Are digital money and block chains worth investing?

nnnHowever, many people still do not know whether they should buy digital money or investment chain chain, after all, the number of people and the chain of chains in the past year to achieve a remarkable development, many ordinary people began to understand these two concepts, They did not become mainstream. This article combines some of the experts in the industry to discuss this issue, to give people some inspiration.n
nnTranslated by: Inan
nAccording to a global study released by the University of Cambridge in April, the digital money market tripled in 2016 and its market capitalization reached about $ 27 billion in April 2017. But why are these digital currencies still not mainstream?n
nThe Global cryptocurrency benchmarking study points out that there are currently between 2.9 million and 58 million digital currency users worldwide. For some people, this user base is relatively small, but after all, the largest digital currency – Bitcoin is only in 2009, and about half of the world’s adults have a bank account.n
nReported that the current bit currency is the most popular digital currency, accounting for about 72% of the total trading volume, its market value in December 2016 reached 14 billion US dollars. Other digital currency transactions are also increasing, such as Taitong (market share of 16%), up to the currency (3%), Monroe, Swiss currency and Leight coins (each about 1%).n
n”The digital currency is a global industry and a local industry,” he said. “There are no border restrictions on transaction operations, but there are geographical differences in mining.n
nn”The industry is getting more and more liquid, the boundaries between transactions and wallet are increasingly blurred, ecosystems are evolving and supporting multiple currencies except Bitcoin.”n
nnAccording to market data provider Coincap said that in addition to some of the most well-known currency, there are currently more than 500 kinds of digital money in circulation, and these currencies do not rely on any national central bank or government support.n
nAlthough these figures are very impressive, but the actual use of digital money is still limited, the application of the digital book block chain is also limited to innovation in the laboratory, almost do not see it in the application of financial institutions.n
nBuy cost-effectiven
nDavid Birch is the director of British digital currency expert and consulting firm Hyperion, and the digital currency, such as Bitcoin, is now – and will be – a financial instrument that helps users profit.n

nDavid Birchn
nBirch said:n
nn”If Bitcoin can improve business efficiency, then the bank will use it, not non – money can not.n
n”Bitcoin seems to be great for young programmers or those interested in technology and finance, but people do not want to control their own money, and they want to put money securely in reputable financial institutions, Regulatory environment, in order to prevent errors with automatic fail – safe devices.n
nnWhen referring to banking cases, Birch argues that digital money is primarily used for specific purposes, such as evasion of capital controls and financial speculation, as well as for illegal activities such as drug purchases and cybercrime payments.n
nBirch said:n
nn”Suppose there is an Islamic digital currency, like an electronic dinar, there is no interest and related to the gold reserves.People may use it because it reflects their own values, not the values โ€‹โ€‹of the financial industry.n
nnThe actual use of digital money is also complex, says Rodrigo Garzi, chief marketing officer for Pagcoin, a special currency processing platform.n
nAccording to Garzi, this currency is created through complex programming, so people with more technical knowledge will be attracted and become early adopters of Bitcoin.n
nBitcoin can be purchased from a few years ago, but all aspects of digital money are still difficult to understand and explain – although in recent years the general public is more familiar with this concept.n
nGarzi said:n
nn”In fact, it is difficult to get a bit of money to limit the use of it: for example, it needs to register in the trading platform, which takes some time, and people at least have some financial knowledge to properly use these currencies.n
nBlock chain revolutionn
nEven though most banks are studying what they can do in specialized services or use of digital money, the entire financial industry believes that the digital finance revolution will be triggered by the chain chain, rather than any existing or emerging digital currency.n
nWhile digital money is associated with people with specific social, investment, payment and speculative purposes and motivations, the chain chain has the potential to become the basis for a large number of new services and play a role as a tool for improving or even replacing existing products.n
nIn addition to improving financial services, block chains can also facilitate services in other industries, such as the notary sector, by centralized storage and non-infringement of personal privacy, which is heavily bureaucratic in many countries. Regulation leads to its very slow and costly.n
nGarzi said:n
nn”The development of block chains is very similar to the way the Internet is evolving, and the network was originally introduced as an information exchange mechanism and later became a platform for other services such as Skype and social networking and communication tools.n
nnIn terms of financial services, the industry has realized that the block chain revolution has arrived, it can provide faster and more cost-effective financial services and real-time system of real alternatives, such as remittance network Swift.n
nThe R3 coalition attests to this argument, which includes more than 70 institutions around the world, cross-sectoral research and development of block chains.n
nWhen it comes to the potential use of the chain chain, Crossword Cybersecurity, a technology transfer company, recently conducted a study on “Smart Contracts” with Warwick University.n
nThe study found a number of interesting uses, including a wide range of mechanisms for negotiating and paying micro services in the Internet of Things (IoT) environment and for securing and transferring ownership of digital assets.n
nAll this looks promising, but there is no such favorable factor around the chain, and its adoption is also faced with obstacles that impede the development of the technology in sectoral institutions.n
nIndustry point of viewn
nGuga Stocco, head of innovation and strategy at Banco Original in Brazil, said that over the past two years, banks have made significant progress in the work of the block chain and their understanding of its role.n

nGuga Stoccon
nStocco said:n
nn”Banks are beginning to understand that block chains and digital currencies are very useful, for example, Bitcoins are not so bad, but they also understand that there are better choices, such as creating a digital currency and adding a smart contract function It can become a more powerful tool. “n
nnBanco Original was established in 2011 and is a purely digital bank, but even if it is much more advanced than traditional banking organizations, traditional concepts still exist when new technologies are introduced.n
nStocco added:n
nn”All banks are conservative when they are faced with emerging technologies, and the chain is too new to achieve large-scale applications, but we are almost ready, for example, we have developed a lot of projects that will be used in the near future. technology.”n
nnn”But every project like this has a clear purpose, and we can not just launch our own currency and then combine it with a bit – based service.n
nnStocco mentions the rise of the ICO, the center trading network Ripple and the Bitcoin debit card XAPO, which are considered to attract the attention of the bank to the digital currency / block chain project. He also pointed out that Banco Original will soon be launching a block-based subversion service.n
nStocco said:n
nn”We are closely focusing on this area and will soon introduce a block-based chain of products, but we have to go through the maturity of technology and market elements and achieve a balance between the two.”n
nnHe believes that in addition to developing customer-oriented products, block chains can also be used to reduce the complexity and cost of core banking applications.n
nAccenture and McLagan, a operations benchmarking firm, released a global survey released in July 2017, showing that the annual market value of $ 80 million -120 million in investment banking using the chain chain for the Taiwan And the background to save more than 30% of the cost.n
nStocco said:n
nn”The use of block chains in core banking may be useful because the underlying system is complex and has many legacy problems, but the problem with block chains is that it is not just about emerging technologies but also exposing the data. “n
nFront roadn
nEgg is one of the world’s largest pure online banks, Tom Ilube is its former chief information officer and currently serves as chief executive officer of Crossword Cybersecurity, who believes that the timing is still a problem for the use of block chains in the global financial services industry Then
nAccording to Ilube, financial institutions are often very cautious about adopting new technologies and it is not surprising to spend 10 years.n

nTom Iluben
nHe said:n
nn”I hope that the challengers will be able to accept the block chain technology more quickly, although there are still some technical challenges, such as scalability and privacy, but many researchers are working to solve these problems.”n
n”It is best to think of the block chain as a concrete expression of ‘consensus decision making’, so it may be that in some applications, the solutions used in practice are not the same as the block chains we understand and love today.”n
nnIlube says privacy is also a key challenge for a range of block-tier applications, partly because block-chain transactions are not private in nature. So it will take some time for the organization to “trust” the technology completely.n
nHe said:n
nn”It is important for applications to need additional technical solutions to protect privacy, and there is a lot of work to do.”n
nnAccording to Stocco, 2016 has witnessed too many attempts at the chain of chains and digital fields, new products from start-up companies and the initial exploration of many financial institutions.n
nHe said that these errors will be corrected this year, products and services will be more and more close to the market demand and reality.n
nHe said:n
nn”Until 2018, the participants will begin to provide more important related products, and block chain until 2020 will become the mainstream, but there is no doubt that everything is developing rapidly.n

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