In our world today, marketing has climbed to a rather awe form. Many years ago, we had so many means of exchange that includes trade by barter system, in the barter system, individuals are to exchange a particular commodity or item in exchange for their crucial or most needed item. We can say that in the barter system of trading, individuals might find it difficult sometimes getting to meet a particular fellow who’d trade what they actually need.
Time and seasons went by, human understanding evolved into the money system. In a certain part of the world like Africa, cowries were used as an exchange phenomenon, then it moved to coins and till the paper money.
Actually, money is anything that is generally accepted as a means of exchange or as a token to get commodities – then certainly, every form of exchange becomes even, as it involves exchange and dialogue. Today, we have moved from the paper money to a more secure and electronic means of exchange.
Cryptocurrency is a term given to a system that uses the cryptographic format to allow a safe and secure transfer of tokens digitally in a distributed and dispersed manner. Bitcoin was the first cryptocurrency invented by Satoshi Nakamoto and began trading in January 2009. Afterwards, many cryptocurrencies emerged using the same pattern and innovation like bitcoin, but they only changed some of their governing steps and parameters.
Before the invention of cryptocurrencies, it was almost impossible for two parties to transact funds or commodities electronically without involving a trusted third party in the form of an escrow. There used to be a problem of double spending in which an electronic file can be re-used by the sender and at the detriment of the buyers.
Some third parties like PayPal were put in place to curb this flaw. PayPal uses a ledger to keep accounts of all balances and transactions. The cryptocurrency also uses a ledger called the blockchain that records the transactions. The blockchain, unlike the PayPal ledger, isn’t maintained by a central body, rather it is publicly documented and dispersed across thousands of nodes in crypto networks.
WHAT IS CRYPTOCURRENCY PRICE
The price of cryptocurrency depends on many factors, and it has influenced so many areas of the world’s economy. The value of Cryptocurrencies as a means of exchange depends on its usefulness when placed as a means of an exchange over a particular period of time which is often a short while. Cryptocurrencies are volatile because of the influence the store of value has on it. The store if the value on its own is the function that determines the future value of an asset-based on factual predictions.
In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Outside having a few times of downfall, the bitcoin as of October 2019, seems to have found a new price point in the range of $8,000 to $9,000. Though there are several cryptocurrencies, like the ripples, ethereum and lots more, albeit, the feature of volatility exists judiciously in all of them.
Also, the value and pricing of cryptocurrencies depend helplessly on the mining activities. The size of the mining network affects the size of the production network which affects the cost production and also the cost of the cryptocurrency.
The media also influences the price of cryptocurrencies, making it volatile. There are so many speculators that are always on the go to predict the price of Cryptocurrencies, they always look out for headlines on world market and this speculation and media activities causes some rush in the buying and selling of cryptocurrencies which causes inflation or deflation in price.
Technology also contributes to the volatility price of cryptocurrencies. Although the machine system has evolved drastically, yet there are often times when the same machines malfunctions and causes volatility. Particularly stubborn technological hurdles like the blockchain scalability problem cause downward pressure on crypto prices when they aren’t solved in the timeframe that many expect. The price status of cryptocurrencies are therefore based on so many factors, and its volatility remains certain.
WHAT IS CRYPTOCURRENCY MARKET
Everything that emerges in our world today must have a form of marketing and a way or pattern that exudes its relevance so as to reach a large number of people. Cryptocurrency isn’t left out when it comes to the human marketing system. Since the creation and invention of cryptocurrency, its marketing hasn’t been an easy one.
From the very first moment of its acceptance in our marketing system, it has gone through numerous uncertainties and unpredictability.
The capitalization of the total Cryptocurrency market began a period of exponential growth and incredible volatility from May 2017 onwards, at the end of 2017, it marched to a more historically level. At the first quarter of 2018, it declined and passed it declination ruggedly to the second quarter of 2018.
In the cryptocurrency market today, Bitcoin holds a leading and prevailing share over other cryptocurrencies. In crypto marketing, people find it difficult when it comes to choosing a currency to invest on, because often times than never, the fluctuate together and share volatility.
Albeit, as cryptos influence our economy, it’s important to study the specific use of each virtual currencies, and also know the value of their exposure to the overall market, so as to know genuinely where to invest, buy or speculate. The coins and tokens whose value will rise in the near future are most likely to be the ones with large exposure to the overall market. Also note that the more people, companies and countries are attracted to use cryptocurrencies, the higher the market capitalization.
In conclusion, the emergence of Cryptocurrency has proven that there can be a peer-to-peer and secure way in which transaction can be done electronic. Despite the emergence of Cryptocurrency, the possibility of fiat money and other visible money being extinct is slim or almost impossible because most people aren’t tech oriented and everyone feels better with a visible tender.