Cryptocurrency prices have tumbled by more than 70% since December, following a prolonged and dramatic run-up in the value of bitcoin and an equally dramatic and sharp fall in world interest rates. This has seen more than $6 billion wiped off the worth of bitcoin since 4 February, leaving a large number of trading investors out of pocket and with substantial losses. It comes as no surprise that traders are panicking and pulling out of positions in the hope that the prices will recover later this year. In reality though, these markets are unlikely to budge much in the near future.
The biggest issue at work is likely to be an oversupply, rather than an over-production of currencies. As of now, there appears to be a surplus in the supply of bitcoins and e-cash. This means that the supply cannot go higher, thereby reducing the rate at which new currencies can be issued. Even if there was a sudden increase in the production, the supply would likely prevent it from being distributed too widely. This is the crux of why it isn’t likely we’ll see a rush of Dash coins being released anytime soon – because there will not be enough people clamoring for them to get printed.
The problem with this problem lies in the fact that Dash isn’t yet accepted at most online payment gateways. As a result, anyone who wants to exchange Dash for any other digital currency will have to either use an online broker or purchase a gateway which will then allow them to do so. If you think about it, however, this shouldn’t really matter for two reasons. First, as long as you’re trading in currencies which are already taken seriously on the global scene, there should be no need for you to use a broker. Second, if you decide to sell Dash in the future, you’ll most likely receive a very high transaction fee for doing so. For those who don’t have access to Dash’s online trading platform, this shouldn’t matter much.
With that said, we still have a problem with the way the cryptotechnology market perceives demand. Even if we take the most bullish view of things and assume that the Dash decentralized network will become wildly popular before the end of the year, traders are still predicting steep rises in several major currencies including: law, doge, siacm, NZD, USD, EUR, GBP, and Japan Yen. The implication here is that there aren’t enough buyers out there to drive the Dash prices sky high. Even though this sounds pessimistic, the truth is that there are a number of factors working against this particular assumption. One of these is the slowing down of the Chinese government. The People’s Bank of China is rumored to be considering a move away from the highly leveraged and potentially dangerous exchange trading system known as the PBX, or the Private Automatic Exchange, which accounts for most of the financial activity in China.
Since the Chinese government has beefed up its currency control policy, it is probably safe to assume that the influence of the Chinese market will cause more institutional interest in the Dash cryptocoin prices, driving prices higher. Two potential reasons for this could be the slowing economy in China, and the relative strength of the US dollar. Both of these factors would cause more traders to shift their attention towards other currencies. This would result in an acceleration in the rate at which the Dash’s decentralized network grows. There are a few indicators that you can use to analyze the direction of the cryptocoin markets, and here they are.
One of the best ways to examine the direction of the Dash is to look at how the various cryptoshares are performing in relation to fundamental economic indicators. In order to do this, you must look at three indicators of fundamental finance: inflation, news, and investor sentiment. If you notice a trend where one of the three indicators is falling, then you can be sure that the Dash’s cost per unit is likely to drop as well. However, if the indicator is increasing, you can be equally sure that the price is likely to climb. The third indicator, which measures how investors are sentiment about the cryptocoin, can tell you a lot about the future of the market.
An important part of studying the economics of cryptoshares is studying the relationship between Dash and other cryptoshares. Most people who purchase Dash are doing so because it is superior to other currencies in the market. Therefore, if there is strong investor sentiment towards Dash and it is getting more popular, it is likely that the Dash will follow suit. The stronger the sentiment, the greater the impact on the Dash’s price. The easiest way to track this relation is to look at the number of transactions on the Dash ledger.
Finally, if you want to make money trading in the cryptosphere, you should find a good broker. Most traders who have made a lot of money on the market have chosen brokers with strong ties to the different blockchains. If you manage to find one of these top-notch brokers, then your portfolio will be much more stable than most other traders’. As a result of having a stable cryptocoin as part of your investment portfolio, you can also expect your profits to increase as well. As you become more experienced in assessing which currencies are worthy of investment, you will be able to identify the best stablecoin to buy.