Automation Cube

For a long time, I was curious about what drives cryptocurrency prices, especially since they don’t represent a physical company, product, or asset like conventional stocks do. Stocks have fundamentals—like a company’s earnings, market presence, and future growth potential—that investors analyze. However, cryptocurrencies, like Bitcoin and Ether, don’t have these tangible underpinnings, which makes their price movements seem more mysterious. Here’s what I’ve found, exploring both the unique factors behind crypto price volatility and the differences from traditional stock shares. Key Factors Driving Price Fluctuations in Bitcoin and Ether 1. Market Demand and Supply Dynamics For Cryptocurrencies : Bitcoin has a limited supply of 21 million coins, which creates scarcity and often drives demand as investors view it as a scarce asset. Ether doesn’t have a cap but instead relies on its supply being controlled through mining and staking rewards. This scarcity and demand play an outsized role...

What is Blockchain? A Simple Explanation Blockchain is a digital record-keeping system that stores data in "blocks" linked together in a "chain." This technology ensures that once a piece of data is recorded, it is nearly impossible to alter or tamper with, making it secure and trustworthy. Each data block is connected to the one before and after, creating a continuous chain that keeps a permanent, transparent history of transactions or records. A Brief History of Blockchain The origins of blockchain trace back to 2008, when an individual (or group) under the pseudonym  Satoshi Nakamoto  introduced it as the underlying technology for Bitcoin, the first cryptocurrency. The primary goal was to create a decentralized, digital currency that didn't rely on traditional financial institutions like banks. Bitcoin’s blockchain provided a secure, public ledger of all transactions, which was maintained by a global network of computers rather than a single central authority...