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Cryptocurrency: Here Be Dragons?

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Blockchain has done it. IBM, for example, will sell you a complete business implementation, perfect for decentralized applications, such as monitoring where that piece of lettuce actually comes from. But cryptocurrency? Not so much. It is still haunted by a "here dragons" approach by most companies. It's not hard to understand why when billionaires like Warren Buffett say in interviews that buying in criptovalute is "speculating" rather than investing.

Cryptocurrency is financial technology. In my opinion, it really has nothing to do with supply chain management. Yes, cryptocurrencies are based on blockchain, but cryptography is very different – it's specifically about money. When I first understood it, I turned from the path of the corporate blockchain and focused instead on creating a better way for my industry to fund innovative projects. But I still wonder, why all the fear, uncertainty and doubt around the cryptocurrencies? I think it's probably the lack of education. Here's what I learned working in the industry.

The most successful alternative currency in the world is the frequent flyer mile. The key is that it can be transformed into something of value. A cryptocurrency is more or less the same, except that it has the potential to be much more open than airlines and their miles. And the cryptocurrency market has a steady growth path, along with the traditional adoption of the blockchain, which should be evaluated & nbsp;$ 20 billion by 2024.& nbsp; But this is nothing compared to the cryptocurrencies, which in November 2018 have a market capitalization of about & nbsp;$ 214 billion, of which bitcoin accounts for about half.

It is in a very early market with a real uncertainty about which tokens have value and which are not. There are & nbsp;more than 2000 coins& Nbsp;on the market, with new offers made continuously. But there are also about 1,000 coins that are essentially dead. The last wave is the security-compliant token. These are offered on new security-compliant platforms, such as Coinbase. I think they will replace the weaker and unregulated ones and we will create a stronger encrypted ecosystem in general. This, I think, is what companies considering a cryptocurrency strategy must understand: while these currencies acquire traditional adoption, I think they will create a completely new economy. I believe that this pool of capital could eventually reach the deepest level, for example, of Facebook or even deeper than the billions of people involved. I think companies that do not understand how to add financial encryption will miss out on a stream of revenue that can change the world.

But what the corporate America really wants consists of coins and institutional exchanges, with cases of use to lend credibility. "Suit-compliant" is what I call. To illustrate this point, I want to revisit the RIDE coin that I invented in my last article, "Beyond Uber: an easy way to understand Blockchain and Crypto."The RIDE coin would create a decentralized ride-ride ecosystem, including a suite of distributed applications (DApps) .These apps would be installed to verify insurance, bonding, licensing and background checks, and would have been provided by certified suppliers. (See? We are already building the ecosystem).

Riders access the decentralized network and pay through their RIDE coin wallet. The riders do what the runners will pay, and there is no middleman to take a bite of the profits. The efficiency and cost are unmatched, attracting both drivers and drivers to the ecosystem. And because more insurance providers, bonding providers and background controllers get involved through DApp, the ecosystem expands.

What this means for compliance, in this case, is that there is enough use of the network and DApp to make it a worthwhile and less risky investment. A bit like Amazon's certified retailers – we trust them because Amazon says we can back up the transaction. And it's true: most corporate actors will not have enough knowledge of the cryptographic space at this point to be able to identify opportunities to get involved with their strategy; they will need financial institutions, accounting and investment companies, business advice, and more to determine stronger tokens and ecosystems.

When it comes to building ecosystems, I believe smaller players will create and use DApps that will build the basics of use cases and drive adoption. Then you will have the disruptive technology and investment companies that drive the charge on the creation of tokens and exchanges.

The SEC is already paying attention to cryptocurrencies, ensuring corporate players peace of mind not only for anti-fraud and anti-theft measures but also for the effective stability of any currency in which they want to invest. The regulated security markets of the United States are becoming a reality as I write this. & nbsp; There is a lot of work to be done in the security space to improve anti-virus and anti-fraud solutions, add hardware gateways and further protections, and these will only continue to add legitimacy to cryptocurrencies in general. I think it's just a matter of time before American companies start taking the encrypted bandwagon – and companies that start spinning now will have the opportunity to define and drive the market.

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Blockchain has done it. IBM, for example, will sell you a complete business implementation, perfect for decentralized applications, such as monitoring where that piece of lettuce actually comes from. But cryptocurrency? Not so much. It is still haunted by a "here be dragons" approach of most companies. It is not difficult to understand why when billionaires like Warren Buffett say in interviews that buying in cryptocurrencies "speculates" rather than investing.

Cryptocurrency is financial technology. In my opinion, it really has nothing to do with supply chain management. Yes, cryptocurrencies are based on blockchain, but cryptography is very different – it's specifically about money. When I first understood it, I turned from the path of the corporate blockchain and focused instead on creating a better way for my industry to fund innovative projects. But I still wonder, why all the fear, uncertainty and doubt around the cryptocurrencies? I think it's probably the lack of education. Here's what I learned working in the industry.

The most successful alternative currency in the world is the frequent flyer mile. The key is that it can be transformed into something of value. A cryptocurrency is more or less the same, except that it has the potential to be much more open than airlines and their miles. And the cryptocurrency market is constantly growing, along with the traditional adoption of the blockchain, which is estimated to be worth $ 20 billion by 2024. But this is nothing compared to the cryptocurrencies, which in November 2018 they have a market capitalization of about $ 214 billion, of which bitcoin accounts for about half.

It is in a very early market with a real uncertainty about which tokens have value and which are not. There are more than 2,000 coins on the market, with new offers made continuously. But there are also about 1,000 coins that are essentially dead. The last wave is the security-compliant token. These are offered on new security-compliant platforms, such as Coinbase. I think they will replace the weaker and unregulated ones and we will create a stronger encrypted ecosystem in general. This, I think, is what companies considering a cryptocurrency strategy must understand: while these currencies acquire traditional adoption, I think they will create a completely new economy. I believe that this pool of capital could eventually reach the deepest level, for example, of Facebook or even deeper than the billions of people involved. I think companies that do not understand how to add financial encryption will miss out on a stream of revenue that can change the world.

But what the corporate America really wants consists of coins and institutional exchanges, with cases of use to lend credibility. "Suit-compliant" is what I call. To illustrate this point, I want to revisit the RIDE coin that I invented in my last article, "Beyond Uber: A Simple Way to Understand Blockchain and Crypto." The RIDE coin would create a decentralized ride-ride ecosystem, including a suite of distributed applications (DApps). These apps would be installed to verify insurance, bonding, licensing and background checks, and would be provided by certified suppliers. (See? We are already building the ecosystem).

Riders access the decentralized network and pay through their RIDE coin wallet. The riders do what the runners will pay, and there is no middleman to take a bite of the profits. The efficiency and cost are unmatched, attracting both drivers and drivers to the ecosystem. And because more insurance providers, bonding providers and background controllers get involved through DApp, the ecosystem expands.

What this means for compliance, in this case, is that there is enough use of the network and DApp to make it a worthwhile and less risky investment. A bit like Amazon's certified retailers – we trust them because Amazon says we can back up the transaction. And it's true: most corporate actors will not have enough knowledge of the cryptographic space at this point to be able to identify opportunities to get involved with their strategy; they will need financial institutions, accounting and investment companies, business advice, and more to determine stronger tokens and ecosystems.

When it comes to building ecosystems, I believe smaller players will create and use DApps that will build the basics of use cases and drive adoption. Then you will have the disruptive technology and investment companies that drive the charge on the creation of tokens and exchanges.

The SEC is already paying attention to cryptocurrencies, ensuring corporate players peace of mind not only for anti-fraud and anti-theft measures but also for the effective stability of any currency in which they want to invest. United States-regulated security markets are becoming a reality as I write this There is a lot of work to be done in the security space to improve anti-virus and anti-fraud solutions, add hardware gateways and further protections, and these will only continue to add legitimacy to cryptocurrencies in general. I think it's just a matter of time before American companies start taking the encrypted bandwagon – and companies that start spinning now will have the opportunity to define and drive the market.

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