What you should know about Nexxo. The topic of cryptocurrency

What you should know about Nexxo. The cryptocurrency theme today dominates the headlines. Today is a business daily newspaper called “Cryptocurrency vs. Currency” or “Blockchain Based Business”. I would like to start the discussion by looking at five points. First of all, I wanted to cover the history of “bitcoins and digital payments”. Secondly, I would like to briefly consider the monetary function. My third topic is advertising, which is currently experiencing some cryptocurrencies. Fourth, I would like to point out everything that gives rise to skepticism regarding Bitcoin and Co. Finally, I will conclude.

First of all, in 2008 bitcoin was invented.

To this day you do not know who he is. The goal was to be able to use bank transfers and monetary assets as a means of payment across the border and without a central authority. And – it works. It worked then, it still works. And therefore, there is a possibility that the values are transmitted through digital devices.

One of the drivers for using bitcoins could be payment restrictions in China. Many who come to money, but who have difficulty exporting money from the country, use Bitcoin. Of course, official payment methods are not suitable for this. In this regard, Bitcoin is used for cross-border operations with foreign currency. For the function of money: we have three functions that must correspond to money. On the one hand, it is a means of payment: values can be transferred. This is an arithmetic unit: prices are in monetary units. The third central function of money is the storage of value. In the case of crypto tokens, the function is not indicated as a memory value. Because they are extremely volatile. That is why it warns against risks. She does not make any investment recommendations, but wants to raise awareness that investments can be risky.

There is an extremely dynamic development of prices for virtual currencies. For example, the price of their shares increased – especially in the case of bitcoins, the largest virtual currency with market capitalization – in 2017, especially in the last quarter. This led to an increase in reporting, so the role of virtual currencies is widely discussed not only by market professionals, but also by private investors.

Medial excitement and unity at that time influenced each other. The total market capitalization of all virtual currencies increased from approximately 11.6 billion euros in January 2017 to slightly less than six hundred billion euros as of January 14, 2018. However, after a week, he dropped to four hundred and ten billion euros. And since prices for other virtual currencies grew faster during the year than the price of bitcoins, and the number of virtual currencies continues to grow, the relative dominance of bitcoins among computer units known as virtual currencies has declined. Although at the beginning of 2017, about eighty-seven percent of the market capitalization of virtual currencies in Bitcoin was still falling, this value fell to 36 percent on January 17, 2018.

Meanwhile, at times almost as significant as Bitcoin, it recently took third place, Bitcoin Cash, an easy-to-pay split of Bitcoin and other small virtual currencies. Sometimes the ten largest virtual currencies account for less than 80 percent of total market capitalization. And the trend of creating new coins and tokens is not interrupted. At the beginning of 2017, 501 title coins and tokens were listed on the site. By the end of 2017, their number more than doubled and amounted to 1,051. And the number of listed coins and tokens, including those without indirect market capitalization, continues to grow.

Bitcoin, a virtual currency that offers fewer application possibilities for technical and economic reasons, than it benefits from the trend towards new coins. ICOs (initial coin offerings) and other financing options usually require payment in virtual currencies, including bitcoins. This is because Bitcoin trades the most: the ten largest virtual currencies sometimes account for less than 80 percent of total market capitalization. Added to this is the increased interest of the financial world in the offer of bitcoin futures and bitcoin funds. From early / mid-December, bitcoin futures can be traded on exchanges. Also think about their presentation. The capitalization of all virtual currencies grew rapidly, but also fell rapidly. Virtual currencies lost nearly two-thirds of their market value between January and June 2018.