Mapping The Crypto Ecosystem – Bitcoin
Mapping the crypto ecosystem is the crypto ecosystem can be daunting. You start off thinking it is all about magic internet money, then realize that is just one use case that blockchain technology and cryptocurrency are disrupting.
Bitcoin – Fixing Money
Their intention was to create a new, better form of money, outside the control of the governments, that had in-built scarcity and required no permission to use.
How Bitcoin achieves, this is via something called a blockchain. That technology isn’t specific to creating a monetary system; it is about sharing and validating data without the need to trust a central policing authority.
Bitcoin is growing in popularity, and many people worldwide own it. Billionaires across the world buy bitcoins. It has gained many buyers and is becoming the primary currency mode in some areas.
If you wonder what’s wrong with the money, we already have, read this article about fiat money and how it works. But Bitcoin’s success has inspired other types of internet money
What Currency Did You Mine?
I always used the same algorithm to mine Ether because it was the most common and profitable. At that time, my graphics card was mining around 0.02 ETH per month, close to 100 dollars. So it motivated me because it seemed that it could be profitable, considering the cost of the graphics card and the electricity.
It Profitable In The End
If I now sold all the Ether I mined, I would get all the money back. So in that sense, it was profitable for me, and the cost of electricity did not increase too much.
How Does The Crypto Market Greed And Fear Index Work?
When the fear and greed index of the crypto market is approaching or at the “ extreme greed,” This means that the longs are getting very greedy, and the market is overdue to correct.
Similarly, we can say that when the Crypto Market Fear and Greed Index is in the “ extreme fear,” Traders are very scared, and this may cause a trend reversal soon.
We are measuring current and peak volatility. For example, to compare Bitcoin removals with the corresponding average values of the last 30 and 90 days.
In addition, we are measuring the current volume and market dynamics (again compared to the average values of the last 30/90 days) and putting these two values together.
The dominance of one coin resembles the market share of the entire crypto market. Especially for Bitcoin, we believe that an increase in Bitcoin dominance is caused by the fear (and therefore a reduction) of speculative investments in altcoins, as Bitcoin is increasingly becoming the haven of cryptography.
The cryptocurrency market has a very emotional behavior. For example, people tend to get greedy when the market is going up, which results in FOMO (fear of missing out). Also, people often sell their coins in an irrational reaction to red numbers. With our Fear and Greed Index, we try to save you from your emotional overreactions. There are many fluctuations in the crypto market.
Review Mapping The Crypto Ecosystem – Bitcoin.