Bitcoin Garden: How cryptocurrency can impact the financial markets and banks?
https://bitcoingarden.org/cryptocurrency-can-impact-financial-markets-banks/
Lately, there have been a lot of discussions about cryptocurrencies impacting financial markets and banks. Considering that cryptocurrency is impacting financial and investment sectors we have asked cryptocurrency expert Alex Faliushin from CoinLoan how cryptocurrencies are impacting the financial markets and banks?
Q) As a professional in cryptocurrencies and blockchain, could you briefly explain what is the current situation in the crypto market regarding coin prices going up and down?
AF) At the rise of the year prices at the cryptocurrency market began falling. Certain currencies lost more than 40% of their value. This worried many market participants. However, if to analyze the situation during the last three years, it is obvious that this reduction is temporary and seasonal. After this, it will rise again reaching its new peak values. In 2017 a lot of new cryptocurrencies have entered the market. This attracted many new players among individual traders and investors so as VC funds all over the world. In our opinion, the cryptocurrency market will continue developing, and the capitalization will increase. Regulators will begin normalizing cryptocurrency trade. This will reduce volatility and will lead to a further increase in the number of participants of the global cryptomarket on a long-term horizon.
Q) How does cryptocurrency pricing affect the crypto market regarding investments? Is it safe to invest in crypto now or is there some risks?
AF) We do not think that we have the right to give advice and recommendations on investing into certain ICOs or cryptocurrencies, but we can give general recommendations. The seasonal market fall is a good time for profitable investments for a term of 4-6 months. From our point of view investing in cryptocurrency is still a very risky business. So it is important to diversify investments and contribute to a portfolio of various assets. Not only BTC and ETH would be added there, but also other cryptocurrencies with high growth potential. Remember our example with Ripple price? We consider that an ICO with a reasonable token structure and value which grow during the project development can show good profitability. We would recommend being cautious with those projects which spend too much money on advertising and promotional activities. This means that they are fund-raising–oriented, but not product-oriented. Result-oriented projects will not “burn” enormous amounts of marketing funds for self-advertising....
https://bitcoingarden.org/cryptocurrency-can-impact-financial-markets-banks/
Lately, there have been a lot of discussions about cryptocurrencies impacting financial markets and banks. Considering that cryptocurrency is impacting financial and investment sectors we have asked cryptocurrency expert Alex Faliushin from CoinLoan how cryptocurrencies are impacting the financial markets and banks?
Q) As a professional in cryptocurrencies and blockchain, could you briefly explain what is the current situation in the crypto market regarding coin prices going up and down?
AF) At the rise of the year prices at the cryptocurrency market began falling. Certain currencies lost more than 40% of their value. This worried many market participants. However, if to analyze the situation during the last three years, it is obvious that this reduction is temporary and seasonal. After this, it will rise again reaching its new peak values. In 2017 a lot of new cryptocurrencies have entered the market. This attracted many new players among individual traders and investors so as VC funds all over the world. In our opinion, the cryptocurrency market will continue developing, and the capitalization will increase. Regulators will begin normalizing cryptocurrency trade. This will reduce volatility and will lead to a further increase in the number of participants of the global cryptomarket on a long-term horizon.
Q) How does cryptocurrency pricing affect the crypto market regarding investments? Is it safe to invest in crypto now or is there some risks?
AF) We do not think that we have the right to give advice and recommendations on investing into certain ICOs or cryptocurrencies, but we can give general recommendations. The seasonal market fall is a good time for profitable investments for a term of 4-6 months. From our point of view investing in cryptocurrency is still a very risky business. So it is important to diversify investments and contribute to a portfolio of various assets. Not only BTC and ETH would be added there, but also other cryptocurrencies with high growth potential. Remember our example with Ripple price? We consider that an ICO with a reasonable token structure and value which grow during the project development can show good profitability. We would recommend being cautious with those projects which spend too much money on advertising and promotional activities. This means that they are fund-raising–oriented, but not product-oriented. Result-oriented projects will not “burn” enormous amounts of marketing funds for self-advertising....
As to the first topic, I think the answer heavily dwelt on market trends based on data which is preferable but I believe the answers are too vague due to generality. Perhaps it is something we already know by now. Coming to regularization, well, it may have an effect on price volatility but I think that idea is too far-fetched considering the fact that we are not even one step close to regularizing any of the forerunners in cryptos.
As to the second topic, I think it depends. There are other product-oriented companies who dwell so much on letting their products known via advertising regardless of the amount they burn because they believe this will help their popularity. Hence, it does not follow that when it spends too much on self-advertising, it is not automatically result-oriented. Simply put, it is not a cause and effect situation.
