Cryptocurrency is a unit not controlled by third parties, such as governments and central banks and utilized as a decentralised as a universal payment instrument based on computer encryption protocol. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
A token is a payment unit created as a payment tool inside infrastructure environment of the company, with partially or fully centralized device, running on a blockchain.
Bitcoin (₿) is a cryptocurrency, a form of electronic asset on the bitcoin. It is the genesis crypto originated by the cryptographer Satoshi Nakamoto in January 9,2009. Altcoins are the alternative cryptocurrencies launched after the success of Bitcoin. They try to project themselves as better substitutes to Bitcoin. The success of Bitcoin as the first peer-to-peer digital currency paved the way for many to follow. Many altcoins target any perceived limitations that Bitcoin may have and come up with newer versions with competitive advantages. As the term 'altcoins' means all cryptocurrencies which are not Bitcoin, there are myriads of altcoins. Litecoin, an early bitcoin spin-off or altcoin, appeared in October 2011.Many altcoins have been created since then. The crypto market can be compared with the traditional speculative stock market, where altcoins are quoted assets and Bitcoin is a quotation asset.Bitcoin continues to take place as the main cryptocurrency, attracting the attention of traditional capital owners and mainstream investors more and more often.Due to lack of infrastructure for ordinary consumers who use cryptocurrencies in everyday purchases, the main value crypto assets - use as speculative instrument. To attract the attention of speculators and investors to any market, volatility, the exchange spread, and sufficient liquidity are necessary, of which Bitcoin has these properties in varying levels.
Market Capitalization Challenges
Market capitalization of a coin is calculated by multiplying the Total Circulating Supply with the Price of each coin. Bitcoin, being the alpha coin, has about 50 percent of the total cryptocurrency market capitalisation.
The quick growth of the market capitalization of the crypto market to a value over 800 billion USD, in late 2017, was replaced by a long fall to values below 200 billion USD, and now a present early bull run of over 250 billion USD, in mid Q2 2019.The total cost of crypto assets decreased by 75%. Some assets have lost up to 90% of the value, and others delisted from exchanges for various reasons. During the fall of the market during 2018, investors lost about 600 billion USD of their crypto assets. The owners of such assets gradually lose faith in the market's ability
to grow and begin to get rid of depreciating coins and tokens, aggravating the market situation, causing a vicious cycle. Lack of secondary demand for crypto assets forces teams of blockchain startups, which were considered hopeful until recently, to turn off any work at their products. There is a position where these markets are doomed for extinction.
The reason the market cap suffers heavy blows to values is due to inflated capitalization, due to the inaccurate figures of market capitalization of crypto markets by major raters like Coinmarketcap. The number of actively circulating coins are not exact, because the number of units of some assets in the hands of just a few investors reaches 80-90% from all issued coins.Therefore, these volumes of assets did not generally participate in exchange trading, and if they began to participate, they would quickly lower the price of the instrument. Neither investors nor teams paid for these tokens, and the total lack of secondary demand for such assets leaves no chances for these markets. As a result of this false information in the crypto sphere, market-participants are devoid of objective data and are not able to evaluate the depth of current crisis.
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