The main reason for the rising cost of bitcoin
The sharp rise in the Bitcoin exchange rate in recent months has generated many versions of the reasons for this dynamic. For example, HashFlare in his blog outlined the version that the cue ball acquired the properties of the “Giffen product” and is growing because it is being used more and more. I think that the topic has been guessed correctly, but it has not been revealed completely from that angle. My version is under the cut.
In my recent publication, I described the main reason for the growth of the exchange rate - the tremendous demand for main cryptocurrencies from ICO members. This statement, undoubtedly, needs to be rechecked, which is what I do by posting new information in the channel .
The link is a very long post, so I will describe the essence of a shorter issue: the release of tokens to launch economic relations in a new community according to [unknownly developed] standard implies three steps: (1) open a cryptograph, 2) exchange fiat money for a cryptocurrency, (3 ) exchange cryptocurrency for project tokens. Of course, miners are easier - they change electricity for cryptocurrency and quietly pass point (2). But the majority of investors do just that, including qualified ones (funds, banks, qualified private traders, although their tactics of using a crypt is a bit more complicated). This creates a wave of demand for the cue ball as a reserve currency.
How does this relate to the rate of Bitcoin and other popular altcoins? It's very simple: the project that issued the tokens, the resulting cryptocurrency changes back to Fiat to eat. Let not all, but most of it. And this will continue until bitcoin is accepted in every trolley bus, it needs to be done. So the second wave appears - but already the wave of the sentence.
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It would seem that the system is closed: first they bought the cue ball, then they sold it. But it is not. It's all about the essence of tokenization of something. Professor of Economics McKeon of the University of Oregon in his article “ Tokenization of Traditional Assets ” drew attention to the following tokenization effect - the new token, relying on existing popular protocols (blockchains), is very closely intertwined with them, since until he himself became popular.
That is, if tokens are released on a third-party protocol (blockchain), then all the community activity on the exchange of these tokens automatically "spins" the basic protocol (blockchain). This is because the token itself is not a means of payment, and many operations with it require the availability of this quality.
Here is a quote:
Thus, the main reason for the growth of the rate of tokens of those blockchains that are used as a means of payment is a completely macroeconomic moment - the growing activity of buyers and sellers of other tokens, since these "other" tokens themselves are technically released based on popular protocols.
In my recent publication, I described the main reason for the growth of the exchange rate - the tremendous demand for main cryptocurrencies from ICO members. This statement, undoubtedly, needs to be rechecked, which is what I do by posting new information in the channel .
The link is a very long post, so I will describe the essence of a shorter issue: the release of tokens to launch economic relations in a new community according to [unknownly developed] standard implies three steps: (1) open a cryptograph, 2) exchange fiat money for a cryptocurrency, (3 ) exchange cryptocurrency for project tokens. Of course, miners are easier - they change electricity for cryptocurrency and quietly pass point (2). But the majority of investors do just that, including qualified ones (funds, banks, qualified private traders, although their tactics of using a crypt is a bit more complicated). This creates a wave of demand for the cue ball as a reserve currency.
How does this relate to the rate of Bitcoin and other popular altcoins? It's very simple: the project that issued the tokens, the resulting cryptocurrency changes back to Fiat to eat. Let not all, but most of it. And this will continue until bitcoin is accepted in every trolley bus, it needs to be done. So the second wave appears - but already the wave of the sentence.
')
It would seem that the system is closed: first they bought the cue ball, then they sold it. But it is not. It's all about the essence of tokenization of something. Professor of Economics McKeon of the University of Oregon in his article “ Tokenization of Traditional Assets ” drew attention to the following tokenization effect - the new token, relying on existing popular protocols (blockchains), is very closely intertwined with them, since until he himself became popular.
That is, if tokens are released on a third-party protocol (blockchain), then all the community activity on the exchange of these tokens automatically "spins" the basic protocol (blockchain). This is because the token itself is not a means of payment, and many operations with it require the availability of this quality.
Here is a quote:
Traditional asset tokenization is subject to an impact protocol valuation because they will become intertwined. If there is a crypto protocol (eg, ERC20 tokens), there is a traditional asset tokenization of the underlying blockchain network. Further, the traditional asset tokens to be used in order to be used as a method of payment in both directions. For example, perhaps dividends / lease payments / coupon payments are paid out in ETH or BTC. This will drive demand.
Thus, the main reason for the growth of the rate of tokens of those blockchains that are used as a means of payment is a completely macroeconomic moment - the growing activity of buyers and sellers of other tokens, since these "other" tokens themselves are technically released based on popular protocols.
Source: https://habr.com/ru/post/370943/
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