Already for several months, the top executives in the central banks of many countries have been engaged in ongoing discussions of cryptocurrencies — the financial regulators are deeply concerned about the speed-lightning changes taking place in the world financial markets. Very sharp changes in the market conditions are fraught with many risks (as well as unclear prospects) for individuals. This is a cause of great concern for the supervisory agencies as they are expected to design very simple and at the same time fair rules of the game for everybody. The Bank of Canada, also doling its part, decided to find out how well Canadians are familiar with this far-from-simple topic and how many of them already hold cryptocurrencies.
The survey’s findings are impressive. As of late 2017, 85% of Canadians knew about Bitcoin and one in twenty used them. These figures do not look high, but it is just the first impression, as the figures for 2016 were much lower — 64% and 2.9%, respectively.
But of greater interest are the purposes for which people bought Bitcoins in 2016 and 2017. Cryptocurrencies were earlier purchased mainly to pay for goods and services, but now over half Bitocoin holders said that they had bought them as an investment.
Everything works in Bitcoin’s favour — widespread proliferation of technologies, a growing number of Internet users and the time-tested grapevine — new users learn about the promising technology from their acquaintances and decide to keep abreast of the times. And inspired by new opportunities opening up for them they, in their turn, share the information about the novelty with their friends and acquaintances. Gaining popularity, Bitcoin [price] is growing.
According to the Bank of Canada data, 12% of individuals using Bitcoins, decided to buy them under the influence of their acquaintances.
Is it similar to network marketing?
True, Bitcoin distribution is to a certain extent similar to network marketing. When the cryptocurrency industry was just taking shape, a handful of enthusiasts held thousands of Bitcoins but the currency was worth next to nothing back then.
The first transaction involving Bitcoin occurred on 22 May 2010 when Lazlo Hanesh bought a pizza for 10,000 BTC.
Cryptocurrencies are a fairly attractive asset, but one has to spend many hours carefully analyzing the topic in order to make a well-thought out investment. But many people don’t have time to do this research. And some companies have used this opportunity by combining cryptocurrencies investment with the multi-level marketing principles.
Success was not long in coming — companies have scored impressive success when they combined the promising and interesting blockchain technology with the assertiveness and energy typical of multi-level marketing industry.
The cryptomarket is democratic as its entry threshold is incomparably lower then in the conventional one — and this also adds to it attractiveness. It is primarily due to the blockchain technology structure for it is a much more open environment.
Quality projects always have detailed documentation containing information on all nuances, so, even a most seasoned investor will find answers to his questions there.
The crypto companies’ transparent structure and a low entry threshold make the combination of MLM and the crypto world attractive and beneficial for all.