A natural law stated by newton in easy words says, everything that goes up has to come down. This law is also applicable to economics, and in economics this law is more powerful than in other places.
Market takes years of time to rise but it falls more harder that it grows, and to fall down it take very lesser time in comparison to the time taken to grow.
To understand this concept let’s see what affects the market depending on how sever it is.
· State of economy, Economic policies, Political Situation, Government, Political union and International organisations (such as international unions, policies, relations between non-member states).
· Disasters in simple terms the natural calamity, attacks, war.
If these points are strong then it helps stock markets to grow and grows gradually along with the conditions of these point. If any of these this happens then it defiantly affects the market and its growth slowdown, which creates more fear and panic.
Let’s see what affects the crypto markets.
· The overall calibre of the team.
· State of the development team, example: stability of the team and its members.
· State of , example: normal operation, planned updates, hacking, and fixing issues.
Utility.
Government policies and their stance towards it.
Liquidity and investors confidence.
These were the points which helps crypto market to grow. But when the stock market bleeds and is facing a bad time then investors look for other options to invest in, which can be gold, or any .
market has an inverse relation to the stock markets and gold. Stock market investors liquidate their stocks and search for other options to invest when the stock market reaches its peaks. In this process gold has a major flow of this money but it comes with a flaw that you cannot sell it whenever you want to sell and wherever you want to want.
Bitcoins is a better aspect of gold to be invested in. Working class people are the one who believe in investments, and they are the largest amount of population. Nowadays has become more popular and attractive assets class than gold. When these working class people decide to invest in then there is only one way for the price which is upside.
More people are trusting over gold or over Government and this is expected to continue. This is a bullish sign for and other . Why people are losing trust on government because of good aspects of over traditional currency.
Many countries have been affected by High Inflation and it can be seen that is performing good in those countries. Its all a matter of trust.
Also the supply of is limited like Gold. But fiat currency has no limit.
What are all negative factors of bitcoin.
Lot of people trust on government in the financial crisis. Only few people know about . There are only 0.4 million address used over a global population of 7.7 Billion. This is a negative point and also a positive point.
Also as mentioned above what people do when they panic.
Published at Fri, 05 Apr 2019 01:47:12 +0000
