What determines the price of cryptocurrencies?
Market forces of demand and supply are responsible for determining prices of crypto currencies.
For example, if more people are trying to buy bitcoins, while few others are willing to sell them, the price will go up and vice versa
(Buyers > Sellers = Increase in price) (Sellers > Buyers = Decrease in price)
Limited supply of cryptocurrencies like Bitcoin (21 million coins) certainly drives prices up (Demand > Supply)
Acceptance & adaptability
El Salvador making Bitcoin a legal tender
Visa, Master card & PayPal accepting & integrating with crypto exchanges/wallets
Businesses like Overstock, Whole Foods, Starbucks accepting crypto as a payment method
Small & mid-sized companies accepting crypto as payments for goods or services
Merchants using crypto's for international trade
News articles having a positive or negative impact
"Cryptocurrency Mining Gets Banned in Anhui, the Latest Chinese Province to Do So" (Negative impact on the market)"Bitcoin, Ethereum and Cardano Among Major Cryptocurrencies to Fall as China Expands Mining Crackdown" (Negatively affecting prices of specific coins)
Dogecoin co-creator Jackson Palmer has dropped a bombshell on social media saying that he will never return to cryptocurrency. He called crypto was an “inherently right-wing, hyper-capitalistic technology”. (Negative impact on price of Doge coin)
Elon Musk says he's working with Dogecoin developers to make the cryptocurrency more efficient (Positive impact on prices of Doge coin)
Marketing & Advertising
Website design, investor collaborations, building a unique selling preposition, listing on major platforms, logo designing, roadmap for investor view, describing a current problem and providing a solution for the same.
Long-term value of a digital currencies will be determined by numerous factors, such as.
True mass adoption and the real value that such currencies bring for our everyday lives (when compared to other traditional payment methods). Final verdict from government agencies and central banks to embrace the new technology or fight against it. Usability and safety are key components that has to evolve beyond today’s standard to allow everyone to keep their crypto currencies readily and safely available for use in our everyday life.
