Crypto Is Not A Business

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Is Crypto A Business?

I know this caption might seem a little odd or thought-provoking once seen. That was the same way I felt when the argument was raised between me and a colleague.

At first, it will tend to play with your psyche until you get a foothold of it and trust me,I did justice in answering the question correctly. Here are some screenshots of our argument.

But then,I ask a again: Is Crypto a business?

Now what's your definition of a business?

An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business. It can be for-profit or non-profit enterprises dedicated to a charity mission or a social cause.

Businesses can also range in sizes from small to huge, and can range in scale from sole proprietorships to multinational organizations.

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Individuals' efforts and activities to produce and sell goods and services for profit are also referred to as business.

Oxford Languages defined it as;

Making a living or earning money via the production, purchase, and sale of items (such as goods and services).

Wikipedia simply described it as "any profit-making activity or business or a person's normal occupation, profession, or trade; "

Another definition called it a commercial activity.

Looking at all these definitions, they're all screaming " Crypto Is A Business!!!" . This is because a mere dive into the crypto space will open your eyes to the fact that it is all about buying and selling. This is simply what a business is.

Any business that doesn't buy something or sell something either for profit or non-profit reasons can't be categorised as a business.(Give it another name you like)

But then,what other things prove that Crypto is a legitimate business?

Apart from the definitions above, there are other unique features that make a business what it is. These things are features like; an available market, a business structure, market psychology and sentiments, liquidity of the products, utility of the goods,

But are all these applicable to crypto?

Heaven Yes! They are very much applicable and even more. Read on let's see how

Market Place

The buying and selling of crypto assets can now be effortlessly done on numerous crypto platforms which have been well developed with alot of automated functions.

Binance Exchange

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These platforms are categorised into Centralized Exchanges (CEX) like Binance, Kucoin,MEXC etc and Decentralized Exchanges (DEX) like Pancakeswap, Spookyswap, Uniswap etc. Crypto assets can also be sold from peer to peer (P2P). All these trading forms make the business of crypto feasible and lucrative

Business Structure

These crypto assets are mostly owned by huge Financial Technological (FinTech) companies, Digital organisations, Media firms and a wide range of other corporations. Most of them are registered under sole proprietorship,joint proprietorship and limited liability. What more business structure can one ask for?

Some examples of these companies are; Ripple Labs,Luno, Bundle,Coinbase, Robinhood,Ziglu,Wirex,Bitpay,Bitfxt and many many more.

Ripple Labs Company

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Market Psychology And Sentiments

The crypto currency market is not devoid of the normal market psychologies and sentiments found in other businesses. All these are affected by the simple economic principle of "Demand and Supply".

When demand is higher than the supply, the price of an asset rises but when the demand is lower than the supply, the price falls.

Coinbase sentiments

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Above all, it's ruled by the principles of Technical analysis(TA) and Fundamental analysis (FA). A good knowledge of these two principles can help one make huge profits in the business.

Liquidity

The Market Is Just like water flow

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This is the most important aspect of the crypto currency market because for a product or asset to be valuable,it has to be exchangeable or convertible to a given value or any other valuable asset or product . This is what we mean by an asset being liquid. Any asset without liquidity is worthless and valueless.

Source

Utility Of An Asset

Most of these crypto assets have a lot of utility and can be used to perform one digital function or the other. XRP (Ripple) is used by many big commercial banks to perform one financial transaction or the other. Ethereum has a range of utility like it's use as smart contract and other numerous utilities.

The Crypto business also has other unique business features like the provision of goods and services, regulatory policies, Identification purposes,records and documentation,etc.

One can not dispute the fact now that this is a very huge business and the most interesting fact about it is that we're still early. When huge amount of money starts flowing into it from other financial sectors, then skeptics would regret ever being skeptical about this financial opportunity that has been given to them at a platter of gold

Are still in doubt? Your Choice!!!😋✌️

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Comments

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