GH capital’s (OTCQB:GHHC) stock price surged by a whopping 106.35% in one day after the announcement of Bitcoin payment processing beta launch in early 2018. The share volume has surged drastically to 481.5K that normally stays below 20K. This certainly explains the increasing positive expectations towards Bitcoin and other Cryptocurrencies. GH Capital’s subsidiary clickdirectpay, currently available in Europe offers online payment processing services, the company is seeking to expand these services to the global customers by offering Bitcoin payment processing services that are more advanced, cost-efficient and secure. The adoption of Bitcoin payment processing across the globe is expected to have a continued positive impact on the share price going forward.
Source: Yahoo Finance
The Strength of Decentralization – potential hurdles for Cryptocurrencies
Growing positive sentiment of cryptocurrencies due to their advantages is propelling the growth of these digital currencies. The concept of decentralization is protecting this new generation currency from regulators and governments. Leaving away unnecessary sub-processes, delays, tracking and exorbitant charges that can be avoided. Though the growth of these currencies is extremely positive in the past one year and very volatile before one year giving rise to some cautions from industry experts and some attributing this is the future of online buying due to its unique characteristics and some marking this as a Ponzi scheme. However the underlaying foundation – decentralization, makes this digital currency dependent on everyone’s participation in the ecosystem for growth makes it difficult for governments to find a reason to bring this ecosystem into broad regulation.
The need for regulation only arises when there is too much of power and control in few organizations or parties, that is possible to influence the product’s and/or service’s features and pricing for their own profit. The chance for concentration of control between few parties is unlikely in the Cryptocurrency model as it is structured as a decentralized platform. Making it a structured and already well-organized ecosystem that does not need significant structural changes.
As this awareness increases, the perceived high-risk of volatility involved with trading and using these currencies will sink in to the investors and customers using these digital currencies.
Moreover, it will only cost economic growth for governments to bring regulations into the Cryptocurrency ecosystem that is well structured and benefits everyone involved.
This outlook strengthens the case for the growth of Cryptocurrencies and the need for global bitcoin payment processing solution(s). With a global bitcoin payment processing solution, the growth prospects of GH Capital will turnaround positively and it will have vast growth implications on the future of the company.
The idea of one stop global payment processing solution has broad positive implications to the customers compared to the existing payment processing solutions that are cost-inefficient and not secure compared to blockchain.
Traditional payment solutions vs Cryptocurrencies
Paying or transferring money to sellers and/or friends or relatives is an exhausting process through traditional payment solutions. We need to have receivers account details and bank details, further the costs are very high. There will be processing charges and cross-currency charges, sometimes these charges make more than the money you are sending or receiving. In addition, there are restrictions to paying to customers in some countries and the compatibility issues related to the use of financial products.
Cryptocurrencies on the other hand does not go through a central intermediary, any transfers or payments through this digital currency is instant. All you need is recipient’s wallet address and costs can be decreased to as much as Zero. It is already proven that blockchain provides superior security and privacy than traditional payment solutions.
Between 2014 and 2015 investors put more than $800 million into blockchain related start-ups, this has increased drastically in the past two years. In August 2017, Goldman Sachs estimated that over one billion dollars had been raised through Initial Coin Offering (ICO) based on Cryptocurrencies exceeding traditional seed and angel funding in 2017. This further validates growing confidence of investors.
International Monetary Fund, managing director Christine Lagarde recently warned the world’s central banks and regulators that:
“we are about to see massive disruptions” as a result of cryptocurrency and distributed ledger technologies”
The IMF head further described these technologies as having the potential to increase financial inclusion and advocated the adoption of Cryptocurrencies in favor of cash.
Those who describe this as a Ponzi scheme or some something similar are not understanding the extent to which the Bitcoin and other digital currencies have grown from their inception. The volatility of this currency value compared fiat currency may frighten some but that volatility might be due to investors jumping in and jumping out suddenly in big volumes. As the scale of investors participation increases the impact few investors have on the Bitcoin price will decrease, the stability of this currency’s price will increase.
By adopting Bitcoin payment processing, GH capital is paving way for its future growth. There is no need for much noise to say that the cryptocurrencies are the future of digital payments when the IMF’s head describes it as a disruption to the financial industry.
What it all needs is time and investors’ confidence that is available in abundance. Not having a payment solution and currency that is instant, secure and cost efficient (less than traditional payment processes) in the current technologically advanced world is like living in today but having a financial product that functions like the age-old machine that takes lot of energy and time to produce a product. Nobody likes that old machine but we continue to use it because we are used to it and believe it. It only takes some time and energy for the Cryptocurrencies to become more popular and used on a regular basis. Early investment into GH capital has the potential to reap substantial returns in the long-term.
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