Why Investors Don’t Spend Their Cryptocurrency & Hold On For Dear Life
One can think that Bitcoin's primary purpose must be to replace fiat money for transactions. Yet as time goes on, Bitcoin and other cryptocurrencies often function more as a store of value than a replacement for money. Many are in fact quite reluctant to spend their electronic cash.
This hesitation to spend one's cryptocurrency holdings can be credited to some different factors. First of all, most people believe the value of the digital currencies is going to continue to increase. This is not an entirely irrational assumption, but baked into it's a very positive opinion concerning the future performance of their investments.
The more likely outcome is a few cryptocurrencies will go up and then harshly drop out of existence. This possibility ought to be mitigated by spending or selling some of the profits from a cryptocurrency so that you can at least gain back the money you originally invested.
The next reason why people don't spend their cryptocurrencies is tied to the original: it isn't yet convenient to spend Bitcoin. There's not any solution currently available that would enable for a fluid interaction of the exchange and on site spending parts of the ecosystem.
Finally, you've got the issue of the expenses related to selling cryptocurrency.
The Trading Industry
Paying trading charges is frustrating and signifies a holdover from the old world, in which an exchange was entitled to make money from you for every piece of value they supplied you. In the new world, not all businesses function based on the notion of capturing maximum value in the short-term.
As a result of these tendencies, most individuals do not wind up really spending the money they collect. Investors are then left open to the potential of a massive downturn in the economy, all because they are too cheap to sell their currencies.
This leaves a hole available for a new competitor to jump into the space and supply huge value to the users who'd love to market their cryptocurrency without paying extortion-level prices. One new entrant is the Tokia, which supplies a lot of value at very little price.
The Way Tokia Alters Things
Tokia works to supply a free cryptocurrency market as long as users buy 1,000 of their tokens or more. This way, it is structured far more such as a subscription service compared to a per trade business. And their services don't apply only to transactions.
Cold storage is just another service some users find to be in short supply in combination with their trading platform. Tokia provides a bundled service where cold storage is offered on demand, which gives a fully secure multi-Blockchain offline storage method to secure funds. This takes a lot more of the risk off the table than other trades and increases convenience for customers.
Tokia is new to the market but is already proving its worth. This presale point was disregarded by approximately 47 percent but remains an excellent indicator of the future need for this coin.