Stock prices fluctuate due to the market crash.
You and I all know what stock is. Some people also call it shares. Companies release shares or stocks which investors can buy. Stocks of renowned brands acquire trust in the stock market and the stock price increases.
People buy and sell stocks to earn profits which is called trading.
Sometimes the stock market crashes due to various reasons. Generally, the economic recession may cause a fall in stock price. During the so-called COVID-19 "pandemic," there has been a heavy downfall in stock prices which is not yet revived.
Most cryptocurrencies are like stocks
Cryptocurrencies are like stocks in terms of their volatile market and price caps. Bitcoin is the first cryptocurrency that started its journey over a decade ago.
The initial Bitcoin price was very low. Then, gradually it got good attention from the investors. The Bitcoin price has risen high. Still, Bitcoin price fluctuates a lot with the economic undulations.
There are a massive number of cryptocurrencies that exist in the crypto arena. The most attraction for cryptocurrencies lies in their volatile prices. The crypto price's speculative nature may be similar to the stock price fluctuation.
Crypto lovers want cryptocurrencies to grow like stocks
Crypto lovers want it to be speculative. Instead, the price fluctuation makes cryptocurrencies more attractive to investors who always expect a stellar price for their invested coins.
The other day I commented on an article about the crypto price fluctuation. It is clear from most articles posted here and elsewhere that crypto lovers want cryptocurrencies to grow like stocks.
Investors expect to gain from their investment. So, they will always want that the crypto prices rise. The crypto lovers dream that their crypto holdings will yield a stellar gain soon, and they will retire and live lavish lives.
But, crypto prices also fall during the economic downturns.
I want a stable cryptocurrency
Some cryptocurrencies are tied to certain fiat currencies, and their price remains more or less stable. These coins are called stable coins. One example of a stablecoin is Tether or USDT, pegged with the US dollar. Tether maintains a value of one US dollar.
The most powerful trait of cryptocurrency is its decentralized functioning ability and peer-to-peer payment provision. I will be more than happy if a stable coin gives me these facilities.
Stablecoins may not give the holders any possibility of gaining at a price like traditional cryptocurrencies. However, the stable price of stable coins offers the holders peace of mind, as there is no tension of losing the asset value due to an economic crash.
Most of you may hope that one day your choicest cryptocurrencies will reach a stellar price and your cryptocurrency holdings will yield you to enjoy a secure future.
I wish to have a decent stable coin that remains a rock-solid cryptocurrency with its assured fixed price even under any economic recession.
In that sense, I wish cryptocurrency projects may have one stable coin attached to the parent cryptocurrency project.
My thinking may sound odd to the common crypto lovers. I prefer stability over volatile gains/losses. The stable coins may write a different future entirely for the domain of cryptocurrency.
Are you afraid due to the present fall of cryptocurrency prices?
I predict a different future for cryptocurrencies.
What is your thinking?
Who I am
I am from Science, Technology, Engineering, and Mathematics (STEM). I have also added "Arts" and "Fine Art" to my interests and made my interests STEAM - Science, Technology, Engineering, Arts, and Mathematics.
I develop solutions for password and cybersecurity relevant to cryptocurrencies, blockchain, and other block-less distributed ledgers.
I hope the entire blogging community will strive here and elsewhere.
It was originally posted on read.cash.
Cheers! Debesh Choudhury
Text Copyright © 2022 Debesh Choudhury — All Rights Reserved
Thumbnail Image: Pexels.
All other graphics and videos are credited just below it.
Disclaimer: All texts are mine and original. Any similarity and resemblance to any other content are purely accidental. The article is not advice for life, career, business, or investment. Do your research before adopting any options.
August 11, 2022.