Steemit Crypto Academy, Season 3: Week 8 || Predictive Markets with Blockchain Technology by @preshymukel
Hello Steemians...... Welcome to my homework post for Professor @pelon53 on; Predictive Markets with blockchain technology.
1.- Create 5 questions that can be used in the Predictive Market. And explain what 2 of them consist of. Be creative and explain in detail.
Before I go further to create 5 questions that can be used in the predictive market, I'll first of all define what a predictive market is.
A predictive market is a market used to foretell the outcome of any kind of event in a market. It is used at the basic level.
Can the price of Ethereum surpass that of Bitcoin in future?
What is the future of Cryptocurrency in Nigeria considering the ban placed on it by the Central Bank of Nigeria(CBN).
Is it possible for Cryptocurrency to be widely accepted as universal currency?
Will the price of Steem hit $1 before the end of 2021?
Is it possible for cryptocurrency to ever loss it values?
Can the price of Ethereum surpass that of Bitcoin in future?
The answer is yes.... Though Bitcoin is the first cryptocurrency that was created and its still leading all other cryptocurrencies.
Considering the real world application of Ethereum and it's ability to save value, the Ethereum network shows that it is more promising.
Ethereum is used for smart contract events and Bitcoin cannot be used for such events. This gives Ethereum an edge to be frequently used and therefore growing above the market capitalization of Bitcoin.
Regardless of the dip that was recently experienced by all cryptocurrencies, Ethereum had a 1000% increase for the period of 12 months unlike Bitcoin that had just 300% increase.
The Ethereum blockchain is consistently under development in order to help it scale faster unlike the Bitcoin that is mainly a coin of value to holders.
Some investors and crypto experts such as Goldman Sachs, Todd Morley, Sagi Bakshi and Lex Sokolin etc, have also predicted that the value of Ethereum will rise above Bitcoin market capitalization in market.
What is the future of Cryptocurrency in Nigeria considering the ban placed on it by the Central Bank of Nigeria(CBN).
The ban placed on cryptocurrencies in Nigeria by the CBN have no noticeable effect on cryptocurrency in the country as crypto user has continually been using cryptocurrencies despite the CBN directives.
Though at first crypto users were a bit scared following the directives from CBN to banks to shout down bank accounts linked to cryptocerrencies.
The ban on crypto in Nigeria is more or less insignificant as crypto users have employed the peer-to-peer (p2p) means of making transactions without involving the banks.
Crypto has long sailed in Nigeria and trying to stop it is like trying to stop a ship that has long sailed which is impossible.
2.- Explore Polymarket, answer and explain the first 2 questions in the Crypto category. Show screenshot.
Exploring Polymarket
In exploring of the Polymarket, I'll start by visiting the Polymarket website
- When the website opened, I clicked on sign up inorder to create an account.
- I input my email address and clicked on sign up.
- After clicking on sign up, the page below popped up asking me to verify my email.
- I opened my email inbox in order to verify the email, and then I clicked on log in to Polymarket.
- I got a confirmation that I have been logged in.
- I returned back to the main Polymarket tab to create an account. I typed in a preferred username and click on create account
- My account was created. Then I clicked on the icon at the top right to see the different features the platform has; which are; Markets, Portfolio, Account and Preferences.
- I clicked on the market feature to see the predictive market categories which includes; sports, art, business, crypto etc.
- The account feature shows how u can start trading on the platform using three simple steps.
The Crypto category
1. Will Cardano support smart contracts on Mainnet before October 1, 2021?.
My prediction in this market will be a "yes" that Cardano will support smart contract on mainnet before October 1, 2021.
Though there has been a lot of speculations concerning Cardano (Ada) contract update. However, some are not optimistic about the release of smart contract by Cardano.
The prediction market on Polymarket has shown that the Cardano platform is more likely to support smart contracts on Mainnet before October 1, 2021 with the "Yeses" been higher than the"Nos".
If the smart contracts is successfully launched before October 1, 2021. The price of the crypto (ADA) will experience a boom as the price will increase significantly as more investors will troop into it.
2. What will the fully diluted market cap of SuperRare’s token be 1 week after it starts trading? (Range: $250M - $3.00B)
Currently the Fully Diluted Market Cap of SuperRare token is $1,069,270,072 and the current price is $1. 07 from coinmarketcap.com.
I predict that the price of SuperRare in one week will be $1.08
To know what the fully diluted market cap of SuperRare token will be in one week, you multiply the maximum supply of SuperRare which is 1,000,000,000 with the predicted price of SuperRare of $1.08, the result of this calculation will become the fully diluted market cap of SuperRare token in one week.
3.- Explain in detail a Predictive Market project, it cannot be Augur, Gnosis or those explained in class.
STOX PREDICTIVE MARKET
.png)
The Stox predictive market is an open-source decentralized blockchain built on Ethereum’s ERC-20 protocol.
It was launched in 2018 by Moshe Hogeg and the platform has been doing well since its inception.
The main purpose of Stox platform like every other predictive market is for the forecasting of possible outcomes of real life events.
STX is the governance token of the stox platform. The STX is the currency used in the platform for prediction trading.
The problem of liquidity in the Stox platform is solved by using an ERC-20-backed token (bancor ; BNT) to constantly offer liquidity to the platform.
How Stox works and how to take part in it
Currently, the Stox platform operates as a risk free that is all STX used during any market prediction are always returned at the end of the market.
To predict all you need to do is to select prediction, then stake in the amount of STX required for the prediction and then wait for the prediction outcome.
You receive a rank points as rewards whenever you correctly predict an event outcome. These rank points are used to determine one's place on the Leaderboard.
STX is ranked 1886 with a price of $0.01017 on CoinMarketCap.com at the time of his research.
4.- For you, what will happen to Predictive Markets with blockchain technology? Who will benefit from them?
Predictive markets have been in existence over the years which involved real money predictions. But it was seen as illegal in some countries while in some other countries they are regulated with so many restrictions.
Blockchain technology is a decentralized system that stores informations which can not be changed or hacked.
Blockchain technology can play a great role in improving the predictive market in the following ways;
Accessibility : The blockchain technology can help users access predictive market at any point in time and it less restrictive, unlike the real world predictive market that has many restrictions.
Reliable and safe: Predictive markets will be more reliable with blockchain technology since blockchain is not controlled by an entity and can not be hacked.
Can't be shutdown: Unlike some predictive markets that have been closed by government, predictive markets operating on a blockchain can not be closed because blockchain is not controlled by anyone and informations on a blockchain can not be altered.
Predictive markets with blockchain technology will be beneficial to users considering the above points.
Cc-:
@pelon53