Imagine making an online payment to a stranger without going through a bank and you still get a reliable and verifiable transaction history. This is how decentralization works. It is the type of process that gives cryptocurrencies the upper hand against traditional currencies. It eliminates the need for intermediaries and allows parties to engage in different transactions without relying on any third party.

The concept has hugely influenced the crypto space, which led the crypto community to revolutionize financial services and other markets. For example, DeFi, or decentralized finance, and DAO, or decentralized autonomous organizations are two famous offsprings of decentralization. As these ideas become more widespread, it is essential to learn what decentralization has to offer to the crypto world.

Cash and banks have existed for decades, and everyone put their trust in this form of centralized structure until the financial crisis that occurred in 2008. This worldwide economic crisis made it evident that a single entity should not be making decisions that will affect everyone. Thus, the need for decentralized currencies became apparent.

In October 2008, Satoshi Nakamoto published the Bitcoin whitepaper, where the idea of a global currency that would be managed and owned by the people was born. More than decades later, the question still remains: should we use decentralized currencies?

Decentralization transfers control and decision-making to the users, enabling the system to not be reliant on a single authority and eliminating the risk of a corrupt or compromised authority. Through this, decentralized systems can ensure better protection and independence. Moreover, decentralization promotes trustless connections, wherein the verification of transactions relies on the collective wisdom of numerous devices that are working together. This prevents the system from being compromised by keeping any bad actors at bay.

Moreover, decentralization reduces vulnerabilities by distributing them across the network. Trustless connections prevent single bad actors from forging transactions or corrupting the system. Cooperation from more than 50 percent of the nodes is required to gain influence, making it increasingly difficult in larger systems. Distributed networks also mitigate threats, as compromising a single node does not jeopardize the entire system.

Decentralization is the defining and exceptional characteristic of cryptocurrency. And as we progress, there will be new decentralized cryptocurrencies and exchanges that will preserve the benefits of decentralization and address its limitations. These will strengthen the innovative structure and revolutionize the world of finance in the future.

To find out more please visit: lfi.io

White paper: https://white-paper.lfi.io/

Telegram: https://t.me/lfiofficial

Twitter: https://twitter.com/LFioff

Disclaimer: The above article is sponsored content, its written by a third party. CryptoPotato doesnt endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.

Readers are also advised to read CryptoPotatos full disclaimer.

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

Read the original here:

Should the World Move Forward with Decentralization? - CryptoPotato

Description

Mechanical engineering, a discipline rooted in design, analysis, and manufacturing principles of mechanical systems, has been a cornerstone of technological advancement for centuries. Traditionally, this field has relied on tried-and-true methodologies and tools. However, as we navigate the digital age, emerging technologies are poised to revolutionize even the most established sectors. Enter blockchain technology and Read more

Mechanical engineering, a discipline rooted in design, analysis, and manufacturing principles of mechanical systems, has been a cornerstone of technological advancement for centuries.

Traditionally, this field has relied on tried-and-true methodologies and tools. However, as we navigate the digital age, emerging technologies are poised to revolutionize even the most established sectors. Enter blockchain technology and a concept initially birthed to underpin cryptocurrencies like Bitcoin.

Beyond its financial applications, blockchains unique attributesdecentralization, immutability, transparency, and securityoffer transformative potential for mechanical engineering. From streamlining supply chains to safeguarding intellectual property and fostering collaborative design efforts, blockchain integration promises to redefine mechanical engineering mechanics.

In the annals of technological evolution, few innovations have stirred as much intrigue and transformation as blockchain. Emerging from the digital ether in 2008, it was introduced by the enigmatic figure, Satoshi Nakamoto, primarily as the backbone for Bitcoin, a decentralized digital currency. However, the underlying technology, blockchain, soon revealed its broader potential, promising to redefine the very fabric of financial systems.

At its essence, blockchain is a distributed ledger, a database concurrently maintained across thousands of computers globally. This decentralized nature ensures that no single entity has overarching control, making the system inherently resistant to censorship and fraud.

Each transaction added to this ledger is grouped with others in a block, which, once verified, joins the existing chain of blocks. The result? An immutable, chronological record of every transaction, visible to all but alterable by none.

The financial sector, historically reliant on centralized institutions and intermediaries, quickly grasped the disruptive potential of blockchain. This technology could facilitate peer-to-peer transactions without banks, dramatically reducing costs and increasing efficiency.

International remittances, often subject to delays and high fees, could be executed swiftly and inexpensively. Stock exchanges began to eye blockchain for trading assets, given its ability to transparently record ownership and reduce settlement times.

Moreover, the concept of smart contracts emerged, self-executing contracts with the terms of the agreement directly written into code. This innovation promised to automate and streamline complex financial processes, from insurance claims to bond issuance.

Yet, the most groundbreaking offshoot was the rise of decentralized finance (DeFi), aiming to recreate traditional financial instruments in a decentralized architecture outside corporate and governmental control.

From its inception as the engine behind a novel cryptocurrency, blockchain has burgeoned into a foundational technology for the financial world, heralding a new era of transparency, efficiency, and democratization.

At its core, Blockchain is a digital ledgera continuously growing list of records called blocks linked and secured using cryptography. Unlike traditional databases, such as a SQL database managed by a central authority, blockchains design is inherently decentralized, with data stored across a vast network of computers.

Each block in the chain contains some transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participants ledger. The decentralized nature of blockchain means that no single participant controls the data or the information. Every participant can verify the records of its transaction partners directly without an intermediary.

A key attribute of blockchain is its immutability. Once data has been written to a blockchain, changing is extremely difficult. This ensures that transactions are secure and trustworthy. Cryptographic algorithms make it nearly impossible for attackers to alter data without detection.

This combination of transparency, decentralization, and security makes blockchain a powerful tool. Initially conceived to support the cryptocurrency Bitcoin, its potential applications have expanded vastly, from transparent financial transactions to traceable supply chains and beyond, making it a cornerstone of many modern technological innovations.

Decentralization: Unlike traditional databases such as SQL or centralized servers, blockchain operates on a peer-to-peer network. Every network participant (or node) can access the entire database and transaction history. This means no participant controls the data; everyone can verify the records.

Transparency: Transactions on the blockchain are visible to all participants and embedded within the network. This transparency ensures that all actions are open for verification, fostering trust among participants.

Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or deleted. This immutability ensures the integrity of the transaction history, making fraudulent activities easily detectable.

Security: Transactions must be agreed upon before they are recorded. After approval, theyre encrypted and linked to the previous transaction. Along with the fact that information is stored across a network of computers, this makes blockchain highly resistant to malicious attacks.

Consensus Algorithms: These are techniques used to achieve agreement on a single data value among distributed processes or systems. Popular methods include Proof of Work (PoW) and Proof of Stake (PoS), which ensure that all transactions are genuine and prevent double-spending.

Smart Contracts: These self-executing contracts have the terms of the agreement directly written into code. They automatically enforce and execute when trigger conditions are met, eliminating the need for intermediaries.

Reduced Transaction Costs: As blockchain eliminates the need for third-party verification, it can significantly reduce transaction fees.

In essence, blockchains decentralized, transparent, and immutable nature has the potential to disrupt many industries by making transactions more secure, transparent, and decentralized.

Blockchain, often dubbed the digital ledger, is a groundbreaking technology that promises transparency, security, and decentralization. But how does it function?

Blocks & Chains: A blockchain is a series of blocks (data sets) linked in a chronological chain. Each block contains many transactions, a timestamp, and a cryptographic hash of the previous block, ensuring theyre interconnected.

Decentralization: Unlike traditional databases managed by a central authority, blockchain operates on a peer-to-peer network. Every participant (or node) can access the entire blockchain and validate and record new transactions.

Transaction Process:

A user initiates a transaction. This transaction is broadcast to the network and grouped with other transactions to form a block.

Network nodes validate the block using consensus algorithms, like Proof of Work or Stake.

Once validated, the block is added to the chain, making the transaction permanent and immutable.

Cryptography: Security is paramount in the blockchain. Transactions are encrypted into a digital signature using public and private keys. This ensures data integrity and authentication.

Immutability: Once a block is added to the blockchain, altering its information becomes computationally impractical. This is due to the cryptographic hashes and the decentralized nature of the network.

The integration of blockchain technology into the realm of mechanical engineering might initially seem like an ambitious endeavor. However, as we delve deeper into the intricacies of both domains, the synergies become apparent. The decentralized, transparent, and immutable nature of blockchain finds numerous applications in mechanical engineering, promising to redefine processes, enhance trust, and foster innovation. Heres a comprehensive exploration of these transformative use cases:

Material Tracking: Every component in mechanical engineering, from the smallest bolt to complex assemblies, has a journey. Blockchain can chronicle this journey, from extracting raw materials to manufacturing the final product. This traceability ensures the quality and authenticity of parts, fostering trust among manufacturers, engineers, and end-users.

Counterfeit prevention: The mechanical industry grapples with counterfeit components like many others. These compromise the integrity and safety of machinery and lead to significant economic losses. By tagging genuine parts with blockchain entries, the authenticity can be verified at any stage, drastically reducing the risk of counterfeits.

Vendor Accountability: With blockchain, every entity in the supply chain, from raw material providers to component manufacturers, can be held accountable. Any substandard component can be traced back to its source, ensuring quality throughout the chain.

Design security: Mechanical designs are the intellectual assets of engineers and organizations. Storing these designs on a blockchain ensures they are shielded from unauthorized access and theft. Moreover, the origin of each design can be irrefutably verified, acting as a deterrent against patent infringements.

Licensing and royalties: The licensing of designs, especially in a global market, can be complex. Blockchain, combined with smart contracts, can automate this process. Every time a design is used, a smart contract can ensure that the original designer receives the stipulated royalties, fostering a fair ecosystem for innovation.

Version control: Mechanical engineering projects often involve teams across different locations. In such scenarios, blockchain can act as a version control tool, ensuring that all team members work on the most recent design iteration and that all changes are chronologically logged.

Decentralized collaboration: Blockchain can facilitate a decentralized platform where engineers globally can collaborate on projects. Contributions from each engineer are transparently recorded, ensuring proper attribution and fostering a collaborative spirit.

Prototype testing: Before mass production, prototypes undergo rigorous testing. Blockchain can record all test results, ensuring that the final product is based on a design that has been thoroughly vetted.

Immutable service logs: Machinery requires meticulous maintenance, especially in critical sectors like aerospace or automotive. Blockchain can chronicle each service event, providing an immutable record crucial for safety audits, warranty claims, and resale evaluations.

Predictive maintenance: Integrating IoT sensors with blockchain can revolutionize maintenance. Real-time data from machinery can be securely logged on a blockchain. Advanced analytics can then use this data to predict when a machine might require maintenance, optimizing operational efficiency and prolonging machinery life.

Distributed manufacturing: In the era of Industry 4.0, manufacturing need not be centralized. Jobs can be distributed across a network of manufacturers, each specializing in certain tasks. Blockchain can track these distributed jobs, ensuring quality and timely delivery.

Payment automation: Payment processes must be seamless in such decentralized networks. Smart contracts can be set up to automatically release payments once a manufacturing task is verified, ensuring trust and promptness in transactions.

Verifiable credentials: Mechanical engineering is a domain where the skillset and expertise of professionals are paramount. As engineers undergo training or achieve certifications, these can be logged on a blockchain. Organizations can then easily verify these credentials, ensuring they hire or collaborate with qualified individuals.

Continuous learning: The field of mechanical engineering is ever-evolving. Blockchain can facilitate platforms where engineers continuously update their skills, with each new training or course being transparently added to their professional profiles.

Carbon footprint tracking: Manufacturing processes have environmental impacts. Blockchain can record the carbon footprint of each process or component. This helps companies implement sustainability initiatives and allows consumers to make informed choices.

Regulatory compliance: Environmental regulations are becoming stringent. Blockchain can help manufacturers prove compliance by providing an immutable record of their processes, waste management, and emissions.

The convergence of blockchain technology with mechanical engineering is not just a fleeting trend but a transformative shift. As the digital world offers tools to enhance trust, transparency, and efficiency, mechanical engineering stands at the cusp of a new era.

An era where designs are secure, processes are transparent, and innovation is protected and celebrated. Fusing blockchains digital trust with the tangible innovations of mechanical engineering promises a future of unprecedented possibilities.

Blockchain, while revolutionary, has its hurdles. As industries grapple with its integration, several challenges have emerged that need addressing:

Scalability: One of the most pressing issues, especially for public blockchains like Bitcoin, is scalability. As the number of transactions increases, the time to process and validate them can become a bottleneck, leading to delays and higher costs.

Energy consumption: Proof of Work (PoW), a popular consensus algorithm in blockchain, is notoriously energy-intensive. The environmental concerns surrounding the energy usage of large blockchain networks, especially Bitcoin, have been widely discussed.

Complexity: The underlying concepts of blockchain, including cryptography and decentralized consensus, can be complex for the average person to grasp. This steep learning curve can hinder its widespread adoption.

Integration with existing systems: Integrating blockchain into current systems can be challenging and costly for businesses. Legacy systems might not be compatible with newer blockchain architectures.

Regulatory and legal challenges: The decentralized nature of blockchain poses regulatory challenges. Governments and regulatory bodies worldwide are still figuring out how to classify and regulate blockchain-based activities, leading to uncertainty.

Network security: While blockchains are inherently secure, they are not immune to attacks. The potential for a 51% attack, where a single entity gains control of most of the networks mining power, remains a concern.

Data limitations: Blockchains are not suited for storing large amounts of data, which can limit their application in data-intensive industries.

Blockchain technology, once a niche concept tethered to the world of cryptocurrencies, has showcased its profound versatility and potential to revolutionize sectors far beyond finance. Mechanical engineering, a discipline that has been the bedrock of technological progress, stands at an exciting crossroads.

With blockchains promise of decentralization, transparency, and enhanced security, the very paradigms of design, manufacturing, and collaboration in mechanical engineering are poised for transformation.

From ensuring the authenticity of components in supply chains to safeguarding intellectual assets and fostering global collaborative efforts, blockchain addresses some longstanding challenges of the mechanical realm. However, like all transformative technologies, blockchain is not without its hurdles. Scalability, energy concerns, and integration complexities are genuine challenges that the industry must navigate.

Yet, the potential rewards a more transparent, efficient, and collaborative mechanical engineering landscape make this journey worthwhile. As engineers and technologists continue to intertwine the strengths of blockchain with the foundational principles of mechanical engineering, we are on the brink of a new era. An era where the digital trust of blockchain complements the tangible innovations of mechanical engineering, driving forward a future of boundless possibilities.

Blockchain is a digital ledgera continuously growing list of records called blocks linked and secured using cryptography. It's decentralized, with data stored across a vast network of computers, ensuring transparency, decentralization, and security.

Blockchain offers transformative potential for mechanical engineering, including streamlining supply chains, safeguarding intellectual property, and fostering collaborative design efforts.

Blockchain can chronicle the journey of components, ensuring their quality and authenticity. It can also prevent counterfeits and hold vendors accountable for their products.

Blockchain can securely store mechanical designs, preventing unauthorized access and theft. It also ensures the origin of each design, acting as a deterrent against patent infringements.

Blockchain can act as a version control tool for teams across different locations, ensuring all work on the most recent design iteration. It fosters decentralized collaboration and transparently records contributions.

Go here to read the rest:

How the Unique Attributes of Blockchain Technology Redefines ... - Cryptopolitan

Bitcoin mining has evolved significantly since its inception in 2009, from the early days of CPU and GPU mining to the present era of sophisticated Application Specific Integrated Circuits (ASICs) and a competitive landscape filled with professional miners and mining farms. Mining Bitcoin profitably in todays environment requires a lot more than just powerful hardware; it requires intelligent, efficient, and reliable mining management software. An essential aspect of this software is ASIC miner monitoring.

Before delving into the specific software solutions available, lets establish the critical role of ASIC miner monitoring. ASICs, or Application Specific Integrated Circuits, are purpose-built hardware to solve the particular problem of mining Bitcoin.

These machines consume significant energy and require round-the-clock operation to remain profitable, necessitating careful monitoring to ensure maximum uptime, detect and troubleshoot any hardware issues, and optimize power consumption for efficiency. Consequently, ASIC miner monitoring forms the heart of any efficient Bitcoin mining operation.

There are numerous management software solutions available, each with its unique offerings and capabilities. Choosing the right mining management software is an important decision that can significantly impact your profitability. The best software for you will depend on your specific requirements, such as the size of your mining operation, your level of technical expertise, and your specific hardware.

Remember that managing a mining operation isnt just about choosing the right software. It involves careful power management, regular hardware maintenance, and staying informed about the ever-evolving crypto landscape. However, with the right ASIC miner monitoring and management software, you can keep these challenges in check and maximise efficiency.

Its important to remember that the world of Bitcoin mining is one of constant evolution. As such, the mining management software landscape will undoubtedly see new players, innovative solutions, and advanced features.

As we continue to tread into the exciting future of cryptocurrency mining, having the right tools to optimise, manage, and monitor your mining operations will remain an essential aspect of this journey.

To put it simply, choosing the right mining management software, one that prioritizes ASIC miner monitoring, could make the difference between turning a small profit and creating a thriving, highly efficient mining operation. As the world of cryptocurrency continues to expand and evolve, so must our strategies, tools, and understanding. This digital gold rush is far from over; in fact, its just getting started. Happy mining!

Such has been the explosion of interest in cryptocurrency in recent years, its almost impossible to now think of a time when Bitcoin and its counterparts werent in the world. However, to understand how we got to this point, its often useful to reflect on the journey as it has unfolded. So, lets take a quick trip back to 2008 where it all began.

The Bitcoin concept is introduced by an anonymous person or group of people known as Satoshi Nakamoto. Nakamoto published the whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System.

The first block of Bitcoin, known as the Genesis Block or Block 0, is mined by Satoshi Nakamoto. The first Bitcoin transaction also takes place, from Satoshi to programmer Hal Finney.

The first known commercial transaction using Bitcoin occurs when programmer Laszlo Hanyecz buys two Papa Johns pizzas for 10,000 BTC. The Bitcoin market cap exceeds $1 million for the first time.

Rival cryptocurrencies begin to emerge, starting with Litecoin. Bitcoin reaches parity with the US dollar for the first time and continues to surge onwards as its popularity grows.

The price of Bitcoin reaches $1,000 for the first time. The US government acknowledges and begins taking an interest in Bitcoin, with hearings held to better understand the technology.

Mt. Gox, once the largest Bitcoin exchange, suspends trading and files for bankruptcy after losing over 740,000 of its customers Bitcoins.

BitLicense, a set of regulations on the use of cryptocurrency, is established in New York. Its met with controversy and causes many Bitcoin businesses to block New York customers.

Major companies like Microsoft, Dell, and Time Inc. begin accepting Bitcoin denoting a further shift towards Bitcoin being a transactional currency.

Bitcoin experiences a massive surge, reaching a value of nearly $20,000 in December. Bitcoin undergoes a hard fork creating a new cryptocurrency called Bitcoin Cash.

Bitcoin experiences a significant drop in value, known as the Crypto Winter. Moreover, This bear market can be attributed to a combination of regulatory changes, market speculation and market manipulation, among others.

Bitcoin recovers from its low at the end of 2018 and continues to fluctuate throughout the year.

Bitcoin starts the year around $7,000 and ends the year close to $29,000. PayPal announces it will allow its users to buy and sell Bitcoin. Moreover, a major signal to the market that the currency has gained mainstream recognition.

Bitcoin reaches an all-time high of just over $64,000 in April.

Tesla announces it bought $1.5 billion worth of Bitcoin and would start accepting Bitcoin for transactions. Later in the year, Tesla CEO Elon Musk reverses the decision due to environmental concerns about Bitcoin mining.

After dropping to $17,000 in June of 2022 the value of Bitcoin has since stabilised at around $20,000.

Despite periodic volatility, many individuals and institutions have shown growing interest in Bitcoin as a store of value, medium of exchange, and investment.

Photo by Kanchanara on Unsplash

Follow this link:

Maximise your Bitcoin profits: A look at top-tier mining management ... - UrbanMatter

June 27, 2023 7:59 AM | 2 min read

Bitcoin (CRYPTO: BTC) continues to make headlines as it reaches new heights, and its latest surge to the $30,000 level has prompted some long-dormant accounts to be reawakened.

What Happened: Two wallets that had a total of 100 BTC, originally mined way back in 2010, have recently been moved to different wallets, with the combined value of the transferred BTC being worth more than $3 million.

These wallets are from the era when Bitcoin creator Satoshi Nakamoto was still active, adding further intrigue to their activity.

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

This move signals the re-entry of the transferred coins into the group of BTC whales, representing investors who hoard vast quantities of Bitcoin and do not trade it for long periods of time.

This also comes at a time when BlackRock (NYSE:BLK), the worlds largest asset manager, filed for a Bitcoin ETF, joining a growing list of companies looking to offer crypto-focused investment products. If approved, the ETF would provide more accessible and public investment opportunities for institutional and individual investors.

More: A Stay At The Floating Palace From James Bond's Octopussy

Why It Matters: Satoshi Nakamoto is the pseudonym used by the unknown person or persons who developed the original Bitcoin protocol in 2008 and created the first blockchain database. The identity of Nakamoto remains unknown, and it is unclear how much BTC they hold, as the creator(s) of Bitcoin never publicly disclosed ownership of their stake in the cryptocurrency.

In the last month, several Bitcoin whales with long-dormant accounts have been awakened, leading to speculation in the crypto community regarding their identity and motives for reactivating their accounts.

This news of a wallet being reactivated after a decade of inactivity, containing a large sum of Bitcoin worth $37.8 million, is just the latest example.

Price Action: At the time of writing, BTC was trading at $30,266 down 0.17% in the last 24 hours, according to data from Benzinga Pro.

Read Next: Bitcoin, Ethereum, Dogecoin Trade Mixed As ETF-Induced Rally Pauses: Analyst Predicts Strong July For King Crypto Amid Vanishing Crypto Death Fears

Join Benzingas Future of Crypto in NYC on Nov. 14, 2023, to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!

2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

See the article here:

Satoshi-Era Wallets Containing Millions Worth Of Bitcoin Reactivated As Apex Crypto Hits $30K On ETF Opti - Benzinga

June 27 (Reuters) - What would Satoshi make of it all?

Bitcoin, the currency created to subvert the financial establishment, has shaken off weeks of sickness with the support of Wall Street's finest.

The original crypto coin has leapt 20% to two-month highs at $30,182 over the past 11 days after BlackRock, the world's largest asset manager, revealed hopes for a spot bitcoin exchange-traded fund (ETF) in the United States.

BlackRock filed for a prospective spot bitcoin ETF on June 15, undeterred by the Securities and Exchange Commission's (SEC) past record of rejecting every such application. The news helped bitcoin bounce out of the doldrums and snap two consecutive weeks of losses.

Satoshi Nakamoto's rebel child is invigorated by the prospect of an ETF that offers investors exposure to spot bitcoin on a regulated U.S. stock exchange without the hassle of custody.

Bitcoin's market value has grown to comprise nearly half of the $1.1 trillion overall crypto market, its highest share in over two years, according to data tracker CoinMarketCap.com. Its share was around 40% at the start of the year, up from a low of 34% in 2018.

"The news of the ETF filing is evidence of adoption and interest from top global players, which is, of course, interesting to institutional investors and traders alike," said Mikkel Morch, chairman at digital asset investment fund ARK36.

Fueling optimism among some crypto advocates is BlackRock's strong track record of getting the SEC's green light for ETFs more generally, although it hasn't filed for a crypto one before. It boasts a 575-1 approval rate, according to Rosenblatt Securities analyst Andrew Bond.

Since the BlackRock filing, Invesco and WisdomTree have also reapplied for spot bitcoin ETFs after they had previous applications rejected by the regulator, with asset manager Fidelity also reportedly planning to reapply for a spot fund.

The mini-rush of pitches to the U.S. watchdog comes days after the SEC sued major crypto exchanges Coinbase and Binance for allegedly breaking securities laws, casting a chill over the cryptocurrency market.

Not everyone's keen to jump in, though.

"You know what the rules of the road are in equities and bonds. But you don't fully know what the rules are going to be for crypto," said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.

"As a consequence it has made it difficult to make an investment class for many people, myself included."

At present, American investors currently looking to gain exposure to crypto on stock exchanges are limited to futures-based ETFs. These funds track bitcoin futures contracts, which come with the additional costs of rolling over contracts on settlement days.

The total return for ProShares' Bitcoin Strategy ETF is about 79%, according to Morningstar data, versus bitcoin's 82% jump.

Bryan Armour, director of passive strategies research for North America at Morningstar, said a spot bitcoin ETF could be a more cost-effective way for investors to trade.

"It doesn't appear that most crypto ETF holders are institutional assets are pretty spread out," he added.

Crypto investment products are still a tiny part of the overall market. Excluding grantor trusts - limited to accredited investors - such as the Grayscale Bitcoin Trust (GBTC.PK), the current crypto ETF market totals about $2 billion, according to MorningStar Direct, less than 2% of overall crypto market.

BITO, the first bitcoin futures ETF and the fastest to notch $1 billion in market cap after its launch in 2021, ushered in a wave of other futures ETF launches.

About 48% of respondents in a survey this year of 549 international professional investors by TrackInsight, J.P. Morgan Asset Management and State Street said they would consider investing in single-cryptocurrency exchange-traded products, versus 37% who were interested in investing directly.

"I'd argue BlackRock is just as interested in retail as institutional," said David Wells, CEO of Enclave Markets.

"They may start with institutions but potentially hope that bitcoin is an option that goes into investors' retirement portfolios, and hoping the BlackRock name is a strong enough impetus to buy, and that's a big draw for retail investors."

Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

View post:

Cryptoverse: Bitcoin bounces on BlackRock buzz - Reuters