Why do new currencies have no market value (why can’t new coins be bought)?

Why do new currencies have no market value Editor’s note: This article is from Orange Book (ID: chengpishu), by orangefans, authorized by Planet Daily.

Preface:

The recent market is very hot, and many people are speculating why new currencies have no market value?

According to Coinmarketcap data, on January 5, 2019, the global cryptocurrency market value was 2.89 trillion US dollars, with Bitcoin and Ethereum reaching 1.5 trillion US dollars, 12 million US dollars, and 1.07 billion US dollars respectively. These numbers are all very astonishing; however, the main reason is that the cryptocurrency market experienced a crazy surge in 2017, which was continuous and even exceeded the historical high in early 2017.

So how should we look at this event? Actually, it does not have much impact in essence. For example, price increases will cause a more positive expectation for future prices; however, if the market fluctuates significantly, negative news will emerge and create significant market panic. On the other hand, due to this uncertainty, most investors in the market will consider it a speculative feast. Therefore, after the market crashes, many investors will choose to wait and see, because they may be attracted by certain specific factors or worry that they cannot profit.

In fact, there is a saying in the market called “bubble”. When you buy a bunch of things, others will think they have almost disappeared, and then everyone will sell them and let others buy them in the secondary market. In this case, you should not be surprised, because once a bubble phenomenon occurs, all investors will find that those things that ordinary people cannot access are counterfeit products, so there is no need to chase high and buy. But now the situation is different. “Bubble” is not a purely economic concept or technical term, but refers to some irrational results—for example, projects that make you think you can make money by speculating in stocks. For example, a project needs to raise 100 US dollars to go online. If the project party invests 50 Bitcoins, it can raise 100,000 US dollars. Then your capital will definitely be higher than the valuation level of the project. Of course, if the project founder suddenly absconds, you will basically lose money, just like the current Internet—more users, lower development costs, and the return rate is not necessarily higher than before. This poses a problem. If you really miss the opportunity for blockchain development, you may see such a paragraph, which is the current situation of the development of the blockchain industry.

But what really makes you earn more money and not become a scammer is that most people don’t know how their asset values have changed. If a company wants to change the world and achieve financial freedom, it must bear the corresponding responsibility to maintain the success or failure of the company.

Why can’t new coins be bought?

According to cryptoglobe news, the U.S. Securities and Exchange Commission (SEC) recently issued a new regulation stipulating that investors cannot buy stocks of new currencies. This rule allows investors to purchase new tokens by providing “cash” to their held new assets. However, this behavior does not apply to those who believe that new currencies are not worth buying: if this money has already been invested in the market and has no value in the secondary market, they will not participate in any transactions again; otherwise, it will cause some losses because they are not truly usable cryptocurrencies or commodities, so they cannot be sold, transferred, and used.