For a correct, balanced and complete understanding of the value of a cryptocurrency, a potential investor, in order to avoid future financial losses, must scrupulously study various factors that indirectly and directly affect the course of the cryptocurrency.
Factors that affect the development of the Cryptocurrency market
The market of decentralized e-currencies is developing rapidly, experts explain such a great potential by several factors: first, mass excitement, directly related to the dynamic appreciation of assets, and the investor is afraid of losing his possible benefit.
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First, it is necessary to study the factors that make it difficult and impossible to assess the liquidity of the cryptocurrency and try to predict the market trends. A distinctive feature of Bitcoin from other classical currencies is that its possible amount is limited, it is in the future that should predetermine the confident status and attractiveness of cryptocurrency from the investment point of view.
The stable price growth of the coin is influenced by many factors, the main thing considered to be demand for Bitcoin, when it and fixed offers grow - the value of the cryptocurrency also rises. Also, do not forget about the speculative mood in the market.
Already, Bitcoin demonstrates phenomenal growth, only in 2017 its price increased by 1300 percent, continuing to grow, and the share of this coin in the market of cryptocurrency is 35 percent. By capitalization (a fantastic $ 250 billion), Bitcoin far exceeds the capitalization of many global corporations, while the total cryptocurrency market in 2018 is approximately $ 570 billion.
Speaking of warnings, you should understand that buying e-currency does not work as if you were acquiring the assets of a company where the holder of the shares gets his share of the enterprise (depending on the number of securities he has). Yes, and determine the current value of shares is much easier, because the company publishes data on its losses and profits in the balance sheet.
Therefore, investing in cryptocurrencies, you do not really invest in these assets, they are not controlled or supported in any way. By purchasing tokens, the investor does not receive a stake in the bitcoin blockchain, because without any influence and control from the state, any centralized interference in the movement of the coin up or down is excluded.
Strong points of bitcoin
"Validol" jumps in the Bitcoin course not all investors will like. Those who prefer stable and predictable investments, for sure, will try to bypass the market of cryptocurrency by the side. For most potential investors wishing to risk and increase their capital, the topic of decentralized digital currencies is extremely interesting, and they gladly immerse into it.
After all, there are a lot of key aspects of Bitcoin, from basic ones: no additional issue is possible; independence from any central banks of many countries; extremely low interest on transactions, it is much less than the exchange in the bank; It is impossible to monitor and control other people's savings, which excludes the possibility of their theft, confiscation, taxation.
It is difficult to predict whether Bitcoin will completely replace conventional money, whether it will become the world's main currency of the future. It is possible that two or three electronic coins will join the Bitcoin, which at that time will have sufficient capitalization.
Perception of bitcoin in the world
The planet gradually, in a positive direction, changes its attitude towards the digital currency. Today, all countries of the world can be conditionally divided into three camps in relation to the cryptocurrency.
The first states - the "pioneers" of legalization and introduction of cryptocurrencies in their markets and stock exchanges, mainly these are progressive countries, are economically and financially well developed, already here one can freely acquire and pay for cryptocurrency. Now, the country that fully allowed cryptocurrencies is Japan.
The second echelon is friendly countries, including most of the world's states. Cryptocurrency in these countries has a different status, but, as a rule, the attitude is loyal and supportive.
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The third camp is, as a rule, the countries of the third world, with a weakly developed economy and constantly depreciating the national monetary unit. The main argument for the prohibition of cryptocurrency is the impossibility to track transactions in Bitcoin, which, according to the authorities, will help to evade taxes, drug trafficking, money laundering.
In fact, for such countries, an excellent solution would be to switch to one of the main cryptocurrencies. Having high potential, blockchain technologies and Bitcoin can significantly support economic growth, create conditions for the development of entrepreneurship and trade.
Editor: Yuliya Soroka