Cryptocurrency-Although the prices of the currencies have begun to shake in 2019, with the volatility of prices that continues with the bear market in progress last year, the narrative of the cryptocurrency is making a decidedly positive change towards functional improvement.
Wednesday, a popular financial reference point Bloomberg reported on the development of Genesis and BitGo, two companies trying to rectify Crypto's "billion-dollar theft problem".
As highlighted in the piece, one of the main concerns of institutional investors and large capital is the lack of protection guaranteed by the purchase and trading of cryptocurrency through traditional exchange routes. While most investors are aware of the risks associated with hacked accounts, the steps necessary to protect coins in a wallet or cold store are still too complex and not intuitive for the occasional investor. For big investors with millions and even billions of dollars up for grabs, regular stories of coin theft are enough to create the illusion of a dangerous market to be involved with.
However, the lack of simple but functional coin protection also represents a significant opportunity for companies that are willing to solve the problem. BitGo Inc., a platform that calls itself "the market leader in institutional financial services of cryptocurrency", will begin to offer a revolutionary feature for customers: the ability to buy, sell and exchange Bitcoin, Ethereum and currencies without the coins leaving the cold room. The end result is greater security for investor funds, a guarantee for large investment customers and a lower risk of liability on behalf of the stock exchange, an important point if the encryption portals will never become insured platforms.
Hacking, which cost cryptocurrency investors $ 1 billion in the first nine months of last year, has become a high-profile issue for an industry that requires legitimate recognition and greater interest in the mainstream investment market. While encryption prices have continued to decline since they reached a crescendo in January 2018, many optimistic investors have turned to the possibility of "institutional investments", such as Wall Street banks, to inject large amounts of capital into the market and renew the price interest. However, the lack of security and regulation has been consistently referred to as a concern for such investors.
The end result was a shift to require more regulation in the encrypted space, led by the Winklevoss twins and their encrypted Gemini, with the goal of increasing credibility in the market. BitGo, in collaboration with Genesis Global Trading Inc., seeks to create a new form of cryptographic marketplace, which CEO Mike Belshe says "has never existed before". By keeping the coins in cold storage during the entire transaction process, the risk of theft drops significantly with hackers who have no way to access the funds through traditional network routes.
BitGo and Genesis Trading also offer the possibility of combining customer sales and purchases, offering a greater guarantee for funds transferred to the stock exchange. They also hope to take advantage of another incentive for investors who operate exclusively through cold storage, eliminating the current delays required by most cryptocurrency exchanges in transferring funds from hot and cold portfolios. Because purchases and sales are activated via cold storage, customers have no reason to keep the funds in a hot wallet typical of most exchanges, which means they can keep protected features while they also participate in regular exchanges.
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