Beat the Cryptocurrency Market. Basics of C's Model for Cryptocurrency valuation.

Beat the Cryptocurrency Market. Basics of C's Model for Cryptocurrency valuation.

Background

According to Adam Smith ( Father of Modern Economics ) :- ' Invisible hand ' of the market place works quickly.

Efficient Market Hypothesis

Market efficiency means that market price of a security ( Cryptocurrency, Foreign currency, Shares of a Company, etc. ) reflects all available information.

The market efficiency produces price that are appropriate in terms of current knowledge, and Investor will be less likely to make an unwise Investment.

The key to market efficiency is high level of competition among participants in the market.

Basics of C's Model for valuation of Cryptocurrency.

Main driving force for deciding price of any security is ' Information '.

It means, more information generates more ' Reliable and Accurate ' price, and hence lower the Risk.

Less information means, lesser ' Reliable and Accurate ' price, and hence higher Risk.

In case of Share of Company, to comply with Government Regulations, more detailed information are available, so that price of Share of Company are more ' Reliable and Accurate '.

In case of Cryptocurrency, very limited information are available, so that price of Cryptocurrency are less ' Reliable and Accurate '.

In Cryptocurrency world, many new Tokens arrive at Airport but only few of them fly in the sky.

In Cryptocurrency world, Gossips are main source of information.

Price of any Tokan is directly proportional to the no. of Gossips for that Tokan.

Higher +ve gossips for any Tokan means the higher price.

Lower gossips or no gossips means lower price or in practical, no price.

For higher gossip tokans, +ve and -ve gossips influence the price of that Tokan but in case of lower or no gossips tokens +ve or -ve gossips doesn't influence price of that Tokan.

Some report says BTC price increased due to halving effect but according to C's Model, gossips of halving influenced the price of BTC but halving in itself doesn't influenced the price of the BTC.

To know no. of Gossips for any Tokan, Google can help us where you can check traffic for any Tokan and make appropriate strategy for Cryptocurrency trading.

Thank you for reading.

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