This is designed to incentify community members as a proof of contribution token.

Using this You can,Buy courses,Reward others and exchange for real money.


Real Problems! Real Experts!

Join Our Telegram Channel !

The Eduladder is a community of students, teachers, and programmers. We help you to solve your academic and programming questions fast.
In eduladder you can Ask,Answer,Listen,Earn and Download Questions and Question papers.
Watch related videos of your favorite subject.
Connect with students from different parts of the world.
Apply or Post Jobs, Courses ,Internships and Volunteering opportunity. For FREE
See Our team
Wondering how we keep quality?
Got unsolved questions? Ask Questions

Crypto-->View question

Where is my money going when I buy a crypto? - Crypto

In this Blockchain interview questions , I have collected the most frequently asked questions by interviewers. These questions are collected after consulting with top industry experts in the field of Blockchain & related technologies.

Asked On2022-01-09 07:48:45 by:Akhil-Dev-D

Taged users:

Be first to like this question

Be first to dislike this question
Talk about this  Like  Dislike
View all questions

Let’s treat cryptocurrency as a normal stock,trading in an exchange…What factor makes the prices of the stock go up and down?There’s just one- Demand & Supply. If a stock is in Demand that is the number of people with positive sentiments (interested in buying) is more than the number of people with negative sentiments(interested in selling) so obviously you always wanna sell high so the sellers start increasing the price and because demand is high the prices continuously get filled and are raised even more . Imagine the opposite that is the number of sellers increase than the number of buyers now the sellers start decreasing the prices in order to sell their shares quickly as the prices are falling ,as the sellers are competing to sell their assets first this causes the prices to decrease even more and ultimately there is panic in the market and this can cause the value to decrease rapidly (Who wants to loose money,That’s why everyone starts selling) A stock may take 100 days to go from 10$ to 100$ but can come down to 1$ in one day the fall is always harder than the rise as no one wants to loose money.

Now Coming to Cryptocurrencies the price is completely driven by demand,More Demand=More Valuation……NO DEMAND=NO VALUE.

Now coming to The Very fundamental flaw in cryptocurrencies. It Has NO Intrinsic Value! If A stock goes to 1$ or below the company has physical assets which can be liquidated and capital recovery is possible to an extent a currency has gold if cryptocurrencies go down you are left with Nothing.

One more thing…There is no such thing as “Unhackable” if your virtual currency in a virtual wallet gets stolen or worse the wallet shuts down all your money is gone. Banks are regulated and are guarantors of your money if your money gets stolen they pay you back…Wallets don’t do that .

Another Problem(Volatility)- As international currencies are regulated they are very stable only movement of a few cents here and there in one day. Imagine getting paid in Bitcoin when it was 20000$ you get paid a months salary and suddenly in a few weeks you see it’s new valuation is only 10000$ one day you have 20K another day you have 10k. You see decentralization on such a huge scale makes the market very volatile panic can come at any time and valuation may even go down to a few cents.

It is a known fact that in the stock market 90% people loose money…..this is the “crowd”…crowds always loose…so a very simple but useful suggestion…. stay away from the crowd …. either do the opposite or don’t invest… it may not be a bubble but what if you buy near the top you can still loose half of your capital on a 50% downmove and to recover the same capital the stock would have to go up by 100%!

The problem is everyone wants to make that quick buck…People don’t know what they are getting into,for an investment to perform you have to research in the fundamentals and believe in them so that you can be patient and hold it even when there is selling pressure.

Imagine someone has 1 million bitcoins and he starts selling…prices would start falling rapidly there will be panic in the market the novice investors would start selling too this will cause a domino effect and BAM! All gone. Earning Nothing is always better than loosing everything.

Answerd on:2022-02-13 Answerd By:Raj-Gupta

Be first to like this answer

Be first to dislike this answer
Talk about this  Like  Dislike

You might like this video:Watch more here

Watch more videos from this user Here

Learn how to upload a video over here

Lets together make the web is a better place

We made eduladder by keeping the ideology of building a supermarket of all the educational material available under one roof. We are doing it with the help of individual contributors like you, interns and employees. So the resources you are looking for can be easily available and accessible also with the freedom of remix reuse and reshare our content under the terms of creative commons license with attribution required close.

You can also contribute to our vision of "Helping student to pass any exams" with these.
Answer a question: You can answer the questions not yet answered in eduladder.How to answer a question
Career: Work or do your internship with us.Work with us
Create a video: You can teach anything and everything each video should be less than five minutes should cover the idea less than five min.How to upload a video on eduladder