Looking at charts, graphs one question is coming to our minds, how cryptocurrency gains value?
1. The simple answer would be supply and demand as it is on market rules that we everyone knows. Plans for mass adoption of bitcoin seem to be the factor that is the sign of future price grow but now this is so far in the future. Limited supply in case of such cryptocurrency as bitcoin give them a value in the long term. Gold and market created around buying gold are based on such fundaments. Bitcoin was created in scarcity manner when there are only 21 million bitcoins to mine and block mine reward also will decrease a value in the future. Liquidity of bitcoin is small because of HODL approach of the most of community. What can lead to treating bitcoin as an asset leading to growing up value in the future?
2. A community around token is also big, undervalued factor. When community believes and supports that token, it can create the more meaningful bond among participants of the project and bring a huge value in the long term.
3. It isn’t an easy task to evaluate whole market cap but we have to keep in mind that the whole market has a speculative aspect and can be overvalued. Speculation and the bubble is an important factor in the early markets. An aspect of creativity in the early stage of tech markets is being developed the most during the bubble phase where is a burst of new creative projects.
4. The team behind the whole project make a big impact, on the overall value. Development and entering new possibilities of potential growth of tech infrastructure, make a cryptocurrency a higher place in market cap.
5. We can’t forget about the usage of the coin. Is a coin in an actual payment method just like bitcoin in many places, you can pay bitcoin for products. Blockchain technology giving a life for new ICO’s creating Decentralized Apps on ethereum, make a possible for smart contracts, it’s also an interesting, use case for blockchain technology supplying real needs.
6. How cryptocurrency gains value? when there are a quick pump and even quicker dump of the price, it’s hard to realize what’s really caused that. The quick surge of money pack into particular coin can be deceitful for the first glimpse. We should be alerted when it happening and notice if coin presents a real value and gives something original or it’s simple shit coin, the copy of bitcoin and can be replaced in any way by any coin and it won’t have value long term.
Here are my quick thoughts about how cryptocurrency gains value? I hope You enjoy it. You can exchange Your coins and check current value here: https://altcoinhero.com/exchange/