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What is affecting the cryptocurrency market?

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Organization chart of the cryptocurrency solution by the Blockchain Exchange AllianceOneRoot

Despite the current challenges in the cryptography market, the global interest in cryptocurrencies has continued to grow. At the last count there were no 2076 coins and tokens on the market. Coinbase also reports that 70,000 to 100,000 new encryption accounts are opened every day from the platform.

This wonderful rise was mainly the result of the efforts of the early supporters and blockchain technology builders who have strong beliefs about their ideology. Idealists, liberalists, cyppunks and independent thinkers have been at the forefront of technology development and ensuring that people realize their potential. Furthermore, current cryptocurrency use cases have continued to generate more interest in technology.

Are the current methods of producing money in the crypt slowly dying?

The most popular methods for making money on the crypto-market – mining, day trading, and ICO flipping – have already been exhausted. As a result, there are few or no new ways to stimulate the interest of the individual in digital currencies. More importantly, people now have limited ways through which they can store and preserve their resources. In this regard, it is necessary to develop a global solution to grow the market and achieve wider acceptance.

Risk diversification is another issue that afflicts the market. Without diversifying risk, investors may lose interest in the market as it is easy to lose their assets and investments. At the moment, the most preferred diversification method is to have a portfolio of more than one digital currency. For example, an individual can have both Bitcoin and Ethereum in their digital currency portfolio. However, since both currencies are interconnected, the instability and volatility that have recently been commonplace in the market will affect both. Therefore, the diversification approach may not be suitable for the long term as it is likely that both currencies (Bitcoin and Ethereum) can be affected simultaneously.

Investing in Initial Coin Offerings (ICOs) is another approach that has been used by individuals to diversify risk and expect high returns. While since 2017 there have been several ICO projects, now known as "Year of the ICO", it is now estimated that 78% of them there were scams. Fraudulent ICOs have been on the increase since individuals are promised a good return on investment. However, very few have managed to pay the money of their investors that has been promised. Therefore, while ICOs make it easy to earn money from digital currencies, current trends show that most of them fail to deliver at the end.

Furthermore, the return on investment in cryptocurrencies has been the subject of speculation rather than deliberate strategy. This means that there is no guarantee or guarantee that the high returns will probably be achieved due to the lack of regulation and insurance, as in the case of traditional investments. Even worse, speculation could go in a different way where decline is expected rather than growth. Growth linked to a deliberate strategy can guarantee a return on investment.

Attempts to solve the problem of cryptocurrency volatility have been made through the creation of stablecoins. Stablecoins are designed to minimize price volatility by setting their value on legal currencies and traded commodities. However, the solution works only on the currency level. As a result, other benefits such as access to financial instruments and banking services can not be taken advantage of.

Why are cryptographic exchanges unable to provide sufficient liquidity?

Thousands of companies around the world accept encrypted payments for their services. There is absolutely nothing you can not buy with the good old Bitcoin these days. With thousands of people flocking to create accounts on encryption platforms, why is the lack of liquidity still plaguing most of the over 200 cryptocurrencies around the world?

All the challenges mentioned above – together with high transaction fees, poor security and non-availability of fiat gateways to new customers on the move – hinder trading without interruption in cryptocurrencies. The crypto-market challenges may have inadvertently initiated a vicious circle. The problems will keep potential traders away with their money (which could have brought cash).

Can an exchange pool solve the liquidity problem?

Unless a radical approach is developed, problems will not only persist but eventually worsen. This will clearly endanger the long-term crypt adoption. In a refreshing development, Blockchain Exchange Alliance (BXA) has collaborated with ONEROOT will develop a technology to create a network of decentralized and centralized switchboards that will share a single pool of liquidity and orders within the BXA ecosystem. To begin with, BXA is the controlling shareholder of Bithumb, the largest Korean company, and the world's largest cryptographic exchange. Bithumb is also a member of the BXA ecosystem. It carries with it its enormous liquidity. BXA has acquired licenses in multiple jurisdictions worldwide, including the United States, Australia, Peru, New Zealand and Canada, to open a network for DEX and CEX.

"We are not fighting for peace, we realize that the crypto movement has a lot to gain if it is able to collaborate strategically with the fiat propulsion system, which is why we are creating more fiat-to-crypto exchanges with many currencies. as the backbone of a global payment network, "he says Dr. Byung Gun Kim, global co-CEO of BXA.

"BXA is not only solving the biggest problem of crypto trading platforms globally, but it is also creating a financial institution of integrated digital assets, we are creating a technology that seeks to blend the lines between fiat and crypto", says Tony Sun, President of the ONEROOT Foundation and global co-CEO of BXA. ONEROOT is the blockchain technology service provider. BXA is the largest institutional shareholder of ONEROOT.

Thoughts of separation

While cryptocurrency exchanges have arisen left, right and center, regardless of the challenges facing older players, it is time for a fundamental change in thinking. Entering the encrypted bandwagon is one thing. But making a little precious to facilitate trading is another. It is time for exchanges to pool their resources and create a seamless entity that provides substantial liquidity, reduces arbitrary prices and provides first-class security measures to protect merchants' businesses. Only then can we expect more traders to enter the crypto scene thus creating a significant inflow of capital into the markets.

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Organization chart of the cryptocurrency solution by the Blockchain Exchange AllianceOneRoot

Despite the current challenges in the cryptography market, the global interest in cryptocurrencies has continued to grow. At the last count there were no 2076 coins and tokens on the market. Coinbase also reports that 70,000 to 100,000 new encryption accounts are opened every day from the platform.

This wonderful rise was mainly the result of the efforts of the early supporters and blockchain technology builders who have strong beliefs about their ideology. Idealists, liberalists, cyppunks and independent thinkers have been at the forefront of technology development and ensuring that people realize their potential. Furthermore, current cryptocurrency use cases have continued to generate more interest in technology.

Are the current methods of producing money in the crypt slowly dying?

The most popular methods for making money on the crypto-market – mining, day trading, and ICO flipping – have already been exhausted. As a result, there are few or no new ways to stimulate the interest of the individual in digital currencies. More importantly, people now have limited ways through which they can store and preserve their resources. In this regard, it is necessary to develop a global solution to grow the market and achieve wider acceptance.

Risk diversification is another issue that afflicts the market. Without diversifying risk, investors may lose interest in the market as it is easy to lose their assets and investments. At the moment, the most preferred diversification method is to have a portfolio of more than one digital currency. For example, an individual can have both Bitcoin and Ethereum in their digital currency portfolio. However, since both currencies are interconnected, the instability and volatility that have recently been commonplace in the market will affect both. Therefore, the diversification approach may not be suitable for the long term as it is likely that both currencies (Bitcoin and Ethereum) can be affected simultaneously.

Investing in Initial Coin Offerings (ICOs) is another approach that has been used by individuals to diversify risk and expect high returns. While since 2017 there have been several ICO projects, now known as "Year of the ICO", it is now estimated that 78% of them there were scams. Fraudulent ICOs have been on the increase since individuals are promised a good return on investment. However, very few have managed to pay the money of their investors that has been promised. Therefore, while ICOs make it easy to earn money from digital currencies, current trends show that most of them fail to deliver at the end.

Furthermore, the return on investment in cryptocurrencies has been the subject of speculation rather than deliberate strategy. This means that there is no guarantee or guarantee that the high returns will probably be achieved due to the lack of regulation and insurance, as in the case of traditional investments. Even worse, speculation could go in a different way where decline is expected rather than growth. Growth linked to a deliberate strategy can guarantee a return on investment.

Attempts to solve the problem of cryptocurrency volatility have been made through the creation of stablecoins. Stablecoins are designed to minimize price volatility by setting their value on legal currencies and traded commodities. However, the solution works only on the currency level. As a result, other benefits such as access to financial instruments and banking services can not be taken advantage of.

Why are cryptographic exchanges unable to provide sufficient liquidity?

Thousands of companies around the world accept encrypted payments for their services. There is absolutely nothing you can not buy with the good old Bitcoin these days. With thousands of people flocking to create accounts on encryption platforms, why is the lack of liquidity still plaguing most of the over 200 cryptocurrencies around the world?

All the challenges mentioned above – together with high transaction fees, poor security and non-availability of fiat gateways to new customers on the move – hinder trading without interruption in cryptocurrencies. The crypto-market challenges may have inadvertently initiated a vicious circle. The problems will keep potential traders away with their money (which could have brought cash).

Can an exchange pool solve the liquidity problem?

Unless a radical approach is developed, problems will not only persist but eventually worsen. This will clearly endanger the long-term crypt adoption. In a refreshing development, Blockchain Exchange Alliance (BXA) has collaborated with ONEROOT will develop a technology to create a network of decentralized and centralized switchboards that will share a single pool of liquidity and orders within the BXA ecosystem. To begin with, BXA is the controlling shareholder of Bithumb, the largest Korean company, and the world's largest cryptographic exchange. Bithumb is also a member of the BXA ecosystem. It carries with it its enormous liquidity. BXA has acquired licenses in multiple jurisdictions worldwide, including the United States, Australia, Peru, New Zealand and Canada, to open a network for DEX and CEX.

"We are not fighting for peace, we realize that the crypto movement has a lot to gain if it is able to collaborate strategically with the fiat propulsion system, which is why we are creating more fiat-to-crypto exchanges with many currencies. as the backbone of a global payment network, "he says Dr. Byung Gun Kim, global co-CEO of BXA.

"BXA is not only solving the biggest problem of crypto trading platforms globally, but it is also creating a financial institution of integrated digital assets, we are creating a technology that seeks to blend the lines between fiat and crypto", says Tony Sun, President of the ONEROOT Foundation and global co-CEO of BXA. ONEROOT is the blockchain technology service provider. BXA is the largest institutional shareholder of ONEROOT.

Thoughts of separation

While cryptocurrency exchanges have arisen left, right and center, regardless of the challenges facing older players, it is time for a fundamental change in thinking. Entering the encrypted bandwagon is one thing. But making a little precious to facilitate trading is another. It is time for exchanges to pool their resources and create a seamless entity that provides substantial liquidity, reduces arbitrary prices and provides first-class security measures to protect merchants' businesses. Only then can we expect more traders to enter the crypto scene thus creating a significant inflow of capital into the markets.

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