Cryptocurrencies are making the headlines in the media and social networks, especially since when the price of Bitcoin took off. The crypto currencies have multiplied on the market. To meet the demand for these virtual currencies, renowned companies have decided to invest in them, others want to take advantage of this wave for their business and contribute to the emergence of crypto currencies.
The companies that benefit from this craze
Since the Bitcoin boom, many people have been speculating about a crypto currency in the hope of experiencing the same rise as Bitcoin. To follow this trend, companies have not hesitated to surf the popularity of crypto money. The most obvious example remains that of Kodak. This American company has been experiencing financial difficulties for several years. It recently announced the launch of the Kodak Coin, a virtual currency for photographers. Once this announcement was made, Kodak’s stock went from $3 to $12 in just 24 hours. But Kodak is not the only company that wants to take advantage of this opportunity.
Other companies simply chose to change their name, implying that they were going into the blockbuster or a virtual currency business. It didn’t take long before Long Island Ice Tea Corp, an American company selling soft drinks, decided to change its name to Long Blockchain Corp. The share value of this company jumped by 450% in the space of 24 hours. This phenomenon has happened for other companies. A bra manufacturer gave its brand the name Crypto, without changing its activity. Here too, the price jumped immediately, from $22 to $642. The madness surrounding crypto currencies is intended to create a speculative bubble and attract investors.
Fundraising in the virtual world
All over the world, the arrival of virtual currencies is attracting growing interest from companies and investors. As a result, crypto-money fundraisers have come to the forefront. In the United States, the practice is beginning to become more democratic and does not seem to pose any major difficulties. In France, the phenomenon is encountering a stumbling block with the legislation concerning these particular fundraising activities called Initial Coin Offerings (ICO). Numerous requests have been submitted to the Autorité des Marchés Financiers to find out how ICOs could be regulated. In France, there is no legislation governing investments in virtual currencies. The Autorité des Marchés Financiers has stated that an optional visa could be issued for ICOs. These new trends are nevertheless disrupting French legislation which only allows the euro exchange rate for any transaction. If they were to be implemented in the near future, beneficiaries would be required to convert them into euros to comply with tax regulations. The craze for these crypto currencies does not stop at the borders. After the 3.8 billion dollars raised last year thanks to ICOs, according to CoinSchedule, the French also want to see the color of these crypto currencies in their business.
Mining, a flourishing business
When others are looking for their shares to go up or to invest in companies with crypto currencies, some of them make it their business directly. This is the concept of “mining” companies that have multiplied all over the world. Mining is a very complex activity for those who are not experts. It should be remembered that virtual currencies are not delivered by governments or central banks. They are present within a network and transactions are managed from computers using algorithms set up by people. Of course, the larger the network, the more difficult the algorithms are to process and the more complicated it is to “mine”. This chain reaction is called the “blockchain”. As an average person, it is almost impossible to undermine alone. This is why entire teams are mobilized within the blockchain, these are “mining” pools. Many companies entered this market when Bitcoin emerged. For example, just “mining”, a French company, invested in Cloud mining. Customers get crypto money by indirectly renting hardware (artificial intelligence and a computer) that “mines” itself. Just mining for this service received more than 300 orders in one month.
Virtual currencies as capital
Nowadays, companies are also interested in crypto money for their capital. In a study by Citrix and One Poll, 750 IT decision-makers from UK companies were interviewed. On average, companies own about 24 Bitcoin each. And 93% of them understood the importance of diversifying their crypto-currency portfolio, while only 7% invested in Bitcoin. Companies say they make this choice to broaden their capital and meet their different needs. They are 40% to declare that they want to pay their suppliers with it and 32% want to use it for salaries. In reality, a majority of companies want to use encrypted cash in everyday life. Maybe these wishes will soon become reality in France!
Even if crypto currencies can incite many people to enter this market, whether for speculation or to set up a business, they remain relatively perilous. Vitalik Buterin is the person behind the second currency, Bitcoin. He has just issued a warning about these virtual currencies and their volatile nature. He said that they could fall to almost zero, because of the craze they generate. This would be a real one for the savers who risked in the block.
Virtual currencies as capital
Nowadays, companies are also interested in crypto money for their capital. In a study by Citrix and One Poll, 750 IT decision-makers from UK companies were interviewed. On average, companies own about 24 Bitcoin each. And 93% of them understood the importance of diversifying their crypto-currency portfolio, while only 7% invested in Bitcoin. Companies say they make this choice to broaden their capital and meet their different needs. They are 40% to declare that they want to pay their suppliers with it and 32% want to use it for salaries. In reality, a majority of companies want to use encrypted cash in everyday life. Maybe these wishes will soon become reality in France!
Even if crypto currencies can invite many people to enter this market, whether, for speculation or to set up a business, they remain relatively perilous. Vitalik Buterin is the person behind the second currency, Bitcoin. He has just issued a warning about these virtual currencies and their volatile nature. He said that they could fall to almost zero, because of the craze they generate. This would be a real one for the savers who risked in the block.
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