Finance and Rumors
Rich or poor, educated or Illiterate -Everybody needs spice to be added in life. Rumors had always been favorite mass media since olden days. Perhaps there were not so many media of communication in those days. Sorumorstraveled at a slow pace. With the latest technology, rumors travel faster than anything nowadays.
Even MNCs have a grapevine. Rumors create thrill and excitement and invoke interest in everyone.
Let us see how rumors affect financial market:
Price: The reason behind lightning hike of a product’s price will be a financial humor. Expectations of further price hikes tend to push the prices further.
Demand: Rumors on expected scarcity push the demand up for a product.
Performance: Rumours about internal happenings and performance of companies always drive share prices crazy. Also rumors on the poor quality of products, services etc. lead to fall in sales and prices.
Rumors on bail-outs, mergers, acquisitions had always been the reason for market volatility. Sometimes rumors create losses and tarnish the image and credibility once for all. Since the source and authentication is difficult to verify it is always tough to disprove a rumor. Also, it is very difficult to stop the spreading of rumor. It highly depends on the end receiver to think and verify the authenticity of such information. But the thrill of rumors makes the receiver to totally forget about verification. Most people tend to believe rumor than authentic correct information.
Some rumors act bring good things out. For instance, Crypto Code Scam is a rumor. It brings out various good aspects of cryptocurrency trading app called Crypto Code. The app has an inbuilt trading bot. It is simple to use. The user has to open an account by depositing 250USD and start trading in cryptocurrency. The app uses blockchain technology and hence the user’s personal and financial data are safe.
It is a good thing that rumor on crypto code scam is gaining so much popularity that it has brought so many online debates. Even those who do not know about cryptocurrency are showing so much interest in it.
Surely this will make cryptocurrency as a popular medium of exchange. Slowly the world will take strong steps towards authenticating its usage. This will contribute to more research and investment in strengthening cryptocurrency. Any minor drawbacks will be removed slowly. One day cryptocurrency will totally replace physical money. At that point, the whole world will reap the benefits of cryptocurrency like cost reduction, faster settlement, avoidance of conversion costs, fake money etc.