CRYPTOCURRENCIES AND CREATIVE FINANCE



Over the years, cryptocurrencies have been considered one of the most profitable investment opportunities, becoming increasingly popular.

You will find our experts to assist you with all your investments and protect you in this new and thriving market.

A cryptocurrency is a digital asset designed to function as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional drives, and verify the transfer of assets.

 A new medium of exchange, a digital currency was born, which has become a global phenomenon.  It has rocked the financial sector with the new paradigm of how value can be exchanged in completely decentralized, secure and anonymous means.

In a few years after its inception, Bitcoin has seen an exponential increase in its value, rising from USD 1 in 2010 to nearly USD 20,000 in 2017, taking center stage on the global stage and the whole world has had to take note and accept this.  escalation so much that, in March 2018, the word “cryptocurrency” was added to the Merriam-Webster Dictionary.

In addition to Bitcoin, there have been many cryptocurrencies that have begun to emerge, such as Ether (ETH), which has pushed the boundaries of what a cryptocurrency can do.

The advent of Ether and Ethereum as a platform paved the way for a new generation of applications based on the principles of “smart contracts”.  A digital and decentralized contract for use cases in all sectors.

Cryptocurrencies have certainly established themselves and disrupted the way we can do business today.

There are currently 179 cryptocurrencies listed.

There are three main reasons why cryptocurrencies are entering the mainstream:

in the first place there is the basic framework on which they operate, decentralized and without intermediaries.

This helps address some of the operational inefficiencies, brings cost benefits, and all transactions are anonymous, fast and kept secret.

Thanks to the existence of the P2P network, which manages transactions, purchases and sales of these currencies, they have no geographical boundaries.

This means that the trades are literally borderless, no exchanges or forex rates apply. 

A great way to cross borders without paying for currency arbitrage and centralized exchanges.

Second, the underlying technology – Blockchain, Cryptography and Distributed database / ledger.  Blockchain is the P2P framework that allows you to create and record cryptocurrency transactions using one-way hashes and authentication mechanisms.

This allows you to complete the various transactions in total anonymity in maximum privacy even if these are available and listed to the public on a ledger.

Thirdly, cryptocurrencies are an increasingly emerging and current phenomenon, practically the new generation of applications that exploit innovative means of payment and exchange value.

Even governments are indulging in their own currencies, as Venezuela pioneered Petro, a cryptocurrency backed by its oil and mineral reserves.

Creative Finance

What is creative finance and how does it work?  Let’s find out the meaning of the term together through an operational definition.  By creative finance we generally mean a set of financial techniques and maneuvers aimed at resolving complicated events or situations that appear compromised in a short time.

How creative finance works

There are several creative strategies used in finance to solve seemingly unsolvable problems.  For example, financial instruments can be used to break up and recompose a fund in order to reconvert its purpose and give it new solidity.  However, the meaning is not always used in a positive sense.  In fact, it is sometimes also associated with operations at the limit of legality and transparency, carried out with the aim of concealing elements that at first sight could reduce the attractiveness of a security or a financial instrument.

Creative finance in commercial networks

Sometimes the term creative finance is used to indicate financial intermediation activities aimed at selling illiquid instruments or in any case difficult to place on the market, because they lack intrinsic value.  These are transactions that expose the buyer to significant risks of bad debt or loss, to which it is therefore necessary to pay the utmost attention.



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