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The decision to invest is one of the most difficult economic decisions and the most dangerous, because it is associated with many factors and variables, which are often difficult to predict their behavior and trends of development.

Foreign investment is the vital and effective element to achieve economic and social development, as any initial increase in investment will lead to double and cumulative increases in the interior through the so-called investment multiplier, and an increase in income must go part of it to increase investment through the so-called accelerator.

The investment has received great attention in the literature of economic development because it is one of the factors affecting the national product, which in turn stimulates demand for production goods, as well as the fluctuations in investment affect income and employment.

The field of investment represents the type or nature of the activity in which the investor wishes to invest his money in order to obtain a return, in other words, the entity or space in which the investor intends to invest his money. When we say domestic and foreign investments we mean investment, while when we say real estate or securities, we define the tool used.

In short, when we talk about the field of investment, we mean a certain economic sector, while we mean the investment tool when we talk about the origin of financial assets or real.

It seems that the investment goes naturally towards countries whose currency is strong and at a constant high or at least does not fall in the near term and not the countries that suffer from rapid inflation and the collapse of the currency, but this rule is not fixed all the circumstances and in all places. It is enough that the investor enter his money in the currency of that country (ie, the country with a strong currency) and recover it after a period to find that the value of his money has increased, except for the profit that came during those cities if he was a citizen of those countries that melt their currency and rise in inflation rates.

In most cases, investment in tourism and travel depends on the same business principles as in the rest of the economic sectors. But in some cases investment in the tourism sector is made for non-commercial reasons as in the following cases:

1. Many countries invest in the tourism industry for social and environmental reasons rather than purely commercial goals.

2. In many cases, institutions such as banks invest in the tourism sector for non-commercial purposes, but more importantly, the substantial growth in the capital value of the property compares with those assets whose value declines over time.

Some investments are made for lifestyle reasons. Some people buy yachts, a leisure farm, horseback riding, leisure centers and commensurate with their lifestyle for individual or social reasons.

Since it’s currently en vogue right now, I’d like to announce that I’m launching my own cryptocurrency next week.

Let’s call it “kingcoin.”

Nah, that’s too self-serving.

How about “muttcoin”? I’ve always had a soft spot for mixed breeds.

Yeah, that’s perfect – everybody loves dogs.

This is going to be the biggest thing since fidget spinners.

Congrats! Everyone reading this is going to receive one muttcoin when my new coin launches next week.

I’m going to evenly distribute 1 million muttcoins. Feel free to spend them wherever you like (or wherever anyone will accept them!).

What’s that? The cashier at Target said they wouldn’t accept our muttcoin?

Tell those doubters that muttcoin has scarcity value – there will only ever be 1 million muttcoins in existence. On top of that, it’s backed by the full faith and credit of my desktop computer’s 8 GB of RAM.

Also, remind them that a decade ago, a bitcoin couldn’t even buy you a pack of chewing gum. Now one bitcoin can buy a lifetime supply.

And, like bitcoin, you can store muttcoin safely offline away from hackers and thieves.

It’s basically an exact replica of bitcoin’s properties. Muttcoin has a decentralized ledger with impossible-to-crack cryptography, and all transactions are immutable.

Still not convinced our muttcoins will be worth billions in the future?

Well, it’s understandable. The fact is, launching a new cryptocurrency is much harder than it appears, if not downright impossible.

That’s why I believe bitcoin has reached these heights against all odds. And because of its unique user network, it will continue to do so.

Sure, there have been setbacks. But each of these setbacks has eventually resulted in higher prices. The recent 60% plunge will be no different.

The Miracle of Bitcoin

Bitcoin’s success rests in its ability to create a global network of users who are either willing to transact with it now or store it for later. Future prices will be determined by the pace that the network grows.

Even in the face of wild price swings, bitcoin adoption continues to grow at an exponential rate. There are now 23 million wallets open globally, chasing 21 million bitcoins. In a few years, the number of wallets can rise to include the 5 billion people on the planet connected to the internet.

Sometimes the new crypto converts’ motivation was speculative; other times they were seeking a store of value away from their own domestic currency. In the last year, new applications such as Coinbase have made it even easier to onboard new users.

If you haven’t noticed, when people buy bitcoin, they talk about it. We all have that friend who bought bitcoin and then wouldn’t shut up about it. Yes, I’m guilty of this – and I’m sure quite a few readers are too.

Perhaps subconsciously, holders become crypto-evangelists since convincing others to buy serves their own self-interest of increasing the value of their holdings.

Bitcoin evangelizing – spreading the good word – is what miraculously led to a price ascent from $0.001 to a recent price of $10,000.

Who could have imagined that its pseudonymous creator, fed up with the global banking oligopoly, launched an intangible digital resource that rivaled the value of the world’s largest currencies in less than a decade?

No religion, political movement or technology has ever witnessed these growth rates. Then again, humanity has never been as connected.

The Idea of Money

Bitcoin started as an idea. To be clear, all money – whether it’s shell money used by primitive islanders, a bar of gold or a U.S. dollar – started as an idea. It’s the idea that a network of users value it equally and would be willing to part with something of equal value for your form of money.

Money has no intrinsic value; its value is purely extrinsic – only what others think it’s worth.

Take a look at the dollar in your pocket – it’s just a fancy piece of paper with a one-eyed pyramid, a stipple portrait and signatures of important people.

In order to be useful, society must view it as a unit of account, and merchants must be willing to accept it as payment for goods and services.

Bitcoin has demonstrated an uncanny ability to reach and connect a network of millions of users.

One bitcoin is only worth what the next person is willing pay for it. But if the network continues to expand at an exponential rate, the limited supply argues that prices can only move in one direction… higher.

The Bottom Line

Bitcoin’s nine-year ascent has been marked with enormous bouts of volatility. Therewas an 85% correction in January 2015, and a few others over 60%, including a colossal 93% drawdown in 2011.

Through each of these corrections, however, the network (as measured by number of wallets) continued to expand at a rapid pace. As some speculators saw their value decimated, new investors on the margin saw value and became buyers.

You should never make a trade based only on a trend indicator. The Volume Oscillator (VO) is another indicator that will help you determine whether a trend is breaking support or resistance. In essence, the old saying is true: without volume there is no price movement and without price movement there is no volume. Use that old saying to your advantage.

Several oscillators like the Percentage Volume Oscillator (PVO) and the Market Volume Oscillator (MVO) and are based on the VO.

The VO calculation is based on two Volume Moving Averages (VMAs). The base of calculation is simple:

VO = [Fast VMA] / [Slow VMA]

The Fast VMA is short term moving average, and the Slow VMA is a long term moving average.

If we use set a VO (5, 20) as an example, the setting would be the Fast VMA to 5 bars and the Slow VMA ito 20 bars. At 5 bars, the Fast VMA is the shorter period and, at 20 bars, the Slow VMA is the longer period.

In essence, the VO calculates the difference between 2 VMAs. This calculation reveals surges in volume and possible abnormal volume activity. The VO tell us where the current volume is in relationship to the average volume over a longer period of time.

If we take a look at the VO setting above, that means that when the VO is over 1 then the Fast VMA is over the Slow MVA and we can conclude that the volume activity in the market is higher than usual. In other words, we can conclude that there is an unusual volume surge based on the parameters we set (5,20).

By knowing how the basis of calculation works in the VO, the indicator becomes a very effective tool in your trading. You should never solely rely on trend based technical indicators. By doing so, you will only see one half of the total picture and it will lead to more losses than wins. When you combine your trend indicators with an oscillator like the VO, you will be able to distinguish whether the changes in the trend are based on abnormal volume activity and make a better decision as to whether to enter a trade.

A final thought is that you should consider a break in support combined with unusual volume activity as panic selling and the opposite is true with a break of resistance with an unusual volume surge which should be considered as greedy buying.

Many nations are now actively considering what to do about crypto currencies (CC’s), as they do not want to miss out on tax revenue, and to some degree they think they need to regulate this market space for the sake of consumer protection. Knowing that there are scams and incidences of hacking and thievery, it is commendable that consumer protection is being thought of at these levels. The Securities Exchange Commission (SEC) came into being in the USA for just such a purpose and the SEC has already put some regulations in place for CC Exchanges and transactions. Other nations have similar regulatory bodies and most of them are working away at devising appropriate regulations, and it is likely that the “rules” will be dynamic for a few years, as governments discover what works well and what does not. Some of the benefits of CC’s are that they are NOT controlled by any government or Central Bank, so it could be an interesting tug-of-war for many years to see how much regulation and control will be imposed by governments.

The bigger concern for most governments is the potential for increasing revenue by taxing the profits being generated in the CC market space. The central question being addressed is whether to treat CC’s as an investment or as a currency. Most governments so far lean towards treating CC’s as an investment, like every other commodity where profits are taxed using a Capital Gains model. Some governments view CC’s only as a currency that fluctuates in daily relative value, and they will use taxation rules similar to foreign exchange investments and transactions. It is interesting that Germany has straddled the fence here, deciding that CC’s used directly for purchasing goods or services are not taxable. It seems a bit chaotic and unworkable if all our investment profits could be non-taxable if we used them to directly buy something – say a new car – every so often. Perhaps Germany will fine tune their policy or re-think it as they go along.