Many people thinks it’s of no use discussing this subject matter, but we at inksupdate believe it is important for our readers to really understand this subject, there are lots of usefulness of this knowledge as far as blockchain ecosystem is concerned
Market base are cryptocurrencies that are controlled by the market forces. A lot of things determines the price or value of a market base crypto asset.
Demand And Supply
One of this determinant factor is demand and supply, meaning that how scarce or available is a crypto asset. We can easily relate this method to our day to day buying and selling, what happens if a commodity is scarce in the market? The price goes up!
Yes! That’s right. The more scarce a commodity is, the higher the price or value of that commodity becomes, because people literally will be willing to pay any amount of money to get it when needed.
Buying And Selling Behavior
Another determinant factor of a market based crypto asset is the BUYING and SELLING STRENGTH which is used for the PUMP and DUMP strategy. I don’t think I need to really expantiate on this particular point right here because this is what almost every crypto asset experience every now and then.
What do I mean by PUMP and DUMP? Well this is where people with huge amount of money buys a particular crypto asset in large quantities knowing that the price of that asset will skyrocket because of the buying strength, only to DUMP it at the peak. what happens next? Of course the price comes right back down.
This basically leaves only a few people in huge profit and others with smaller units of the asset keep holding in their losses hoping to have another pump day.
Now these are just crypto assets, because you’ll have to invest on them and wait for a period of time for them to appreciate, just like the gold and other investments. They are only called cryptocurrency if and only if they’re used within their ecosystem.
For example, Ethereum. If you want to deploy a project or an application on the ethereum blockchain, you will need ethereum as a coin to pay for whatever you want to do on that blockchain.
Many people are scared of them mainly because of their volatile nature, but the truth is this; they can come handy when it comes to investing, they are digital assets not currency in it’s fullness. Example of cryptocurrencies(assets) that falls into this category are: BITCOIN, Ethereum, XRP, BNB, Doge coin, etc
User Base Cryptocurrency
User base cryptocurrencies on the other hand are very few and they are more stable and can’t be control by any elite, they are just like our normal fiat currencies but are built on blockchain technology.
This type of cryptocurrency don’t respond to market demands and supply, they are designed to be stable, not volatile. Example of these cryptocurrency are USDT, BUSD, TUSD, DAI, etc
But there is another type of cryptocurrency in the crypto space. We are talking about RESERVE CRYPTOCURRENCY. This cryptocurrency complete harness te power of blockchain in every way. This is where PINKOIN falls
Reserve crypto currency has the ability to appreciate in value, maintain it’s value at every point in time and guess what? It doesn’t respond to market manipulations. Pinkoin is called the Eight wonders cryptocurrency.
Pinkoin as a cryptocurrency was built on love for humanity, i.e the algorithm of Pinkoin was designed base on the love for man. A crypto that values the valuer, smiles, well you might be wondering what does that even means?
Pinkoin is designed get it’s values from humans and in returns gives the same value back to humans. Still not clear? Okay let me take it a little further. It means that for every human being that comes on the blockchain technology that powers pinkoin gives value to the ecosystem which then increase the value of Pinkoin. Now in return, the person is given some form of reward for being on that blockchain.
Pinkoin surely has alot of mind blowing features but one thing that will come handy in the years to come is that Pinkion will become the cryptocurrency to get crypto assets, i.e it will become the currency that can be use to purchase market base cryptocurrencies.