Cryptocurrency – is the latest & # 39; great thing & # 39; in the digital world and now were recognized as part of the monetary system. Actually enthusiasts have designated it as & # 39; Revolution Money & # 39 ;.
Clearly speaking, cryptocurrency – a decentralized digital assets that can be shared between users without the need for a central body, most of which is generated by a special calculation techniques, which are called & # 39; Mining & # 39;
Adoption of currencies such as the US dollar, the Great British pound and the euro as legal tender is because they were issued by the central bank; Digital currency, however, for example, cryptocurrency not depend on the trust and confidence of the population to the issuer. Thus, several factors determine the value.
Factors determining the value cryptocurrency
The principles of a free market economy (mainly supply and demand)
Supply and demand – is the main factor that determines the value of the total value, including cryptocurrency. This is because if more people are ready to buy cryptocurrency, while others are willing to sell, the value of this particular cryptocurrency increase, and vice versa.
The mass adoption of any cryptocurrency may withdraw its cost to the moon. This is due to the fact that many cryptocurrency have a limited supply at a certain border, and, according to economic principles, the increase in demand without a corresponding increase in supply will lead to higher prices just on this product.
Several cryptocurrency invested more resources in order to ensure their mass adoption, with emphasis on the use of its cryptocurrency to the pressing issues of privacy, as well as important everyday activities with the intention of making them indispensable in everyday life.
If commodity currencies like the US dollar and GBP, inflated its value increases, and its purchasing power is reduced. This will lead to the fact that cryptocurrency (let's use bitcoin as an example) will increase in relation to this fiat. As a result, you can buy more of this fiat every Bitcoin. In fact, this situation has become one of the main reasons to bitcoin prices.
Scams and cyber-attacks
Scammers and hacks as a & # 39 are the main factors affecting the cost of cryptocurrency, because, as we know, they cause wild swings in the estimates. In some cases, fraudsters can be a team that supports cryptocurrency; they will pump prices cryptocurrency to attract people who do not suspect anything, and if they invested the money, the price is reduced by fraudsters who then disappear without a trace.
Therefore it is very important to be attentive to the scam cryptocurrency before investing money.
Some other factors that you should consider having an impact on the cost cryptocurrency include:
- The method, which stores cryptocurrency, as well as its usefulness, safety, ease of cross-border acquisitions and acceptability
- The strength of a society that supports cryptocurrency (which includes financing, innovation and loyalty of members)
- Low related to cryptocurrency risks as they perceive investors and users
- mood News
- Market liquidity and volatility cryptocurrency
- Regulations of the country (this includes a ban cryptocurrency and ICO in China and its acceptance as a legitimate means of payment in Japan)