Still considering investing in Provoco, but afraid of cryptocurrencies market? You believe that stocks markets is way safer investment?
Many argue that the stock market and the crypto market are two different prospects with vast differences while others argue otherwise.
Let’s compare these two markets markets!
What are the similarities of cryptocurrency and stock markets?
First of all, both of the markets function the same way. By their simplest, the price of both are determined by demand, meaning how much people are willing to pay for a share or a currency. This means that when someone pays more than the previous person the price goes up. When no one is willing to pay a certain amount at a certain time, and someone is willing to let go of their ownership for less, the price goes down.
Secondly, both of them can be valued based on the idea behind them. A stock is based on the business behind it and a currency is based on the idea, but the value in both lies behind the idea to some extent.
Thirdly, both of them are so far valued in fiat currencies. This might change, if the dream of cryptocurrencies comes true. But for now, majority of investors value everything in fiat currencies like USD, EUR, GBP.
If you are investor from stocks market there will no difficulties for You to adopt with cryptocurrencies, it’s simple!
What are the differences of cryptocurrency and stock markets?
To begin with, even when the value is based on the idea of the currency or the stock, in the stock market you actually invest in the company, in the cryptocurrency market you invest in the technology or the currency, however you want to see it, but you never really get to own any part of the company, even if the business of the company affects the price of the currency.
This also affects the total evaluation of the cryptocurrency market, there is none. No one really knows what the total market capitalization for cryptocurrencies is. The cryptocurrency market also acts almost ten times faster. This affects everything. Prices go up faster, prices go down faster, prices change at larger magnitudes.
Market manipulation is something that doesn’t really exist in the stock market, however, in the cryptocurrency market it definitely does. Is it a bad thing? Well, it depends if you get caught in between or not. To some extent it might be beneficial for the wider adoption, since it gets more people involved.
Finally, because new competitors can enter so easily in the cryptocurrency market, old currencies die much faster than old businesses die in the stock market. There is no reason for hundreds of cryptocurrencies to exist, where as there are reasons for hundreds of businesses to exist.
Performance
Warning: If you are primarily an equity investor, you may soon be compelled to enter the world of cryptocurrencies as the relative outperformance of the top cryptocurrencies in 2017, when compared to equity markets, was astronomical.
Interested in cryptocurrencies now?
By launching a cryptocurrency called VOCO, we will achieve several objectives: contributors with VOCO tokens will be the first to unlock functionality, value and status within the PROVOCO platform. As a decentralized and transferable token, the VOCO ecosystem is set to grow in proportion to VOCO’s utilization by users. Together with PROVOCO, future partner platforms or apps, integrated within the VOCO ecosystem will be benefiting from the demand of the token, which will ensure that anyone who uses VOCO as their primary decentralized cryptocurrency within their environments gets rewarded equally!
Interested? You have a chance to dive into cryptocurrencies market with Provoco and get 22% BONUS!
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