How the Cryptocurrency Bubble is Slowing Down Innovation

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cryptocurrency trading

The market on cryptocurrency is notoriously lucrative, but in addition it has also become a massive bubble that many think is on the verge of popping any day now. Just like the dot-com boom, many people lost a large amount of money, but the market also was able to bring us some of the most popular companies we have today, and some of the largest breakthroughs in innovation in the modern day. Cryptocurrencies have become based on the idea of speculation, which can provide high returns. The market on speculation has also provided the bubble which has become a large series of talks in recent times.

According to a report on the subject “Most “crypto tokens” are, in fact, just glorified hash values stored on the Ethereum blockchain — literally nothing more than a table of numbers like “address A: 10,000. address B: 20,000,” wrapped in standard blocks of code (the ERC20 and ERC721 standards, for fungible and non-fungible tokens respectively) so that they can be easily transacted.(Ethereum’s variable-gas-price mechanism doesn’t really help; fees are driven by supply and demand. And of course it’s not just Ethereum. Blockstack’s DNS uses the Bitcoin blockchain as its source of truth, and Bitcoin transaction costs have also gone through the roof. SegWit transactions are cheaper / more efficient but that’s noise compared to the overall trend.)”

Trading this amount of money can be beneficial for investors who are looking to come into the space and make money, but for companies that are trying to use the technology to build a business, it can be extremely difficult. Given the high volatility of the price action with cryptocurrency, many businesses cannot viably price their products. The hopes are high that the market can stabilize in the future and become one of the world financial systems greatest breakthroughs.

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