Are Cryptocurrencies reported in the GDP?January 15, 2020
Which Altcoin to watch? There are too many of them to name and remember. The use cases are immense. And, every cryptocurrency has a reason to be in the market. By trial and error, those who do not pass the test of investors get thrown out of the market, and they fade away.
Just like there is a fiat currency for each nation and a related GDP, there is a replication of cryptocurrencies with different use cases. Each of them has a domain of their own; however, in terms of digital currencies, the borders that define the limits are not the geographical destinations.
Cryptocurrency Differentiating Factor
At some point in time, there will evolve a differentiating factor. In terms of GDP, the Bitcoin is not included, and other Altcoins got not to include either. The value of the cryptocurrencies are not standalone. Whether accepted or not the value of any cryptocurrency is dependent upon an associated product or service delivered by the parent company or a sister concern.
Sydney Ifergan, Founder of TCAT token stated, “There is no idea of what creates the value of a Bitcoin or other cryptocurrency is a snake oil thing.”
GDP and Fiat currency are related. GDP is related to the final products and services of a particular year. So, any currency, whether digital or otherwise, should be related to something. It cannot come out of thin air.
Masses Make the Cryptocurrency Move
The bulk of value transacted in cryptocurrencies is not coming out of thin air without any link to the real-time world. The digital Currency and the fiat currency meet at some point in the real-time world.
So, what makes the price of cryptocurrencies move? The need to avoid intermediaries is the reason that warranted the demand for cryptocurrency. A majority of the population is not interested in paying the “lot of extra in transaction fees.” The masses agreeing not to pay the taxes are those who make the cryptocurrency market move.
Governments are voted for by the constitution and approved by the people, and so they exist. Digital Currency is voted for by the people, and so they exist.
Every cryptocurrency is associated with a blockchain project which facilitates for a range of use cases. The most wanted use case dominates and the rest of the use cases survive as a unique sector in the cryptocurrency industry.
The price correlations are probably based on the use case of each crypto. This is what common sense suggests.
The rest is for experts to clarify. It helps investors to know what moves the price of cryptocurrency. Cryptocurrencies are not reported in the GDP as they are yet to be regulated and tracked.