You can gain money by creating value. That’s what cryptoeconomics is all about. Bitcoin is creating value as it continues to do so with the adoption of SegWit.
However, what does it mean to “create value”? A good definition might be this:
Value = Market Capitalization/(Market Cap of All Contracts in the Market).
To illustrate this, consider the world wide web. It has a market cap of $90 billion. For every web page posted, a company gets paid the sum of $1. For each time a person searches for a particular web page, the same amount (1/3 of $90 billion) is paid to the company. So if web owners, like Google, pay Google a $100 million profit, as they buy up the entire web market, their share of the total profit is (100*3)/3 = $3.33.
How is this possible? By creating value. They “created” value by creating value. They could easily create value by spending money to buy up all the web and other assets in the market and to hire other people in the industry. Or, it could happen that each user of the web paid a company $100 to use it. If the company then did something beneficial with money it made (such as advertise on the web) that gained a return, of this return, the company was profitable. As it continued to do this, it earned more value. Since it earned more value, it added value to the value of all contracts in the market.
This is the essence of Cryptoeconomics. But, what does this mean for you? It means…
If you are considering investing in crypto currency, you should always be careful of what you read on the internet. If you read something you trust your money to, and someone says they will lose some of it in some event, read this article and learn some of what the author of this article is going to say so you can avoid this occurrence.
Now, back to the Cryptoeconomics. First, if a business decides that it will sell something to consumers to buy the price up, this means it has earned $100 million. When a user decides to buy something through the internet, the company will earn the same money for the cost of the product.
Second, a company must invest a lot of money into developing good products in order to maintain their profit potential. This usually means paying people. So for the time
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