What factors affect the price of cryptocurrencies?

10 000 question challengeCategory: Profits (trading, ICO, mining)What factors affect the price of cryptocurrencies?
HowToToken Team Staff asked 3 years ago
1 Answers
anonymous answered 3 years ago

Similar to another currency, cryptocurrencies have some type of support: the money contributed by people who invest in cryptocurrencies and the trust they place in it. These, being a decentralized currency supported by blockchain technology, are affected by a series of additional factors (unlike conventional currencies):

– Monetary support: supply / demand.

– Costs and security of the platform: blockchain energetic security, blockchain mining difficulty and blockchain general security.

-The reliability of the utilitarian value of the cryptocurrency: Utility, ease of use, perception of the public with respect to its value, bitcoin price, public opinion in media resources, use as a form of investment, innovation in the technology involved, dilution of the market, the reliability in conventional monetary systems and the volatility of value.

-The reliability in transactions: number of scams, legal problems and government regulations.

For specific information for each point, visit the next link: https://bitconnect.co/bitcoin-information/10/how-is-the-price-of-cryptocurrency-defined