Whilst critics and skeptics alike are naming the various negative factors of crypto, there is a need to examine the benefits behind cryptocurrencies. With their transactional frameworks and ability to reduce frictions in transactions, thereby eliminating pain points, cryptocurrencies are a force that is here to stay. Imagine being able to transact across borders and have counterparty risks eliminated. Imagine the place of reaching to those who do not have access to banking services.
Or better still, imagine this. If you are in a place like a developing country and your loved ones are across the country. The nearest bank is 2 hours drive away and the nearest remittance branch is about an hour’s drive. If you want to send them, say $200, the amount that they will receive is probably $150. In addition, when they send your brother or sister to the branch, their safety is at stake simply because this is where the robbers know where to park themselves. So for a mere $150 dollars, someone in your family has to risk his or her life and time. Cryptocurrencies eliminate this pain point. All they need is an app that transacts the crypto and it is done.
We are currently in the stage of where the alt-coins are poised for prime time. This can be seen in their percentage rises. But before you invest in them, you have to know that in the current universe of more than 5,000 tokens vying for your attention and fiat currency, you will need to consider these key points as an investor.
- Volatility vs stability. What are the price swings like and how wide is that spread? Will you be able to predict to a certain degree where it is heading? What is the chat room chatter about this token? Do people see a future with it? What are they saying? What is the key narrative?
- Regulation vs non-regulation. How much regulation is governing the token? There are those that have algorithms that seem to work, like the IRON Finance, TITAN tokens – but when dynamics or exploitation of loop holes take place, how are investors compensated?
- Accessibility vs inaccessibility. At the end of the day, there must be enough take up for the token as this determines how it will be traded, bought, sold, etc. Zilliqa for example, just entered the US market through Crypto.com. 49 out of the 50 states are now able to purchase this token that is disrupting and disintermediating financial institutions in Asia.
- Enduring value. What are the activities that will continue to drive its existence? What are the forces that will push up or down its price? Take a look at #Solana. Billionaire crypto investor Sam Bankman-Fried has just announced his move into offering tokenised stocks/shares on FTX, placing FTX alongside with Binance in doing so for stocks like #TSLA, #FB, amongst the other FAANG tech stocks. This will likely drive utility up and keep Solana's price in higher and higher ranges because of the activity going on within the network.
What other factors will you also consider, if any? Let’s hear it in the comments section below!
Yours,
Chief Editor,
BBA Market Perspectives
If you have found our research-backed insights interesting, grab a copy of our latest book - Cryptocurrency Investments and Economics on Amazon today!
#sambankmanfried #binance #solana #tokenisedstocks
Facing marketing, branding, or communications issues with your business / brand ?
Reach out to SYL+JAS (www.sylnjas.com), one of the leading boutique communications agencies today.
SYL+JAS's quick pitch:
THIS IS WHAT WE DO.
We deliver creative work that inspires and powers meaningful businesses, institutions and influencers. Consistently.
THIS IS HOW WE ENGAGE.
In addition to the multidisciplinary facet of our services, our high-touch immersive integration with our clients' business makes us a valuable partner. Assimilated and seamless.
THIS IS HOW WE PLAY.
Be it a brand consultation, communications masterclass, full-fledged campaign development, or thought leadership content that you peruse, our suite of services provides your business a comprehensive coverage in the communications ambit. Expansive.
