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It’s High Time Cryptocurrency Investors Start Thinking Long Term

Cryptocurrency traders and investors often experience two types of heartbreaking feelings at different periods in their trading journeys. The first heartbreaking feeling comes from ignoring a cryptocurrency in its pre-ICO or ICO days when it was selling quite cheap. You might end up angry with yourself when the cryptocurrency eventually takes off and you missed the boat. The second heartbreaking feeling comes when you join the crowd to exit your position in a coin during a selloff, only for the coin to rally back to previous highs a couple of days or weeks later.

Earlier this year, cryptocurrencies suffered a massive selloff in response to a tightening regulatory environment. China, South Korea, and the U.S. (among others) have been cracking down on ICOs and cryptocurrency exchanges. The selloff was so bad that Bitcoin crashed more than 70% and more than $550 billion was wiped off the total market cap of the general cryptocurrency market.

In the last week, the cryptocurrency industry has started showing signs of a steady recovery. Bitcoin has moved up to trading close to $11,000 and Ethereum is almost back to $1000. However, as the cryptocurrency industry returns to bullish ways, some coins will fare better than others at a consistent pace over the long term. This piece examines three reasons people trading the NEO coin can expect to see a consistent recovery in the short to medium terms.

NEO is a credible contender to Ethereum

The first reason NEO is poised to be a winner in the long-term cryptocurrency play is that it is a credible competitor to Ethereum. Ethereum has perhaps better prospects of long-term survival and mass market appeal than Bitcoin because there’s more to Ethereum than its cryptocurrency. Ethereum is a platform for creating smart contracts and building decentralized apps. Other companies that want to build their own blockchain products leverage the Ethereum blockchain and they create their ICOs on Ethereum’s platform.

NEO is fundamentally like Ethereum in that it people can use it to create smart contracts and businesses can build their decentralized apps (DApps) on its platform. NEO’s edge over Ethereum stems from the fact that NEO has a barrier to entry for companies that intend to launch an ICO on its platform. While Ethereum’s open-door policy makes it a breeding ground for potential “shitcoins”, very few scammers will go the long route of launching a fraudulent ICO on NEO.

Better relationship with Chinese regulatory systems

Two of the most recent market crashes that the cryptocurrency industry suffered had their origins in China. When cryptocurrency sneezes in China, the rest of the market catches a cold. NEO has decent odds of long-term survival because it has its origins in China and it is the poster boy for Chinese authorities clamoring for a regulation of cryptocurrencies.

In an interview earlier this year, Da Hongfei, founder of NEO revealed his pro-regulation stance despite the general anti-regulation sentiment among cryptocurrency enthusiasts. He noted that the “market has been very hot, very crazy for past year… I think it’s time for regulators to step in”. The fact that NEO is technically at peace with regulators eliminates much of the regulatory risks facing cryptocurrencies.

Enterprise-friendly programing language

A blockchain project is only as good as the developers it can attract because the developers building apps, Wallets, and other services on the blockchain often form the nucleus of its community. NEO is designed to attract developers by allowing them to use popular programming languages such as Java and C# to write their apps. In contrast, developers must first learn Solidity before they can create or build apps for Ethereum.

Businesses that intend to embrace blockchain technology will also find it easier to ride on NEO’s network because they can easily code smart contracts in the existing programming languages. In the words of Brian Evans, angel trader, adviser, and blockchain evangelist, “the big move for NEO is creating an entire smart economy. It has incorporated digital assets, smart contracts, and a digital identity that can be used for real-world applications and become integrated into the real economy.”

The post It’s High Time Cryptocurrency Investors Start Thinking Long Term appeared first on Bitcoin Network, News, Charts, Guides & Analysis.

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SBI Remit is Using the Blockchain to Make Money Transfers Between Japan and Africa

SBI Remit, a Japanese money transfer company, is teaming up with a venture-backed firm to use its new treasury management service that uses the blockchain for increased transparency and liquidity to small and medium-sized businesses operating between Japan and Africa. SBI Remit and BitPesa The service is provided by BitPesa, which has raised $10 million to turn the Bitcoin blockchain into an enterprise payment rail. Normally, consumers moving money from Japan to Africa have to rely on banks and other middlemen to make their transactions, first exchanging yen into U.S. dollars or euros, then into African currencies. BitPesa, on the other hand, uses a combination of the Bitcoin blockchain and other services to create new currency pairs which greatly simplify the process. The partnership follows a path already laid out by BitPesa, and specifically targets cosmetics companies, electronics companies, and the lucrative used car market between Japan and Africa. It enables direct currency pairs between Japanese yen and the fiat currencies of Ghana, Kenya, Morocco, Nigeria, Senegal, Tanzania, Uganda, and the Democratic Republic of Congo, according to Forbes. Generally speaking, by embracing the decentralized nature of the blockchain BitPesa illustrates how useful Bitcoin is for real world applications. Not only does this system permit remittances to be completed in less than an hour — thanks to the blockchain’s fast settlement times — it will also help jump start African commerce with Japan on a larger scale by adding a much-needed layer of trust and transparency, according to Nobuo Ando, SBI Remit director. “Many companies are doing trade with African countries and they are suffering from the high cost and the slow speed and not very precise administration,” said Ando. “So this is the market that we would like to go in, together with Bitpesa.” Moving Funds from Asia to Africa Historically, individuals and businesses conducting trade between Japan and the countries BitPesa serves had to move Japanese yen through multiple correspondent banks. As noted, along the way the yen was frequently converted to more liquid intermediary currencies like the U.S. dollar or the euro, which added lofty fees each step of the way. According to World Bank estimates, the average remittance fees for this process can reach 7%, but the real cost is often much higher. It can also take several days to complete. By removing these correspondent banks and secondary currency exchanges from the process, BitPesa is able to provide similar services almost instantly for less than 3% of the total transaction. To avoid fluctuations in the price of both fiat currency and Bitcoin, Elizabeth Rossiello, BitPesa founder, said her company’s treasury services are designed to insulate their customers from risk on either side: “If it makes sense for us to settle using cryptocurrency or fiat currencies then we do,” Rossiello said. “And in this case, we’re happy that SBI feels the same way, so we’re open to using digital or fiat currencies to settle between us.” Looking ahead, the remittances market in sub-Saharan Africa it is expected to grow 7% this year to $41 billion. Although this number is just a fraction of the worldwide remittance market as a whole, with relatively little competition for African business Rossiello is confident her company can use the lower costs of the Bitcoin blockchain to help catalyze commerce between Africa and the rest of the world. Rossiello, who is among the earliest founders of a Bitcoin company established BitPesa in 2013 when the cryptocurrency was trading between around $100 and $1,000. As of today, Bitcoin is trading at over $6,600. Featured image from Shutterstock. The post SBI Remit is Using the Blockchain to Make Money Transfers Between Japan and Africa appeared first on NewsBTC.

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