The best Choices for the Perfect Cryptocurrency Details Now

The most recognizable cryptocurrency turned out to be Bitcoin because it was associated by as many as 71% of the respondents. Ethereum took second place on the podium 13%. In addition to these two, there are also other popular projects such as Litecoin, Dash, Monero and Ripple. 

It turned out that men are more aware of the existence of digital currencies in relation to women because the difference between the two groups was as much as 11%. When asked about the potential future of all projects, 36% of respondents said that cryptocurrencies would be widely accepted for payments in all stores. It is no surprise that cryptocurrencies were mainly interested in young people. Now CRYPTONIKA is the best option there.

Is the awareness of cryptocurrencies among people actually so strongly increased recently?

The awareness of the respondents in relation to how crypto-currencies operate and what their advantages compare to fiat currencies turned out to be very low. As many as 87% of people with basic knowledge about Bitcoin have never used it, 47% are glad that they never invested in it, and 15% would like to buy it but they think it is too late.

Is it possible to draw any conclusions from such an examination?

Low awareness of the advantages of cryptocurrencies such as decentralization and the related lack of dependence on a governmental institution makes it easy to draw conclusions. Very few people understand that once we start using blockchain technology fully, it can lead to even more revolution than the Internet. This leads us to say that potential investors are more susceptible to emotions in the process of making a decision to buy or sell a given cryptocurrency, and the neighbor’s opinion matters more than an in-depth review of the topic. This, in turn, confirms the thesis on the irrationality of cryptocurrency investors.

Market inefficiency of cryptocurrencies

These markets are ineffective, which means that investors can not reflect all available information at cryptocurrency prices. The current financial markets are fully effective, which means that the price reflects all information, and the only thing that can move the market is the publication of new data. It is different with cryptocurrencies. Cryptocurrency investors are a mass of anonymous, mostly private individuals, whose reactions are in most cases unpredictable. Even if a certain group of users behaves according to the given heuristic, it may turn out to be a momentary reaction that will not only be repeated in the future, but may also not reflect the behavior of these people in the past. Users of cryptocurrencies can be treated as a crowd that can behave in every possible way, caused by any event, not only public.

An efficient investor who can detect anomalies of irrationality – market inefficiency – is able to build a strategy that brings above-average profits. Such a strategy would have to detect inefficiencies associated with the incorrect valuation of cryptocurrencies. An example of such inefficiency may be the discrepancy in prices on several cryptocurrencies. For example, a sudden drop in bitcoin quotations on one of the stock exchanges may result in a sudden increase on another, as there will always be a group of people who recognize that the lower price is a perfect opportunity to buy a cryptocurrency. In this situation, you can try arbitration, but you can read about it in the next article.

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