The dark side of the encryption market: Understand Fud and add Blockchain’s scalability
The world of cryptocurrency is known for its volatility and speculative nature. The birth of decentralized economy (defi) has launched new investors, while traditions are still cautious about risks associated with digital currency. However, within the exaggeration and speculation surface, there is a complex factor network that can affect the performance of cryptocurrencies. In this article, we deepen the FUD field (fear, uncertainty and doubts) and explore how technical analysis can help merchants navigate these challenges and discuss Blockchain’s scalability.
What is fud?
Fud refers to a negative and speculative feeling that has become a distinct seal of the cryptocurrency market. It is a cycle of fear, insecurity and suspicion that reduces prices. This mentality often leads to investors to make irrational decisions, such as buying overestimated funds or keeping coins without value.
Fud Psychology
Fudia is fueled by several psychological bias included:
- Loss Aviation : The tendency to avoid losses at all costs can lead to people to set potential profits and buy low.
- Anchor Definition : Override the value of the property before performing it due to existing market expectations.
- Confirmation Exception : Are you selectively looking for information that supports existing opinions without leaving conflicting evidence.
Technical analysis with fud
Technical analysis (TA) is a set of methods that are used to analyze prices transitions and to identify the possible levels of support and resistance, trends and models, including cryptocurrencies. While some merchants can see how too simple or even a manipulator, it can be an effective tool for identifying trends and risk management strategies.
In connection with Fud, a technical analysis can help merchants:
- Identify Market Feeling : When analyzing the price changes and quantities of relative power (RSI), operators can measure the overall mood and potential starting points of the market.
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Blockchain -focused: key to opening up cryptocurrency growth
As the cryptocurrency continues attractive, the need for greater scalability has increased. Scalability refers to Blockchain’s ability to handle events and perform calculations at high speeds without reducing.
There are several factors that affect the slow -scale rhythm in current block chains:
- Restrictions on Events : A limited number of events in blocks (typically 6) limits network performance.
- Block Sizes : Rising the size of the block can improve scalability, but also increases the difficulties of mining and can lead to reduced safety.
How to increase Blockchain’s scalability
To solve these challenges, developers are studying several solutions, such as:
- Take the test (POS) : Consensusalithm, which rewards validators with cryptocurrency to validate events instead of a large number of mining workers.
- Certificate Skwrite (DPO) : POS extension that allows users to vote for validators and encourage them to work more effectively.
- Fragmentation : Draw a block chain in smaller parallel nets (fragments) to improve the performance of the event.
Scalable Blockchain Future
As the demand for decentralized applications (DAPP) continues to grow, it is necessary to develop scalable solutions that fit into the increase in traffic and data volumes.
