Bitcoin Gets A Rival - How Will It Fare?
A new alternative to bitcoin was launched in
U.K.-based Learning Enterprises Organization (LEO) is the
company behind the new CryptoCurrency. Traditionally it has been providing
learning services to the business community, which has even stretched to the
odd yoga session for company executives, but has now turned its attention to
LEOCoin.
Similar to the more established bitcoin, it has already
promoted the product to its current client base. The company therefore claims
it has 131,176 registered businesses ready to use LEOCoin, potentially making
it the “second largest digital currency” in the world. Its own exchange
LEOxChange will kick into life on April 2 but the coin will also be recognized
by existing exchanges.
“This industry (so far) has been like the Wild West,” Dan
Anderson, the co-founder of LEOCoin said at an event Wednesday morning, which
took place at the Tower
of London
The more popular bitcoin is a “virtual” currency that allows
users to exchange online credits for goods and services. While there is no
central bank that issues them, bitcoins can be created online by using a
computer to complete difficult tasks, a process known as mining.
The cryptocurrency has sparked interest among venture
capitalists on both sides of the Atlantic but
has also run into regulatory issues in many countries. Currency analysts have
also warned of its unstable nature and the Bank of England has also provided
reach of the hypothetical risks that it poses to financial system.
LEOCoin boasts that its currency based on newer technology
than its rival but Andersson admits that the two will essentially co-exist. He
also said that it would have greater usability and accessibility than other
cryptocurrencies. It provides instant transactions and no commission fee on
purchases, according to the press release, although sales will be subject to a
transaction fee.
Bitcoin daily transaction volumes are still dwarfed significantly by credit card transactions, according to industry website coinmetrics.com, and are also lower than more established payment systems likeWestern Union and Paypal. A number of so-called
“altcoins,” or alternative coins, have sprung up alongside bitcoin. Dogecoin,
which was initially started as a joke in 2013 and is based on an internet meme,
is still the sixth largest digital currency in terms of market capitalization,
according to www.coinmarketcap.com.
Perhaps more worrying is that the same poll showed that
around 70 percent of respondents were “not at all likely” to accept a digital
currency in the future. Dan Anderson called this an “opportunity” rather than a
challenge and underlined that it wasn’t trying to win over current bitcoin
users but was trying tap into the global SME sector using its basis as a
business solutions and learning provider.
Bitcoin daily transaction volumes are still dwarfed significantly by credit card transactions, according to industry website coinmetrics.com, and are also lower than more established payment systems like
Jon Matonis, a founding director of the Bitcoin Foundation,
an organization aimed at promoting the cryptocurrency, is lukewarm on the
addition of a new “altcoin”, telling CNBC via email that there are too many of
them.
“What matters is the computational power and strength of the
network,” he said. “Bitcoin’s lead via the network effect is very strong.”
In a survey designed to highlight the borderless nature of
cryptocurrencies, LEOCoin commissioned a poll of 1,000 senior decision-makers
from small- to medium sized businesses. It revealed that 50 percent of
respondents thought transaction fees were a key concern when doing business. Of
those surveyed, 43 percent who transacted using debit or credit cards were
worried about the associated costs, the survey said.
Let’s Be The Part Of Largest CryptoCurrency
