Total value of Crypto currency market has surged more than 1300% this year, 2017 has been a landmark year for entire cryptocurrency market as total market cap of crypto currencies which started the year at valuation of $17.7 billion has now reached the level of $280 billion, which makes gain for this year around 1300%, which is staggering return over investment. There are many reasons behind this massive rally in Crypto markets.
Many analysts cited growing visibility as a major reason that the digital currency market has been rising in value.
This increasing visibility is illustrated by Google Trends data, which shows that search interest in the term “Bitcoin” reached an all-time high on November 12. The buzz and hype in the market is increasing traffic as more of the public seeks to understand this market and wants to know about the possible sources to gather information about latest developments in the market. The digital currency market has drawn some very robust inflows this year, and this in turn has been reflected in the total market cap of these assets. Several analysts noted that a rising number of institutional investors have been getting involved with cryptocurrencies.
Retails vs Institutional Investors in Crypto Market
There are currently 2 types of investors in the Crypto market, Retail investors and Institutional investors, as far as retail market is concerned, retail investors from China, Korea, Japan drove the Crypto Market in first part of this year, but real deal came from institutional investors in second half of this year, still counting though, Institutional investors came from United States, according to the latest data, more than 100 Hedge Funds in US alone are focusing solely Crypto Currencies.
The rising number of Initial Coin Offerings (ICOs) has caused the digital currency market to gain value, doing so in two separate ways.
First of all, these sales create new value for the cryptocurrency market, as tokens are sold and given monetary value. Second, participating in ICOs involves exchanging Bitcoin and Ether for newly created digital tokens, which in turn provides significant headwinds for these major cryptocurrencies.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share