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The Speculation Logic Behind Cryptocurrencies

Date:

Sajjad Hussain
Photo by Maxim Hopman on Unsplash

People often consider cryptocurrencies are deep technical technologies and think that without enough expertise probably deceive by the fake coins, it also not necessary that everyone will grasp the complete speculative logics at once, several virtual currencies are quite deceptive and there is no real power behind them, the rise and fall of cryptocurrencies are due to specific trend and logic behind them, the cryptocurrency technical logic and the economic conditions of the world are the basis of the rise and fall of cryptocurrencies.

The cryptocurrencies have no relation with the social or economic development of the society, it can’t be justified that if someone considering the equivalence of crypto funds to gold and reserve currency, it does not mean that speculative currency will gain value from it. The virtual currencies are just the piece of code without any backup of precious metal. If you look towards the popularity of Bitcoin you can find that behind Bitcoin there is no entity that can be relied upon, whether it is a country, a company, an enterprise, or a system.

Bitcoin rises like a shining star and achieves mass recognition after many big companies recognized Bitcoin, the software developer world-first recognize the potential use cases of Bitcoin and after some time everyone recognizes Bitcoin as the tool to make the fortune. Ten years ago the price of Bitcoin rotating around one to five dollars but after so much popularity of Bitcoin, the price has gone straight to 64,000.

When Bitcoin first introduced to the world the common comments about Bitcoin are very promising like it is the currency that completely controlled by its users, users enjoy the freedom of control, no government intervention, there is no need to put the supercomputer in the backend of the currency system, people at that time concerned over the intermediaries and the transactional cost during online trading, they seek solutions to move currency without any intermediaries.

The success of Bitcoin has given birth to more technically advance virtual currencies, such as Eteruem and Ave, among many cryptocurrencies, only Bitcoin characterized as complete freedom, while Dogecoin tried to take the same path as Bitcoin, does Musk take you to the Martian surface it depends on the abilities of his rockets, maybe Musk’s rocket will explode in between the trip because of the energy crisis, it is clear that all kinds of bigwigs want to make money but enough money with the ease of cryptocurrencies. According to speculation logic If the person has millions of followers and people give him so much respect and if such a person told online that this currency will certainly be my favorite one, it means that the entitled cryptocurrency will skyrocket and that person achieved unlimited profit.

It is evident that Dogecoin has now become the product for most enthusiasts speculation, the most special thing about Dogecoin is that no one cares about the future of Dogecoin but the most important thing is who makes a lot of money, everyone knows that speculation is widespread and the money made by speculation is real, there is nothing wrong with speculation and those who do not understand mark the cryptocurrency is a scam and Ponzi.

Cryptocurrencies are products that have no backup support and breadth but the marketing and the promotion on the internet change everyone’s mindset, when enough people trapped in the scheme you make the money, everyone becomes part of the scheme then the speculation is necessary for the greater profit margin.

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Source: https://medium.com/cryptocurrencies-ups-and-down/the-speculation-logic-behind-cryptocurrencies-7cb2cd1b2d56?source=rss——-8—————–cryptocurrency

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