Connect with us

Wealth Management

DIFFERENCE BETWEEN BITCOIN AND LITEBITCOIN

When you get closer to the world of cryptocurrencies, it is not uncommon to confuse reference assets due to the similarity of their names and the fact that very often the source codes are the same.

Well, one of the most common cases is the one that contrasts Bitcoin e Litebitcoin. Although part of the name of the virtual currency is the same, they are two different assets that it is advisable to consider separately understanding the main differences, de.cfds-trader.com is best option for trading.

 

How Bitcoin is used?

Bitcoin is the most famous crypto valuates in the world and is probably also a virtual currency that needs less introduction. Bitcoin is, in fact, the system that has piqued the public and financial opinion in these assets, and is still the most capitalized and traded virtual Currency in the world.

 

How to use Litebitcoin?

This, of course, is less well known, instead Litebitcoin, A newly introduced cryptocurrencies in the panorama of the encrypted virtual currencies, and is the result of the evolution of the same code, the Bitcoin, from which it takes its name in part.

The purpose of this fork was to enable the presence of the blockchain so that it could guarantee a higher speed and stability of the cryptographic system compared to what was already in bitcoin.

 

Differences

By this point, you should have already understood the differences between the two assets, and Bitcoin e Litebitcoin is two different and different currencies, and, as a rule.

The differences didn’t end here. Suffice it to recall that Bitcoin is significantly more traded and capitalized than its counterpart, and how to invest in Bitcoin is much easier thanks to the large number of brokers who have this asset on their platforms. Shortly speaking, capitalization The market capitalization of Bitcoin exceeds 250 billion dollars due to dynamic expansion, especially during this year. On the other hand, the capitalization of Lithuanian bitcoins is much more restrained. Today their capitalization is about 35 thousand dollars price, the price of bitcoin today exceeds 15 thousand dollars instead, the unit of bitcoins is 0.011148 dollars, or 0.00000074 if you prefer bitcoins, Currency in circulation The circulating bitcoins in circulation are a little over a million 3 versus a Bitcoin supply of almost a million 17, total supply As you know, most of the bitcoins have already been extracted. The remainder will be gradually available until you reach a total of 21 million bitcoins. In this sense, the scaling of Lithuanian bitcoins has just begun, given that the 3 million available units represent a small fraction of the more than 161 million bits envisioned by the project.

 

What is the fundamental difference between bitcoin, gold and oil?

Bitcoin, oil and gold have experienced significant price fluctuations for their long-term or short-term history. There are, however, fundamental differences, especially if we look at what happens to their availability when a price change occurs.

 

Oil

Any significant rises in the price of oil lead to an immediate reaction from the producers of this commodity. The higher price of the product they supply prompts them to invest more in the infrastructure to mine this black gold. On the charts, you can see how the price fell when oil production exceeded demand. Since the mining companies did not expect to produce as much oil in this situation, the volume of production decreased accordingly. At another stage, demand increased again, and companies could start mining at higher speeds.

 

Gold

The same goes for gold. As soon as its price rises, companies react accordingly by increasing the production of this metal. When the price of gold fell, its production also stabilized.

 

Bitcoin

However, in the case of bitcoin, he can see the opposite of the commodities as mentioned above. In last year, when the block mining rewards were significantly higher than today, he saw significantly lower prices for 1 BTC. Subsequently, as the price of Bitcoin rose, miners’ rewards decreased.

Thus, there is no cyclical relationship between supply and demand, as is the case with oil and gold. This course has to do with the very nature of this cryptocurrency. Mining fees are halved for every 210,000 blocks.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Wealth Management

DON’T RISK IT ALL WITH NON-COMPLIANCE

By Paul Sleath, CEO at PEO Worldwide

 

Did you know non-compliance costs more than twice the cost of maintaining or meeting compliance requirements?

Yet, companies continue to overlook proper compliance procedures, choosing to ‘wing it’ or do it on a shoestring budget instead.

We get it. Today’s business owners have a multitude of priorities to juggle, top of which is turning a profit and growing. When you’re focusing on driving success, compliance can easily fall by the wayside.

But success is of little consequence if a government entity dissolves your company because you failed to comply with certain legal requirements.

Keeping on top of regulations

In the corporate world, compliance involves adhering to a wide range of laws and standards designed to protect your employees, customers and other stakeholders — and generally making sure you “do the right thing”.

No matter what industry or type of business you work in, compliance is a big deal. But when you’re looking to expand your operations into markets all over the world, it’s an entirely different ballgame.

As you grow and move into new jurisdictions, you’ll encounter a whole host of new regulations — from tax returns and statutory filing to international employment rules about payroll — and face much higher compliance costs than operating solely in one location.

Many countries require that filings and contracts are made in the local language and change their regulations frequently. Without a contact on the ground, it can be difficult to keep up. Each country will also have its own authorities and governing bodies to deal with.

For example, in the US, you have the Occupational Safety and Health Administration (OSHA) to contend with while companies operating in the UK will need to comply with the Health and Safety Executive’s (HSE) standards.

 

Compliance across borders

The point is, no two countries are the same, and when you’re trying to operate across multiple locations, things can get messy.

Late filing in Denmark could lead to your company being dissolved within a few months. In Serbia, the tax regulations are so confusing that many companies have taken to paying extra tax where they have no liability just to ensure they don’t get stung with any penalties.

If you’re expanding into Spain, it’s worth knowing that terminating employee contracts is notoriously tricky, and you’ll have to budget for a severance fee (which equates to 33 days of salary per employment year).

In Singapore, you’ll be responsible for sending the monthly payment (including both yours and the employee’s respective contributions) to the Central Provident Fund (CPF) — a key pillar of the country’s social security system. This payment has to be sent by the 14th of the following month.

A couple of notable points to bear in mind if you’re expanding into Germany is that employees can only be leased for a maximum of 18 months. After this, you must hire them permanently or let them go. Chain leasing is also prohibited, meaning the company holding the licence must contract directly with the party receiving the labour.

And if you’re global expansion journey is taking you down under to Australia, you’ll need to pay a Fringe Benefit Tax (FBT) if you’re providing certain benefits to your employees — even if a third party provides them.

Without this knowledge of local regulations, you quickly (albeit unintentionally) run the risk of non-compliance and find yourself on the wrong side of the law.

So, what could happen if you don’t comply?

There’s no way around it, if you fall foul of compliance, you’ll end up paying for it — one way or another.

Penalties come in multiple forms. The most common penalties for non-compliance are fines, which may be levied against the company or individual directors.

However, one of the most financially damaging events a company faces is having their products blocked at the border or being forced to destroy merchandise due to compliance issues. In some cases, non-compliance can even result in the mandatory closure of ALL operations within that country or imprisonment of the directors.

Even if your organisation is not given an actual penalty, the inconvenience and costs of righting the mistake, damage to the company’s reputation and possible loss of contracts could prove disastrous.

But the highest cost of non-compliance is business disruption. When found to be non-compliant, you may be forced to implement changes before business can resume, which can have a knock-on effect on other areas of your organisation.

Whether you’re looking for a PEO in the UK, US, Spain or Singapore, compliance should be your top priority. So, it’s worth seeking the help of a Global PEO with local knowledge of your chosen country to ensure you always remain on the right side of international employment laws.

That’s where we come in. At PEO Worldwide, we ensure you remain compliant at all times by taking full responsibility for hiring, contracts, employee benefits, payroll and termination if needed. To find out more about our global employment services, don’t hesitate to get in contact.

 

Continue Reading

Wealth Management

FOR PE TO SNAP UP “GOOD” COMPANIES, THEY MAY NEED TO WADE INTO “BAD” ECONOMIES

FINANCIAL MARKET

By  Martin Soderberg, Partner at SPEAR Capital

 

There’s no shortage of global challenges for investors currently, especially for those concerned with private equity (PE). PE and risk managers with their fingers on the pulse are turning to often overlooked opportunities in emerging markets. As Martin Soderberg discusses, while there are arguably higher levels of risk associated with such investments, the key is being able to identify good companies – and some of these may be found in bad economies.

While the current state of global markets and the enduring pandemic are anything but favourable for fundraising, some estimates indicate that up to $2.5 trillion in unutilised capital was sitting in PE houses globally earlier this year, simply waiting for the tide to turn. The McKinsey Private Markets Review 2020 reveals that $1.47 trillion of investor capital was deployed through the PE asset class globally in 2019. This represents impressive growth of private market assets under management by 10% for the year, on the back of total growth of 170% for the past decade. While, as any risk or asset manager will tell you, past performance is no guarantee of future results, the existing levels of available capital (if prudently allocated) have the potential to extend this decade of growth through the COVID-19 storm.

The International Monetary Fund (IMF) has already announced that it expects global growth to contract by 3% for 2020, representing a revised downgrade of 6.3 percentage points from January 2020. The IMF concluded that a revision of such magnitude over such a short period is an indication that the world is in the midst of the worst recession since the Great Depression and in a far worse position than during the Global Financial Crisis of 2009. While some would argue that investment in any country is potentially unstable in the current recession – evidenced by prices in investor safe havens such as gold skyrocketing to all-time highs, almost testing the $2,000 level this week – stability exists within key sectors such as healthcare and fast-moving consumer goods (FMCGs). This was exemplified late last year through Nigerian edtech learning platform uLesson’s closing of a $3.1 million seed-level round led by TLcom Capital, to address infrastructure and learning gaps in Africa’s education sector.

Martin Soderberg

Population growth and urbanisation typically drive consumption in these and other sectors. Sub-Saharan Africa has experienced growing numbers of first-time migrants into cities and leading economic nodes, with pre-COVID estimates that 50% of Sub-Saharan Africa’s population will be living in cities by 2030. In addition, burgeoning middle classes and the younger populations of developing nations is resulting in increasing levels of disposable income. At a media briefing in June, however, the IMF projected that Sub-Saharan Africa’s economy will contract 3.2% in 2020 – double the contraction forecast earlier in April. FMCGs will have taken a knock across all markets and varying recovery periods, which also ought to be borne in mind. So PE firms need to revise their approaches to investor engagement, strategy and transparency to convince, secure and guide investor capital into emerging markets presently.

 

Finding the right quality asset

There is of course a definite need for macro analysis of the country your investment or acquisition target is stationed in. Along with the six different forces macro environments typically consist of – namely Demographic, Economic, Political, Ecological, Socio-Cultural, and Technological – under the current coronavirus circumstances additional consideration by investors and risk managers also needs to be given to the COVID-19 policies and responses being implemented by the countries these companies operate within, as well as the fiscal measures being implemented. Although these are particularly complicated and extraordinary variables to attempt to measure, their impact on GDP contraction as well as debt-to-GDP ratios within the countries concerned can potentially be forecast in the short- to medium term.

With this in mind, it’s worth identifying scalable entities with realistic potential for regional expansion where instilling a balanced measure of operational and strategic influence is possible at management and board levels. A recent example is PE firm Mediterrania Capital Partners, which focuses on growth investments in SMEs and mid-cap companies in North and sub-Saharan Africa, acquiring a stake in Akdital Holding, which operates five clinics in Morocco.

It’s important that liquidity management takes precedence over solvency, which often serves as an indication of top line growth. At the same time, one must also take into account worst-case scenarios within the markets one is investing in and plan accordingly for crisis scenarios, such as debt, liquidity options and operational costs that can be scaled back.

In addition, micro and macro risk management should be thorough, particularly in light of escalating trade wars between developed nations and instances of seemingly nationalistic legislation being passed that may be unfavourable to specific emerging markets and spur further GDP contraction. Furthermore, evaluation of local political risk and the potential for obstruction or intrusion at investment and operational levels should be borne in mind.

The lockdown conditions associated with COVID-19 have also significantly impacted logistics planning and provision, across borders to neighbouring states as well as overseas. Furthermore, we’re in a period of increased currency volatility which has a knock-on effect on export and import potential. However, such limitations create broader opportunities for PE firms to generate further value by concentrating greater focus on ESG in the markets in which they already operate. Such focus is typically undervalued, yet has the potential to generate greater revenue while ultimately attracting further investment – providing firms are willing to transparently evidence tangible progress..

 

PE and foreign direct investment scepticism

When entering and engaging with companies that have scalable investment potential in emerging markets, one should expect varying degrees of caution by companies in emerging markets, which is sometimes misinterpreted as protectionism. Historical injustices in many Sub-Saharan nations have understandably dented local confidence in foreign direct investment. Furthermore, companies will be wary of recurring instances where opportunistic investments by PE entities rendered relatively worthwhile returns for investors but created debt rather than any genuine value for the company concerned.

Therefore transparency and the ability to wear your PE credentials on your sleeve is paramount, such as evidence of accelerated revenue growth, increased capital expenditures and expanded profit margins in the financial reporting of your existing portfolio. If your portfolio is little more than smoke and mirrors designed to conceal debt as well, slowing revenue growth or capital expenditure as a percentage of sales declined and little evidence of revamped strategies and additional management perspective, then you’re setting yourself up to fail.

There will be continuing debate for some time to come as to whether reluctance to invest in emerging markets will be a PE stumbling block, given the hunt for yield. Thoroughly investigated company investment opportunities have to be afforded genuine investment value in terms of expansion and enrichment, not only for yields to materialise but also for the yields to be worthy of the investment itself. While now is the time for PE firms to begin putting in the groundwork, as much as an additional year, by conservative estimates, may need to be factored in before capital can realistically be deployed. But for those who carefully identify unwavering trends in emerging markets over the next six to 12 months and articulate genuine opportunities to investors, there is scope for the PE asset class to exhibit substantial growth over the course of the coming decade, while capitalising on the “good” companies blooming in “bad” economies.

 

Continue Reading

Magazine

Partner Events

Trending

Wealth Management2 days ago

DON’T RISK IT ALL WITH NON-COMPLIANCE

By Paul Sleath, CEO at PEO Worldwide   Did you know non-compliance costs more than twice the cost of maintaining or...

News2 days ago

BANKIA TRANSFORMS THE CUSTOMER AND EMPLOYEE EXPERIENCE WITH BIANKA BY IPSOFT

Developed with cognitive artificial intelligence, IPsoft’s conversational agent can carry out transactional tasks, perform different roles in customer service and...

Finance2 days ago

FIDUCIARY MANAGEMENT

by Devan Nathwani, FIA and Investment Strategist at Secor Asset Management   Defined Benefit pension schemes are one of the most significant institutional...

Business2 days ago

TOUCH-FREE AUTHENTICATION FOR ALL: WHY WE NEED A SAFER PAYMENT METHOD IN THE ‘NEW NORMAL’

David Orme, SVP, Sales & Marketing, IDEX Biometrics ASA   Ever since March, when the World Health Organization encouraged people to...

Banking2 days ago

WHY BANKS NEED TO EMBRACE OPEN SOURCE COMMUNITIES

Nikolai Stankau, Director Business Development, EMEA Financial Services at Red Hat, the world’s largest enterprise open source solutions provider.  ...

FINANCIAL MARKET FINANCIAL MARKET
Wealth Management2 days ago

FOR PE TO SNAP UP “GOOD” COMPANIES, THEY MAY NEED TO WADE INTO “BAD” ECONOMIES

By  Martin Soderberg, Partner at SPEAR Capital   There’s no shortage of global challenges for investors currently, especially for those...

Business3 days ago

THE BASICS OF BUSINESS FINANCE

When you’re starting your business, you’ve got a lot to be thinking about. You need to find affordable suppliers, market...

Business3 days ago

HOW THE IMPORTANCE OF E-COMMERCE PLATFORMS GREW DURING THE PANDEMIC

Never in history has the world relied more on the internet than during this Covid-19 pandemic. With governments imposing lockdowns...

Business3 days ago

UNBANKED AND UNCONNECTED: SUPPORTING FINANCIAL INCLUSION BEYOND DIGITAL

Darren Capehorn, Director, Icon Solutions   Many of us take it for granted, but accessing basic financial services is fundamental...

Banking6 days ago

MORE THAN REGULATION – HOW PSD2 WILL BE A KEY DRIVING FORCE FOR AN OPEN BANKING FUTURE

Ralf Ohlhausen, Executive Advisor, at PPRO   Whilst initially seen as simply a regulation exercise, the second Payment Service Directive,...

Top 106 days ago

TIME TO THINK OUTSIDE OF THE BLACK BOX

Mike Brockman, CEO, ThingCo   If you have the unbridled joy of parenting a teenager you’ll probably know what telematics...

Banking6 days ago

BANKING’S SECOND WAVE OF TRANSFORMATION: INTEGRATING THE CLOUD-ENABLED FUTURE BANK

Keith Pearson, Head of Financial Services EMEA, ServiceNow   The last six months have seen significant changes to the financial services landscape, with operational resilience, economic recovery, cost reduction and an...

News6 days ago

RISK AND INVESTMENT SPECIALIST, CARDANO, TAKES TO DOCUMENT AND EMAIL MANAGEMENT IN THE CLOUD WITH ASCERTUS AS IMPLEMENTATION PARTNER

Ascertus also providing document comparison tool, compareDocs    Cardano, a privately-owned, purpose-built risk and investment specialist, has chosen Ascertus Limited as its implementation...

Wealth Management1 week ago

HOW SALARY SLIPS HELP YOU UNDERSTAND TAX DEDUCTIONS ON YOUR SALARY

A salary slip is defined as a document that is provided by your employer which contains the breakdown of your...

Banking1 week ago

BRANCHES ARE THE HUMAN FACE OF YOUR BANK?

Sudeepto Mukherjee, Senior Vice President, Financial Services Lead EMEA & APAC Publicis Sapient   Branches have always played a pivotal...

News1 week ago

RISE IN E-COMMERCE FOR SMALL BUSINESSES IS A BIGGER RISK THAN JUST STOCK CONTROL

With consumer confidence in the high street at an all-time low, many SME shops and businesses have moved to online...

Finance1 week ago

TIME TO FOCUS ON YOUR ‘WEALTHBEING’

Tony Mudd, Divisional Director, Development & Technical Consultancy. St James’s Place   FIVE WAYS TO SAFEGUARD YOUR FINANCIAL FUTURE The...

COVID-19 COVID-19
Finance1 week ago

PAYROLL AGILITY IN THE CORONAVIRUS CRISIS – HOW FINANCE FIRMS CAN ACHIEVE IT

by Hannah Grimshaw, BPO Payroll Lead, Symatrix   The government has published guidance with regards to the next steps for...

Business1 week ago

WHY IT’S TIME TO ADAPT TO THE VIRTUAL WORLD: HOW TO MASTER ONLINE NEGOTIATIONS

By Tony Hughes, CEO at Huthwaite International, a leading global provider of sales, negotiation and communication skills development   Virtual...

News1 week ago

BNP PARIBAS PERSONAL FINANCE COLLABORATES WITH EXPERIAN AND ARYZA TO HELP CUSTOMERS THROUGH THE COVID-19 PANDEMIC

The consumer finance specialist will be using the Open Banking tool to help customers create an affordable payment plan based...

Trending