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How Cryptocurrency Prices Work
In fact, the price of Bitcoin is determined by the supply and demand for it. This market law is primary here and is executed at 100%. The more attention to the cryptocurrency market, the more actively the same Bitcoin as an asset or payment unit is distributed, the higher its price.
Digital currencies are as mobile as they are opaque. No one knows for sure what the total number of bitcoins or their analogs in the market is, or who exactly they belong to. This is important because, in such conditions, concerted actions of several large holders of such an asset (pampers) are enough to reverse the market trend. For a high risk, the owners of virtual currency have the opportunity of large-scale earnings – in case the market moves in the “right” direction.
Impact of population literacy
There are also secondary factors affecting the formation of the price of the virtual currency. For example, the growth of financial literacy of people and open access to information about events occurring in the market of cryptocurrency. The more attention to digital assets, the greater the demand for bitcoin and other currencies, the higher their prices. Improvements in infrastructure related to the cryptocurrency market, such as expanding account replenishment methods, transaction paths, options for converting funds and other options, have a positive effect on the growth of interest in it from investors. The simpler the “in and out” is, the better.
Inflation affects indirectly
If you look deeper, another driver appears that affects the rate of the virtual currency, but indirectly, not directly. These are indicators of inflation in real life. Rates of Bitcoin, Altcoin, and others depend on the issue of money, that is, the number of coins already released into circulation and ready for use. This resource is finite because the source code allows you to produce a predetermined amount of bitcoins. But to inflation, Bitcoin does not have any binding (because it is not secured by anything, again). In this light, investments in cryptocurrency are presented to investors more and more attractive.
Speculators
Less significant factors of influence can be many. This policy, the number of active buyers and sellers, the amount of money in cryptocurrency, the mood of speculators and so on. The influence of the political factor can be easily tracked by bitcoin pairs with currencies of emerging economies – for example, with the Russian ruble.
About speculative players should be said separately. The virtual currency market is only developing, its volume is growing constantly, but intraday indicators still allow the artificial formation of a growing or downtrend. As it was said earlier, several large holders of cryptocurrencies may well “collapse” prices or direct the market into an up-trend.
Panic and hypertrends
The mood is another driver that determines cryptocurrency prices. “Market Panic” can both “bring down the course” and raise it “to the skies”. It all depends on the cause of market reactions at one time or another. If investors are positive and ready to buy, prices will rise.
In any case, when investing in cryptocurrency, it is worth remembering that a successful history of price increases in the past does not guarantee a repeat of this situation in the future. Risks will increase over time as the cryptocurrency market becomes more volatile.
What Are Bitcoin Futures?
For a long time, Bitcoin remained outside the law. Now everything has changed. Two major US exchanges – the Chicago Stock Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) – have launched bitcoin futures trading. So bitcoin as a financial instrument gained recognition from government agencies, and the launch of futures will allow legitimizing this tool for institutional investors, hedge funds and other participants in the financial market.
What is special about Bitcoin futures?
Futures – is a derivative financial instrument, or “derivative”; This is a contract that is concluded on an exchange between two parties: the seller and the buyer. Very often, the role of the contractor under the contract is performed by the exchange itself, which then finds the other participant as the second party to the contract.
Note that it is possible to trade in futures contracts at BTC without having the cryptocurrency itself, but only speculating on its price. That is how, in particular, transactions take place on such well-known exchanges as CME and CBOE, focused mainly on large investors. However, on the upcoming Bakkt trading platform, futures will be presented that involve the supply of physical Bitcoin after the expiration of the contract.
How does Bitcoin futures work?
Bitcoin futures is the obligation of one party to the other to buy or sell a certain number of bitcoins at an agreed price before the expiration of the contract in question.
The price of the futures is the guarantee of the contract. It can be 10-15% of the total amount of the transaction. This provides an opportunity to get a large income even with small investments by both parties due to the so-called leverage.
It is extremely important in this situation to correctly predict the future price of the underlying asset. Otherwise, losses are possible. Control over the fulfillment of futures obligations in accordance with current legislation provides the exchange.
The impact of futures on the course and the Bitcoin market
It’s no secret that demand creates supply. The same pattern is observed in the case of the course of Bitcoin – respectively, the cryptographic market as a whole. That is why many analysts believe that the emergence and closure of futures contracts for Bitcoin are of great importance for the course of the first cryptocurrency. The question is only in the degree of interest in Bitcoin of large financial institutions, whose work is carried out within the framework of current legislation.
Such interest of financial organizations strengthens the legal basis of cryptocurrency in the existing system. On the one hand, this will ensure the formation of digital currencies as tradable assets (respectively, this will inevitably provoke a rise in the cost of Bitcoin).
How will be trading Bitcoin futures
As a rule, non-professional traders make up the majority of the crypto market. Simply put, these are people who are willing to invest money in everything that shows a rise in price, believing that the growth trend will always continue. However, major market players are not like that. Where an inexperienced investor will buy, an experienced one, on the contrary, will sell.
Bitcoin futures trading follows clear rules, and most likely this situation will continue in the future due to the fact that this market is regulated. To prevent manipulation, futures have a limit on the number of contracts.
Online Decentralized Search Engine
A decentralized online search engine makes use of a distributed ledger technology.
When it comes to looking for products and services online, blockchain offers an additional layer of privacy. Unlike standard search engines which decide which sites are most relevant/irrelevant for you and place ads based on the information they secretly collected via cookies, blockchain gives users the right to decide what details they wish to share.
As a result, users see targeted ads of their interest. Blockchain allows users to retain the ownership to their personal info.
Since placed ads are of particular interest to the users, it also improves conversion rates and helps with lead generation.
How Does It Work?
Its functioning is no different from that of a regular search engine.
Blockchain offers you a platform to search via the internet. It saves relevant searches clicked by you. When you continuously search via a blockchain search engine, you build a purchaser personality and an online identity.
But Isn’t It How Regular Search Engines Work Too?
Yes, but with a decentralized platform, it is you who controls what information goes out and who is it shared with. You can secure your information with a private key and remain confidential and protected unless you choose otherwise.
You can also make this data available to a few specific retailers. You do so by getting into a smart contract with them. This also cuts down the advertising costs of intermediaries who continuously bombard the internet with useless sponsored ads and pop-ups. So, in a way, you are saving big corporations millions of dollars that go into advertising.
One example of such a platform is the BitClave’s active search ecosystem. BASE compensates its users with relevant searches using a digital currency Consumer Activity Token. The digital currency can be used for online purchasing. The biggest perk of such an ecosystem is that it enables users to make money from their online searches and receive data about products and services they are interested in.
Do We Need A Decentralized Search Engine?
Yes.
We all know that the online marketing sphere is reigned by a few giant corporations like Facebook, Google, and Amazon. These determine how marketing campaigns need to run and stay competitive.
The biggest drawback of a centralized search engine is that a lot of personal information is sold to third-party sellers, tracked and used without our permission. These big corporations than use that information and device specific advertising campaigns accordingly –giving rise to a billion-dollar advertising industry.
Therefore such a system requires an interruption.
It is platforms like BitClave that gives back the power to the people and allows them to choose what they wish to see and don’t.
Applications in Real Life
Suppose you looking for summer clothing online. Blockchain-based platforms secure information about your specifics and show targeted results without bogus site displays.
On one hand, it allows you to achieve your goal in less time and on the other, enables merchants to target you with customized deals based on the parameters you set.
What Is Time Banking?
The essence of time banking is simple. Everyone has free time. It is possible to invest it profitably: to render some service to others and to receive for it to your account the corresponding amount of time. Time capital can be spent in the same way – use the services of any other client of the bank time. At the same time, the principle of full equality operates: an hour of unskilled labor (sweep a yard or help with relocation) is valued as a qualified hour (music lesson or legal advice). Otherwise, everything is like in a regular bank: loans, bills. To become a client of the Bank of Time, you need to fill out a questionnaire, have an interview, confirm your skills with diplomas and certificates and get down to business. The client’s personal card indicates what services he can provide and what assistance he is interested in.
The idea of a time bank belongs to the Soviet psychologist and logistician Vladlen Livshits. In 1977, he introduced a flexible working time system at the bakery of the Estonian city of Kohtla-Järve. A little later, two more enterprises of the same city were involved in the system of turnover of time (like money circulation). Many people wrote about this experiment in newspapers, but Livshits did not get the idea of mass character in the Soviet Union. However, thanks to the American reporter David Schipler about the time bank learned in the United States.
The advantages of time banking
Time banks help to overcome the estrangement between people and mutual assistance in the conditions of a new economic trend – gradual reduction of workplaces and a full day,” says Vladlen Livshits, creator of the first time bank. Economist Anton Suvorov agrees with him, who notes that “because of the crisis, people have more free time and less money, but the need to retain their usual way of life with all their strength, therefore, these elegant solutions — get some services for free — quickly found a response. “In addition to the crisis, the development of information technologies pushed the emergence of a bank of services. People earlier simply did not know that a jack of all trades lives on the next street, ”the expert emphasizes. At the same time, representatives of foreign mutual aid services believe in the bright prospects of this project in Russia because “People are very responsive.
Short history of time banking
In 1980, a volunteer movement of the same name arose in the United States. Its founder was a lawyer and public figure, Edgar Kahn. For him, time dollars have become a tool to increase the effectiveness of volunteer activities in the community. This principle allowed everyone to select a suitable job, “pay” for it, as well as monitor and control the performance of volunteer work.
Conclusion
Volunteers say that participation in the time bank programs is suitable for everyone because each person is unique and talented, he can offer others something that no one else will offer. The most popular services of time banks are, as a rule, repair and cleaning of premises, tutoring, massage, manicure, and make-up, services of drivers and couriers. There is particularly strong demand for drivers. But the application is both the easiest and the most exotic skills: the work of one center began with the replacement of lightning on clothes, in the other – Vedic cooking lessons, in the third time clients of the time bank solved the problem with the TV show recording program.
In the very idea of this social project, there are two very important things: on the one hand, mutual assistance. On the other hand, self-help. Thanks to the time bank membership, people have a chance to recognize their hidden resources and opportunities, volunteers say. However, perhaps the main achievement of time banks is that thanks to them, people again begin to communicate life, make friends not in the virtual, but in the real world.