Coin Instability: A Call for More Loyalist

When I came into the blockchain business newly off course am still new here, one of my earliest and greatest discovery and for sure worry was on the instability and unreliability of the coin value. The trend has always been today you get an upraise and tomorrow a downfall and this down fall most times cause goose bombs on our skin as this wasn’t our initial expectation. The risk of one losing his investment in the crypto market is on a high side as the loyalist are not plenty.

Adapting to Risk as a Boast for the Crypto World.

There has never been a great success without a greater risk. The crypto market doesn’t promise an instant returns but it sure promises a greater and a more mouthwatering upraise for our investment over time. I have had a series of conversation with people over time on the subject of owning coin and one of their major and primary concern most times is how much will they pay me. Humanity has been blind folded to believing on a short term investment and on the strength of this, they take investing for future project as a waste of time and resources.
The introduction and adoption of the cryptocurrency into the wider economy has been greatly hinder because of the seeming risk in investment.

Few risk areas that hinders the stability of coins

Business risk

Business risks arise from uncertainty about the profit of a commercial business due to unwanted events such as changes in tastes, changing preferences of consumers, strikes, increased competition, changes in government policy, obsolescence etc.
From the above insight, we can clear deduce the reason why many multination’s, cooperate and even private organizations and firms don’t think that toing the lane of cryptocurrency is the best. Entrepreneurs prefer a means of transaction that is widely used and understood in the community.

Economic risk

Economics is concerned with the production, distribution and consumption of goods and services. Economic risk arises from uncertainty about economic outcomes. For example, economic risk may be the chance that macroeconomic conditions like exchange rates, government regulation, or political stability will affect an investment or a company’s prospects.

Financial risk

Finance is concerned with money management and acquiring funds. Financial risk arises from uncertainty about financial returns. It includes market risk, credit risk, liquidity risk and operational risk.
In finance, risk is the possibility that the actual return on an investment will be different from its expected return. This includes not only "downside risk" (returns below expectations, including the possibility of losing some or all of the original investment) but also "upside risk" (returns that exceed expectations). In Knight’s definition, risk is often defined as quantifiable uncertainty about gains and losses.

In financial audit, audit risk refers to the potential that an audit report may failure to detect material misstatement either due to error or fraud.

It would be very inconsiderate and totally unimaginable for one in his right mental reasoning to ever think that people would invest into a business that has not instants returns or perhaps into a trade that give or add no tangible value to their money with the afore mentioned risk.
Accord to William Arthur Ward postulations on the subject of risk, Only a person who risks is free." there is no true financial freedom when people are not ready to take necessary risk.

Why it is necessary t Onboard more Hivers into the Hive Blockchain.
The realization that every coin grows and gains more reputation by the number of people that owns the coin should be a clarion call for all coin owners to began an evangelism process to bring more people into the system by telling the the prospect in digital money. Bitcoin soon became the highest ranking in the coin market even after ecash, obviously because of the number of potential coin owners. a little briefing on the ecash In 1983, the American cryptographer David Chaum conceived an anonymous cryptographic electronic money called ecash.[6][7] Later, in 1995, he implemented it through Digicash,[8] an early form of cryptographic electronic payments which required user software in order to withdraw notes from a bank and designate specific encrypted keys before it can be sent to a recipient. This allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.

To normalize the value of any coin, every coin owners must take up the responsibility of bringing more people into the system to stabilize the price and value of a coin.

Posted Using LeoFinance