The Effectiveness of the bitcoin Price
Keep coming back in the news. With any major or minor Bitcoin price move keeping investors on their toes. From nation states that accept it for currency to individual merchants who accept it as payment for goods and services. You can literally buy clothes and food, just like you would with your national currency without ever carrying around actual bitcoins.
However, just like gold, the only true way to gain exposure to the bitcoin price is by buying it and holding onto it. The problem with this approach is that there is an ongoing argument over how fast and accurate the network’s block chain is. Some believe it is a guaranteed method of recording the past transactions, while others think it is nothing more than a technological artifact designed to increase efficiency. No matter the reasoning, both sides agree that the system is extremely susceptible to manipulation or failure. This has resulted in a lot of uncertainties that could affect the volatility of the bitcoin price.
As we mentioned earlier, the system is built on a ledger called theblockchain. This works similar to that of the physical stock market, where traders buy and sell assets via the trading exchange. However, because this is the case with theblockchain, it also allows for the transfer of money from one account to another. Because of its unprecedented speed, the ability to view the past transaction information on a global scale and compare it to current prices is essential for understanding how the ecosystem works. However, this ability can be manipulated by anyone with the finances or power to do so.
A good example of how this can be done is through what is known as a “ICO” or “an initial investment fund”. These funds were originally developed by brokers and financial investors as a means to earn profits when they made a successful trade. However, since their introduction in the gox exchange, the gox token has been used as a vehicle to transfer funds, which now drives the price of the entire Cryptocurrency market.
The way in which this happens is quite simple. Whenever someone makes an investment, they will typically make a deposit into their chosen brokerage firm’s managed account. Every time a transaction occurs, the brokerage company will provide that particular investor with an updated copy of the relevant information. In doing this, the price history of all transactions that have occurred is recorded, allowing future investors to see the most accurate representation of the current value of the Cryptocurrency in question.
This is important because this is the only real way in which anyone can truly track the recent trend of the price of any specific Cryptocurrency. By looking at the gox exchange’s price history, anyone can see that currencies have risen in value over the last few months, and which have fallen in value. This allows investors to have a better idea of which currencies they should hold and that they should sell. Because this information is compiled by the brokerage firms, it is always available for analysis by investors and traders.
This is the only true and reliable way of predicting the movements of the various currencies in the market, as there are no other official means of keeping track of the latest prices available. Even when other information from the likes of the central banks is available, these data are rarely as accurate or up-to-date as the information provided by the gox brokers. As such, they are still the best means of providing investors with accurate insight into which currencies should be held and sold, as well as being the best means of making informed decisions on what courses of action should be taken following the information contained in this weekly update.
So what does this all mean for those wishing to speculate in the markets? Well, for every trader, this is one less thing that they need to worry about in their daily lives. For someone who has limited experience in the world of Cryptocurrency or even simply in the world of trading overall, such a task would seem like an overwhelming amount to accomplish, but the truth of the matter is that with such a detailed price history available for everyone to see at any time, there really is no need to worry. With a little bit of time spent looking into the box markets and reading their weekly updates, the investor will be able to have a fairly clear picture of how the movements of the markets are affecting the various currencies.