I love cryptocurrency, and even with the often volatile and abrupt crashes, the trend is overwhelmingly UP, with nearly every cryptocurrency trading at higher prices some even 1000% or more from prices earlier this year! This is a stark contrast to the stocks of companies that have been traded far before the advent of cryptocurrency and the blockchain technology. There is a much larger number of stocks and commodities that can be traded on the public market than all the cryptocurrencies, however, stock markets are heavily regulated and often require a minimum of $10,000 or more to even begin trading or investing. In spite of this, the dollar volume of just a tiny fraction of the total stocks and commodities traded daily FAR exceeds the trading volume of all the cryptocurrencies combined, including bitcoin.
It appears the previous traders and investors of a failing stock market are beginning to move their assets (huge sums of money) over to cryptocurrencies. However, they (the 'whales') are limited to only cryptocurrencies that have high volume, and the coins trade at prices greater than one dollar USD. This is because they must spend 10s or even 100s of thousands of dollars (sometimes much more), however, if they went on yobit and bought a low volume low price coin with even $10,000, they would end up paying extremely high premiums in order to fill the buy order. This results in the price rising rapidly while they are buying, but then crashing abruptly due to sellers flooding the market, which results in a large loss for the whale.
This means they cannot easily buy the very cheap coins, so they stick to higher priced coins until the price is over $1. This is why nearly every coin will become more valuable, it does not matter what it is for. A coin does not need a real use to be valuable, it only needs to be relatively hard to produce, have a working wallet and be available to trade on an exchange. It does not matter how many coins are in existence, more is always better!
Thanks for your point of view! :-) Interesting! These are good times to buy some more!
I agree, thanks for commenting.