Mythbusters! The look upon the most common crypto myths.

Today, the Internet is literally bursting at the seams from various information about cryptocurrency. Bitcoin is the most controversial topic in the entire universe that has divided opinions of some of the smartest people in the world.

Have you heard that bitcoin is a bubble? Financial scheme? Scam?

People spread their fears, uncertainty, and doubts. Even many economists call the future of cryptocurrency into question. They make many alert claims, but do not seem to understand how bitcoin… or even economics work.

Currently, people are so confused. On the one hand, everyone and their dogs buy bitcoins, but on the other, bitcoin has all the bubbliest characteristics: its price is extremely high and all your neighbors say it’s a fool’s gold!

So, let’s finally spell out!

Why Bitcoin has nothing in common with the financial scheme?

Investopedia provides such a definition:

“A pyramid scheme is an illegal investment scam based on a hierarchical setup. New recruits make up the base of the pyramid and provide the funding, or so-called returns, the earlier investors/recruits above them receive. A pyramid scheme does not involve the selling of products. Rather, it relies on the constant inflow of money from additional investors that works its way to the top of the pyramid.”

So, the profit of the pyramids is provided by the inflow of new deposits. Under such a scheme only early investors receive profits through the attraction of new ones. Bitcoin is completely different. All the investors benefit from the rise in value and the usefulness of this new currency.

But we all know, that first bitcoin investors are now extremely rich. And you are probably kicking yourself that you didn’t buy a couple of coins back then.

Yes, it is really true that those who bought bitcoins at the very beginning made a huge profit from it. But what is also true, many of them spent their coins on silly stuff, and some just lost their access to their bitcoin wallets. I bet those are kicking themselves now.

Besides, it is also important to note that Satoshi Nakamoto, creator of bitcoin, has never spent a bitcoin (other than giving them away when they were worthless) which we can verify by checking the blockchain.

So why the price is so high? Is it a bubble?

As with any marketable good, the price is determined by demand and supply rules. The supply of new bitcoins is limited to 21 million units. The demand comes from the simple fact that it is a groundbreaking advancement in accounting and money.

Although, here and there we see claims like: “Bitcoin has no value as it’s not backed by anything.” One could argue that gold isn’t backed by anything either. That is exactly why experts parallel those two and call bitcoin a digital gold and once in a lifetime investment opportunity similar to the Internet. What we need to understand, is that Bitcoin has nothing to do with schemes or bubbles. It is neither a company that can fail nor a speculative real estate scam, which could collapse as a result of government and banking nefarious activities. Bitcoin is decentralized currency, which means that it is not controlled by anybody.

What is the future of the market in general?

The analytical department of Teoz Fund continues to consider the market as extremely underestimated. Current capitalization is about $ 400 billion. The growth potential remains huge. More and more institutional investors are trying to enter the new industry. Gradually cryptocurrencies begin to acquire legal basis and most countries are already developing legislation on the cryptocurrency and ICO regulation. For example, Venezuela has already created a national currency and raised about $ 5 billion only during the presale. It can be easily stated that the world is entering a new economic, technological and social era, where tokenized assets will replace most of the existing processes.

In late 2017, some experts predicted the decline of the ICO era. In fact, we see the further rapid development of this phenomenon. Only for 2 months of 2018 ICO has already collected about 3 billion dollars. ICO will continue to evolve as a more convenient form of collective investment. Another thing is that part of the projects will be closed. This is normal for business. Leaders remain and develop to colossal proportions, outsiders leave the market. We already observed this phenomenon in the dotcom market, when only hundreds of companies survived by thousands. Only information giants today head the top companies on capitalization. The same situation is expected with the cryptocurrency industry. Hundreds will remain, thousands will leave. But these hundreds will be locomotives of the information economy. Temporary declines in such a market are an excellent time for investing in the industry, which will develop faster than others.

In fact, no one really knows what is going to happen in years ahead. Right now we are witnessing global economic changes. So let’s not fall behind. Join Teoz Fund and open the world of the decentralized economy with professionals.

TEOZ fund is an index fund created by financial market professionals with an in-depth understanding of the crypto industry and an underlying blockchain technology.

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