Cryptocurrencies Are the Ultimate Financial Technology. Fintech

Dear Reader,

What is finance actually? Finance is about the movement of money. And cryptocurrencies are the ultimate financial technology. 

Money is a store of value, means of exchange and a unit of account. Cryptocurrencies have proven relatively effective  as means of exchange and a unit of account, but they are lacking in terms of store of value due to their high volatility.

The high volatility is a direct consequence of the relatively still low liquidity of cryptocurrencies. With the larger adoption of cryptocurrencies the liquidity of the crypto market will improve and people will be able to count on cryptocurrencies to store their wealth. Due to their decentralized nature, cryptocurrencies could finally become more secure than fiat money, due to the wisdom of the crowd.

If the price of bitcoin and other cryptocurrencies in terms of USD shoots up, for whatever reason, this would create a great buzz around cryptocurrencies anew and will speed up the adoption and the liquidity creation of the cryptocurrencies market.

Now even the largest central banks like the Federal Reserve and the European Central Bank are seriously thinking of minting their own cryptocurrencies. What actually commercial banks have been doing for centuries with the reserve multiplicator. Due to the easier, less burdensome and cheaper process initial coin offerings could become prolific again since they grant access to funds for very immature, but promising start ups. 

So, as far as I am concerned, if the market is left alone it will only be a matter of time before cryptocurrencies become mainstream.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich