It's not a secret for anyone that we are on the verge of a complete transition from ordinary money to various cryptocurrencies. Some ages ago people switched from natural exchange to cash equivalents which have been some beautiful shells or stones of a special color. Also, they had already switched from iron money to paper money. Now the whole world is gradually adjusting to the latest achievements of technological progress. Soon, the US Dollar and Euro will be replaced by Bitcoin, Ethereum, OctoinCoin and other cryptocurrencies, which will replace the usual fiat money.
In this article we have collected the most popular questions, which now concern both ordinary people and the participants of our Octoin project. They spin around in everyone's head, but not everyone can respond sensibly and coolly to them. Therefore, we tried to help you in this and express our point of view.
So, let's begin:
What prevents cryptocurrencies from developing now?
Well, the answer lies in the main advantage of cryptocurrencies which is their progressiveness. They so sharply attracted a lot of people who began to use them, that the state machine did not manage to adapt to the new conditions of economic development. In addition to the technological foundation, there is also a legislative and legal basis. Only in a single system will they be able to control the market. It takes time to create and regulate such a system.
Why does the market fall?
Let's start with the fact that it does not fall, but on the contrary - it grows! The main indicator is the attraction of new people who transfer their usual money to the cryptocurrencies. If you look at the statistics as a whole, then the number of transactions as well as active wallets is constantly growing. Even if you look at the rate of our OctoinCoin cryptocurrency, you can see that even despite the slight decline, the overall dynamics are positive. Since the beginning of trading it has risen in price several times and the trading volume has increased significantly.
So what happened? Why did Bitcoin instead of worthing $20,000 is now worth $8,000?
There is nothing difficult here either: since January 2017, the market capitalization of Bitcoin has increased by 4.6 times: from $ 100 billion to $ 460 billion at the beginning of March 2018. When analyzing the charts, it becomes clear that this is an absolutely planned growth, which is caused by the appearance of new players in the market, as well as the increasing popularity of the topic of cryptocurrency.
However, everyone can notice that the period from the beginning of December to the beginning of January is clearly different, when we saw explosive growth in a month. Total capitalization took off from 300 billion USD to 830. The price of Bitcoin had risen almost instantly from $10,800 to $20,000 US Dollars for Bitcoin. This growth was not due to any fundamental reasons. Now we can conclude that it was most likely created artificially. This is confirmed by the fact that just a month after this growth the market again returned to the same values. It should be noted that globally nothing has changed and long-term investors and traders have been slow to sell their cryptocurrency portfolios.
Why is the market now in such a languid state during last month?
People's crypto wisdom says: "If the rate falls, then large players want to enter the market. If the rate increases, then these players want to exit."
In simple words, in order to enter the cryptocurrency market, big money players needs the appropriate legislative and regulatory framework. So, at the moment they do not want to invest in cryptocurrencies. They are waiting for the most advantageous entry point on the wave of not only the popularity, but also the transition of society to cryptoeconomics.
All this is naturally heated by the news: big players want Bitcoin to fall so everyone writes about the future with cryptocurrencies. They want it to fall so there appeared a lot of experts who assure that cryptocurrencies are just a bubble and fraud. Therefore, we encourage you (the participants of Octoin the project) to analyse the situation with coolness and not let yourself to be misled. Panicking, you can sell your assets below their real price. This is what the wise traders do not do.
So what awaits us and why should we not panic?
Our answer will not change. The technological progress can only be slowed down a bit, but not stopped. Blockchain and cryptocurrencies is expecting the same thing that the Internet had experiences some time ago. They could not prohibit it. So maximum what they could do is to start to regulate it.
There will be absolutely the same situation here: cryptocurrencies will be widely used in many real spheres. Some of the most lucky and successful ones will become real giants of the world economy. In different countries there will be various dominant cryptocurrencies (for example, in Indonesia the OctoinCoin is gaining popularity). And those who will be their main holders will pass to a fundamentally different level of wealth.
We want to be one of them. How about you?