Cryptocurrency and bitcoin has taken over the world, but is it a bubble or is it here to stay? We did some research into this new trend and here is what we discovered.
First things first: Crypto and Bitcoin are not the same
When people say crypto, the first thing most people think of is bitcoin, but you have to keep in mind that they are two different things. We’ve defined the two below:
Bitcoin: A type of digital currency in which a record of transactions is maintained and new units of currency are generated by the computational solution of mathematical problems, and which operates independently of a central bank.
Cryptocurrency: a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
Essentially, bitcoin is one type of cryptocurrency that is widely used and known throughout the community. There are other coins out there— called AltCoins — including ZCas, Ethereum, Ripple, and LiteCoin.
Bitcoin won’t last, but Cryptocurrency will
Now that we've defined the difference between crypto and bitcoin, we can discuss Bitcoin's future in the US. In an article published by Inc, Yanev Suissa founder and general partner at SineWave Ventures, discusses what the future of Bitcoin could look like in our country.
He points out that cryptocurrency as a whole won’t be going anywhere because it’s given people all of the world “much needed access to financial and economic transactions,” but bitcoin might be. According to Suissa, bitcoin is “most frequently billed as way to buck the banking system and remain beyond government control” which the US government is not in support of and stricter laws could threaten how we utilize bitcoins.
For example, the SEC has issued warnings to the public about how some cryptocurrency trading and initial coin offerings (ICOs) might be in violation of the law, and that much of this activity is taking place without the standard protections for investors. In this unregulated environment, fraudsters have a long leash, the SEC said.
Quickly after the SEC issued these warnings, Facebook and Google banned cryptocurrency ads on their platforms that have not been thoroughly vetted by the SEC and Washington began discussing how the US is going to monitor the new technology. We don’t know what the future of cryptocurrency and bitcoin holds but we do know that the laws will soon catch up to the technology, and when that day comes the entire crypto ecosystem will change.