Crypto price swells - Cryptocurrency market is booming, we believe you hear a lot about cryptocurrency (Bitcoins, Ethereum, Ripple, etc.), but have you ever thought how the price of a cryptocurrency can swell quickly? What are the most contributing factors when deciding on the value of cryptocurrency. Let's find out more through this post. Driven by a recent explosion, CryptoCurrency is slowly but surely becoming the mainstream. Against skeptics, conventional cryptocurrency like Bitcoin, ETH has surpassed the traditional FIAT Currency in transparency and assessment. Not only before, there are a number of cryptocurrency that has exceeded the expected growth and will continue to do so. Decentralized cryptocurrency offers trust and transparency.
Supply and Demand
The law of universal supply and demand also applies to crypto currencies. High demand but limited inventories accelerate price increases. And this also applies to cryptocurrency. The number is limited. For example, the total amount of Bitcoin that can be mined is 21 million. It is assumed that by 2140 all of the 21 million bitcoins have been mined. because the number of increasingly limited can certainly increase demand and therefore a soaring price increase cannot be avoided.Public Perception
Perception is a key value determinant. Every cryptocurrency that brings added value and solves problems will enjoy positive perception. Bitcoin gained popularity behind the Housing Crisis. This sparked great hopes and created an army of Bitcoin followers overnight. Factors that greatly contributed to Bitcoin's popularity and assessment.Media and Marketing
While the concept of CryptoCurrencies should now become mainstream, every major change takes time. It is important that the growth of CryptoCurrency is discussed in the media, online news sites, press releases, etc. This directly drives demand and ultimately prices. Also read: How to Make Your Own Cryptocurrency Guaranteed 100% SuccessPower consumption
Mining Cryptocurrency is not a children's game. This requires deep computing expertise and a large amount of resources. This makes it an expensive matter and therefore increases the price of mining equipment.Solution
Any device or application must solve the problem. It must be useful. Crypto coins without real-world applications will deter investors and buyers. Therefore, you will see many cryptocurrency providing real-world solutions such as investment, payment, etc.Investors
Investors play an important role in the launch and sustainability of cryptocurrency. They can easily manipulate prices by buying large quantities. They also play a key role in promotion and encourage popularity.Innovation
Innovation drives growth. Developing clones for existing coins will take little results because they will generate a little momentum or attention. Innovation and attractiveness go hand in hand. Therefore in the case of cryptocurrency does not solve the problem or add new features to the platform, the value will never take off. The most important thing is that cryptocurrency must solve transactional problems and build trust. If they fail to do either of them, growth and high prices are only castles in the air.