HYPE VS. REALITY OF CRYPTOCURRENCY
“There are three eras of currency: Commodity based, politically based, and now, math based.” Chris Dixon, Technology Investor.
If you’re old enough to remember the early stages of the web 1.0 dot-com frenzy in the mid 90’s you would recognize it was not very captivating, it was confusing and was often hyped.
The other situation of the mid 90’s print magazine articles and TV shows, before everyone was on the internet. This has become the situation of the financial markets which are moving into a far more exciting era.
Have you ever thought if investing in a cryptocurrency is a fad? Cryptocurrencies have created an exciting ride of excitement and anxiety in the recent years. They have their ups and downs such as their famous way of reaching sky-high growth and then plummeting without any warning, but there are also countless stories of rags to riches and modern businesses taking a chance on the digital trend to start a unique revolution.
Have you ever seen the movie boom-bust-boom? Many individuals don’t understand how the pulsating levels of fear and greed move commodity prices drastically without any regard to the intrinsic value.
The digital currency world is a roller coaster ride. The only common thing being how confused it’s made the players of the market be it the investors or the businesses. Yet, experts believe that it’s here to stay for a long time. Hence, it would be better if you register on it sooner as it would get you more profits.
In modern financial markets, greed is rampant, and fear is almost non-existent. Thus, fear can most quickly and easily be measured as high volatility and the vice versa. But by logic, the absence of fear in financial markets indicate a high level of greed.
There are many different types of cryptocurrencies, and each has a different use-case. Coins with lower planned circulations or higher use-case, tend to be favored by the stakeholders since the limited supply translates to higher demand. However, if you’re trying to compete with any traditional currency for everyday transactions your supply needs to be high.
For instance, in 1455, When Gutenberg created his own printing press, he sold the bible at the cost of three year’s wages at the Frankfurt Book Fair. But by the end of the century, there were more than 2500 cities in Europe with their own printing press. Thus printing press eventually became an omnipresent tool of society. The present price of a printed bible is now less than $4.00.
Improving technology has a way of lowering asset prices and giving them maximum utility (this is a point of discussion for our next article).
Where would I store my cryptocurrency? It’s quite simple you need to register an account with your preferred crypto wallet.
Crypto wallets consist of two random strings of characters. The first would be on the public blockchain, making it a type of username. The other would be a private key or a password that must be inputted before any transaction to ensure you’re the one who is using it. It’s as simple as any of your online accounts.
SHOULD I DEAL WITH CRYPTO?
Before jumping into crypto, keep a few points in mind
1. Even if there is a risk potential associated with it, it’s good to keep a part of your savings in crypto as there is a high probability of growth
2. If you receive payments, it’s good to save it in crypto. But if you still want to convert them to your local currency, you can do the same at various exchanges
3. It’s a fad that transactions cannot be reversed as it can always be refunded by the person or the company receiving the funds
XcelToken is an ER20 token with a ready use-case for the travel industry viz xceltrip.com. It is proven to be a popular online choice for any individual as it makes your life more relaxed due to its ready use-case. XcelTrip is an online travel portal where one can book hotel accommodations from around the world, using XcelToken.
Crypto is built on trust, having a ready use-case and ability to trade in multiple exchanges, I believe XcelToken is on to a good start, and its popularity seems to prove that their strategy is working.
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