Cryptocurrencies: ICOS lose credibility

Regulation is one of the main challenges for blockchain advancement

An ICO – from the English term Initial Coin Offering (initial coin offering) has been one of the mechanisms used in the digital universe to attract investors for virtual business projects, such as the launch of a new cryptocurrency. Seen, initially, as a way to revolutionize the financial system, ICO processes, however, have lost credibility because of fraud, a situation that led Google to disclose, recently, that it will restrict ads from ICOs, exchanges, wallets cryptocurrencies, among other related products and services, as of June 2018.

This question was addressed by Dennis Zasnicoff, author of the book "Bitcoin Idiots", blockchain specialist, business consultant and who develops training in Florida (USA), during an event in São Paulo. “It is not easy to consolidate a currency in the digital market, either through competition between them, or through the action of people in bad faith. Bitcoin has consolidated itself because it has built an ecosystem, it has support, acceptance, development, history and number of users. Another relevant cryptocurrency, currently, is Ethereum, but we can also mention Bitcoin Cash, IOTA, Litecoin, Moner and Ripple – each one of them bringing a very clear differential in relation to Bitcoin”, he analyzes.

Zasnicoff also highlighted that regulation is one of the main challenges for the advancement of blockchain in Brazil and in the world. “This technology represents a rupture and the lack of direction encourages the action of bad intentions, who are no longer used to worrying about the laws. The bitcoin blockchain has a competitive advantage as it is one of the first on the market, has established rules, community support and open source. Today we see new cryptocurrencies that promise faster transaction processing speed, but this can create vulnerabilities,” he explained.    
    

 
“This event was very well organised. Bitcoin brings a similar disruption to what the internet caused a few years ago. It is a currency, an asset that is here to stay and, as Dennis said, it takes awareness and education. With people more aware of what bitcoin is, we will see that, soon, it will be used to buy a cup of coffee”, said Arnaldo Anselmo, from TNB Consultoria e Participações.
 
Vagner Baptistelli, from Union TI, highlighted that the event was extremely enlightening. “I have been following bitcoin and blockchain for some time and this evangelizing role that Dennis is playing makes a difference, as he uses accessible and objective language. Lack of knowledge is still one of the obstacles to the expansion of these new technologies”, he evaluated.   

Link to ebook The Bitcoin Idiots.