congress passing additional regulations on stablecoins, cryptocurrencies tied to a more stable reserve asset like the US dollar or gold. Then you see government-backed digital currencies that will provide additional legitimacy to the market and attract new users and investors.

Yoes also predicts that the crypto-asset market will continue to grow but sees the need for more simplicity and confidence.

“Cryptocurrency should become simpler to explain and accepted in faith,” said Joyce. “People should trust and adopt cryptocurrency for widespread use. This is coming from more users. At the end of the day, when the number of users reaches a billion users, everyone will know that it is here to stay.”

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