Open Network service from Baidu aims to help small developers to build DApps

Open Network service from Baidu aims to help small developers to build DApps

by | Jan 8, 2020 | News

Baidu, the Chinese online giant, started a blockchain-based service for developers and small and midsize-businesses to build dapps (decentralized software).

The new service, translated as Open Network from the Chinese, will enable users to develop and deploy applications without building their own blockchain platforms, according to a Chinese media report by STCN, a state-owned daily newspaper. 

The Open Network is a part of Baidu’s business blockchain community Xuperchain and intends to entice smaller users with a better price and technological challenges.

The network can be also considered a way in which the Chinese government tries to embrace the blockchain technology and its desire to encourage its use by smaller businesses throughout the country.

How much does it cost to use the Open Network platform from Baidu?

Baidu stated the price of using the new service can be as low as 1 yuan (US14 pennies ) using its quantity-based fee arrangement until March, according to the report. The new service enables clients to use smart contracts templates along with other practical elements created to boost efficacy, in order to simplify the procedure and build new apps.

According to their site, the Xuperchain system has almost 3.5 million consumers and has processed over 450 million trades. The system has seven masternodes such as Tsinghua University and streaming solutions giant iQiyi to assist and confirm transactions on the stage.

Baidu announced in May it would make its Xuperchain community open source to people and start looking into the possible challenges its potential users could experience.

The new service isn’t the organization’s first attempt to assist programmers to build their own software. In February, Baidu Cloud established Baidu Blockchain Engin (BBE) to handle computing and storage problems for programmers when they attempt to construct programs.

Baidu launched its own Blockchain-as-a-Service (BaaS) platform in January 2018. The system aims to be the blockchain infrastructure for apps. Unlike the newest Company, the BaaS platform needs companies and developers to have their very own blockchain first.

Thank My Famer, the IBM blockchain app that tracks coffee beans!

Thank My Famer, the IBM blockchain app that tracks coffee beans!

by | Jan 7, 2020 | Blockchain, News

Thank My Famer is an app powered by IBM’s blockchain, which produces a permanent digitized series of trades that can’t be changed – monitoring each step of a coffee bean’s journey.

Based on IBM’s Worldwide Blockchain Leader, Paul Chang, every participant to the Thank My Farmer app has a copy of all the transaction information. Each piece of data is added to the blockchain and broadcasted across the community based on each participant’s level of permission. This permits farmers, retailers, and traders to interact better while providing consumers with insights concerning the sources of the coffee.

According to the founder and president of Farmer Connect, David Behrends, the “Thank My Farmer” app provides customers with an interactive map to show the journey of the coffee by scanning a QR-code:

“After scanning a QR-code, consumers are taken straight to a product page that gives details about the coffee they are drinking. Below that description is an interactive map that shows the journey the coffee has taken. We say you can travel the world through a cup of coffee, and we’d like to help consumers visualize that.”

IBM blockchain is powering Thank My Famer app to track coffee beans

How is this different from other blockchain-based solutions?

Although the Thank My Farmer app is powered by the IBM blockchain, Farmer Link is not a part of IBM’s Food Trust Network, which now includes over 200 food providers and retailers such as Walmart and Carrefour. But the program uses the very same assets as the Food Trust platform.

“We took the assets from the Food Trust network and put those in a dedicated environment for Farmer Connect to address the coffee industry supply chain. As a result, Famer Connect doesn’t have to worry about scalability, security and robustness of the network, as everything has already been proven out by Food Trust.”

The purpose of Thank My Famer wasn’t to experiment with new technology but to define a more sustainable ecosystem for coffee farmers, drinkers and the rest of the players involved.

This new Thank My Famer app is different from the rest of the blockchain-based options that allow users to scan a QR barcode to obtain the origin of a particular food item. Carrefour, for instance, the European supermarket, has integrated the QR barcode technology into a few of their goods, but customers are able to just determine where these foods came from. Farmer Connect enables users to make direct donations to farmers, and that is a specific element of the app. David Behrends, the president of Farmer Connect, further clarified this, stating:

“Thank My Farmer app is an industry lead initiative being supported by the entire industry. Others in space are trying to do something similar by showing consumers where their food comes from, but we are addressing issues that the coffee industry is also facing.”

Farmer Connect is considering expanding into other food industries, like cocoa and tea, in which products are created by smaller farmers.

Bitcoin sold at a premium price in Venezuela

Bitcoin sold at a premium price in Venezuela

by | Jan 6, 2020 | News

The reality is that Venezuela is poor now but Bitcoin sold at a premium price in Venezuela. WHY?

The prices for cryptocurrencies vary for different nations. The ‘advertised’ price is often an average of all the prices available on exchanges. At the moment, the demand for Bitcoin in Venezuela seems to be increasing significantly, and this can push the price of one BTC into a five-digit number.

At the moment, most people from all over the world know that the financial situation in Venezuela isn’t at its best. Hyperinflation has plagued the nation for years, and things continue to get even worse. There’s little to nothing the authorities and central bank can do in order to block the fiscal onslaught.

What are the main issues in Venezuela?

Firstly, president Maduro introduced a nationwide cryptocurrency some time ago. Since day one, there were lots of uncomfortable questions concerning this specific venture. Because Venezuela doesn’t have any more oil reserves to back up the Petro, there isn’t any actual use or need for this federal cryptocurrency.

Bitcoin sold at a premium price in Venezuela

Prices for services and products are still skyrocketing virtually daily while the national fiat currency devalues even farther. For all, the only solution would be to attempt to enhance their financial resources. Bitcoin is now of fantastic interest in the nation, and that trend isn’t slowing down.

In a state where digital and physical money is losing worth frequently, the requirement for other assets will become more evident. Venezuela is good example in this situation and Bitcoin is one such asset. The nation has witnessed a lot of spikes of BTC trading volume via peer-reviewed platforms like LocalBitcoins.

What’s even more notable is that the price people are prepared to pay for 1 Bitcoin.

Given the current international price of $7,560, an individual from Venezuela would be expected to pay a premium price in Venezuela.  This isn’t something most are willing to believe, but when it comes to Venezuela, the difference between this international price and the one available locally can be steep.

To understand the difference, consider the price of 1 BTC in Venezuela, which is currently near $9,500. That’s around a $2,000 extra fee to just escape the Venezuelan bolivar. It is not the first time that prices in Venezuela spike, as Venezuela has consistently had greater prices for BTC.

Why is Bitcoin sold at a premium price in Venezuela?

At the current rate of inflation that Venezuela is suffering from, this digital currency can’t be bought via a bank account, or card, because of the financial situation. The desire to escape inflation and buy something which resided outside of this system builds up the demand for Bitcoin. And when the acquisition is impeded by the very system, then is when the scarcity appears.

Venezuela is facing hard times, and its people are willing to put their last money of anything else than the Venezuelan pesos. Foreign fiat currencies such as the US dollar is in the same situation as Bitcoin: Hard to get and sold at a premium price.

For the rest of the world, these prices don’t apply, and we will have to wait for a bigger demand from all over the world the get that price up again.

Crypto World December 2019: China wants more blockchain, Buy crypto with Visa, blockchain school in Rwanda

Crypto World December 2019: China wants more blockchain, Buy crypto with Visa, blockchain school in Rwanda

by | Jan 3, 2020 | News

Chine is open for private and public blockchains

In November 2016, the very first blockchain industrial park has been opened at Shanghai’s Baoshan District together with the objective of not just developing blockchain technologies for government-related work, but also for linking the tech together with finance, insurance, property, intellectual property and other sectors.

Soon after the launch at Shanghai, blockchain industrial parks emerged in different cities around China, for example Hangzhou, Chongqing, Suzhou and Changsha, with a whole investment of over 170 billion RMB ($24 billion) and a great deal of this funding coming from the authorities. With this quantity of investment and spread “playgrounds” to learn more about the nation’s potential with blockchain technologies, it’s normal that China is planning to be a pioneer in the blockchain area.

Binance offers card payment for 4 of its cryptos

Binance, the worldwide cryptocurrency exchange offers the option to purchase cryptocurrency using Visa debit and credit cards.

On the 26th of December, Binance explained in an announcement that its customers have the ability to buy four cryptocurrencies after binding their account into Visa cards issued inside the European Economic Area.

After the user links the Visa cardto his/her account, the user may purchase any of these four cryptocurrencies such as Bitcoin (BTC), Ether (ETH), XRP and Binance’s native token Binance Coin (BNB) using Euros or British pounds.

According to the statement, Binance intends to include support for Mastercard and extra currencies in the future. Binance also intends to expand the support to other authorities past the European Economic Area.

Rwanda will have a school for blockchain professionals

The Africa Blockchain Institute (ABI) will start Rwanda’s apparently first blockchain faculty in 2020, offering five new classes for local programmers, professionals and policymakers.

The ABI Executive Director, Kayode Babarinde, disclosed the new college has five important classes from the pipeline: a blockchain essentials certificate training course, a blockchain programmers’ class, a venture blockchain program, blockchain for attorneys and blockchain for effect.

Babarinde said that the ABI laid the basis for the work in Rwanda by conducting a pilot stage for the faculty from Ghana, where it established the inaugural class to get a blockchain essentials certificate program.

While the five class areas had been extensively sketched out before this pilot in Ghana, the college’s program has been rehauled and upgraded on the basis of their answers and experiences of class participants.

The Bahamas will experiment with crypto

The Central Bank of the Bahamas (CBOB) will present an electronic form of the Bahamian dollar at the Exuma district.

According to the press release, the CBOB will establish its electronic money (CBDC) pilot Dec. 27, which will expand at the first half of 2020 into Abaco, a set of islands and barrier cays from the northern Bahamas.

The electronic money has been developed under the initiative named Project Sand Dollar and are the Bahamas’ first electronic money. The initiative intends to make access to financial services more effective and non-discriminatory.

Is Bitcoin going to fix the banking crisis?

Is Bitcoin going to fix the banking crisis?

by | Dec 20, 2019 | News

Bitcoin Beats Banks

As another week goes by, countless billions were created into the US financial system by its own central bank. According to the WSJ the FED added another $57.5 billion in temporary liquidity into financial markets.

The central bank started interfering in markets since September and intends to boost repurchase operations within the vacation period. More than double the recent Bitcoin market capitalization is going to be pumped back into the market by the FED.

The additional $425 billion is a part of continuing quantitative easing programs and the bank stated that it is ‘perfectly normal’. Printing countless dollars to prop up lending markets isn’t normal by any criteria and illustrates the flaws of the fiscal system.

According to usdebtclock.org, the federal debts are of over $23 trillion, but even so, banks have been encouraging taking credits in the market.

Crypto business analyst ‘PlanB’ compared this to the Bitcoin stock to flow model, which is much smaller compared to the trillions of dollars which were printed over the past ten years.

“You think bitcoin stock-to-flow model predictions are unrealistic, flawed, absurd? I think negative interest rates & quantitative easing are absurd, printing $21 trillion out of thin air since 2008,”

A recent report by RT stated that the US government could have misspent an identical sum as the ineptitude escalates. Two divisions may have spent up to $21 trillion on matters they can not account for between 1998 and 2015.

Is Bitcoin going to fix to the banking crisis?

Bitcoin has a fixed total supply and its fixed inflationary rates are a mathematically way to solve the monetary madness that’s presently being orchestrated by global banks.

These banks brought on the 2008 financial catastrophe and they’ll cause the subsequent one that could be imminent if present trends persist.

PlanB also stated on Twitter:

“Companies are buying back their own shares with that money. CEO’s of those companies are getting richer and richer and have few other options than to put their money in real estate.”

The main point is that you can not print Bitcoin! More individuals are starting to realize this. BTC is the greatest hedge for anyone desiring a parachute once the monetary walls come crumbling down.

Amazon and Alibaba to reshaped e-commerce?

Amazon and Alibaba to reshaped e-commerce?

by | Dec 19, 2019 | Blockchain, News

The online era fundamentally changed the way people shop. Companies as Amazon and Alibaba laid out the basis of e-commerce.

Jeff Bezos founded Amazon in the early 1990s, and clients reacted well to Amazon’s services. In May 1997, Amazon developed the initial public offering. The issue price was $18 per share at the moment. After 21 years, the stock touched the historical $2,000 mark in August 2018. This is the way Bezos became the wealthiest man on the planet and Amazon turned into a $1 trillion firm. Amazon’s stock has increased more than 1000 times since its beginning. On December 12, AMZN stock returned 14% year-to-date.

Alibaba, often referred to as the Chinese version of Amazon, has not such a different story. Alibaba was first funded by the CEO of SoftBank, Masayoshi Son, and it issued 2 different series of stocks. In 2014, Alibaba received a record-setting $21 billion of initial funding after listing ADRs (American depository receipts) on NYSE. In 2019, throughout the trade war between the US and China, Alibaba was confronted with a possible threat of becoming delisted. After some deliberation, Alibaba went forward using a second listing on the Hong Kong Stock Exchange at the end of November 2019 under the ticker 9988. Alibaba inventory rose by 6.5% on the first day of listing in Hong Kong. By November 2019, the Alibaba IPO was the biggest IPO recorded.

In December 2019, Saudi Aramco’s IPO surpassed Alibaba’s IPO record. The state-owned oil firm from Saudi Arabia draw over $25 billion in its IPO.

E-commerce business transformation

Each time a new technological invention springs upward, the companies that set the new technology up the fastest, are the most successful.

Amazon and Alibaba are great examples of businesses embracing the online world. The world wide web has made it feasible to search for products and services while still sitting in your home. Nowadays, emerging technologies such as fintech are catapulting e-commerce to another level.  Everyday consumers are able to instantly purchase their desired goods thanks to fintech. These are only a couple of examples of how e-commerce has adapted to newer variants of this technology. Lots of new start-ups have emerged and are interested in finding methods to add value to the e-commerce industry using modern technology.

With blockchain, enterprises can streamline daily operational tasks. The technology is highly transparent and secure. It could drastically reduce costs.

Energy industry: What can Blockchain improve besides security?

Energy industry: What can Blockchain improve besides security?

by | Dec 17, 2019 | Blockchain

How Blockchain Can Improve Security and Other Operations

Since blockchain is a public, noneditable record-keeper, it is a fantastic tool for any company that wants to operate on large-scale information projects without regulation. Ever since 2015, it was suggested that world governments should start to test blockchain as a tool to ease bureaucracy.

A recent study in Renewable and Sustainable Energy Reviews discovered that blockchain‘s “hash” functionality makes it an uncompromising tool for safety.

“Cryptographic hash functions are mathematical algorithms or one-way functions,” the researchers explain.

How does the hash work? The Hash functions “take an input and transform it into an output of specific length”, which is known as the hash output.

“Their operation relies on the fact that it is extremely difficult to recreate the original input data from the hash output alone (collision resistance).”

The encryption procedure is automated by the blockchain, and this also makes it exceedingly hard for hackers to exploit this information.

Taking Advantage of Blockchain Benefits

Energy and utility companies can leverage blockchain technologies to aid lines of business which will need to share findings with others. Because most electricity businesses contain many departments across different energy resources, blockchain will level the playing area and make each group’s data available to other people. Even more, an energy firm will not need to be concerned about exposing its inner information since blockchain-based cross-functional sharing will remain secure as the app scales.

What are the possible use cases for blockchain for the energy and utility companies?

  1. Allowing an easier exchange of electricity between providers and clients by tokenizing energy units.
  2. Employing DLTs (distributed ledger technology) of a blockchain to set up microgrids that may track the use of power and execute trades, resulting in more efficient energy usage.
  3. Tracking the location where electricity was created and stored to ease peer-to-peer energy trading.
  4. Tracking energy costs to assist operators of charging stations for electric automobiles better-set costs.
  5. Creating tokens for energy credits to simplify the process of issuing and tracking the carbon offset credits. This can lead to a reduction in carbon emissions.

Blockchain’s uses extend far beyond the boundaries of resource mining, product development and client relations. In addition, it can be used to enlarge an organization’s global community, and its own inherent factual coverage structure adds itself to creating reports for compliance purposes.

Smarter money with blockchain: Project Ubin in Singapore

Smarter money with blockchain: Project Ubin in Singapore

by | Dec 16, 2019 | News

Singaporean monetary institutions are known for their efficacy. The state’s public policy is seen as a blueprint to other fundamental systems round the world. The Monetary Authority of Singapore (MAS) has also taken the lead of the investigation regarding the potentials of distributed ledger technology in relation to banking and finance software.

MAS partnered with a range of financial institutions and venture blockchain technology organizations to make Project Ubin. It implemented real-time gross settlement (RTGS) systems with complete transaction privacy and settlement finality while avoiding single points of failure. Project Ubin efficiently reimagined institutional infrastructure in Singapore by implementing blockchain platforms.

By experimenting with technology that aims to improve transparency and enhance efficiencies, MAS indicates that it is prepared to future-proof its recognized procedures. MAS has established a multi-phase practice in partnership with a consortium of international banks, dispersed ledger technology, and blockchain providers.

“DLT has shown potential in making financial transactions and processes more transparent, resilient, and at a lower cost. The project aims to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation. This is with the eventual goal of developing simpler to use and more efficient alternatives to today’s systems based on digital central bank issued tokens.” – The Monetary Authority of Singapore

Together, they demonstrated how the tokenised Singaporean dollar may be a method for everyday inter-bank settlement. The goal was to enhance how trades are settled compared to the present system, where they’re queued and occasionally netted. The project determined the programs tested could function as foundations for distributed ledger-based RTGS systems.

At the conclusion of Stage 2, MAS supplied open-source access to this code and supporting information from the practice.

Having demonstrated that blockchain technology functions for interbank settlement, Project Ubin proceeded on to interconnecting blockchain networks.

Stage 3 (Delivery-versus-Payment) was a project with SGX on growing capacities for simultaneous transactions and final settlement of tokenised electronic currencies and securities resources on various blockchain platforms. The capability to carry out these tasks concurrently improves operational efficiency and reduces settlement dangers.

Stage 4 (Payment-versus-Payment) appears at linking up blockchain payment systems for cross-border payments. Stage 4 began as a cooperation with Bank of Canada and Bank of England on a tech-agnostic overview of present obligations versions and new alternative versions that could improve cross-border settlements and payments. It then continued as a technical experiment to join the experimental national payment systems of Ubin and Jasper by Bank of Canada, for cross-border payments. The project demonstrated the capability to join both networks and permit Payment-versus-Payment (PvP) settlement with no necessity for a reliable third party to serve as an intermediary.

The project is now into its fifth stage – Stage V. This stage concentrates on creating the version of the multi-currency payment, among those other models described in Stage 4, with the intention of business testing with commercial uses. This stage requires a step past technical experimentation, researching and understanding the wider ecosystem advantages of empowering business opportunities which were previously impossible or not cost-effective. The Phase V network will offer connectivity ports for additional DLT networks to join and integrate easily, providing added features to encourage use-cases like DvP together with trades, programmatic escrow, and conditional obligations for Trade and Trade Finance.

Europeans countries which use the blockchain technology

Europeans countries which use the blockchain technology

by | Dec 11, 2019 | Blockchain, News

The blockchain technology reaches far beyond the financial institution and some believe it has more potential to help other fields more than ever. Bitcoin brought the world into a new age of transparency and no matter what will happen to cryptocurrencies, the blockchain technology is here to stay. What European countries are using the blockchain technology? From research institutions to personal data-keeping, the potential is huge.

The European Union is actively engaging in programmes striving to further research blockchain and pursuing innovation. The aim of the EU is to accelerate the development of blockchain within its borders. That’s why the European Union Blockchain Observatory & Forum was founded, to foster all the discussions and blockchain innovations for the European countries. Funding for blockchain projects can be acquired through the Horizon 2020 program, which supports projects in the European Union. Horizon 2020 is investing €300 million in blockchain projects. 

Austria

The Austrian government announced its support for blockchain forming a new research institute for crypto-economy and securing an €8 million fund.

Denmark

In Denmark, the Liberal Alliance used the blockchain technology to have an election. A local branch in Hvidovre was the first one in the world to use the blockchain technology to perform e-elections.

Estonia

When speaking about blockchain at a national level, Estonia is already an example in most conferences. Estonia started testing the technology more than 10 years ago and it was the first country to use blockchain on a national level.

The Estonian government uses the blockchain technology to operate the national health, judicial and commercial registries and plans to expand it even further, to cybersecurity and personal medicine. The ‘most advanced digital society’ created a program called e-Estonia, which helps all online services. For instance, 98% of Tax files are done online, 98% of the population has a digital ID and 44% of Estonians vote online. To top it all up, 99% of the health data is stored on the blockchain.

Estonia is also proud of its juridical process, having the second fasted court proceedings in Europe. And the Ministery of Justice used the blockchain technology to inform the public about every law draft using the online database called e-Law, since 2003.

Georgia

Georgia is trying to win back the trust of its population and has launched the first-ever blockchain land-registry system. With an average of 3 minute registration time, there are now more than 1.5  million land titles.

Germany

Germany is looking actively into the blockchain technology. That’s why the German government has released a strategy on how to use blockchain opportunities for digital transformation.

A ‘Blockchain Lab’ was established to understand the potential of the distributed ledger technology and to reach the United Nations Sustainable Development Goals.

Ireland

Ireland is also preoccupied with the impact of blockchain and published a discussion paper on digital currencies and the subsequent blockchain technology. The Ministery of Finance also created a working group to understand and be proactive in the regulatory approaches.

The government of Ireland partially funded Blockchain Ireland, which was created to help promote and distribute information all across Ireland. The Department of Public Expenditure and Reform, together with the Department of Finance organises Blockathon, a hackathon that aims to identify and analyse real-life uses cases for blockchain in the public sector.

Italy

After joining the European Blockchain Association, Italy amended regulations to define the blockchain technology and smart contracts.

Latvia

The Latvian Ministry of Finance published a memorandum, together with the ministries of Lithuania and Estonia, which includes the support of innovations and new technologies regarding regional fintech solution such as DLT.

Lithuania

Lithuania takes the blockchain serious as the Central Bank of Lithuania has launched LBChain, a sandbox for blockchain products. The bank also published an updated position on virtual assets such as cryptocurrencies, explaining how these can be used.

Luxembourg

The Luxembourg government created Infrachain, a non-profit organization, which aims to put in place community-driven governance for blockchain use.

Malta

Malta strives for modernization and efficiency of business processes as well and that why it will adopt Malta Business Registry. The government also launched Blockcerts, a system for verifying credential for education.

The Netherlands

The city of Groningen, in the Netherlands, has a proof of concept to help its citizens with their financial debts. The services included consist of debt assistance, debt prevention and income management. They store all financial records in a private blockchain.

The Netherlands also thought of Pension Infrastructure, a project to administrate pensions. Another city, Zuidhorn, won the Sampp Business Innovation Research competition with their project that supports financially children living in poverty.

Slovenia

Slovenia plans to become Digital Slovenia in 2020, as the Blockchain Slovenia launched a digitization plan which includes an initiative to explore the DLT technology. The Slovenian government also launched Bitcoin City, a commercial complex where paying with cryptocurrency is possible.

Spain

In Spain, the government of Catalonia launched IdentiCAT, a self-sovereign identity project, which can be privately managed by citizens.

In the city of Valls, launched Municipal Data Portal, a project which publishes data sets and resources in the local municipal web portal and on the blockchain.

The port of Valencia, blockchain is used to offer transparency and security to the supply chain.

Sweden

In Sweden, the government is testing transfers of real estate in the land registry (Lantmäteriet) and other multi-party transactions on the blockchain.

The municipality of Zug, Switzerland, tested Zug Digital ID, a government-issued self-sovereign identity on the Ethereum blockchain.

Ukraine

The government of Ukraine announced its plans to move government information to a blockchain platform. The Ukrainian Ministry of Finance piloted trial auctions using blockchain and announced plans to define cryptocurrencies in Ukraine.

United Kingdom

In the UK, a digital asset platform was set up to explore the blockchain potential in the UK real estate industry. The Food Standards Agency completed a trial to track distribution of meat with the use of blockchain. This pilot was the first time blockchain was used as a regulatory tool in the food industry.

The Isla of Man wants to attract more blockchain companies on the island and has launched a sandbox designed to help companies overcome regulatory hurdles.

The Associated British Ports(ABP) is the leading port operator in the United Kingdom and is currently testing the use of blockchain to facilitate trace through its marine terminals.

Why don’t people pay with Bitcoin?

Why don’t people pay with Bitcoin?

by | Dec 4, 2019 | News

Ever since Bitcoin first was created, 11 years ago, the community around it grew and for the past few years, everyone started talking about mass adoption. But before even thinking about Bitcoin replacing cash and traditional fiat, we need to overcome the handicap we are facing right now and answer the question: Why don’t people pay with Bitcoin?

Probably one of the main reasons nobody spends Bitcoin is because nobody earns Bitcoin on a regular basis. If this ever changes then we can expect a whole lot more stream. It isn’t ideal to purchase Bitcoin and then to use it to buy something else. But for those who have it coming in their wallet each week, the mindset is different.

What are the reasons people refuse to use Bitcoin for everyday payments? Why don’t people pay with Bitcoin?

Tax And Regulations

Why don’t people pay with Bitcoin? There’s no denying that taxation issues aren’t helping with the Bitcoin mass adoption.

As a normal consumer and taxpayer, why would an individual want to complicate his or her life with paying tax for cryptocurrency, when they have a complicated enough life as it is? Most won’t bother.

The taxation of Bitcoin has another major issue – Bitcoin’s volatility. To understand how volatility can affect a Bitcoin holder, consider this: An individual can purchase 0.1 BTC when the price of Bitcoin is $10000 and then trade it a number of times, ending with a net profit of 0.005 BTC by the end of the year. This concludes that your total amount of Bitcoin is 0.015 BTC. But consider that the current price of Bitcoin is $6000. So even with an increase in the amount of BTC, there is still a cut from the initial price and since the tax needs to be paid in USD, it boils down to whether declare this situation a reduction or a profit. This case needs to be clearly defined if there will be voluntary compliance.

Most Bitcoin owners are confused about the regulations are believe it is unfair to pay double taxation. VAT is a widely applied outside the US and it already represents a tax and paying yet another tax just because something is being bought with Bitcoin would result in double taxation.

On top of that, it wouldn’t be realistic to assume that the authorities and the financial institutions will simplify the tax collecting procedure while they haven’t sorted out what’s the best way to tax Bitcoin, in the first place. And this leads to another point, regulation of Bitcoin. Regulating Bitcoin will take a great deal of time.

And regulation needs to be comprehensible by most individuals. Paying tax for something that was created to avoid this old system in the first place, is not something most accept and for good reason. People don’t like paying taxes if they don’t understand where their taxes are going or doing for them.

Can paying taxes be avoided? Yes. 

But taxes are not a problem for those using services which don’t send out tax reports for purchases made with Bitcoin, such as BitRefill, eGifter and OverStock. Many use such services to purchase good using Bitcoin while paying not paying taxes for the cryptocurrency spent.

Hoarding coins

Why don’t people pay with Bitcoin? There are certainly lots of reasons why ordinary consumers don’t use Bitcoin to pay for services or products.

We must bear in mind that the image of Bitcoin that was portrayed since 2018  throughout financial debates is not reflecting the entire picture and it is starting to fade. Obviously, one major reason behind the adoption problem is that many retailers lack cryptocurrency payments because they are only holding crypto in for that potential bull run. And we might not really blame these individuals since for certain Bitcoin is a fantastic digital advantage to hold as an investment.

The crypto community tends to agree on the fact that the big majority aren’t spending their Bitcoin because they are hoarding their coins. That’s why it is expected to see a higher volume of trades when the Bitcoin price goes up, as many are waiting to cash in on their profits.

In the speculative market we have today, holding your Bitcoin for better days is what most seem to be doing. It is simply too risky to pay with Bitcoin and to precious to sell it.

To put in a simple sentence, the answer to “Why don’t people pay with Bitcoin?” is “Because people don’t earn simply Bitcoin, they don’t understand regulation and taxation and see it way too risky due to the speculative market.”