What makes a cryptocurrency increase its value?
It is 2017 and there has been no other hot topic that has attracted more attention to the public than the crytocurrencies.
Everyone seems to be an expert now just because they have heard the word Bitcoin or Blockchain. If ever before 2017 you see crytocurrencies like Bitcoin, Ethereum, Litecoin etc, you know that the price of these tokens are quite expensive now.
Bitcoin has skyrocketed this year and is at $ 3500 per coin! Ethereum is stabilizing around US $ 250 and Litecoin at around US $ 60.
There are more than 1000 coins in the market and each coin has its own value.
But, why is a coin worth its value? Why do they go up, why do they come down?
Well, a currency needs two important things to have long-term sustainability and raise the price.
1- Users / Portfolios - People who are buying and selling digital currency in exchanges while using storage methods to maintain their currencies.
This makes sense as it is the classic supply and demand of currencies. Usually blockchain projects emit millions of coins that give value to your company and you can buy them in the exchanges, the amount you want, from hundreds of thousands to a 0.0000001 of a coin.
2- Business / Usability - If a company accepts a cryptocurrency as a form of payment, this gives usability currency. Now, what do I mean by usability? Well, these coins are an exchange of value!
Many people are using them only as investments, but the idea is to use cryptocurrencies as a value exchange, that is, to be able to buy tangible products or services, then that crytocurrency has a great advantage over coins that are only a means of investment, speculative.
For example, Bitcoin between 2009-2012 had ZERO Usability! Only the early adopters began to become users as such and trying to send Bitcoins as a money transfer from person to person
Simple then, user base and usability. What makes the user base and usability grow? That requires a deeper analysis that can be found in my next post.
This post recieved an upvote from minnowpond. If you would like to recieve upvotes from minnowpond on all your posts, simply FOLLOW @minnowpond
Este Post ha recibido un Upvote desde la cuenta del King: @dineroconopcion, El cual es un Grupo de Soporte mantenido por 5 personas mas que quieren ayudarte a llegar hacer un Top Autor En Steemit sin tener que invertir en Steem Power. Te Gustaria Ser Parte De Este Projecto?
This Post has been Upvote from the King's Account: @dineroconopcion, It's a Support Group by 5 other people that want to help you be a Top Steemit Author without having to invest into Steem Power. Would You Like To Be Part of this Project?
This post has been ranked within the top 25 most undervalued posts in the second half of Sep 16. We estimate that this post is undervalued by $41.54 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Sep 16 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by jacksonmil980 from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews/crimsonclad, and netuoso. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.