For the past 2 days, I have been unable to do anything on Leofinance as a result of power outage in my residence which made my phone go off.. I must confess that it was like living in a cave.
Now leaving the cave, it is time to create content as well as comment on posts on here. Talking about cave, since we (humans) stopped living in caves and spending fiat money, it has been really clear how our quest to get more of it has increased. Politicians Steal to get more money, Business owners play the market and perform so many fraudulent activities just to get this money, a lot of people work decently just to earn money and so on. People in those days will be willing to keep the paper in their wardrobe and even keep it in houses but then binary money came into being. When I say binary money, I meant cryptocurrency.
A lot of us here believe that cryptocurrency is the future of money, some of us see it as the next instrument to invest and hope that it becomes an instrument that investors and traders on wallstreet use while there are a lot of people who just believe till date that it is a time bomb waiting to explode.
The Computer and the Coin
Before the computer, people used to perform calculations with papers, documents were written in papers and people needed to pile a lot of files in the office or look through a long spreadsheet in the bank but then came the computer. The computer was a revolution that changed a lot in our world and it is very rare to see a home without a computer. Just like the computer did this to information, Cryptocurrency aims to do this with money. It is the new industry that is aiming at revolutionising transactions and eliminating centralized banking.
Encryption and Transactions.
Coding and encryption has been able to do one major thing in finance and that is keeping the money safe. Every coin Built on the blockchain is no doubt safe since it is decentralized and encrypted.
Hype Around It
With Elon Musk, and a lot if crypto enthusiast and investors creating a need for this new technology, with the aim of expecting a large profit over it in the future. You must have heard about the phrase "buy now and thank me later". This phrase is now very common with cryptocurrency and has made so many people buy into so many cryprocurrency even when they so not know about it. Study shows that 2 out of every 3 crypto investor do not have deep understanding of cryptocurrency and the blockchain technology.
All Cryptocurrency are Equal but Some are More Equal
While we regard everything as cryptocurrency, there are a lot of Digital tokens available currently. In recent times we have over 4000+ cryptocurrency and so many of this currencies have made do with so many people's money, while some failed. At every of those events, investors lose money and they are left to now believe that cryprocurrency would fail in no time.
Liquidity and Government Restriction
Volatility is one characteristics that is common with cryptocurrency and this is as a result of liquidity. The fact that prices drop very fast when people intend to sell because they do not find orders that match their prices is a very big problem. Governments have also seen this and they believe that if everyone were to sell their entire cryptocurrency at once, so many people will be at great loss or will just be bag holders.
Cryptocurrency is Currently Built on Speculation
In recent times, Manipulation has become very popular in cryptocurrency. Also, so many people who invest do this on a speculative note. Nobody can say for certain that it is going to be the future seeing that the government is readily against it. Most investors leave their money on a speculative note while so many influencers use their power to determine the price movement into a bull or a bear making it look like a tool to get rich quick.
New Gold or Time Bomb
The housing time bomb and the banks failure of 2008 created a roadmap for Bitcoin in 2009. It was visible that the banks were doing their AAA mortgage on a time bomb then but they were able to keep it going for a long time. What do you think about cryptocurrency as well and what is the future for crypto Investors?