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Report: Emerging Markets Seen Adopting Cryptocurrency Faster

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  • Report: Emerging Markets Seen Adopting Cryptocurrency Faster

A recent research survey sponsored by Luno, one of the promoters of cryptocurrency, has shown that people who have less finances appear to take greater financial risks, thus confirming the possibility of high adoption rate of cryptocurrency in emerging markets.

The initial findings from the survey tagged ‘Future of Money’, which took the views of more than 7000 respondents across Europe, Africa and South-east Asia helped in explaining the belief on emerging markets and financial risk taking.

As large global tech firms start to move into blockchain and altcoins, the research shows why early adopters, the most important audience for these firms, would probably come from emerging markets.

Analysing the survey report, Luno CEO, Marcus Swanepoel, said: “As some of the world’s largest tech giants announce they are launching cryptocurrency coins, we believe developing markets will be the lead adopters. Our research shows that in these markets people are more financially savvy because they have to be, which means that they need and understand the benefits the new coins can offer.”

When asked if a single global currency would make the current financial system better or worse, almost three times as many respondents from Nigeria and South Africa said it would make it better, compared to the UK, Swanepoel said.

According to him, “The data also identified why money is such a focus in emerging markets. When asked why money is important to them, 60 per cent respondents said it was ’to secure my family’s well-being or to ‘pay for my education. In Nigeria 25 per cent of the respondents said same, compared to 8 per cent in the UK. A further question regarding the setting of a monthly expenditure budget found that 80 per cent of people in Malaysia; 65 per cent in Nigeria; 73 per cent in South Africa and 74 per cent in Indonesia, said they do, compared to 54 per cent in the UK. Again, 33 per cent respondents in Indonesia compared to 0 per cent in the UK, are more likely to stay within the budget they set.”

The survey report added: “It is very clear that if money is not simply a ‘nice to have’ and is vital for the future, then people spend more time understanding it, managing it, preserving it and to an extent being creative with how they maximise the use of it. The report therefore asserted that if a cryptocurrency could provide a secure and cheaper means of exchanging value, better than the existing system, it would be used. This is why there is a general belief that as new cryptocurrencies, linked to global brands are introduced they will find an important audience in emerging markets.”

These markets are also more likely to exhibit grassroots level adoption, Swanepoel said, adding “In almost every emerging market country surveyed, over half of the people said they will turn to family, friends or colleagues for financial advice over government organisations which shows that people in these markets rely on information from those closest to them”

The survey presents an overview of a study conducted by Dalia Research for Luno between May and June this year about the future of money. The sample of over 7,000 individuals with internet access was drawn in France, Indonesia, Italy, Malaysia, Nigeria, South Africa and the United Kingdom.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

Blockchain Hackers Have Stolen Over $13.6 Billion in 330 Hack Events

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Hackers Have Stolen Over $13.6 Billion from 330 Hacked Blockchain Events

According to data analyzed by the Atlas VPN team, hackers have stolen $13.6 billion through 330 blockchain hack events year-to-date.

Most successful in terms of the number of breaches have been hacks targeting EOS DApps. EOS DApp providers have faced 117 breaches, which together amounted to $28.28 million in losses or approximately $241,785.8 per single breach.

Next up are hacks aimed at cryptocurrency exchanges. In total, hackers have launched 87 successful attacks aimed at crypto exchanges, collectively netting $4.82 billion or a whopping $55.41 million per hack.

While there were significantly less successful hacks aimed at blockchain wallets, such breaches were the most profitable. Over the past 8 years, blockchain wallet providers have faced 36 hacks, which together amounted to $7.19 billion in losses or around $199,932,146.7 per breach.

Blockchain-related hacks are on the decline

Since blockchain technology was first invented in 2009, it has gone through many stages — from the introduction of the first cryptocurrency Bitcoin to smart contract creation to the initial coin offering craze and beyond. However, blockchain hacks have evolved over the years as well.

The data from previous years shows that the number of blockchain-related hacks has grown by 1450% from 2 registered breaches in 2012 H1 to 31 breaches in 2020 H1. However, the number of successful hacks in 2020 H1 has dropped more than three times compared to the same period last year.

Rachel Welch, COO of Atlas VPN, shares her thoughts on the decline of blockchain-related hacks: “Since 2020 is not over, we can expect more blockchain-related breaches to happen before the end of the year. Nevertheless, based on the historical data, it seems that 2020 will not reach the record heights of last year, and blockchain hacks will remain on the decline.”

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Cryptocurrency

Paypal Commences Cryptocurrency Exchange Business

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Paypal Expands Operation to Include Cryptocurrency Exchange

Paypal Holdings Inc, the world’s leading online payments solution, has finally expanded its operations to include cryptocurrency exchange following months of planning.

The company customers will now be able to buy, sell and hold bitcoin and other crptocurrencies using the PayPal digital payment wallets.

PayPal move was after the company’s competitor, Square, expanded into cryptocurrency exchange space in 2018 and developed a wallet that support bitcoin transactions through its Cash app. However, PayPal took it a notch higher by developing wallet that support Bitcoin, Ethereum, Bitcoin Cash and Litecoin.

The decision to venture into cryptocurrency exchange space would boost the attractiveness of the unregulated digital asset and further push it to the mainstream given the fact that PayPal present has 346 million active users accounts with 26 million merchants.

The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” PayPal CEO Dan Schulman said in a statement. “Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption and interoperability of these new instruments of exchange.”

Schulman says PayPal is “eager to work with central banks and regulators around the world” in supporting cryptocurrency.

Please note that PayPal users can only transact in cryptocurrency using fiat currency without ability to withdraw their purchased digital asset to a third party wallet or transfer from third party wallet into their PayPal powered wallet. Meaning PayPal users can only purchase PayPal cryptocurrencies and transact within the platform.

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Ethereum Accounted for 96% DeFi Transactions in Q3 2020 as ETH Miner Fees Double Bitcoin’s

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Ethereum

Ethereum Represents 96% of All DeFi Transactions in Q3 2020

According to the research data analyzed and published by Stock Apps, Ethereum’s transaction volume soared to $119.5 billion in Q3 2020. In comparison to the $10.2 billion volume posted in Q2 2020, that was a 1,200% increase.

Based on Coinmetrics’ data, Ethereum fees shot up during the same period, eclipsing Bitcoin’s fees for the first time on August 13, 2020. As of September 2020, ETH fees stood at $276 million, nearly double Bitcoin’s $146 million.

Ethereum Miners Made $113 Million from Fees in August, 38x Increase from April

The surge in transaction volume and fees on the Ethereum blockchain was linked to the recent Decentralized Finance (DeFi) hype. DApp Radar reveals that during the period, DeFi apps accounted for 99% of all transactions on the network.

The total DApp transaction volumes on all platforms in Q3 2020 reached $125 billion. There was an increase of $113 billion quarter-over-quarter (QoQ). Most of the activities took place on Ethereum, TRON and EOS. From the total value created, Ethereum accounted for 96%. With 1,956 apps, it was the top DApp blockchain during the period.

Coinmetrics’ data reveals that Ethereum transaction fees surged from $21.98 million on June 1, 2020 to $77.77 million on July 31, 2020. In August, Ethereum miners made $113 million from transaction fees according to Glassnode. That marked a 38x increase from the $3 million recorded in April and a 1.8x increase from the January 2018 all-time high. In September, miners for the first time earned more from fees ($172M) than they did from block rewards ($150M).

According to Glassnode, Ethereum miners made a record on September 1, earning $500,000 in one hour. Daily earnings on that day doubled to $16.5 million from $8.1 million the previous day. On September 2, they made a new record with the average hourly revenue surging to $800,000. They broke this record on September 17, reaching $938,000.

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