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FUD, Cross chain, Supply and Demand
“Fud leads the fear of the cryptocurrency market: understanding the dynamics of supply and demand”
The cryptocurrency market was harassed by the culture of fear and misinformation known as “Fud” (fear, uncertainty and doubts). This phenomenon has led to a significant decrease in investors, which caused huge price decreases. But what determines this FUD? How does the dynamics of supply and demand contribute to the variability we see on the market?
Delivery: Limited Motivation
One of the main supply factors is the limited encouragement for miners to continue the validation of the transaction. With the increase in energy costs and reducing the block prize, the profitability of mining has decreased. This deficiency has led to an increase in the demand for cryptocurrency, as investors are looking for new ways of storing or using their actions.
In 2021, the total shortcut (THS) reached the highest level of over 150 Exahash per second (EH/S). Although it is still far from its historical peak, it shows the huge energy needed to extract cryptocurrencies. This deficiency has caused a sense of diligence among investors, increasing the demand for new coins and chips.
Request: Increasing appetite
At the same time, the demand for cryptocurrency is increasing. When more people join the market, there is an increasing appetite for new chips. This growth is fed by several factors:
- Inflation : Cryptocurrencies are becoming more and more popular as the magazine values and an exchange environment.
- Regulatory brightness : The rule begins to pay attention to cryptocurrencies, which increases the cases of acceptance and use.
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Cross chain: Decentralized network
One of the most important trends that outline the cryptocurrency market is the growth of the cross network (CCN). These decentralized networks allow the transfer of assets between different blockchain platforms. CCN has more advantages:
- Decentralization
: The cross chain allows people to transfer their assets into many blockchain networks without relying on central authority.
- Liquid increase : With a united token, investors can easily trading and storing their assets.
- Increased security : CCN offers an additional layer of security by decentralized nature.
Offer and Request: Interaction
The relationship between plates and demand is crucial for understanding the market dynamics. When demand for a specific cryptocurrency increases, prices usually increase. And conversely, when the offer increases, prices usually fall. This mutual game between offer and demand leads the mood of the market.
Fud leads the fear of cryptocurrency market
Fear and misinformation can significantly affect the confidence of investors on the cryptographic market. Fud refers to every narrative or behavior that causes a sense of uncertainty or doubt among investors. When Fud reaches a critical level, it can lead to a perfect market variability storm:
- Increased risk aversion : Investors become more cautious, which leads to a decrease in commercial activity and pricing.
- Rowing of prices : When investors lose their confidence, prices fall, causing additional uncertainty.
Application
The cryptographic market is marked by the complex mutual relationship between the dynamics of supply and demand. While FUD can lead fear and variability, it is necessary to separate the facts of fiction. Understanding the offer and demand factors, investors can make the knowledge of their investments.
Because the cryptocurrency market is constantly developing, investors are essential for maintaining vigilance and adapting to changing market conditions. In this way, they can move with more certainty on the uncertain waters of FUD markets.