What Is A Proof of Deposit?
A cryptosystem, or cryptocoin, is an entirely different type of currency than the ones that you and I are familiar with. Unlike regular currencies, such as the American dollar, Euro, British pound, Japanese yen, and the like, cryptocoins are not issued by any central government but instead are generated by a network of computers. The entire idea behind this is to provide an alternative method for money issuance while still maintaining traceable transactions between those who issue them and those who accept them. For example, if I were to pay for a concert in London and I send payment from my cellphone via a cryptosystem, then when I went to the concert and was able to physically see and touch my ticket, I could claim my winnings from my cellphone without revealing my actual location.
One of the most popular forms of Cryptocurrency is what is known as “ICO,” which stands for “Income Tax Invoice.” ICO’s are normally used for paying for services or goods that have an underlying value unrelated to monetary value. A great example of this is a lottery win, which you may claim either on your own money or through a Cryptocurrency exchange. Most countries around the world use Cryptocurrencies as their unit of account, making it easier for businesses and individuals to track transactions and make sure that taxes are paid in time.
According to longtime investor and Cryptocurrency advocate, John Zeiler, “ICO’s are a great way to invest, especially if you can get in on the ground floor.” He goes on to say, “The first couple weeks after the hype dies down, you’ll find the average price of a good Cryptocurrency down close to zero. That’s because most people just don’t spend that much on these things.” Although there have been some fluctuations in prices due to fluctuating supply and demand and other economic factors, the general trend seems to be down.
The altcoin market is still developing, but with many more well-established businesses are getting into the business, it’s starting to look like this could be a very lucrative investment option for the future. One of the biggest advantages to Cryptocurrencies compared to traditional currencies is the speed at which information is distributed. As opposed to a central authority or a physical asset such as gold, a handful of individuals with private computers across the globe can transfer the funds they have invested in a particular altcoin instantly. Because of this quick transfer, the altcoin market is not controlled by any one entity and there are no known third parties that can take control of this distributed ledger technology.
There are currently no known disadvantages to investing in Cryptocurrencies, but time will tell. Right now the major issue facing the distributed ledger technology is whether or not the utility of the technology will grow at a rate that will benefit investors in North America as well as Asia and Europe. At this point in time, the biggest threat to the economy in the U.S. comes from the U.S. Dollar and the dollar is the largest held currency in the world by volume. The number of consumers and businesses in the U.S. using the EUR/USD pair, as their main pair, is increasing every day and the number of individuals who hold U.S. dollars is decreasing. Therefore, the potential for an economic collapse in the U.S. is real and is already being felt in the AMEX and Dow futures markets.
With more developers creating new blocks of Cryptocurrencies, the ledger will continue to expand with a rapid pace. Currently, if you wish to purchase something or sell something on the Cryptocurrency market you will need to get in touch with a broker, either online or through a traditional financial institution. Currently, there are no out there Cryptocurrency brokers that will allow you to verification or even approve your transactions, unless you are one of the special “BIN” lists. BIN stands for “berserk investor”. If you are on one of these lists, your requests to approve or verify transactions are automatically denied. This makes investing in Cryptocurrencies an extremely complex process and if you are looking to invest in anything where you can be guaranteed approval, then look for a broker that will provide the necessary “proof of deposit” to perform this action on your behalf.