The biggest challenge for bitcoin, and generally all digital currencies, is the widest use in the real world. Singapore's launch of TenX shows that once entrepreneurs come up with a solution, people's interest will definitely not be disturbed. Bloomberg's startup response is linked to a Visa payment card.
The tenX startup concept is to use a debit card as an instant digital currency converter to those world-wide, such as the dollar, just the euro. The company claimed to take two percent of each transaction and has already received orders for more than ten thousand cards. Transaction volume is priced at two thousand dollars a year, but as soon as you go through the identification procedure, the limit can be raised.
An attempt to make digital currencies easier to use comes from TenX while experiencing high volatility. The most popular bitcoin dropped after it reached its current $ 3000 peak in June. In recent weeks, however, its value has recovered once the fear of the future has fallen on markets. TenX has therefore created an application that serves as a digital wallet attached to a Visa card. When paying, say, in a café or restaurant, the business is paid out in the required currency, but the card user will take off the digital one from the account.
"Every transaction is a mix of two completely different worlds. When the user pays for the crypt, we must immediately convert it to the usual one and pay the card provider, which is Visa, "said co-founder of the Julian Hosp project for Bloomberg.
Hosp also claims that transactions are processed immediately and do not require any charges other than those charged for the exchange of the digital currency. There are usually 0.15 to 0.2 percent depending on the stock market. The TenX Card currently supports eight digital currencies, including less known as dash and augur. By the end of this year, they plan to provide a total of eleven.
Startup manages monthly transactions of approximately $ 100,000. Its goal is by the end of 2018 to raise this figure to $ 100 million and have a million active users. The advantage of the Singapore company is that it has the other lead. However, it is very likely that competition will soon emerge, for example from large financial institutions and venture capital companies with larger budgets, client databases and direct access to them, believes an eToro analyst Mati Greenspan.
"It's a really great concept. In the end, however, much will depend on customer relationships. Will the company meet their expectations? Can anyone do better? "He said, asking the key questions of Greenspan's success.
The firm, according to its leaders, does not expect profits in the next two years. Rather, it will concentrate on expanding services.
"One of the things we'd like to offer our customers is the ability to change the type of cryptome within the application. If we can do this, we could also determine the direction of the market, "concluded Julian Hosp optimistically.