Four questions about cryptocurrencies you are afraid to ask

Let’s face it, regardless of whether you think of yourself as of a newbie to the crypto world or a crypto enthusiast, we all get stuck in some of the most common cryptocurrency questions. To help you feel less embarrassed next time you’re talking about crypto with your friends, check the answers to the most hyped questions on blockchain that both beginners and pros are often too shy to ask.

1. “Is the cryptocurrency market a bubble?”

As the co-founder and CEO of Bitcoin Foundation, Jon Matonis has explained, the cryptocurrency, especially Bitcoin, is a needle, which is going to pop the bubble. Even though in media Bitcoin is often heralded as “the mother of bubbles” Jon Matonis believes that it is fair to say the same about “the insane bond markets and the fake equity markets that are propped up by the central banks.” The fact that such reputable financial market players such as Goldman Sachs, show interest in cryptocurrencies by developing Future Markets and Options Markets are the positive indicators of the growing recognition of crypto by serious players.

Supported by these institutions, the crypto market will grow as a more stable one, as opposed to its present volatility.

In a nutshell, these are some arguments that clearly show that “cryptocurrencies are just a bubble” mantra is a mere FUD (i.e., is not substantiated):

1. The growing acceptance of some cryptocurrencies as a legal paying method.

The majority of states allow their citizens to use cryptocurrencies as a paying remedy. But there are some countries such as China, Bolivia, Saudi Arabia, Pakistan, Cambodia, Iran and a few of others, which ban usage of cryptocurrencies in different ways.

2. Increasing merchant adoption

3. The limited supply of certain cryptocurrencies due to the way they were created.

So, we suggest you weight all the pros and cons on cryptocurrency, before making up your mind. Crypto may be many things, but not a bubble. Being aware of the current crypto trends, we reckon that there is no need to be seriously worried about the issue because cryptocurrencies have already proven to have real value. This together with the fact that such features of crypto as fast transactions, lower fees, possibility to access for everyone, a higher level of security against fraud attacks, the impossibility of third parties control over deals have already provided solutions to some of the real world financial problems. Nobody knows what future will bring us, especially in today’s dynamically-developing world.

2. Is Bitcoin the first digital currency?

No. Bitcoin was founded by Satoshi Nakamoto in 2009, while the first digital currency was created about 20 years earlier, in far 1990 and was then called DigiCash. Its founder David Chauman was the first to design the idea of a currency, which can be untraceable by banks, governments, and third parties. Because of its anonymity, based on a number of cryptographic protocols, DigiCash was still quite too innovative at those times. 20 years later, Bitcoin bounced a similar idea and became one of the most popular cryptocurrencies nowadays.

3. What defines the price of cryptocurrency?

This is another worn out question frequently raised in almost every discussion on cryptocurrencies. Once again, there is no easy answer to such a complicated issue. There are numerous factors, which impact the rise or fall of cryptocurrency price. This list comprises the most popular and relevant ones.

Here are some of those:

• Legal issues
• Government regulations and financial legislation
• Limited Supply and supply/demand
• Blockchain difficulty level of currency
• The electricity used to secure the blockchain
• The Price of Bitcoin
• Usefulness of currency how easy it is to use and store
• Easiness of use and storage
• Perception of its value by the public
• Mentions in media
• Investors
• Scams
• Innovations which always follow cryptocurrency
• Confidence in traditional systems

As already mentioned above, there is a great variety of factors which set the rhythm for the price of cryptocurrencies, so don’t be limited by this list.

4. How does technology make the cryptocurrency industry better?

We all know that any simple solution requires in-depth technical research and cryptocurrency is no different. To provide the top technological solutions, which any average user can quickly assess, cryptocurrency founders are trying to attract the most talented engineers, data scientists, programmers, and other specialists. Especially noteworthy are those inventions, which guarantee security, the speed of transactions, fraud protection and consensus mechanism of the currencies.

Also, founders of cryptocurrencies are trying to equip their currencies with the newest original features to make them unique in usage. The perfect example of this is Catapult technology designed by NEM, which can synchronize private (for internal company use) and public (for trading) blockchain NEM. Implementation of technologies and creating new inventions sometimes reminds an arms race to become the most useful and valuable currency among others.

Technologies are already widely exploited in trading. For example, AI, which was successfully implemented in the trading bot of OpenBlock, helps cryptocurrency traders to maximize their income by effectuation of different tasks, which can be hardly executed by any human being due to the analytical limits, information bias, as well as emotional trading.

So now, once you have read this article, you can safely call yourself a crypto-savvy and provide your expert opinion on this hot questions in the next debate on crypto.

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