Loans are very beneficial and powerful especially if you are a responsible buyer and consumer. The usual loans we know is the personal loan where we will  apply at the bank or any companies that offer personal loans. In http://forbrukslån.com/, for example,  not only they grant loan to one item only such as house or car, but they give their clients the opportunity to diversify the money in to different items. This will lessen the interest per item. The cryptocurrency  or Bitcoin loans do not work like the regular loans. They are different and come with multiple different challenges. Bitcoin loans is ripe with growth and possibilities.

Why is Bitcoin Different? 

Currently, Bitcoin is probably the best money the world has ever seen. However, it is not as good at being fiat money. Fiat money, due to its nature of being created from debt is really good at being used for debt. On the other hand, bitcoin, as a sound finite money just like physical gold cannot easily be created out of thin air. This is what makes bitcoin economically better money. However, it also means to the banks that  they cannot print more bitcoin to fund your loan.

Also, Bitcoin is mined in an electronic process which can be compared to physical gold mining. Like physical gold, you cannot just create bitcoin. It takes a lot of resources to mint new Bitcoin. Bitcoin also has a limited supply of 21 Million. So unlike fiat money which literally has no supply limit, Bitcoin has a limit. It only means that when you borrow bitcoin, you are borrowing directly from the bitcoin owner. This means that all Bitcoin loans effectively become peer to peer. Which is why it makes sense that the only Bitcoin financial platforms are in fact P2P.

How Does P2P Work

If you are quite intimidated of bitcoin and the p2p process, then you should not because it is actually simple. For example, you want to take out a 1 Bitcoin loan at one of the 2 main P2P Bitcoin lending platforms. The premise is that you create a listing just like a loan contract at a bank. The contract spells out the principle, when payments are due, and the interest amount for the loan. Up to this point it was pretty similar to bank loans.

At this point with a bank loan the banker would have to either personally underwrite (take on the risk of default) the loan themselves or sell that debt contract to another banker.

Compared to the USD, EURO, and YEN, it is a cryptocurrency mainly because there is no central bank. The Libra also has a public ledger, but only a few people are permitted to mine coins. 

Nonetheless, there is an ongoing debate on this matter and it would be best to see what the experts are actually saying about this. 

Matthew Green – Associate Professor, John Hopkins University

“It’s fair enough to say this uses cryptocurrency technology, It’s more restricted in the way the blockchain works, but even that’s not totally unprecedented.

When compared to OG crypto, it appears a lot less than a cryptocurrency. For example: bitcoin is permissionless which means anyone can participate. With Libra it needs permission in order to participate.”

Lana Swartz – Assistant Professor Media Studies, University of Virginia

“I AGREE WITH THOSE WHO HAVE BEEN SAYING THAT THE LIBRA ISN’T A REAL CRYPTOCURRENCY.”

Swartz explained that Libra is permission, which means only a few entities could track the ledger. With this, it makes it much like digital currency as opposed to a cryptocurrency. 

Nicholas Weaver –  Researcher, International Computer Science Institute;  Lecturer/Computer Science Department, University of California

Libra is under pseudonymous “wallets.” Transfers are completed via public key operations. Weaver says “yes, it is a cryptocurrency.” He also noted that the permissioned model had been designed to have less computing power. Cryptos such as Bitcoin uses a lot of energy just to prevent Sybil attacks. The attacker in Sybil attacks loads the system with computers controlled by the attacker and eventually spreads havoc.

So is Libra a cryptocurrency? The experts have spoken and while the majority of them say that Libra is not crypto, it is your call. Cryptocurrency or not, expect to read more about Libra in the days to come as it can be as competitive as the Bitcoin.

In today’s time, it is impossible to ask an internet savvy individual who does not know anything about cryptocurrency. From blogs, social media websites, news and even on established financial authorities, everyone seems so obsessed with it. Let’s just accept the fact that cryptocurrency is changing the world as we know and it is happening in front of our very eyes. Dare to miss the bandwagon and you might just regret of not jumping into it.

As a result, here you are and have a great business idea or prepping to launch your startup and you like to welcome the remarkable opportunities of having your cryptocurrency. The thing that is stopping you now is, how you can actually do that?

Good for you, in this day and age, almost everything that we need can be located over the internet. Well, right before we get to the juicy part of this article, let’s define first what is cryptocurrency. Cryptocurrency is basically a digital or virtual currency.

This relies on encryption in generating new units and confirming transactions.

This carries full functionality of the currency together with the fact that it can run outside a single platform similar to bank.

Cryptocurrencies do not have banknotes. But, it has coins. Oftentimes, these coins are interchangeably used with tokens. So what’s the difference between coins and tokens? Allow me to explain to you.

Let’s start it with coins:

• Coins need their personal blockchain
• Coins could be used anywhere
• Coins can be used in buying tokens

What about Tokens?

• Tokens could operate only on existing ones
• Tokens can be used only on a specific project
• Tokens cannot be used to buy coins

Now that you’ve known how cryptocurrency is used and how it could boost your business, let’s take a glance on what it takes to make your blockchain.

1. Learn about your use case
2. Select a consensus mechanism you’re comfortable with
3. Pick your platform for blockchain
4. Design your nodes
5. Build the internal architecture of your blockchain
6. Take care of the APIs
7. Design its interface both for “User” and “Admin” and;
8. Make the cryptocurrency legal

There are several steps that you will have to go through and each step will require deliberate process before moving on to the next one. If you feel that this is something you can’t give your time on, then don’t. There’s a shortcut actually and it’s by buying the coins directly. In fact, if you’re a New Zealand resident, you can get a quick personal loan from Zebra Loans and use this to buy for your coins. Easy, right?

When it comes to investing, there are a lot of choices to choose from. Where you will invest your depends on your goal. If your goal is to have material investments such as car and house then you can ask apply for loan for example. The risk of this is that when people are not that secured but they will already invest money on these. Hence, will result to negative credit. Because negative credit is inevitable, there are a lot personal tradelines wholesale here and there that people avail in order to properly monitor their credit and to be able to change their credit from negative to positive.

Aside from this material things, there are also people who likes investing where there money will grow such as stocks and cryptocurrency. However, since crypto is kind of new to the market these days, people get confused sometimes. They are always being compared to the stock market as if they are the same thing. While there are some similarities such as the prices are determined by demand. However, there are some differences between them and here are some differences:

1. Market Volatility 

Cypto are volatile compared to the traditional stock market. It has not intrinsic or tangible value. The only cryptocurrency that could have somewhat of a tangible value would be Ethereum, since it is a block chain of a smart contract for other platforms.

2. 24/7 Market

Depending on the market, the value of coins changes over time. Since crypto are peer to peer because of the network, this simply means that they could be traded by any two individuals any time of the day.

3. Inconsistency of price

There is a slight mismatch of price when it comes to cryptocurrency exchange throughout from Poloniex to Okex because there is no centralized agents that ensures the limit orders to not be filled with the worst price in comparison to the best offers across all exchanges.

4. Upper Base and Revenue 

For most of the coins, there is no such thing. In most cases, the price of the coins is strictly due to speculations. They are not legit companies with user base, revenue, or assets.

5. Vulnerable Assets 

Investors themselves must store the coins themselves when trading crypto. These assets are really vulnerable because new traders are unsure on how to secure their storage. There are hackers that were able to stole 14% of supplies but they could still be recovered.

No matter the differences are, crypto and stocks are both great ways to make money,