Cryptocurrency Industry is Underbanked – ETH fees surpassed Bitcoin

By Steven Anderson September 22, 2019 Off
ethereum ETH

Stephen Schwarzman, CEO of Blackstone, an alternative investment firm, stated that blockchain was “a sound, exciting technology.” However, reported that bitcoin “pretty odd,” and vowed never to buy any.

Schwarzman stated that he has a tough time understanding the Bitcoin.  Bad behavior related to money should be controlled.  This is not possible without government control.  Bitcoin, in the absence of government control, encourages bad behavior. He further opined that blockchain technology, when applied to non-tradable, was a good thing.

Schwarzman did not have anything to comment concerning Facebook’s Libra and its launch.  He is, however, open to the idea of privately-created and controlled cryptocurrencies.

He might be okay about cryptocurrencies if cryptocurrencies would solve the criminal behavior problem and the problem of controlling the money supply.

With the Bakkt platform coming up with its physically-settled Bitcoin futures contracts, analysts are contemplating on what might be the critical period for Bitcoin and cryptocurrencies.

The daily transaction fees for Ethereum surpasses that of Bitcoin, and this trend is expected to continue as per analysts.

Some analysts are of the opinion that the fees are an accurate indicator of the demand level, including the transaction count and the transaction volume. However, both of these are subject to spoofing.

A report that was published recently stated that “Tether accounted for over 25% of all Ethereum transactions on September 8th, and has consistently accounted for more than 10% of all Ethereum transactions since mid-August.”

Ethereum has flipped Bitcoin fees several times in the past. 

Anthony Sassano tweeted:  “The fee flippening is upon us ETH is on the verge of overtaking BTC in daily tx fees. As of Sep 15th, ETH had $182,899 daily tx fees & BTC had $185,993. ETH has flipped BTCs fees briefly in the past, but it’s now driven by Tether which should be a constant source of demand.“

In one of the forums it was published, “The bitcoin protocol supports a lot more than just sending coins from A to B, even though that’s mainly what you see in the normal client nowadays. The miners need to accept “unusual transactions,” though, as long as they adhere to the bitcoin protocol.”

Recently, several hundred entrepreneurs, technologists, and innovators gathered at the Tel Aviv Blockchain Week (TLVBW) to explore what is driving the cryptocurrency industry. Israeli’s understand duality well.  About 430 people attended the D&DD Summit on Sept. 10.  In the conference, it was revealed that no bank has agreed to open the account for the IBA.

Meni Rosenfeld, IBA chairman, stated: “So we cannot even register members properly.”

Wells Fargo & Company have come up with plans to launch their cryptocurrency backed by fiat money.

The bank’s international locations would be able to exchange Wells Fargo Digital Cash among their global network enabling the internal book transfers of cross border payments.  The bank has already tested the transfers between US and Canadian accounts using the USD.

Lisa Frazier, head of Innovation Group at Wells Fargo stated, “We believe that DLT holds the promise for different use cases, and we are energized to take a significant step when it comes to applying the technology to banking in a scalable and material way.

A smart contract application, which is a kind of business automation software, will be used to support the digital currency exchange process. Since this coin has its intrinsic value tied to fiat currency, its value is based on the supply and demand of virtual money.

Avivah Litan, VP of research at Gartner, stated, “The train has left the station and will start moving the sooner it gains acceleration.”

Wells Fargo is a significant money mover, and currently, they are under pressure to work using the traditional methods of the money transfer system.  However, the blockchain would provide for an efficient payment network.  The implementations are customized in a way to favor high velocity and highly secure banking data that is private.

The Stable coin is not only for banks, but several giant technology companies are also creating their versions for their customers to store value.  Facebook’s Libra is a stable coin and Calibra; a crypto wallet are all examples of the increasing adoption of the stable coin by different sectors.

Facebook has the support of major corporations like eBay, PayPal, Uber, Lyft, Mastercard, and Visa.

Visa has recently launched a debit card, which will permit the transfer of fiat money which has been converted from cryptocurrencies that have been stored in online wallets.

There are nations, which have just a few or no options to open a bank account.  They are relying on expensive remittances to transfer money home, mainly if they are working far from their native country.

The Distributed Ledger Technology from Wells Fargo provides for a highly secure record of transactions providing for “near real-time money movement,” which is trustworthy in a way to not affect the underlying account. 

The DLT system from Wells Fargo has the potential to provide for real-time financial interactions covering multiple accounts through multiple market places across the world.