London, UK, 5th Feb 2022, ZEXPRWIRE, Cryptocurrency is increasingly going mainstream as it gains wider acceptance as a payment method and an investment vehicle. FinancialCentre Broker David Porter says that even as it makes steady inroads into the mainstream, the cryptocurrency market remains difficult to understand and intimidating for those who are not familiar with its intricacies. One such area of confusion is crypto markets and exchanges where cryptocurrencies and other digital assets can be traded.
The technology behind cryptocurrency lets users make payments anonymously and virtually, without banks or middlemen such as clearinghouses. This makes it attractive to all those who want privacy, including money launderers and others who engage in illegal activities. In fact, Bitcoin was launched in 2009 as a way to conduct financial transactions outside the purview of governments and central banks that would seek to regulate them or shut them down. These features also make it hard for law enforcement agencies to track criminals using cryptocurrencies.
As virtual cryptocurrencies gained popularity, law enforcement agencies in the US and beyond began to worry that they would be used for illicit purposes. Cryptocurrencies are not yet mainstream but criminals have already begun adopting them as money laundering tools like bitcoin mixing services. As regulation looms closer, exchanges will play a pivotal role in ensuring cryptocurrency becomes more mainstream.
Despite the risks and challenges, cryptocurrency exchanges like Coinbase and Binance are becoming hugely successful. They provide a platform to trade among different cryptocurrencies by pairing buyers and sellers through an automated process. A look at the rise of such platforms shows that as criminals use them for money laundering, law enforcement agencies will clamp down on them as well as those who use them for legitimate activities.
Since cryptocurrency is decentralised, transactions are carried out directly between users who deal in their native cryptocurrencies like bitcoin and ethereum. Porter said that this means there is no third party such as a bank that serves as an intermediary making these payments possible; hence, they can take place anonymously and without any transaction fees. A cryptocurrency exchange lets traders buy and sell cryptocurrencies as well as convert them into fiat currencies that allow investors to diversify.
One of the main criticisms against cryptocurrency is that it enables fraudsters and criminals to perpetuate illicit activities such as money laundering, tax evasion and crime financing. Criminals who violate national laws by operating outside their jurisdictions often use cryptocurrencies for illegal operations because of their anonymous nature and their decentralised nature.
Given the huge potential of cryptocurrencies like bitcoin and ethereum as well as exchanges such as Coinbase offer, they are increasingly becoming a magnet for those engaged in illegal activities such as money laundering. It is now clear that criminals will seek out any way to launder or hide their illicit proceeds because it helps them avoid detection and prosecution.
But Porter thinks that there is no denying that cryptocurrency is increasingly becoming mainstream as it gains wider acceptance as a means of payment. This means that people have started realising how beneficial it can be for their financial gains. Stack is a Seattle-based firm that aims to provide a crypto platform for customers dissatisfied with the current financial system.
According to CEO Will Rush, Stack was initially developed in order to simplify investment acquisition. After realising that investment funds were almost entirely aimed at teenagers, and there was no way to give cryptocurrency to individuals under the age of 18, it changed course. In March, Stack will provide its users with a platform that allows teenagers to invest in more than 30 cryptocurrency assets. If the user is under 18, parents become joint owners of the account. Social and commercial promotions are available to investors who carefully invest and view instructional films.
Rush said that the company aims to provide individuals who do not come from families that have investing history with an opportunity to explore crypto. Porter says that this is a unique way of attracting individuals who are not familiar with cryptocurrency. In addition to using it as a means of payment, Stack will also help users invest in other assets such as stock and real estate.
What does it indicate?
This step by Stack shows that it is trying to appeal to a wider audience of people who may not have the knowledge of trading cryptocurrency. This will therefore increase its popularity and make more people consider using it for buying goods and services.It also shows that there is a growing demand for the use of cryptocurrency as an additional means of payment.
As Stack tries to bring in more people into the cryptocurrency market, it will serve to legitimise the industry. This will encourage more people to invest in it and make them consider using bitcoin, ethereum and other cryptocurrencies for various transactions. More investors getting into the market will increase its prices which is good news for cryptocurrency users.
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