The creation of alternatives to bitcoin allows the global maturation of the virtual economy, reinforced by the existence of more than 1,400 cryptocurrencies and the investment of private entities.
The gold of the 21st century is already part of our economic reality thanks to the large number of companies that enter the market for the generation of cryptocurrencies. More than 300 companies have already created their own virtual currency. The question is why? How does this favor a private entity? This new exchange does not represent a real participation, so ICOs can bypass centralized regulations of traditional products such as stocks.
The use of this new technology can be risky, but without a doubt resurface from the ashes to companies that have fallen into oblivion, bankruptcy or currently require an injection of investment. The most famous and recent examples have been those of Kodak and Telegram. As a result of the appearance of the Kodakcoin, the company has raised 125% in its price, and according to its own creators, Kodakone will offer photographers and agencies a new source of income and a secure platform to protect their work.
With these advances will democratization be achieved in the distribution of benefits for artists ?. Among the objectives of Jeff Clarke, CEO of the company, is to create a digital accounting book encrypted through blockchain technology. Benji Rogers, founder of DotBlockchain, believes that it is also possible to apply a system of distribution of music rights thanks to this technology, and solve some of the problems of the cultural industry. Kodak has announced that they will use a registry of digital and encrypted property rights that will allow photographers to register their production.
Telegram, the messaging application, also joins the fashion of cryptocurrencies with Gram, with which it will allow its users to buy, sell and exchange goods and make micropayments without depending on exchange rates or commissions. A relevant fact is that 99% of all ICOs use Telegram as a channel to interact with their communities.
In the same way, Nostrum, the food chain, has been the first productive company in Spain to circulate its own virtual currency. The Meal Token allows you to obtain financing for the development of the business project, helping Nostrum to continue with the expansion of the network in Europe.
Are we facing the biggest change in the economic paradigm or a speculative mania? The largest financial institution in Japan, the Tokyo-Mitsubishi UFJ Bank (MUFG), has been issuing its own digital currency, the MUFG, based on blockchain technology for more than two years. It is in this country where the first Bitcoin investment fund has recently been presented, backed by nearly € 2,000,000. Next to him, Ripple, a currency used by Santander, Bank of America and UBS, which exceeds 100,000 million euros in capitalization based on its current price and the number of currencies or tokens currently mined.
However, there are detractors who believe that despite this type of actions and banking support, a bubble is generated like that generated during the dotcom fever. The National Securities Market Commission has stated that bitcoins have less protection for investors than traditional stock markets, with the consequent higher risks of fraud and manipulation. Meanwhile, major economies, such as the United States, Japan and South Korea, have already recognized Bitcoin as a legal currency and a store of value.