As we have seen, companies operating on the stock exchange and those operating within cryptocurrencies (electrum hard fork bitcoin Private) have the same goal: to create value by offering a product or services that will be useful for people. But we did not talk about the fundamental difference between companies listed on the stock market and those financed by crypto-assets: the blockchain ! A company operating in the world of cryptocurrencies uses the blockchain to carry out its project. It is even an obligation if she wants to collect money. The development of the company’s products or services can only be achieved through blockchain technology .
In some cases, when companies judged that a fundraising was easier through an ICO than via an IPO, it turned out that the blockchain was not at all essential to carry out the project. It was just a montage in order to have easier access to capital. So be careful before investing and carefully check if the blockchain is really useful to the project or not. If it is not, it’s probably a scam .
The number of scams
The stock market is very regulated and we can not do what we want on it. Many laws have been designed to punish people who do not comply with the rules. But this regulation did not come overnight. The first institutionalization of the stock exchange took place in Bruges (Belgium) in 1409. The first French organized stock exchange was held in 1540 and took place in Lyon. It has been more than 600 years since the stock market existed.
During this long period of more than six centuries, rules have gradually emerged to establish a strict framework to frame these practices. But things got done little by little and the biggest advances were made after a scandal or a major crisis so that it does not happen again in the future. The publication of the bitcoin white paper dates from October 2008. Crypto-currencies are therefore only ten years old. Regulations are almost non-existent and as a result, many scams have already occurred and continue to occur.
It is even a scourge that undermines the trust that individuals can have in crypto-assets. If you want to have a list of the most common scams, feel free to check out our article on the subject: Bitcoin and scams – Find out!
Communication around crypto-currencies is almost exclusively via the internet. Different media exist:
- The specialized forums.
- Focus groups on Telegram, Discord or Skype.
- On the sites of cryptocurrencies.
Even if in the long run the stock market information should also converge towards an equivalent system, there is a specialized paper press, call centers that transmit information to traders, meetings with investors, etc. These means of communication do not exist (or so insignificant) for crypto-active.
Here we are at the end of our article explaining the commonalities and the differences between the stock market and the crypto-currencies. As we have seen, we can say that in both cases, it is companies that try to create products or services to generate income, the particularity being that crypto-currencies need the blockchain to lead to their project.
The similarities between these two markets are much larger than the differences. However, it must be emphasized that there are some major differences that should not be overlooked if one wants to be a competent investor in each of these markets. The cryptocurrency market (electrum hard fork bitcoin Private) is still young and things are changing very fast in this sector. It will therefore be necessary to follow the news carefully in order to keep as regular as possible informed of the changes.
It is also important to understand that crypto-currencies require skills similar to those needed for the stock market. The crypto-asset market is no easier to handle than the traditional stock market. Admittedly, the current public has a higher ratio of amateurs than the stock market, but in the long term, this should be balanced.