Cryptocurrency is a new trend in the world. Its history spans only one decade. But despite such "youth", the cryptocurrency market is already extremely developed. There are various exchanges, many developments and much more. But within the framework of the article, the greatest attention will be paid to the cryptocurrency market.
General information
The technology on which the cryptocurrency market is built has a great future within the financial system. But no one can yet predict what it will be like. Undoubtedly, blockchain technology is also valuable, as well as ways to store existing savings, and the means of their exchange. But here's the variety! Even a superficial overview of the cryptocurrency market allows you to notice that they multiply at a significant rate. So, the year 2017 has not yet ended, and almost a hundred new settlement funds have appeared in the world. At the same time, significant funds are often attracted for them. On average, for the same 2017, for each cryptocurrency, investors received fewless than ten million dollars. It is hard not to notice that there is a high risk of a collapse in which someone will suffer. But with the prospect of a significant period of time, this situation is excellent: we learn more now - there will be fewer problems later. We will also look at what cryptocurrencies are on the market and what they are.
Potential problems
No matter how new it may be, we should not forget that all cryptocurrencies are financial instruments. In other words, this is a high-risk area. Although significant profits. Here we can recall the so-called Mississippi bubble, and the crises of 1929, 1980, 2008, and many others, much smaller in size and scope. Therefore, the first financial instrument (bitcoin), when it began to bring money, aroused in many a desire to make money in this way and create numerous analogues. The one who enters the game at the very beginning earns well. The later, the higher the price and the greater the risk. In this case, the cryptocurrency market is not very different from what could be observed in many similar cases with other financial instruments.
How did it all start?
It all started with a group of programmers who called themselves Satoshi Nakamoto. It was they who developed the first cryptocurrency, known to us as bitcoin. Then a number of idealistic characteristics were announced that virtual money should have to be used in settlements without control, intermediaries and commissions. Therefore, it is not surprising that this idea was not originallyaccepted. But over time, it began to gain popularity as an idea with good prospects. And most importantly - high profitability. Over time, shadow business began to show interest in them. And now numerous speculators have realized the benefits and prospects of this direction. For them, these are attractive instruments with high profitability and significant income.
Trading
For her, the cryptocurrency market took shape. As the number of people who wanted to participate in trading grew, so did the variety of target platforms, which, by analogy with securities, were called exchanges. Interest in the currency is fueled by the unprecedented growth of the cent. Consider the case of bitcoin. So, initially it cost only five US cents. And just the other day, a record of $5,000 was set! By simple calculations, it can be established that over the decade its value has increased a hundred thousand times. No wonder bitcoin is called black gold. There are few places where you can get that kind of benefit. After the capitalization of the cryptocurrency market with real money began, trading volumes began to grow sharply. Now we are talking about billions of dollars. Let's do a little analysis of the cryptocurrency market and evaluate what is at our service.
Bitcoin
It all started with him. Bitcoin is rightly called electronic gold. It was launched in 2009. A feature of bitcoin is the complexity of its production and limited emission. Their quantitative limit is exactly 21 million pieces. He will probablyreached around 2040. Now profitability often allows you to recapture only one coin. But the cost of extracting it is steadily rising. Bitcoin transactions are transfers between individuals. They are reflected in transactions. This action is irreversible. At the moment, it is almost impossible to trace the subsequent path of digital money. This state of affairs greatly complicates external control and makes it practically impossible. You can often hear forecasts that the fall of the cryptocurrency market is coming. So far, this is quite relevant in relation to a large number of other surrogates, but not to bitcoin.
Litecoin
Launched in 2011. The creation was carried out under the motto of providing an alternative to silver. There is a limit of 84 million pieces. A feature of this system is that they have done quite a lot of work on the "extraction" of litecoins. So, in this case, it is quite difficult for owners of super-productive systems to claim super-profits. In fact, all users are equal in their capabilities.
Peercoin
This is a cryptocurrency similar to its predecessors. Despite the fact that it has almost identical characteristics, there is still one significant difference - there are no emission restrictions. In order to adjust the volumes and the rate, inflation is included, which depreciates the value of Peercoin by 1 percent per year. A smart capitalization scheme is also applied here, so the forecast of the cryptocurrency market in this case ispositive. So, sixteen months after the start of trading, the value of peercoins supported 135 million real US dollars. Why are they so attractive? The fact is that, according to the existing approach, income is distributed not only by people representing computing sites, but also by owners.
Namecoin
This currency began its "life" in 2011. It should be noted that it stands out significantly against the background of other financial instruments of this kind. So, cryptocurrency is used as an alternative for the already existing DNS system. It is used by owners of network resources who are dissatisfied with ICANN's monopoly and its almost unlimited possibilities. Namecoin, on the other hand, operates on an alternative DNS system. This currency is used to pay for the renewal of the work of resources that are located in the.bit domain zone. But this scheme is attractive not only because of its economic profitability. After all, its value is not contained in one cost. The fact is that the data exchanged is cryptographically encrypted. Therefore, you can be calm for them.
Quarkcoin
Started in 2013. It is quite popular. Attractive to the masses with its high security. Thus, nine consecutive encryptions of six different types are used to complete a transaction. Initially, the currency was mined in huge quantities. Literally in a matter of months, its number reached tens, and then hundreds of millions. Now their emissionreduced to one million a year.
Risks
In general, the most interesting representatives of the cryptocurrency market were considered. Of course, this is not all, there are many more interesting names and projects, but if you describe them all, this requires a book, not an article. Now let's talk about risks. Do not forget that any financial instrument has them. You can often hear about the collapse of the cryptocurrency market. Do these claims have any basis in fact? Undoubtedly! It should be understood that cryptocurrencies are not supported by the state or certain material values. They are in use solely because people consider them valuable. Faith will be lost - and they will simply turn into encrypted data cells on servers. In reality, everything is much more complicated. A number of factors influence the state of affairs. It should be understood that when the saturation point is reached, a collapse may occur. Even now, you can periodically read that one or another cryptocurrency market has fallen. As a rule, this most often means a temporary drop in the value of bitcoin, but you should still be careful. If you want to enter this market, you should understand that in a system where instruments are connected, the collapse of one can contribute to the emergence of a domino effect.
Talking about cryptocurrencies
It should be noted that they (so far) do not carry systemic risks. In the event of a crash, the impact of cryptocurrencies on the economy will be minimal. Although it should be noted that there are quite a few failuresin the work of the stock exchanges. Of course, they did not undermine the economy, but they have already attracted attention. This negative aspect must be overcome before the cost of gaining experience becomes extremely high. In the meantime, it can be stated that even if all cryptocurrencies collapse in an incomprehensible way in one day, this will not knock the foundation out from under the feet of the financial system of the world. Why? The fact is that the capitalization of all cryptocurrencies so far does not exceed … the fortune of Bill Gates. Of course, the damage will be serious, but limited. This is about the same as another hurricane will pass in the United States. It should be noted, however, the fact that cryptocurrencies are dispersed around the world. So, for example, they flourished to the greatest extent in Asia, in countries such as Japan, South Korea, and India. At the same time, as the capitalization of currencies grows, their level of conversion grows, and interconnections with the rest of the market expand. Regulatory decisions are even being made gradually.
Conclusion
What can we expect in the future? Probably, some platforms will collapse, some cryptocurrencies will depreciate, many people will lose their money, someone will go to jail. And while there are already some warning signs, the many experiments that are going on in large numbers will pave the way for a diverse large capital market that anyone can work on. It took just a few years that it took the world community to evaluate and accept a completely new concept. Now virtual money is huge in its own way.market scale. Cryptocurrencies attract many people with attractive prospects and high profitability. But you should be aware of the pitfalls and not lose everything that you already have in the pursuit of we alth.
