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ANALYTICS

All you wanted to know about crypto world
#Cryptocurrency Market
Kyrrex: Still Transparent, Still Trustworthy

We know that a global economy driven by better models of financial management is possible. We also know that harnessing the power of blockchain technology creates endless possibilities for individual investment, dynamic control of finances, and much more.


In light of recent events, trust in crypto and the limitless opportunities it offers might seem more distant than ever. As serious stakeholders, we want to use this opportunity to reach out to our loyal customers and the general public and assure them that Kyrrex remains unaffected while standing strong as ever.


The FTX Issue


To summarize the problem, FTX mishandled investor funds by using user deposits to make investments of their own. FTX did not inform users before proceeding on this course of action. The funds were used without client consent, meaning that FTX’s ‘side’ investments were unauthorized and therefore illegal.


Gaps and Leakages in the Crypto Industry


The recent spate of crypto setbacks reveal a number of gaps and leakages in decentralized finance. The biggest of these gaps is supervision: what guarantee can you, a crypto trader and investor, have that your preferred trading platform will not mishandle your funds?


In the decentralized market, you have a firmer grasp of your crypto assets and greater freedom to trade and invest without someone looking over your shoulder every time. But this comes with the risk of losing all your money if you entrust it to unsupervised third parties.

 

Solution with Kyrrex: Crypto-Fiat Banking


Crypto exchange platforms provide you a stage to trade and manage your crypto assets. But who/what keeps an eye on these platforms? Without strict oversight by a powerful body, you're essentially giving your money to an exchange do with as they wish.


Where there is no regulation, there is likely to be mismanagement and exploitation. Even if you can wager your life that an exchange platform is honest and will not mishandle your money, you have to admit that having the platform accountable to a higher authority increases your trust in it.


Turning to a centralized exchange like Kyrrex offers you the rewards of crypto without its major risk. 

We believe that it is only when the crypto market is reasonably regulated that the crypto industry can flourish. Then, you will no longer have to deal with rugpull projects, fake developers selling you imaginary bridges in imaginary clouds, or situations like FTX that inevitably cause you to lose trust in every crypto exchange platform.


Kyrrex is Still Trustworthy


Kyrrex, as you know, is the first crypto-fiat bank. The same way we pride ourselves in being the first global bank, we pride ourselves in playing by the rules. There are several governmental and government-backed institutions that oversee our operations, and so we are licensed to operate in good faith. All of this is so that you can rest easy and continue to trust us.

We would like to place on record that Kyrrex Exchange has no dealing with FTX and its FTT token. Our exposure to FTX is zero. The exposure of our customers' funds to FTX is zero. 


Here are a handful of reasons you should continue to trust Kyrrex as your crypto and fiat asset partner:


1- Kyrrex has the highest level of operational license in the crypto industry


Kyrrex operates under the Class 4 virtual Finance asset (VFA) License from the Malta Financial service authority (MFA). We obtained this license in November 2021, reinforcing our intentions to comply with every legal requirement and audit condition.


This class of license comes with implicit confidence by the regulatory authority in the licensee. It means that Kyrrex has been thoroughly scrutinized and found to comply with all regulatory rules regarding user deposits and operation models. It means that you can trust us to keep your money safe and secure because Big Brother is watching all our moves. 


2- Kyrrex stores and backs your tokens with tangible assets like the dollar


As a crypto-fiat bank, Kyrrex allows you to use crypto tokens as easily as you use fiat currency. So, with Kyrrex you will be able exchange fiat currencies against digital assets and vice versa. This is because your tokens are safely stored and backed with valuable assets.


3- Kyrrex relies on its organic growth model for profitability rather than investors’ funds


At Kyrrex, we promote and use an organic growth model. This means that apart from the charges that our clients are aware of, we don’t touch their deposits or funds. This is another reason we have regulators overseeing our operations. They keep us on our toes and make sure our operations are always prudent and compliant with all legal provisions. 


4- Kyrrex has a straightforward user withdrawal protocol


Kyrrex has always favored an uncomplicated and user-friendly operating protocol. Our withdrawal system is like this also. So, our clients do not need to read and sign thousands of pages of T&A before they can withdraw their funds from Kyrrex. Everything is clear and transparent. Your funds are your funds and you can withdraw them at anytime. 


5- Kyrrex is not exposed to FTX, Alameda, or any institution implicated in the current FTX fiasco


Kyrrex is not exposed to FTX, Alameda Research, or any other crypto-related institution that has been implicated in the recent mess. So you can trust us unreservedly, we only build relationships with time-tested, reliable, and/or regulated exchanges.


So, Kyrrex remains worthy of your trust. However, we advise that when you use other exchange platforms, ensure that they are licensed and are committed to playing by the rules. Also, do not invest money that is not your own or spend more than you earn. If you can, avoid tokens that are not backed by tangible assets.



#Cryptocurrency Market
Crypto Bubbles and the Prospects of Cryptocurrency

Like any enterprise with brokers and actors, the crypto market goes through phases of highs and lows. Even though these phases are diametrically opposite, they each have their pros and perks. For the sensitive crypto trader, the best phase turns into a bubble inside which they can make a lot of money and secure assets that will bring even more money later.

So, what is a crypto bubble and what implications does it have on the prospects of crypto trading and investments in the years to come?


Crypto Bubbles at a Glance


Crypto bubbles are periods during which the prices of crypto tokens are at a radically different height than normal. Specifically, crypto tokens or assets sell for higher than they should, thereby allowing their holders to make money within a short while. Thus, the shorter the window of opportunity, the more profit crypto traders typically make, and vice versa.

Crypto bubbles develop from the interplay of numerous social and economic components, for example, the demand for a particular token or the projected prospects of a particular asset. Each of these components can be traced back to an expectation that develops as a response to a situation. The result is a crypto bubble where the price of a crypto asset usually quickly rises above its actual value and forms the basis for a crypto trader’s profiteering.


Generally speaking, crypto bubbles arise from a number of situations. These include:


  • The price of a crypto asset suddenly nearing all-time-high levels and resulting in high expectations regarding its prospects;
  • The high expectations of crypto actors and agents further stimulating the crypto asset, thereby causing even more rise in price.


So, the more crypto actors (traders and investors) are attracted by the upward price trend of the crypto asset, the higher the price will go. Eventually, the asset will be priced for much higher than it is worth, in which case its holders can enjoy significant profits trading it.


What Crypto Bubbles are Not


Crypto bubbles are not periods of fluctuating prices of crypto assets. As a rule, price volatility is a fundamental characteristic of cryptos. So, when the price of a crypto asset A rises to a new all-time-high and then falls to a new all-time-low within a short period, that is not a crypto bubble.


Also, crypto bubbles do not have a specific time limit. This often makes it difficult to recognize them immediately. So, if you notice that the price of a crypto token has been rising by 5 units every 10 minutes for 4 hours only to dip, you can be sure that that is not a crypto bubble.


Lastly, even though crypto bubbles are seemingly random, they can usually be explained. As noted earlier, these bubbles can be traced to actual (that is, real-life) social and economic conditions, factors, or dynamics. So, if nobody can make sense of why the price of a crypto asset is rising, it is highly possible that it is not a crypto bubble.


Uncertainty and Unpredictability as the Roots of Crypto Bubbles


The crypto industry has been experiencing a lot of downtime recently. Although some critics insist that this is proof that the industry is falling out of favor with market forces, we know that this is not the case. First, there is a global economic crisis and it is affecting crypto. Second, the ups and downs of the value of many popular cryptos could bring about positive trends in the long run.


From what we know of crypto bubbles, it is the scarcity of information regarding when it starts that makes it a profitable period for crypto traders. If every trader on the block has their eyes on an asset about to spark off a crypto bubble, the bubble will burst in no time. This is one of the reasons unpredictability can be a plus for smart crypto traders since it typically shrouds bubbles from public view until it can no longer do so.


So, if you want to take advantage of a crypto bubble, you could do the following:


  1. Observe a popular crypto asset that has noticeably dipped in value.
  2. Research the viability of its returning to the peak within a particular period.
  3. Watch out for social and economic events that could spark renewed investor interest in the asset.
  4. Plug in to the bubble and wait for it to form.


This is not the be-all and end-all of what it takes to seize the initiative and make early and long-lasting profit from crypto bubbles. But it works and helps you see beyond the shroud of uncertainty and unpredictability. An easier way is to keep track of assets with rising prices and wait for said prices to rise above the norm and stay there for a while.


The Prospects of Cryptocurrency


#Cryptocurrency Market
Introduction to Web 3.0: The Meaning and Value

With so many obscure terms and abbreviations on the internet, it is difficult to make sense of the trends they represent. This is more so when said trends are supposed to have great value and earn you a lot of money. Web3 is one such popular buzzword on the internet. However, despite its popularity, many people have a small grasp about its meaning and value. Therefore, this article briefly explains the meaning and value of Web3. The article also highlights some of the most fundamental differences between Web3 and Web2 and outlines some of the best use cases and applications of Web3. Lastly, the article sheds light on some of the opposition to Web3.


What is Web 3.0?


Web3 (or Web 3.0) is the theorized evolution of Web2, the current internet framework. It is a framework that includes everything the internet is about, including enabling infrastructures that allow users to access and use the internet. Unlike Web2, the development of Web3 is still ongoing but its proponents are convinced that it would revolutionize the internet as we all know it. However, this makes it difficult to define. So, here are five (5) definite things about Web3.


Web3 is the third generation of internet frameworks


The first generation was Web1 and characterized the earliest period of internet usage until around 2003. This internet framework used a lot of open protocols, especially HTTP, and users could only read the content. The second generation of internet frameworks was Web2. Social media is the main feature of this generation and users are able to create and market products on the internet. Web2 is the current framework.


Web3 is the third generation of the internet. It is driven by a decentralized system with the largest fraction of the internet owned and operated by user communities rather than big tech companies. It is still in the pipelines but is supposed to be superior to Web1 and Web2 in its integration with real life, quality of content, ease of generating and marketing user products and services, and more compatible assimilation with imminent technological innovations. Also, the Web3 framework is powered by the open-source license and does not require third parties to authenticate interactions (so it is trustless) or permit them (permissionless). 


Web3 was developed around the idea of decentralized blockchains


Web3 does not support any kind of autocracy. With respect to governance, it mirrors the core characteristic of decentralized blockchain governance. Big tech companies are removed from making administrative decisions. Instead, the governance of the internet is left to DAOs (Decentralized Autonomous Organizations). These are groups and communities bound by fixed rules and regulations coded into and overseen by protocols in a blockchain. As a result, no single entity is all-powerful or irreplaceable, the way we have it with Facebook and Twitter now, for instance.

So, with Web3, everything is distributed, from governance to opportunities. Users have governance tokens and can take up the responsibility of temporary leadership. Similarly, random users have tokens that allow them to ‘plug in’ to investment opportunities without relying on government policies.


Web3 is chiefly designed to protect the interests of creators and users


The first two generations were mostly centralized and ordinary users were either only passive observers or subsidiary beneficiaries. Conversely, Web3 is all about creators and users. The internet in this form does not offer any unseen value to big corporations or governments. Instead, content creators and users are given all the privileges to work and earn.


For instance, Web3 allows creators to earn money by gaining direct access to users without having to pay intermediaries to help them facilitate this link. Also, users earn money by buying direct stakes in creators’ content. Web3 also offers provisions for users to sell their data to whoever needs it. So, Web3 does not run the adverts-based business model which is one of the defining features of Web2, and it has a lot more privacy.


Web3 is the internet of value


On Web3, value is sovereign. The current internet framework is not democratized for value creation. This is why it has been described as the internet of information, much like Web1. But Web3 is all about what is valuable. So, the more value a creator can offer to users, the more valuable the creator is rated on the internet.


Put differently, Web3 promotes innovation. As a result, online communities are built around innovation and value creation rather than corporate sovereignty. It is a framework of meritocracy where Peter Parker can design his Spiderman suit at home and Dr. Otto Gunther Octavius can build his octopus tentacles in his lab.


Web3 is the most useful framework for crypto and a crypto-related future


Web3 is also the framework for the anticipated future of decentralization. This future is written around users and gives them a lot more control and influence over their data and web activities. In the area of social media, for example, users can rely on Web3 to interact with the ‘metaverse’ or the universe of digital things. This way, they will be able to work and earn, as well as amuse themselves with different varieties of dynamic platforms and access tokens.


The Web3 framework will also allow users to gain access to crypto-related features without going through meddlesome middlemen. These include all kinds of trade and investment platforms, cryptocurrency, NFTs (non-fungible tokens), gamification, and all that. So, in the fewest words, Web3 will let people make better use of the offerings of the crypto industry.


Web 2.0 vs Web 3.0


#Cryptocurrency Market
Effect of the War in Ukraine on Crypto

Since the idea of cryptos began to gain a foothold in global financial markets and regional economies, people have talked about its ultimate value and usefulness. Any crypto enthusiast or expert would tell you that it is the future, but proponents of the traditional system would say that it is a passing fancy.


In the last 2 years, two incidents have both validated and disproved these perspectives: the COVID-19 pandemic and the consequent near-global lockdown protocol, and the war in Ukraine. The former is mostly behind us but the latter is right in front of our noses. Even so, both experiences show us that the traditional financial system is inconsistent, inadequate, and imperfect. Enter the crypto industry and the volley of advantages that it has brought—is bringing and will bring—to the table. The prospect of absolute decentralization and value distribution (such that there is no longer distinction in value with regard to regional (fiat) currencies) is exciting enough reason to make progressive minds jump at the technology.


So, with COVID-19 (hopefully) behind us and the war in Ukraine in view, what has changed about the crypto industry? Are we seeing a future free of invasions due to the proliferation of crypto assets and regulations? Should we expect further applications of the blockchain vision such that the social and economic aspects of our lives are better stimulated for safety and satisfaction?


This article does not dare provide answers to these questions. However, we dare to make informed speculations about how the war in Ukraine has affected the crypto industry, especially with reference to regional and global acceptance and usage. 


Contemporary Economies and the Way of Sustainability


The war in Ukraine has opened a lot of eyes regarding the way that national economies work. For a long time now, there has been talk of economic sustainability, the kind of safe haven that a government should be able to give its people so that they don’t have to fall back on milking their natural environments dry. Trade would be global, all nations would have a seat at the round table, and the earth would invariably have one big happy human family.


The war in Ukraine has taught us that this dream has several implications. For one, as a government or government representative, you should not expect that you would be able to do whatever you want to the people of your country. More than that, you should not fantasize about telling someone else how to run their country. If you do, you would be slammed with sanctions and will have no other choice but to bow your head.


This is the reality to be expected of social and economic sustainability: a universal consciousness of accepted conduct and norms. We are halfway there, which is why Russia could be excluded from the global cake of economic benefits when they decided to invade another country and start a war.


As of right now, many global financial markets have seen it fit to rob Russia of transaction rights. Economic and employment networks, particularly freelance, have also shut their doors on Russians as a way to express displeasure at the way things are running.


This is the real face of an economic sanction, and it means that the offending party, in this case, Russia, would receive scorn and contempt from the rest of the world. On the other hand, the aggrieved party, in this case, Ukraine, would receive as much love and support as the rest of the world can bundle up and send across.


The State of Cryptos and the Crypto Industry Before the War

#Cryptocurrency Market
Joining the Crypto Economy: What is the Hold-Up?

In the last decade, quite a number of things became mainstream. We had the film adaptation of George R. R. Martin’s Song of Ice and Fire series which came to be known as A Game of Thrones and threatened to upend the Harry Potter fanbase universe. Netflix also became a big deal thanks to a deluge of TV shows. But neither of these comes close to the crypto-verse in terms of popularity, controversy, and clout.


When Bitcoin developer Satoshi Nakamoto published the legendary white paper on peer-to-peer finance in 2008, it didn’t raise that much dust. At least, not among everyday people who are more interested in checking the boxes on their December grocery lists. But it is 2022 and the concept of blockchains, virtual currencies, and non-fungible tokens (NFT) are no longer loony issues.


Even so, there is still a lot of skepticism and suspicion towards the workability of crypto-assets and their neighbors (the metaverse, Web 3.0, etc.). So this article highlights some of the points raised by crypto critics and the occasional crypto-gnostic who wants to join the crypto wagon but turns back at the last step.


Learning Curve

#Cryptocurrency Market
Introducing Kyrrex, the New Coinbase Alternative

If you're looking to join the cryptocurrency craze, an exchange will likely be your primary gateway. Decentralized exchanges let you buy and sell crypto anonymously, but most of them have a steep learning curve. Centralized exchanges, on the other hand, require some form of verification but are more user-friendly. 


By several metrics, Coinbase is regarded as the best cryptocurrency exchange in the world. Over the years, the platform has certainly done its bit to make digital currencies more accessible. A few platforms have sprung up to give Coinbase a good challenge. As the industry matures and the space becomes more competitive, the drawbacks of Coinbase become more apparent.


This article focuses on one of the newer alternatives to Coinbase—the Kyrrex exchange. We look at why some users might want to switch from Coinbase/Coinbase Pro. We will also explain about the advantages of the Kyrrex crypto exchange over Coinbase and extra features that users can enjoy on the platform. 


The Centralized Exchange 


A cryptocurrency exchange works similarly to your local brokerage. These platforms provide easy access to the tools of cryptocurrency trading. You can buy and sell a wide selection of digital currencies like Bitcoin, Ether, Cardano and Dogecoin. You can make purchases with your credit card and select from a range of trading pairs. 


There are dozens of cryptocurrency exchanges but not all of them will suit your needs. The best ones combine ease of use and strong user protection with low fees and a sizable number of supported currencies. 


A centralized exchange is a middleman that matches verified buyers with verified sellers and allows cryptocurrency trades to take place. It is a trusted third party and somewhat similar to how a bank operates as a repository and broker of fiat transactions. 


These exchanges are important to the cryptocurrency industry because they bring a pool of willing traders together. They also hold digital tokens on behalf of the customer, who no longer needs to worry about forgetting their private keys. They are also the primary access points to the cryptosphere. 


Aside from these primary functions, centralized exchanges have other features that vary by platform. Thus, the exchange you settle for should ideally offer the kind of products you want. 


How to Choose the Right Exchange 


If you want to move on from Coinbase, your next steps are very important. New exchanges spring up all the time. However, there's zero guarantee of prolonged success. In fact, a few celebrated exchanges ended up folding up after some years. 


With this in mind, you should look out for certain features when you check out an exchange. These features will help you decide whether the platform is right for you. 


  • Security 


How secure is the platform? How does it react to hacks and other attacks? Checking the history of an exchange's response to security breaches will tell you a lot. 


No matter how big an exchange is, it is not totally immune to hack attempts. Some exchanges are more successful than others in managing the aftermath. A few have insured customer funds against successful breaches. Some refunded users, others weren't able to; and others went out of business altogether. 


  • Trading Volume 


Trading volume provides a measure of an exchange's popularity in the crypto world. A high trading volume means more active users on the platform and signifies a strong exchange. You should also check the volume of transactions in the currencies you're most invested in. If the volume is low compared to other platforms, it might be evidence of community distrust in the exchange. 


  • User Experience 


There's no point in using an exchange if its features are too complicated for you to use. Before taking the leap, read reviews and watch videos to get a general idea of how the exchange works. Then decide if it's too complicated or just perfect for you. 


  • Supported Currencies 


If you just want to invest in Bitcoin and Ethereum, you may as well choose your exchange at random. Most platforms have those two as the major tradable currencies. 


However, if you're looking to buy and sell low-cap altcoins, your choice of exchange will impact the coins you can trade for. You should find major alts like Cardano, Litecoin, XRP, Solana and Dogecoin on most platforms. Beyond those, check that the platform has what you want before you sign up. 


Exchanges are always adding new and old tokens all the time. Even so, not every exchange will support every asset. Peruse the list of coin offerings first. Naturally, you can broaden the range of coins you can buy by signing up to multiple exchanges. 


  • Legal Status in Your Region 


Sadly, Coinbase isn't available in my country. This can happen with the exchange you like so be sure of its status in your legal jurisdiction before you sign up. Sometimes, this happens because of regulatory requirements. Sometimes, the exchange simply hasn't expanded to the area (yet). 


Different governments have different rules regarding cryptocurrency exchanges. Not every exchange will meet these rules in every country. Some create country-specific versions of the platform that comply with government regulation in that country. 


Rules can even differ within a country so be sure of the facts before you start using a platform. Nothing hurts more than signing up and then discovering that you can't buy and sell within the jurisdiction. 


In rare instances, a certain digital currency has a disputed legal status and so isn't available. For example, XRP, the token from Ripple labs, is currently banned on US-based exchanges because of an ongoing legal case. 


Why Switch From Coinbase? 

#Cryptocurrency Market
Kyrrex: The New Kraken Alternative

We have centralized exchanges to thank for crypto’s widespread adoption. They make the process of buying and selling digital assets like Bitcoin incredibly easy. You’ll have to start with one of these platforms if you’re looking to own your first cryptocurrency.


That said, they are more than just a front door to the crypto industry. They also offer advanced trade options for professionals. These include margin, derivatives, and futures trading. 

If you’ve searched for exchanges to trade on before now, Kraken must be on your radar. It’s one of the biggest crypto platforms in the world by many parameters. It’s been around for nearly a decade and has done its best to make crypto trading safer and more convenient. In addition, it has a good mix of digital currencies, reliable security policies, and a standard user interface.

Kraken remains one of the very few platforms in the US to offer advanced trading options like Margin. 


Despite all that, the exchange might not be your best choice if you look at the wealth of options at your disposal. New crypto trading platforms with innovative offerings are springing up and giving big guns like Kraken a run for their money. This article puts the spotlight on one of the next big alternatives to Kraken – the Kyrrex Exchange.


Using Centralized Exchanges


You’ll have to use a centralized exchange to buy digital currencies like Ethereum, Ripple, and Bitcoin. These exchanges run even today’s peer-to-peer platforms. Crypto exchanges work like stoke brokerage platforms where you get access to trading tools. The main difference is that you’re trading more volatile crypto assets instead of stocks.


Nowadays, it’s easy to head to an exchange and purchase a coin using your debit or credit card. You can also make bank deposits to your exchange account and convert the cash to crypto.

But it doesn’t end there; professional traders can trade derivative assets on centralized exchanges without buying the actual tokens. Other advanced trading options include margin and futures trading. 


Centralized exchanges serve as a marketplace of sorts. They match your buy orders to other traders’ sell orders and vice versa. There are numerous exchanges today with different offerings. The right platform to use depends on what you want to buy, legal status, security, and ease of use, among other vital factors. 


Choosing an Exchange


As we mentioned, the suitable exchange for you depends on what you want. But there are fundamental things to look out for when choosing one. Remember, selecting an exchange due to popularity could be a mistake. If you look at the past, some of the big names in crypto trading are no longer in business and have bankrupted users. So what are the top things to consider? Let’s break them down.


Trading Volume


One of the most important aspects of any crypto exchange is trading volume. You want to make sure you can buy and sell crypto assets at any time without waiting days to fill your bags or withdraw your cash. Trading volume refers to the amount of activity happening on an exchange. The higher the trading volume, the more cryptocurrencies and cash are changing hands. If you have a particular asset in mind, check out its trading volume on the exchange you’re considering.


Security


Understanding the exchange’s security policies is vital. Check out their history. Have they ever been hacked? If yes, how did they react to the problem? Check out reviews regarding user security and other related problems. Another thing worth finding out is how they store users’ assets. Confirm the percentage of cryptocurrencies they keep in cold storage. Using cold storage means saving funds in an offline wallet. This makes it difficult for hackers to gain access.


User Experience


Ease-of-use can be a deal-breaker depending on where you’re coming from. If you’re a beginner, you want to go for an exchange with a user-friendly interface. This way, you know what you’re doing and won’t make trading mistakes that could lead to loss of funds. Ensure you read reviews and guides on how to use an exchange before signing up.


Availability in Your Jurisdiction


Some exchanges are not available in certain jurisdictions, and you could be breaking the law by using them. So, check if the platform you want to use is available in your country. Your research should also cover the platform’s legal status. Some outfits often fall short with legal compliance and end up being targeted by regulators. So, even if the exchange is currently trading in your country, confirm they don’t have looming issues.


Another thing worth checking is the currencies available to trade. For example, US residents are restricted from trading certain currencies listed on Kraken. Finally, an exchange’s availability in a country doesn’t necessarily mean everyone can use it. Again, Kraken comes to mind as it’s available to US residents except those in New York and Washington State.


Currencies Available to Trade


You don’t want to sign up with an exchange that doesn’t have the cryptocurrency asset you’re looking to buy. On the other hand, if you’re getting popular coins like Bitcoin and Ethereum, your task would be easy. It becomes tricky when you’re going for lesser-known crypto assets. However, a simple search online will show you the assets available to trade on any exchange.

It’ll be wise to go for an exchange that lists more altcoins. This is because your needs could expand in the future, and you want to have access to new coins that catch your interest in the future without switching platforms.


Pros and Cons of Kraken

#Cryptocurrency Market
The Future of Cryptocurrency: What Will Crypto Investing Look Like in 10 Years?

Is cryptocurrency a bubble or a boon? Some experts have warned that the industry is a bubble that may burst anytime and leave millions of people scrambling to salvage something from the wreckage. 


That's the grim version of the future. 


The cheery version? Bitcoin and other digital tokens continue to ride a crest of acceptance. Institutional investors swan into the arena like welcome messiahs, pumping even more funds into the system. Popular tokens keep gaining in value. New use cases for crypto are discovered. The bridge between fiat and crypto blurs and everyone starts using crypto to pay for goods and services. 


The truth is that nobody really knows the future of crypto in the next 5 years and beyond. That should not stop you from trying to rationally analyse what could happen. This will help you make sound investment decisions. 


Is Crypto the Future of Money? 


Money is something that is generally accepted as payment for goods and services. Money is verifiable, storable, scarce and acceptable. If crypto is going to replace fiat on a wide scale then it must meet all of these conditions. 


Crypto as a Medium of Exchange 


For something to be a medium of exchange, it must be capable of being both usable and acceptable as payment. It must encode value which can be transferred from person to person. 


When you buy a car for fifteen thousand dollars, the money encodes the value that the car has to you and which the seller believes the car has to you. You and the seller agree that dollar notes are an acceptable way to exchange value. Furthermore, the seller believes they can exchange that money for a similar car or something else of similar value in the future. 


Bitcoin and stablecoins are already used as media of exchanges in certain industries. Freelancers across a wide range of specialisations get paid in crypto. You can buy cars, pizza, electronic equipment, air tickets with crypto or bitcoin your way to an expensive vacation. The evidence so far indicates that this trend will continue into the future. More and more sites and physical stores will start accepting crypto. 


Crypto as a Unit of Account 


A unit of account is a standard with which prices, costs, debts and income can be calculated. It provides a stable framework to measure incomes, gains and losses. It must be divisible, fungible and countable. 


You can certainly divide 1 bitcoin into smaller fractions, all of which collectively total 1 bitcoin. If you divide 1 BTC into 4 equal parts, each ¼ BTC is exactly the same in value as any other ¼ BTC. This makes BTC fungible. Finally, BTC is countable because you can subject its units to mathematical operations like addition, division and subtraction. 


However, BTC and crypto in general are relatively volatile compared to a strong fiat currency like the US Dollar. This makes crypto less reliable as a unit of account. Whereas you can be sure that 200 dollars next month will be greater than 150 dollars today, barring the collapse of the US economy, you can't say the same for bitcoin. If the price of BTC falls sharply in the interval, 200 BTC then can actually be worth way less than 150 BTC now. 


Fortunately, crypto has a solution for this: stablecoins. These are coins pegged to a stable fiat currency like the USD. In ten years, people might just be paying each other in USDT, or a national or regional variant, skipping fiat altogether. 


Crypto as a Store of Value 


For crypto to function fully as money, it must be usable to maintain and create wealth. So far, BTC and ETH lead the way. The rest of the altcoins are a mixed bag. The occasional bear runs complicate matters as a lot of value is lost when the market is red. 


Suffice it to say that, over the long term, Bitcoin and Ethereum have proved to be very strong stores of value. This looks likely to continue far into the future, as long as general interest in crypto doesn't plateau. The recent adoption of BTC as a legal tender in El Salvador is a step in the right direction. 


Bitcoin and the Idea that Birthed a Future 

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