According to an international study released in recent days, carried out by the Toluna research agency, around 60 percent of people have no knowledge of cryptocurrencies. This survey, conducted with more than ten thousand five hundred adults from various countries around the world, has shown that there is still a long way to go for those who work in the crypto industry.
However, the news was met with enthusiasm by those engaged in decentralized finance. Seeing the glass as half full, this means that 40 percent of people have some degree of knowledge about crypto technology, something that, just a few years ago, seemed like a utopia.
With the birth of Bitcoin in 2008, a decentralized economic model began that, since then, has not stopped growing. In those early years, finding out about the operation or price of these digital assets involved long hours of searching in forums, Facebook pages or other niche portals, which did not have a massive reach. Today, this has changed.
By entering the main news portals you will find news about cryptocurrencies and you will even see on the home pages boxes that indicate the price and marketcap of Bitcoin, Ethereum, Solana, Cardano and other digital assets. The demand for greater knowledge and the growth in the flow of transactions has led the media to respond earlier to this need for up-to-date information.
The extreme volatility in the price of crypto is usually what generates the most attention for journalists and investors, as happened at the peak of Bitcoin in November 2021, reaching USD 68 thousand dollars, as also happened with the fall in value after the crisis caused by the collapse of the Luna/Terra pair, earlier this year. But, beyond the attraction that these numbers produce in public terms, they are not the values to which we have to pay the most attention.
An effective way to recognize the potential of a cryptocurrency is its market capitalization or marketcap, which, although it is linked to its price, is not reduced to it alone.
What is the marketcap of a cryptocurrency and how is it calculated?
The market capitalization of a cryptocurrency is determined by multiplying its current price by the number of tokens in circulation.
These two variables, price and quantity of circulating coins in the market, allow those who are evaluating investment opportunities from the purchase of crypto assets to have more precise and secure information about the current status of a specific cryptocurrency.
Given that the price is not only a highly volatile variable, as we have seen in recent times, but also extremely influenceable or manipulable, it is not an element that allows us to reliably recognize the viability of a certain asset or protocol.
Within the crypto market, as happens in the field of traditional finance, movements and actions are generated in order to modify the price of a certain asset, either to increase it or to lower it. This generates, for example, that a crypto can see its price rise in a short time without this increase in value necessarily translating into a growth in its circulation or number of adopters.
That is why those who are more heavily engaged in the world of cryptocurrencies and decentralized finance often pay attention to market capitalization. By looking at the number of units in circulation, you can historically recognize how the currency has grown beyond its market value.
It is worth remembering that one of the keys in the crypto world is the generation of community, which is what gives value to a specific asset. That is why the number of circulating coins or the number of users and adopters of crypto is not less, since that allows determining and recognizing the basis on which a particular asset is based.
Now, how can you calculate the level of circulation of a cryptocurrency? Simple, starting from listing all the purchase and sale transactions of that digital token. On the other hand, the price is easily recognizable today through platforms, applications and Internet pages. Fortunately, the sustained growth of the crypto world has multiplied the sources of information and it is now possible to keep up to date from different sectors.
What other variables should I take into account if I want to enter the crypto world?
Although anyone with a cell phone and an Internet connection can become a user of cryptocurrencies, those who have more years of experience exploring the uses of decentralized technologies recommend, above all things, information and training.
Today there is a wide range of courses, training and training, both professional and paid as well as introductory and free, which are used so that those who are interested in cryptocurrencies can begin to take their first steps safely and reliably. Despite being an ecosystem with enormous possibilities for both individuals and institutions (financial freedom, sovereignty over savings, decentralization, among other aspects), it is also a world that has had several cases of fraud and scams throughout its history. linked to the use of crypto assets. Broken protocols, pyramid schemes, password and wallet theft are just some of the most common crimes carried out by operators hoping to attack the unsuspecting. Therefore, the more information and knowledge you have to get around in the crypto world, the more difficult it will be for you to fall into operations of this type.
The crypto revolution is already, for many, irreversible. Credit card companies have realized this and don’t want to be left out. The adoption of these technologies grows and transforms the ways of understanding value and economics. The future, as the song says, has arrived.
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