Hello everyone
I made a little research on the crypto world and found some interesting fact that I will like to share with you.
Knowing how big the crypto world is and how it has enrich life's just by purchasing the right amount of crypto at the right time tho crypto value being unstable may be kinda tricky sometimes but that left me with questions that lead to my research
#What makes crypto value unstable
It's Disadvantages
It's Advantages
What makes crypto unstable
Unlike the regular currency eg Naira, dollar, pounds etc used in a country that is backed by the government and its value depends on economic growth, monetary policy and inflation rate
This should be a question on the mind of any individual going into the crypto market knowing its not backed by the government and gains and losses can be made as well from treading crypto
Here are the factors that causes the instability of the crypto market
- The supply of bitcoin and the market demand for it
*The cost of producing a bitcoin through the mining process
*The reward issued to bitcoin miner's for verifying transactions to the blockchain
*The number of competing crypto currencies - Regulations governing its sales and use
*The state of its internal governance
*News development
All this stuff listed here can be a life changer to your financial status and patience is one of the key to achieving them.
It's Advantages
- High potential returns : crypto can grantee you over a hundred percent income in just a shot period of time
- limited supply of individual cryptos
*A crypto currency transaction is generally a quick and straightforward process for example crypto can be transferred from one wallet to another using your smartphone or computer
*security : every crypto currency is recorded in a public list called the blockchain this technology enables its existence and also keeps history
*crypto currency payments are becoming more widely used amongst large organizations and in sectors including fashion and pharmaceutical
*low transactions cost - Diversification
It's Disadvantages
- High volatility large potential losses not all crypto currencies are the same
*Unlimited supply of crypto currencies in general
*Poor store of value due to volatility and restricted usage
*Unregulated and exposed to unscrupulous behavior
*It is possible to lose your virtual wallet or delete your currency
*The crypto currency market is not regulated by the Financial Conduct Authority (FCA) so there are no rules in ace to protect your business - crypto currency exchange are vulnerable to cyber attacks and scams
Knowing this i its left for you to decide going into crypto or not but regardless always remember life it's self is a risk
Do have a pleasant week
Thank you