How does the Gold Gained its value?
Cryptocurrencies just like gold and other currencies have same rule of its worth. Which is its acceptability and value. Value is determined by its availability and abundance. Just like gold, its production or availability is limited and people think that it is an exotic and valuable universal currency just like gold. The second thing is its acceptability, this is where it hurts the most. On one side of the coin there is a humongous number of people that are toiling hard to set up mining facilities, educating herds and fighting regulations. But on the other side there is the governing bodies of financial regulatory institutions and banking sectors, which is either crying before death or fighting for their survival because a big number of trade and investment is daily traded in cryptocurrencies. So, these two factors are the true arena of fight.
What happened to cryptocurrencies and the future.
Recent clamp down by the Chinese authorities spread the uncertain trust deficit among the investors and buyers. which resulted in the painful evaporation of millions of dollars from the crypto market. Governments around the globe are trying to curb the issue by banning the activities under the official framework of regulatory bodies, but it had not affected the choices the people.
Among a lot going on in the cryptocurrencies there is a golden opportunity to invest in the new emerging opportunities in new emerging cryptocurrencies like Rscoin which is on its early time of flight. You can buy Rscoin and can hold it for future investments. It is on its infancy period and the best time to invest in the crypto currencies. Rscoin make use the efficient way of proof of stake algorithm and Swift-X protocol.
This crypto charismatic trio spoke on a conference named the B-World. In which Twitter CEO Jack Dorsey, Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood expressed positive gestures towards BTC. Elan Musk hinted the validation of BTC in the purchase of Tesla cars. Crypto market as other financial markets perceive this as a positive gesture of perception and BTC skyrocketed and touched the six months high of 39,000.
Why these kind of regulations matters?
This initiative will plunge the number of traders who used to exploit this maximum leverage on high risk bets. These options were highly criticized and blamed for the uncertain and high volatility of Cryptocurrencies and the recent restrictions on Binance in many countries, including Britain and Hong Kong were imposed after the calculated understanding of these betting that were responsible of the casino like environment in the crypto market. Two of the pioneer crypto exchanges announced that they are going to make sure that the negative connotations of the high-risk investment options were reduced by cutting the big number in high reward initially. The thing is, most of the trade is being conducted on high-risk bets. It is known as derivatives. These are high risk and high reward options as much as 100 times to 125 % chance of multiplying the invested amount obviously high risk is involved. And this is the reason people are ready to invest in specially. Which was perceived as the most attractive betting option and attracts a big number of people and huge number of investments. But recently there are a number of instances where people are exploiting this spot exchange option. Which allow let you predict the future price or future contracts and let you bet on the accuracy of your hunch. These are also called Perpetual Swaps.
As they say, the first step is the hardest, but has huge impact. As FTX exchange announced that it is going to reduce the amount offered as 101 times to 20 times. This means one can make 1000 investment and can get 125,000 in return.