Legacy market tools hold a lot of power. Financial professionals have relied upon them for decades. Their widespread usage and psychological influence must not be ignored. Given the unique characteristics of crypto markets, deeply understanding analysis tools warrant strong consideration.
Financial tools are often more about market psychology than popular financial concerns. People will always remain at the heart of finance. Crypto emphasizes individuals and peer-to-peer exchanges. The new dynamic offer unique opportunities to innovate analysis.
FINANCIAL TOOLS DIFFER ACROSS MARKETS
Financial professionals utilize different analysis tools for different markets. Some are high risk and/or multifaceted. Others are conservative and more predictable. A variety of analytical approaches span across financial markets.
Cryptocurrencies are a new type of market. They present several questions that require new, or uncommonly used, financial tools. It comprises a unique mixture of technology, global networking, and secure asset trading.
ASSET-TO-ASSET TRADING
Founded on asset trading, blockchain empowers peers within a network to secure exchanges on a global scale. Blockchain is revolutionary at its core. One could compare its process to bartering across supply chains.
Traditional markets come to consensus via standardized values. Trading fiat money for assets is essentially a one way equity transaction. Of course, aspects of insurance and leveraged equity could be included. However, this isn’t at the core of a bare-bones fiat trade. It is at the heart of trading on distributed blockchains.
CRYPTOCURRENCY MARKETS REQUIRE THEIR OWN SET OF TOOLS
Acknowledging that crypto markets required their own set of tools is a no-brainer. Peer networks have been on the rise since the advent of social media. Maybe new financial tools will exhibit characteristics of social media analytics.
At the moment, the aspects that stand out for measuring crypto markets include total market capitalization and Bitcoin dominance. Both of these vantage points have been in existence for several years. When introduced, cryptocurrencies were few, as were their variability and proof mechanisms.
PURCHASES RULE
Right, ‘supply AND demand’, not just demand. Consider what happens when purchases cease vs. an absence of supply. If the masses want to buy, someone will find a way to supply. Contrastly, goods have been known to perish when people refuse to buy.
Even gold would become a shadow of itself if not associated with a medium of exchange. It’s shiny and desirable- something that stands out amidst other rocks. Put it alongside a 2009 Lambo and what do you think?
Enter EOS: Active VS. Leveraged Markets
EOS was built for resilient market exchanges. Bitcoin and Etherem have developed into leveraged monetary networks. One gravitates toward third party interactions. The other towards p2p exchanges.
EOS is incredibly fast. Its conception and issuance of a new mainnet protocol (fee structure) made developers of Bitcoin Lightning Network and Ethereum 2.0 seem to stand still. EdenOnEOS even took flight amidst the wake.
As an active market structure, EOS can consistently do such things. There’s no more clear instance of the need for new market tools.
CONCLUDING THOUGHTS
Like the Space Shuttle can be lugged across the GW bridge, legacy money can be moved across a future where the Lightning Network and Ethereum 2.0 are widespread. George Washington was a beast of a man. But even he is said to have passed away.
It’d be better if the Space Shuttle took off at Kennedy Airport and appeared across the Hudson River at Newark Liberty needing to launch into space over Kennedy, circumvent the globe and wait in a stationary orbit for the appropriate window to touch down gently at Liberty without charging up static that causes all of NYC a bad hair day.
Loved that space shuttle analogy