Cryptocurrency is the newest ‘great’ in the digital world and has now been recognized as part of a monetary system. In fact, fans have marked it as a ‘money revolution’.
In clear terms, Cryptocurrency is a decentralized digital asset that can be exchanged between users without the need for central authorities, the majority currently being made through special calculation techniques is called ‘mining’.
Currency reception, such as the US dollar, the British pound and euro, as a legal tender because they have been issued by the central bank; However, digital currencies, such as cryptocurrency, do not depend on self-confidence and public trust in publishers. Thus, several factors determine their value.
Factors that determine the value of cryptocurrency
Free market economic principles (especially supply and demand)
Offers and requests are the main determinants of value values, including cryptocurrency. This is because if more people are willing to buy Cryptocurrency, and others are willing to sell, certain Cryptocurrency prices will increase, and vice versa.
Bulk adoption of each cryptocurrency can photograph the price to the moon. This is caused by many cryptocurrency which has their supply limited at certain limits and, according to economic principles, increased demand without increasing appropriate supply will lead to increases in certain commodity prices.
Some Cryptocurrency has invested more resources to ensure their mass adoption, with several focuses on the application of their cryptocurrency to reduce personal life problems, as well as important cases of everyday, with the intention of making them very necessary in everyday life.
If Fiat currency, such as USD or GBP, increases, the price rises and the power of the purchase goes down. This will then cause cryptocurrency (let’s use Bitcoin for example) to increase in connection with the Fiat. The result is you will be able to get more than Fiat with each bitcoin. In fact, this situation has become one of the main reasons for the increase in Bitcoin prices.
Scams and history of cyber attacks
Fraud and hackation are also core factors that affect the value of cryptocurrency, because they are known to cause wild swings in the assessment. In some cases, the team that supports Cryptocurrency is probably a scammers; They will pump the price of cryptocurrency to attract unsuspect individuals and when their money obtained with difficulty invested, the price is shortened by the scammers, which then disappears without a trace.