Applications of the Blockchain Technology

 

What is the blockchain technology?

 

The blockchain technology is defined as a public ledger of all cryptocurrency transactions that have ever been executed. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.

blockchain technology

Thus as per the above diagram, since there is no centralized administrator with exclusive control over the database, and since the control over the database is distributed to every client, therefore the blockchain technology is democratic in nature. 

 

What are the applications of the blockchain technology and what are the services provided by tradescrypt.com?

 

Business Services

 

Decentralized Autonomous Organization (DAO) (also known as a fully automated business entity (FAB), or distributed autonomous corporation/company (DAC)) can be considered as a self-governing organization under the control of an incorruptible set of business rules. These rules are typically implemented as publicly auditable open-source software distributed across the computers of their stakeholders. A human becomes a stakeholder by buying digital tokens, similar to shares in a company, or by being paid in those tokens to provide services for the company. These tokens may entitle its owner to a share of the profits of the DAO, participation in its growth, and/or a say in how it is run.

 

Financial Services

 

  • Asset Management: Trade Processing and Settlement

  • Payments: Cross-Border Payments

 

Cryptocurrency Consultancy / Information Services

 

For more details on the blockchain technology services offered by tradescrypt.com, kindly fill the Contact Us form or email to support@tradescrypt.com.

 

Analysis: BitConnect Coin (BCC)

Analysis: BitConnect Coin (BCC)

The hedge fund of the cryptocurrency world?!

1. What is BCC?

BitConnect Coin is an open-source, peer-to-peer, community-driven decentralized cryptocurrency that allows people to store and invest their wealth in a non-government controlled currency, and even earn a substantial interest on the investment. This means anyone holding BitConnect Coin in their wallet will receive interest on their balance in return for helping maintain the security of the network.

(Source: https://bitconnectcoin.co/what-is-bitconnect-coin)

2. FIT Test (F: Future updates; I: Innovation; T: Trends):

FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A. Innovation:

BitConnect community leverage on retail investors’ investment in BCC and through their so-called “cryptocurrency bots” invest in other cryptocurrencies or maybe other investment instruments in order to generate a daily interest for their retail investors.

Also refer to the following link for more information on what BCC is offering: https://bitconnect.co/bitcoin-information/18/investing-in-bitconnect-coin-and-staking

B. Trends:

BCC seems to be a hedge fund of the cryptocurrency world.

C. Future Updates:

Roadmap for the future of BitConnect Coin’s is not clearly presented by their community.

3. Community:

Community details not published anywhere by Bitconnect. Strange!

4. Uniques Features:

Not available; except for their referral scheme that makes BCC seems like a Ponzi scheme.

5. Downside / Risks:

Risks are extremely high since there seems to be no sustainable business model that backs BCC.

6. Future:

No information on BCC available based on which we can gauge a future.

7. Technical Analysis:

tradescrypt.com team does not want to present a technical analysis for this altcoin since it does not seem to be a fundamentally strong cryptocurrency and therefore not worthwhile recommending.

8. Comments:

No fundamentals, no business, no assurance except for the words written on BCC’s website. We fear that when time runs out, investments may be as good as burnt.

Our advice to investors investing in BCC: BE CAREFUL!

Cryptocurrency in India

Income Tax nuances of Cryptocurrency in India

When did cryptocurrencies become popular in India?

 

Cryptocurrency in India became more popular post demonetization in November 2016.

India in the past was known to consider the conservative approach whenever something different is introduced. However, since the past decade, acceptance of newer technology has been swift. Maybe rise in literacy and demographics of the country (approximately 75% of the population below the age of 30 years) is responsible for such greater level of acceptance.

Same is the case of cryptocurrency in India.

Post demonetization, leading cryptocurrency trading exchanges in India have witnessed a very significant rise in the Indian user base, which is still growing considerably even today.

However, many Indian investors, traders and speculators alike will have the following question in their head.

“How can I treat the returns/income on the sale of cryptocurrency in India for Income Tax purpose?”

Investors with www.tradescrypt.com asked this question often since they have generated extremely good returns on their investments in fundamentally sound cryptocurrencies over the medium term period.

Since the Central Board of Direct Taxes has not issued very specific guidelines yet, therefore this question had to be answered appropriately by digging deep as although cryptocurrencies in India are NOT ILLEGAL, they are not yet regulated.

Therefore, in the present situation, cryptocurrency in India could be treated as capital assets with the sale resulting in a capital gain, as in the US. If the individual/entity is in the business of trading in cryptocurrencies,  in such cases the income can be treated as business income. In addition, we have witnessed cases where individuals have preferred to treat the income from cryptocurrencies as ‘income from other sources’, in such cases relevant Income Tax slab rate applies.

Cryptocurrency investors should note that if their asset holding period is more than 36 months (as in the case of any property), then the investor is liable to pay Long Term Capital Gains (LTCG) which attract a tax rate of 20%. If the asset holding period is less than 36 months, then the investor will have to pay Short Term Capital Gains (STCG).

Now, if the transactions in cryptocurrency are substantial and frequent, then it could be assumed the individual is trading in cryptocurrencies and the income on sale will be considered business income, hence the applicable income tax slab rate will be deducted.

This brings us to another equally important question.

When will there be clarity on cryptocurrency in India?

On 08.08.2017, the government of India has reportedly completed work on a proposal that outlines steps to regularize cryptocurrency in India and it seems a tax policy will be established for cryptocurrencies in order to reduce this ambiguity.

NEO Coinigy

Neo Gas

How is Neo Gas generated?

Recently our subscribers have expressed their interest to learn more about Neo Gas generated from Neo cryptocurrency and we will now attempt to explain this in the most effective manner.

Before that here is a brief background on Neo. Neo (formerly known as Antshares) is China’s first ever original and open source public chain project, NEO serves as a smart asset platform. Smart assets are the combination of a smart contract of blockchain and digital assets.

Considering the reluctance of China to accept the dominance of foreign companies (eg Google, Facebook, Amazon, Uber etc), we consider the same trend to repeat when it comes to cryptocurrencies. We expect China to put considerable weight behind the promotion of Neo in order keep foreign cryptocurrencies such as Bitcoin, Ethereum etc on the back foot at least in their own backyard.

Now, considering the population of China and those many Chinese citizens accepting their own China based cryptocurrency – Neo, based on this reasoning and consideration, we see growing demand and rise in the value of Neo over the medium term period.

Coming back to our main subject – Neo Gas, it is similar to dividend credit to a shareholder of a company, Gas is credited to the wallet of Neo investors and the amount of Gas generated is based on a fixed formulae.

Neo Gas generated can be calculated on www.neotogas.com.

Neo investors can sell their Gas on an exchange or preferably hold it as an investment, as rising demand for Neo along with a finite quantity of Gas available may result in the value of Neo Gas to increase.

It must be noted that Gas will be generated only if Neo is stored on a private wallet and not on exchanges.

In case readers require any specific information on this topic, kindly feel free to post your comments and get in touch with us.

Bitcoin Hard Fork, creation of Bitcoin Cash and its impact on Bitcoin.

What impact will the Bitcoin Hard Fork and creation of Bitcoin Cash cryptocurrency have on Bitcoin?

  • For the last several years, the Bitcoin infrastructure has been struggling to handle a growing number of transactions hence technical experts recommended a new cryptocurrency creation that will solve its back-logging issues.
  • Since then Bitcoin miners and developers opinions were split over their vision on Bitcoin’s technical roadmap for the future.
  • These differing opinion within the community had been a prominent cause of the recent Bitcoin price fluctuations.
  • Eventually, on 01.08.2017, a Hard Fork created a split in Bitcoin resulting in the creation of a new cryptocurrency called Bitcoin Cash (BCH).
  • Although BCH will be based on blockchain technology, however, BCH is technically superior to its predecessor Bitcoin since it offers eight fold increase in transaction capacity and will combat high transaction fees that made mining larger blocks invalid.
  • Creation of BCH from Bitcoin through Hard Fork implies that Bitcoin owner will now own equal quantity of BCH as well (please note a similar event occurred last year as well on the Ethereum platform when a cryptocurrency Ethereum Classic was created).
  • Therefore, this Hard Fork also generated millions of dollars in new value for Bitcoin investors and at the time of writing, BCH is valued at USD 430.78 and Bitcoin is valued at USD 2737.50.

How similar are STOCK MARKETS and CRYPTOCURRENCIES?

Orthodox people seem to be averse to the cryptocurrency market but feel comfortable trading in the stock market since they are relatively unaware that both cryptocurrency market and stock markets are very similar in nature and functioning.

Yes, the cryptocurrency markets are presently volatile, however on the other hand they provide opportunities for very good returns if sound fundamentals and accurate intrinsic values are considered while making the investments.

Therefore www.tradescrypt.com believes that investment strategies in both cryptocurrency and stock markets will be similar provided there is a good understanding of the nature and business of the cryptocurrencies and hence they have been able to achieve good returns for the investors.

Some of these similarities between STOCK MARKET and CRYPTOCURRENCIES are listed below:

  • The value of both cryptocurrency and stocks are based on their business.
  • In both cases, the value is determined on supply and demand basis, that means it depends on how much people are willing to pay for a share.
  • Like stocks, cryptocurrencies can also be categorized into small cap (eg Voxels), mid cap (eg Ripple) and large cap (eg Ethereum and Bitcoins).
  • Similar to IPO’s in stock markets, cryptocurrencies offer a platform to technology companies/start-ups to raise capital through ICO.
  • Understanding company fundamental is important while investing in a stock, similarly understanding cryptocurrency fundamentals (such as technology, community etc) and their intrinsic value is very important to identify the multi-bagger cryptocurrencies of tomorrow.
  • A diversified investment is very important in the stock markets as well as in the cryptocurrency market to reduce risk and increase returns.
  • There are traders, speculators and medium / long term investors in stock markets, those are also present in the cryptocurrency market.
  • As understanding the company business is most important to invest in stock, similarly understanding cryptocurrency technology is the most important factor to multiply your returns by investing in them.

Eventually, only those who understand the market will succeed in the market.

With a team comprising of Techies, Engineers, Analysts, Entrepreneurs and Investment Banking professionals closely involved in the financial technology field, www.tradescrypt.com is able to understand the cryptocurrency market and is able to take a well-informed decision on the position investors should consider in the cryptocurrency market.

www.tradescrypt.com believes that by taking the right, reasonable and logical decisions, investors in the cryptocurrency market can multiply their wealth immensely.

Ideal approach for Cryptocurrency Investing

www.tradescrypt.com’s Cryptocurrency Consultancy Services provides an ideal approach for cryptocurrency investing.

Increased volatility has been observed recently in the cryptocurrency market. There may be negative sentiments toward the cryptocurrency market due to decline in the cryptocurrency prices and this may have lead to traders losing sleep.

An ideal investing strategy is to invest in fundamentally strong cryptocurrencies so that investor’s hard earned money earns money on its own over the medium to long term period, without continuous effort from the investor.

However, short term trading is completely different. Here the trader does not consider the fundamentals, but very diligently focuses only on the upward and downward price movements so that the trader can cash in on those short term trades.

Difference in the two above mentioned approach is that traders tend to neglect fundamentals, therefore they cannot afford to keep their eyes away from the price movements. Unlike the investors, traders money do not automatically earn money but it is the trader who is earning money.

www.tradescrypt.com does not believe in the approach considered by the trader, but their cryptocurrency consultancy services are formulated for efficient medium to long term investments in cryptocurrencies. This approach only considers cryptocurrencies with strong fundamentals such as Bitcoin, Ethereum, Ripple, Litecoin, Antshares etc.

Once www.tradescrypt.com’s research team considers a cryptocurrency fundamentally strong, only then the technical analysis team finds and recommends an optimum entry point and advises the investors to hold those cryptocurrency at least for a medium term period (with the Stop Loss range clearly defined).

With this approach, www.tradescrypt.com is able to very effectively focus on fundamentally strong cryptocurrencies and this has resulted in investors achieving very good returns over the medium to long term period.

This approach ignores the noise around the market but only focuses on the sound fundamentals and optimum trade entry and exit points. Thus, www.tradescrypt.com is able to generate very good returns for the investors by providing cryptocurrency consultancy services purely based on credible information and firm understanding of the intrinsic value of fundamentally strong cryptocurrency.