Connect with us

Cryptocurrency

How does crypto gain value – A Complete Guide

Published

on

How does crypto gain value - A Complete Guide

Cryptocurrency; the likes of Bitcoin, Ethereum, and other digital currencies keep gaining further instigation every now and also. Still, this has created a terrain of one analogous question which is how exactly does this currency gain value? This post has been created to bandy every nitty-gritty of how cryptocurrencies gain value. 

Table of Contents

What’s Cryptocurrency? 

Cryptocurrency is defined as a digital currency that uses cryptography to cover itself against counterfeiting. Since cryptocurrencies are generally not issued by a central government, they’re vulnerable to government intervention or manipulation. 

Digital or virtual currencies as they may be called that uses cryptographic technology are known as cryptocurrencies, therefore allowing their druggies to make secure online payments without the help of external interposers. 

The word” cryptocurrency” in the environment refers to a variety of cryptographic ways that cover these records, including mincing, public/ private key dyads, and elliptic wind cryptography. 

Read more about Cryptocurrency here.

The first reported cryptocurrency to capture the public’s imagination was Bitcoin, launched in 2009 by an individual or group known as Satoshi. As of September 2015, there were about 14.6 million Bitcoins in rotation, with a request value of $3.4 billion. The success of bitcoin has produced several contending cryptocurrencies similar to Litecoin, Name Coin, and PP Coin amongst others. 

To you as an investor, it can be veritably complicated to know if a particular currency is going to cure or fall in price or gain further value over time likewise different when it comes down to assaying why a specific cryptocurrency earnings value and this is one important point to take notice of as an investor. Some cryptos may be in need of rebranding or pivoting as new technology emerges as its main use case; others may have an extremely strong inventor platoon working on new systems, and others still may be backed by large companies that can insure their long-term success. 

Related  Tips to escape the cryptocurrency mistake that could blow up your account

What makes cryptocurrency gain value 

Just like every other asset across the globe, the price of cryptocurrency also increases if distinct factors are put into place. The price of cryptocurrency increases if there are more buyers and lower merchandisers in the request, thereby making the price upswing. When there are more buyers, the price of crypto will increase. Other factors which may lead to the increase of cryptocurrency but are not inescapably connected to the demand and supply. These factors include the actuality of new partnerships, exchange-traded finances (ETF), and hype from investors and the media. 

Demand can greatly increase as a particular program becomes given in the long run making its mileage increase coincidently. Taking an apt from 2021 when investors began buying and storing Bitcoin, it was seen that the price of bitcoin swung up suddenly thereby making the demand increase greatly. 

The distinctive point of a good currency 

With the PRD and FS rule, the pronounced point of any good currency will be recognized and this section has been prepared to carry you on a similar trip. The rules include:

 PRD 

  • They’re portable and fluently mobile( illustration CBDC) 
  • They’re recognized and approved by people 
  • They’re durable and not perishable 

FS 

  • They’re fungible and commutable
  • They’ve stability and aren’t likely to be altered significantly 

Factors that determine cryptocurrency value 

 Applicability of the Asset 

Cryptocurrencies that have established use cases, like Bitcoin as a store of value or Ethereum as a blockchain platform for dApps thus can gain further value over time. 

Related  Top Crypto Niches for Blogging & Youtube

Development of the Asset

One factor that can have a big impact on a cryptocurrency’s price is the progress of development brigades behind the asset. However, also this can affect an increase in price If a team is working on an important new point or protocol. 

Demand for the Asset 

The alternate factor that determines the price of a cryptocurrency is the demand for the asset. However, this can also affect an increase in price if there’s a large number of investors who believe that a cryptocurrency has value. 

The threat of the Asset

Like any other asset, the price of a cryptocurrency can increase or drop depending on the position of threat associated with a particular currency. Also, investors will vend their effects if the price of a cryptocurrency is too high relative to the perceived threat of the investment and this can affect an increase in demand from investors looking to get into the asset If the price is too low. 

How to calculate the price of a cryptocurrency 

While the price of the cryptocurrency can be intertwined with several factors, one crucial factor to determine the value of cryptocurrency is to calculate its price grounded on demand and supply. The easiest way to discover the recent force and demand for a cryptocurrency is to look up the price on popular exchanges. These exchanges will display the current price, the quantum traded, and the quantum of holdalls.

From this information, we can deduce that investors can calculate the total force and the quantum of demand for the asset. Investors can also use this information to find the price per unit of the asset. The price per unit can help investors calculate the price of a cryptocurrency if they’re looking to buy a certain quantum of the asset. The price per unit of the asset can also help investors determine if they should be looking to vend their effects as the price drops below certain situations. 

Related  10 Cryptocurrency Investment mistakes to avoid (don't be a victim of #3)

Deciding on whether to buy a cryptocurrency now or stay for an increase 

Investors who have decided to get into the growing request of cryptocurrencies can acquire a certain asset at press time. On the other hand, investors who want to stay and see if the price of a certain cryptocurrency will go grand before buying can do this as well. One of the biggest miscalculations that investors who buy a cryptocurrency right down can make is to buy at a price that’s too high. However, also this can affect the affluence of new investors which may drive the price in the short term If an investor buys a certain cryptocurrency at a price that’s too high. Alternatively, if an investor buys a certain cryptocurrency at a price that’s too low, also this can result in an influx of investors. While Investors who buy a certain cryptocurrency at a price that’s too high may miss out on big gains if the price of the cryptocurrency goes up in the future. Investors who buy a certain cryptocurrency at a price that’s too low may not be suitable to vend the asset for a price that covers their original investment cost. 

Conclusion 

Though cryptocurrencies are a relatively new asset class, they are quickly growing in popularity among investors and trading partners. If you would like to get into the cryptocurrency market, you can start by researching the various types of assets available, understanding the factors that affect their value, and preparing yourself for the volatility that is sure to come as cryptocurrency markets continue to grow.

Shares
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Blog

Minima Project Review and Incentives – The mobile blockchain

Published

on

Minima Project Review and Incentives

In this article we are going to look at the Minima project which is going to launch in the near future, we will look at the project functionality, how you can participate in it by running your own nodes, and of course receive tokens for this before the launch and we will look at the project’s future and what is about to come, so you get the information before everybody else does.

Table of Contents

What is Minima?

Minima is a blockchain protocol reimagined and re-engineered, Minima is mobile-native, it will have the ability to connect smartphones and IOT devices to create the largest most decentralized network possible, it is designed to be complete, scalable, quantum-secure, compact, and future proof fit for mass adoption.

Minima Website

Introduction

The beating heart of Minima is a new user-centric proof-of-work consensus that unlike any other proof-of-work blockchain has removed the need for centralized miners instead Minima uses a collective power of collaborating mobile phone users to provide the proof of work needed to secure the chain.

Every device on the network will run a complete node and share the work. Think of Minima as an army of ants working together compared to other proof-of-work blockchains which are like a few lumbering elephants. In fact, the protocol is small enough that a complete node can run in full on a mobile phone using a similar amount of energy as a regular messaging app making it more efficient and more sustainable than other proof-of-work blockchain protocols or legacy network solutions.

Minima is decentralization in the purest form giving equal power to all users rather than select few, it is a paradigm shift in blockchain and decentralized computing, whilst there have been attempts to create mobile hardware that supports blockchain technology until now there hasn’t been a blockchain designed for existing devices.

Minima is a protocol solution that will have the ability to integrate into applications on mobile and IOT devices, each device will be an equal participant in the network enabling a new world of decentralized mobile consensus that has never been seen before.

It is designed to be scalable and interoperable with layer 2 technology such as lightning and sidechains and will have the ability to run native tokens on the network put simply it will allow people across the world to create, build and access smart contracts decentralized applications and products across multiple use cases for e.g IOT, finance, utility content and the sharing economy having been in development since 2014.

Minima has recently undergone a full code audit by Swisscom blockchain AG achieving a 100% pass rate along with a successful test net run over three continents because the protocol is mobile native, the go-to-market strategy is to work with the mobile telecommunication industry to create a tokenized systems for data voice and SMS replacing their inefficient outdated systems.

Related  Top Crypto Niches for Blogging & Youtube

This allows mobile telecommunication companies to provide data access in new ways to better serve and attract customers, each mobile operator will be able to issue their own custom tokens on the Minima network and as Minima will run tokens natively on its blockchain every token transaction will work to support and secure the network.

The opportunity for Minima to run more complete nodes than any other blockchain would, making it the most decentralized and the most complete network in the world building the foundation for the next generation decentralized internet.

Protocol Layers

The way the blockchain of Minima is going to look like is that it’s going to consist of two layers, layer 1 which is called Minima, and layer 2 which will be called Maxima.

Minima is basically a layer 1 solution for the blockchain which will be extremely decentralized and secure but because of the high decentralization and security they will need to sacrifice the scalability so basically fast and cheap transactions this layer because of the blockchain trailer which we’re having right now it’s impossible to pick all three of the blockchain criteria because the technology is not just there yet.

Blockchain scalability trillemma

Basically, we’ve got scalability, we’ve got security, and decentralization as they say pick two you like the most. So, layer 1 blockchain of Minima is security and decentralization, so the blockchain is going to be really secured. The second layer on the other hand or the layer 2 maxima is going to be infinitely scalable really fast transactions and with free transactions also, for running smart contracts, Dapps on the Maxima platform and minima platform of course.

So basically, these two layers are going to be interconnected inside the blockchain and the blockchain will be highly distributed and decentralized, and secure with fast and free transactions.

Minima functionality

To understand how these two layers will be interconnected to each other and how they are going to work, we need to understand how the consensus is going to work. Let’s first start with the example of bitcoin and if we keep it really short then we can imagine bitcoin as a big distributed ledger, basically, there are a lot of nodes that validate the transactions which we’ve just seen and every node is keeping a record of the whole blockchain and every time somebody in the blockchain is making a transaction every node needs to record it and pass it over to the other nodes and basically every node needs to record it.

This is why the bitcoin blockchain weighs like tons of gigabytes, now it’s a lot of information because of the transactions. They don’t go anywhere they are just storing the information and the bitcoin blockchain is really slow because they need to exchange the data between all the validators and all the nodes.

Related  Why crypto is collapsing right now

The way the Minima blockchain is going to work will be a little bit different, it will also use the proof-of-work consensus mechanism but combined with the proof-of-history consensus mechanism and this basically means the way it is going to work will be best seen, for e.g we want to make a transaction from our wallet into a different wallet and before we can send the transaction our device may be a mobile phone or maybe a PC needs to make a little bit of computational power so basically proof-of-work for the network and only after this we may send our transaction as a part of this proof-of-work or the energy that we used up will go into fueling their transaction on layer 2.

Sending our tokens to the other wallet, another part of the work is going to go the layer 1 for securing the whole blockchain and for finalizing the transaction in the finished layer 1 blockchain of the Minima. This type of consensus assures that every user at least every active user on the blockchain needs to make some proof-of-work over time, so the hash rate of the blockchain is distributed evenly between all the users and as we know or as we understand from the beginning of the article, the amount of the hash rate in the blockchain is not the most important thing, of course, it is important so there is no 51% attack but it’s also just equally as even not more important how this hash rate is distributed to 51% because if like 51% of the hash rate is allocated to one miner that’s not really secure.

The more the hash rate is distributed inside the blockchain the more it is decentralized and the higher the security. The best and the simple way to imagine how the minima blockchain is going to work is to imagine bitcoin where we’ve got like a book and the same copy of the book is being distributed between every node or every full validating node on the bitcoin network, with Minima we can imagine the same book but not every note has this book, every note has only one single page from this book and all other pages are distributed between the network.

How to get Minima Tokens?

This is the most interesting part of this article and below is the tokenomics for Minima project.

Minima Tokenomics document

A really important thing to note is that Minima token will not be used for paying for transactions just like ETH on the Ethereum blockchain, and it’s not going to be used for staking or anything similar. The whole value of the token is going to come from its decentralization and high security which will raise the demand for this token.

Related  Bear Market Investment Strategy

There is going to be a fixed supply of 1 billion Minima tokens and at the launch, the Minima protocol is designed to be completely finished requiring no future hard fork. This basically a project which will be completely done once it is in the market and once the tokens are there and it will have no updates, no future hard fork just because it will really be hard to force a hard fork if 51% of the users do not agree to the hard fork.

The other important thing is that all the Minima tokens will be distributed to the users at the launch of the project and once the project launched we will only be able to get the token from the market basically just buying them off an exchange and below is how the tokens will be distributed as contained in the tokenomics document):

  • Development grants: 5%
  • Team & Advisors: 15.85%
  • Seed: 21.56%
  • Private A Round: 10%
  • Ecosystem: 1.59%
  • Community incentives: 30%
  • Public Sale: 16%

Link to download Minima Tokenomics document: https://docs.minima.global/minima_pdfs/Minima_Token_Economics_2022.pdf

How do I get involved?

Create your incentive account here. Use my invite code: HDCFTLDK

How many Rewards can I earn?

You will earn 1 x Minima reward each day. These rewards will be added to your balance daily. You can also earn rewards by finding bugs as a tester, participating in one of the test cycles. Let one of the team know in Discord if this is of interest.

What equipment do I need?

To participate, you will need an Android mobile, PC, Mac or Linux. Minima currently doesn’t run on iPhone/iOS, but this is on the future roadmap.

Minima contact details

The best way to learn more and ask questions is to join our community channels below:

Conclusion

All considering the blockchain itself, Minima is going to be a project and a blockchain with Maximal decentralization and also with really fast and free transactions also supporting smart contracts and decentralized applications while maintaining high security and again really high decentralization layer.

The projects is still in its early stage and its typical in all these blockchain projects and stories if we start participating in a blockchain and solve that early on like for example; half a year before its launched the rewards are pretty great at the end but we need to wait for a little bit time.

Notice: We put a lot of hard work and research before writing this article, if you must copy make sure you link back with a do-follow link.
You will be reported to DMCA and other relevant authorities if you copy this article and ignore to link back to the original source.

Shares
Continue Reading

Cryptocurrency

Why does cryptocurrency always crash on weekends?

Published

on

Why does cryptocurrency always crash on weekends

Introduction

You might have noticed over the past few weeks certainly if you’ve gotten into crypto for the first time, why do weekends always suck for crypto? What is going on? Why the weekend? You know stock market guys get to go home on a Friday night they go to the bar and they’re done for the weekend. The markets are closed, and they get to enjoy their families. But crypto traders are always writing crazy anxious weekends over the past couple of years. That’s how it’s been.

Well, there are a couple of reasons for this. Like why exactly does crypto go crazy during the weekends? There’s a number of reasons I’m going to go through them right now. 

The reasons for weekend crypto volatility are:

1. There just are fewer trades happening.

Basically, when the volume is low, the same trade size can move prices a lot more so people aren’t trading much and then when you have a whale that comes in and makes a big purchase on the weekend or dumps a lot of coins on the weekend that moves the price and that also moves the market, and also we should remember that crypto Bitcoin is only 12 years old.

It’s a very young property, currency, whatever you want to call it, I call it property, some call it currency, and remember; not all of these coins have been minted yet. So price fluctuations like that can move markets substantially. That’s when somebody like Elon Musk can get on the microphone and say something on Saturday and move the market about Dogecoin or he can get on Twitter and make a comment and it moves the entire markets.

Related  5 skills needed to become Blockchain Developers

That’s way more difficult to do when you have the massive amounts of volume that you have with the stock market.

Biggest Price Swings Happen on Weekends

2. Banks are closed.

If you want to get money into your crypto wallets and start doing some trades, you’re just not going to be able to if you want to send a wire you’re probably not going to be able to do it until Monday morning.

So overall, there’s just less trade happening on the weekend. You’ll also notice something interesting happening on Sunday nights, that’s when a lot of the volume starts to come into the market. So around 8:30 am or so at night is when you start to notice some real volume happening.

That’s because Asia is just starting to wake up and they’re just starting to kick start their week. So it’s Monday in Asia. So typically on Sunday night you get to see a rebound things start to get back to normal a little bit on Sunday nights. That’s usually when we’ve seen Bitcoin settle down, that’s when we’ve seen some of those or all coins settled down  on Sunday night once Asia wakes up and some of that money starts pouring back into the system. 

3. Trading on margin.

A lot of investors when you know you have digital currency prices dipping below a certain level traders often re have to repay the loan that they took out. If they’re doing margin trades. Well, guess what, If they don’t have the money in their accounts, they can’t cover it because their banks are closed.

Related  Bear Market Investment Strategy

Then you have investors not covering loans and you have exchanges, maybe selling off the digital currency in order to cover that borrowed money that they didn’t get back just yet. Some traders are struggling to be able to pay off borrowed loans that they have, if they’re doing some of these margin trades when you’re borrowing money from these exchanges. I mean, you’ve got some exchanges like Bybit, Binance and others that will let you do you know 10x leverage, 100x leverage that you’re able to do on some of these margin trades.

That’s why we get these crazy undulations over the weekend. Could we see a time when regulators step in and say no trading on the weekends? Is it possible that the government would step in and say halt trading? If you want to do business in this country, if you want to set up an exchange like Coinbase or Bybit or one of those, you are not allowed to work after 5:30 pm on a Friday night and you can open up again on Monday morning. Could we be moving to a market that’s similar to the stock market.

4. Market manipulation.

Study in 2019 shows how Tether which was a digital currency tied to the US dollar may have artificially inflated Bitcoin and other cryptocurrencies during the 2017 boom, but they don’t know exactly to the extent to which it happens. There are a lot of studies that show that there is market manipulation.

Related  Top Crypto Niches for Blogging & Youtube

We see a lot of FUD coming out of China that’s moved the markets, there definitely has been market manipulation. I think there’s suffice it to say there’s been enough evidence now of market manipulation and that has definitely moved the markets specifically over the weekend. One big problem though, is going to be these crypto ETFs, these exchanges traded funds now if you’ve ever owned an ETF, you know, you do it on Wall Street and you do it during trading hours.

Well, how is that going to work as a crypto ETF when you can’t do any of those trades, but crypto is still open on Saturday and Sunday, but the market for the ETF is actually closed? What if you want to sell your ETF because there’s so much volatility and you’re nervous about it? You can’t do anything. You can’t touch it until Monday. You know what happens if suddenly the market in crypto dumps like 20% and you want out but you can’t because you’re in an ETF, an exchange traded fund that doesn’t open until Monday on Wall Street.

That’s a problem and that why the Securities and Exchange Commission is considering more tighter regulations standards for cryptocurrency trades.

Conclusion

Could we be seeing crypto trades halted all over the weekend and only allowed again on Friday? Is there a closing bell on Friday and starting bell at 9:30 am on Monday morning. At the opening bell will we see tighter regulation that mirrors the stock market? 

Shares
Continue Reading

Blog

The Blockchain that’s the best to consider and dig into now

Published

on

The Blockchain that's the best to consider and dig into now

Significantly, interest in blockchain has increase and grown tremendously over the years and If you are looking to start or join a platform, there are some you need to put into consideration and this article has been prepared to give you the latest picks. 

Blockchain technology could be the answer for a new approach for supply chain participants to share and to transact data more efficiently and with more transparency. 

In our research, we have finally come to a conclusion and these are the report and platforms to consider today. 

Table of Contents

Ethereum

Don’t be amazed to see this on the #1 on our list. If you are looking for the best secure block chain based secure crypto currency platform, ETHEREUM is the best to consider. 

ETHEREUM which was introduced in 2013 is one of the most established and oldest blockchain platform. ETHEREUM is one of the decentralized blockchain platform that provides a field of a peer to peer network that executes application code and this is referred to as Smart Contract. 

Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are verifiable and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts.  The sender must sign transactions and spend Ether, Ethereum’s native cryptocurrency, as a cost of processing transactions on the network.

Related  5 skills needed to become Blockchain Developers

The backbone of ETHEREUM is the Smart Contract and inclusively its weaknesses slow processing times and higher transaction processing costs compared to other platforms. 

The active developer community of ETHEREUM which include over 250+ members with members including Microsoft, Intel and etc. The Ethereum community is in the process of migrating from the existing proof of work (PoW) consensus mechanism to proof of stake (PoS), which is more energy-friendly. This migration has required an elaborate process to spin up a separate, new type of blockchain called a Beacon chain that is being merged into the existing, main Ethereum blockchain. 

Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces Ethereum as the primary home for decentralized applications like DeFi and NFTs. 

Other platform to look into are:

  • IBM Blockchain 
  • Hyperledger Sawtooth
  • Tezos
  • R3 Corza

Which Blockchain does Bitcoin use?

Bitcoin uses a PROOF OF WORK (POW) system and mechanism to establish its consensus across its distributed networks. Proof-of-work is the mechanism that allows the decentralized Bitcoin just like Ethereum network to come to consensus, or agree on things like account balances and the order of transactions. 

Related  Tips to escape the cryptocurrency mistake that could blow up your account

Proof of Work over the years has played a very crucial and vital role in the history of cryptocurrency, it has provide the solution to confirm and record cryptocurrency transactions without the involvement of financial institutions. 

Every cryptocurrency has a blockchain, which is a public ledger made up of blocks of transactions. With proof-of-work cryptocurrencies, each block of transactions has a specific hash. For the block to be confirmed, a crypto miner must generate a target hash that’s less than or equal to that of the block.

Proof-of-work coins

Below are some of the notable cryptocurrencies that use proof of work:

1. Bitcoin is the first cryptocurrency since it launched in 2009. It introduced the concept of proof of work in cryptocurrency, which would later be adopted by many future coins.

2. Litecoin (CRYPTO:LTC) is one of the earliest altcoins, or alternatives to Bitcoin. Launched in 2011, it was based on Bitcoin’s code and offers improved transaction speeds.

3. Dogecoin (CRYPTO:DOGE) is a cryptocurrency that launched in 2013 and is based on the Doge meme.

What Blockchains are best for NFTs?

This article provide a list of the best NFT-focused blockchains on the market. This should give you an indepth and a good idea of which blockchains could see increased usage, following the expected growth of the NFT market in the coming years. 

What Blockchains are best for NFTs?

1. Ethereum

Related  Bear Market Investment Strategy

More than 90% of all digital assets have been created as ERC-721 tokens on the Ethereum network, including some of the most popular ones like Axie Infinity. Although this has come with some difficulties and set backs. Over the years it has been saturated and transaction fees have gone through the roof. 

2. Tezos

Tezos is one of the first functional smart contract proof-of-stake blockchains, providing a stable and scalable network since early 2018 after its development in 2014. Thanks to the low transaction fees and high speeds it provides, Tezos is gaining traction in the NFT ecosystem.

The platform supports a dynamically upgradable protocol and modular software clients that enable it to adapt to new users. It has also developed tools to help automate the process of weaving NFTs into enterprise supply chains.

Other platforms include Cardano and Polygon. 

Which Blockchain are NFTs on?

NFTs which is also known as Nonfungible Token is on this Blockchain Platforms:

  • Ethereum 
  • Cardano 
  • Solana
  • Polygon

Check: Top 9 blockchain platforms to consider in 2022

Shares
Continue Reading

Trending