Cryptocurrency liquidity problem and PZM Cash solutions
Hello, everyone! 👋🏻 Today, we will tell you about the liquidity problem in the cryptocurrency market and PZM Cash solutions.
📌 What is liquidity?
Liquidity means the speed and ease with which one asset can be exchanged for another, or converted into cash while maintaining its market value. The liquidity of fiat money, for example, is ensured by the state, whose central bank issues money and legislates it as a means of payment, which must be accepted by all economic agents.
📌 Liquidity in the crypto market
Like traditional assets and fiat, the faster a digital asset is sold on the crypto exchange, the more liquid it is considered. However, according to statistics, more than a third of users are concerned about liquidity, as small exchanges and startups may experience liquidity problems. In particular, this is because the number of assets can significantly exceed the number of potential buyers.
In conditions of low liquidity on the exchange, large spreads can slow down trading, and only a small number of orders will be in the order books. These factors just scare away potential buyers and sellers who would bring more liquidity to the exchange.
📌 Liquidity in PZM Cash
✅ An important distinguishing feature of PZM Cash is PoS mining - an algorithm for filling the network with additional liquidity in addition to the initial genesis of coins.
✅ Ecosystem liquidity (PZM Cash coins) will be provided in two stages:
🔹 the initial offer of PZM Cash (at the pre-mining stage);
🔹 expansion of PZM Cash liquidity (at the stage of PoS mining).
✅ The developers have chosen the kernel, originally designed to create additional user scripts. Thus, balancing the supply and demand for PZM Cash coins is achieved to avoid the occurrence of inflationary mechanisms in the ecosystem and the depreciation of the exchange rate.
Read more about PZM Cash here: https://pzmcash.com/ru/
And in our White Paper: https://pzmcash.com/docs/WP_MARCH2020_RUS.pdf