Crypto Market: Real Business or Business Illusion?
Today, the cryptocurrency market exists in a separate space, with minimal links to other markets and industries.
An example is the oil market.
On the one hand, its price depends on the balance of supply and demand, which in turn depends on the state of the world economy and the level of production. If the economy is doing well, consumption and prices are rising. This is followed by a rise in oil stocks and a strengthening of the currencies of the oil-producing countries.
Everything is interconnected, changing one parameter leads to changes in the whole system. Concerning cryptocurrency, everything is radically different.
Let’s see what the crypto market really means.
The exchange dynamics are tied exclusively on one object namely Bitcoin. Everything else obediently follows it. There are, of course, some anomalous ups and downs of some altcoins, but they are short-lived and tend to return quickly to Bitcoin dynamics. In fact, Bitcoin accounts for half of all market capitalization, the rest of the Crypto increases the volume of the market, but does not change its dynamics.
So far, there is no cryptocurrency fundamentally linked to other markets. Even «commodity» coins are not very common. The market may be radically affected by «state» cryptocurrencies (such as crypto dollar and crypto yuan), but this will be another market. The liberties of independent DeFi currencies will come to an end.
Cryptocurrencies have not yet acquired the fundamental value associated with irreplaceability.
Why do you need Bitcoin?
As alternative money – for settlements and savings.
Is Bitcoin irreplaceable?
Not at all. Moreover, if it will disappear tomorrow, it will not cause global upheaval, because of particularly its isolation. If an isolated niche will collapse, private investors will lose money, specialized companies will go bankrupt. But, for example, Kuwait, which has completely banned crypto business, will gloat at.
In general, the total capitalization of the cryptocurrency market is only $1.2 trillion, it is negligible compared to other markets.
Bitcoin and Its Value
A reasonable question arises: why does Bitcoin have any value at all? Why is it suddenly ready to give tens of thousands of dollars. It seems to exist despite any economic logic.
- Bitcoin is not backed by real assets.
- Bitcoin is not an irreplaceable asset.
- Bitcoin transactions are prohibited in a number of countries.
- By claiming the function of money, it is not suited for regular «household» payments.
We can continue the list, but we do not want to criticize Bitcoin. On the contrary, it is a demonstration of its vitality. In spite of everything, it exists and even feels good.
The reason for the emergence and development of cryptocurrencies lies in the features of the modern economic system. A hundred years ago bitcoin and other «coins» could not exist in principle, even if you imagine the presence of a technical possibility. Currencies had a real value, expressed in gold or other real values, attempts to «detach» from gold immediately led to depreciation and inflation. Attempts to introduce «alternative» money have caused only bewilderment.
The «gold standard» apotheosis was the Bretton-Woods system. The dollar was tied to gold, all other world currencies were valued in dollars. Everything is logical and convenient. However, this logic persisted until the US found this situation untenable. Indeed, why peg if the dollar has already become the world’s leading currency? In addition, the real reserves of gold are large, but limited, and we want more money here and now.
The «gold standard» was abandoned and, therefore, the dollar lost the gold value. There were no more formal restrictions on the printing press. But what about the inflation that is inevitable in uncontrolled emissions?
Petrodollars became the prototype of the solution to the dollar inflation problem. The «oil» states of the Persian Gulf, in exchange for security guarantees from the US, have undertaken to accept oil payments exclusively in US currency. This laid the foundations for turning the dollar into a virtual world currency and sustained demand.
And this has also shaped a new economic reality: one State has been able to issue a currency that the whole world has consumed. Note that this currency is not backed by assets. There was simply a global consensus when a large number of economic actors agreed that the dollar has value.
We do not say whether it is good or bad, but we state reality.
For a time, the dollar-value system existed in fairly comfortable conditions. Some were satisfied with it, and some simply did not have the resources to confront it. However, time was passing, contradictions were accumulating in the system. Let us not speculate on the problems of the modern economy – they are studied from all sides. We’re interested in the reasons that led to cryptocurrencies.
Note that the very appearance of cryptocurrencies indicates a disease of the system. In a healthy economy, cryptocurrencies would make no sense, except as a purely technical improvement.
The exit from the gold standard removed the issue of cryptocurrency security. Now, the value is determined by consensus of economic entities.
If all modern fiat currencies are not secured, it is permissible for monetary alternatives. This is what happened to the first cryptocurrency, Bitcoin: there was a consensus of the subjects who recognized its function as money. This recognition made Bitcoin worthwhile, but never made it indispensable.
Metaverse by Lado Okhotnikov: Utility and Irreplaceable
Today, the crypto industry critically lacks projects linking the «real» and «crypto» business. We will see the explosive growth of the crypto only when such projects result in truly useful and irreplaceable crypto assets. Otherwise, everything will be locked in the relatively small separate business area.
When Lado Okhotnikov introduced the Meta Force project, it caused many questions and criticism. This happened, among other things, because of its differences from the «standard» cryptocurrency projects. Meta Force ideologically was a bridge between the reality and Crypto.
Meta Force metauniverse allows users to maximize the functionality of blockchain and cryptocurrency. It provides teamwork, guarantees performance, supervises implementation, and, most importantly, allows you to earn.
Perhaps it was the first time when crypto asset had the properties of utility and irreplaceability.
Meta Force users have access to a universal platform with multiple business formats. The platform took all the best of the most effective business techniques, including network marketing, direct sales, gamification, project management, and many others.
Meta Force’s philosophy includes such concepts as: business freedom, openness, fairness. And this is not an abstraction – the basic concepts are sewn up into software code and implemented in smart contracts. Platform management is built on smart contracts – interaction between users and users with the platform is maximally automated, the risk of human error or abuse is completely excluded.
The Meta Force business will not be easy, too demonstrative it challenges both the fiat and traditional cryptocurrencies. However, the future of the crypto industry is primarily related to projects that bring really personal and public benefit.
