Cryptovaluta: is it still playing or is it an investment?

Investing in cryptovolutes

Cryptovalutes is a hot topic that has not been scientifically researched. They escape classical concepts and definitions, but they arouse interest because they may become an alternative means of payment or at least a way to multiply capital.

There is no consensus as to whether their use is more like an exchange or a casino.

But closer to the stock market

All gambling games have one thing in common: they are not subject to any law other than randomness. They are governed by statistics. Cryptovalutes are not. However, they do not work in the same way as the stock exchange - they do not reflect the strength of the economy, they do not react to specific political problems in the same way as currencies or stocks, but their prices are not the result of randomness.

They depend on factors on which the traditional stock exchange does not depend, which may sometimes be difficult to predict, but which are not only random. This is the factor that makes you - at least in our opinion - think of cryptovalutes as a way to invest, and in the future perhaps also to replace the classic money.

What are cryptovalutes and where do they come from?

Cryptovalutes are currency without physical manifestation, a payment unit. Of course, it can be converted into traditional currencies, but the principle of its existence is different. You can risk saying that it is not possible to have Bitcoins. In fact, one has a history of one's own account. The most important thing in a bank is the balance, but only one entity has knowledge about its amount. In blockchain, or transactions on cryptovalutes, the balance is only the result of addition and subtraction operations, while the history of these transactions is open, but anonymous (you know the account, but you do not know who it belongs to).

Bitcoins can be bought at "exchange offices" for almost any currency. On the market they come from "mines". They are a reward for owners of computers used to perform complex calculations. Here the scheme gets complicated and there is not enough time to discuss it, and about the Bitcoin purchases themselves it is worth reading for example here.

Investment: how much can be predicted

In the case of central exchanges, most of the data is public and price movements can be predicted if properly prepared. After all, there was no shortage of economists who anticipated the "unannounced" crisis of 2008. In the case of Bitcoin, it is necessary to learn to look deeper, to observe other signals, including those related to cryptography, which protects the whole system of decentralised currency. It is usually possible to predict the price trend: whether BTC will travel or stop. However, it is difficult to estimate the magnitude of the changes.

In practice, these prices are highly volatile and susceptible to speculation, but the whole system becomes relatively stable when more investors participate in it. Today, we are witnessing this - with irresponsible national policies, investments in Bitcoin become not only potentially more profitable, but even (!) more predictable than investments on the stock exchange.