Using An Artificial Financial Market For Studying A Cryptocurrency Market
Bitcoin, Altcoin, Cryptocurrency Market Cap
Bitcoin exchange Coinbase announced that it will now allow users to buy bitcoin, ethereum, and litecoin instantly when paying with a US bank account. For example, President Putin has just ordered the issue of a national cryptocurrency, the cryptoruble A few days earlier, on October 10, 2017, President Vladimir Putin had called upon Finance Minister Anton Siluanov, Central Bank Governor Elvira Nabiullina, and other officials to take advantage of the virtues offered by digital technologies to the financial world.
The following are the main reasons for the positive trend of Bitcoin in particular, and the cryptocurrency market as a whole: the upcoming Bitcoin SegWit2x, the recognition of blockchain technology (including at the government level), the gradual dissemination and validation (recognition) to a certain extent of cryptocurrencies.
If it plays out and draws in all of the major banks, with deals having already been struck with the likes of RBC and Bank of America , Ripple could be the next wave in the market, though with Ethereum’s smart contract platform and decentralized network, it’s hard to bet against it, despite its recent issues, with many citing Ethereum as the next big player and the only cryptocurrency that could topple Bitcoin from the top spot.
As I discussed in the introduction chapter of Altcoins Markets & Trading, perspective is everything, and I highlighted the importance of concepts such as market structure, crash cycles, market psychology, fractals, and the environmental conditions, as a framework for analysing charts and price action.
From a non-financial perspective, Bitcoin is worthless to the general public (John Q public likes it because you can make a ton of money trading it, not because it represents something greater for the advancement of this and other countries in their financial sectors and future business en devours).
In order to understand the technical components of the application, it is important to understand the current state of cryptocurrencies and the blockchain applications that they are based on. This article includes information on where cryptocurrencies derive value and the key characteristics of cryptocurrencies.
By classifying them as “utility tokens” — something like paid API keys or memberships that grant their holder privileges on a given software platform — some token issuers hope both to navigate past the Scylla of the Commodity Futures Trading Commission, which has declared that bitcoin and its ilk should be considered commodities, and to avoid the Charybdis of the Securities and Exchange Commission, which in July announced its intention to enforce regulations against tokens that function like securities.
Cryptocurrencies have seen sizeable returns of late, easing the bubble talk as the markets look back on opportunities missed and what’s likely to come, with Bitcoin not alone in the exponential growth being seen, sizeable gains seen across the crypto world, as the market cap passes the $90bn mark, following a blip in the markets over concerns of a Bitcoin civil war that could see the largest cryptocurrency by market share, disintegrate, taking the rest of the crypto world with it.
The values of the ZAK-3 Crypto and ZAK-5 Crypto indices are presented in Tables 1.1, 1.2, and 1.3. On October 12 and October 13, 2017, the 24-hour trading volumes (Volume 24h) for the three dominate cryptocurrencies (Bitcoin, Ethereum, Ripple) equaled $3,564 and $5,319 million (Table 1.2), and for the five dominant cryptocurrencies – $4,168 and 5,964 million (Table 1.3). All told, the daily values of the ZAK-3 Crypto and ZAK-5 Crypto indices exceeded 3% of the market capitalization of the analyzed cryptocurrencies.
Moving forward, we’ll break down trading into somewhat modular components and look at what determines a good trade, how you can start winning and be a profitable trader, look at some of the things you can do to avoid the trap of trading based off hot tips, and provide you with the necessary skills and knowledge to approach trading and conduct yourself in the market.