Category Archives: Crypto.com

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Bitcoin Could Be Death Blow for Credit Card Use

The use of digital currency could pose a real threat to credit card companies by pushing down their often exorbitant fees or even by driving some out of business.

Even cash is making a comeback in some areas as the public becomes increasingly tired of hearing of credit card companies’ huge profits on the back of poor quality service and high fees passed on to the customer.

As an illustration of this frustration, recent system crashes by both Mastercard and Visa recently brought a flood of complaints from Bitcoin loyalists. At the time, Financial Times reported that regulators were “already intensifying their scrutiny of apparent fragilities in the payments system”.

With growing competition across the retail sector, alarm bells should be ringing for the likes of Visa, Mastercard and Amex. Bitcoin is already beginning to look like an obvious replacement, shredding credit card fees and offering quick and transparent payment solutions. Ian DeMartino writes in ‘The Bitcoin Guidebook: How To Obtain, Invest, And Spend The World’s First Decentralized Cryptocurrency‘ that merchants also need to wake up:

“From a merchant perspective, Bitcoin has the advantage of not having large fees from credit card companies that cut into profits… For merchants with small profit margins, that fee could be up half or more of their profits for each credit card transaction.”

As well as a boon to the merchant’s business, power can be shifted away from corporations with ungainly profits back into the hands of those who need the service: the consumers. Kris Marszalek, co-founder and CEO of Cypto.com, sees the current financial climate as perfect timing for a major change in perception by both merchant and consumer, arguing:

“The banking and payment sector is ripe for disruption… The entire credit card business model is focused on wringing money out of people who can’t afford credit card debt: late fees, penalties and high-interest rates.”

The opportunities for simple cryptocurrency payments outside of the credit card system are endless, whether it be payment by fingerprint recognition linked a crypto wallet or a linked crypto debit card. As Arran Stewart, co-owner and CVO of Job.com points out, all that’s stopping this becoming a reality for the general public as a whole is the stability of the cryptocurrency market. This he suggests, “will come in time and as transaction volumes continue to increase”.

Jonah Lehrer, author of ‘How We Decide‘, is not so certain, claiming that people are attached to their credit cards:

“When you buy something with cash, the purchase involves an actual loss — your wallet is literally lighter. Credit cards, however, make the transaction abstract, so that you don’t really feel the downside of spending money.”

Fair comment, but until now the world has lived with a card versus cash scenario. With digital currencies, this is set to change.

 

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Monaco Purchases Crypto.com Valued at Least $5M, Possibly Priciest Crypto Domain Name in History

Cryptocurrency payments company Monaco has purchased the highly-coveted domain name Crypto.com for an undisclosed amount of money. Domain name selling expert Niko Younts says that Crypto.com is worth between USD 5 million and USD 10 million, possibly making this the largest crypto-related domain name purchase in history.

Other examples of extremely expensive crypto domain name purchases are Eth.com which sold for USD 2 million, Btc.com which sold for USD 1.1 million, and Block-chain.com which sold for USD 1 million. Ethereum.com has an asking price of USD 10 million, and Blockchain.us is on sale for USD 3.45 million. As of now though, it would seem Crypto.com is the most expensive crypto-related domain name purchase in history based on expert analysis, although this can’t be confirmed since Monaco hasn’t disclosed how much it spent on the domain.

Crypto.com was registered in 1993 by Matt Blaze, a professor at the University of Pennsylvania who is on the board of directors of the Tor project, which is an anonymous and cryptographically secure platform for surfing the internet. This domain was purchased 16 years before the genesis block of Bitcoin.

Matt Blaze actually did not want to sell Crypto.com despite numerous offers in the past. In September 2017 and January 2018, he posted on Twitter that he was not considering offers for Crypto.com. The CEO of Monaco, Kris Marszalek, says the deal wasn’t about money for Matt Blaze, or Crypto.com would’ve been sold a long time ago.

Monaco offers Visa-branded cryptocurrency debit cards. These cards are connected to a cryptocurrency wallet that can hold several different cryptocurrencies, and these cryptocurrencies can instantly be converted to fiat at market rate when withdrawing cash from an ATM or making a purchase from a store.

Since these debit cards are backed by Visa, they are accepted almost everywhere. This is seen to be beneficial for the global spread of cryptocurrency, and is much more efficient and cost-effective than cryptocurrency ATMs which charge high fees. In fact, some of the Monaco crypto debit cards offer cash back from 1% to 2%.

Monaco has a native cryptocurrency, MCO, which is quite active with daily trade volume in excess of USD 20 million and a market cap of USD 138 million, indicating that the use of Monaco’s platform is already becoming widespread.

 

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The post Monaco Purchases Crypto.com Valued at Least $5M, Possibly Priciest Crypto Domain Name in History appeared first on BitcoinNews.com.