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One of the most talked about investment instruments of recent years. cryptocurrencieshas made investors very wealthy, who invested in the right crypto assets at the right time. However,
One of the most talked about investment instruments of recent years. cryptocurrencieshas made investors very wealthy, who invested in the right crypto assets at the right time. However, it was not the other way around. Some crypto assets have disappeared from the market in recent years. wiped out. Others have not been able to travel a barley length for years.
So, how are cryptocurrencies prices determined? For example, how come Bitcoin can first rise to $60 thousand and then fall to the $15 thousand level? In this content the prices of crypto assets according to what has changed We’ll take a closer look. Let’s start.
The king of the cryptocurrency markets is undoubtedly Bitcoin (BTC). In fact, almost all crypto assets today gain or lose value in one way or another depending on Bitcoin. If you look at crypto asset price charts, you will see charts similar to those of Bitcoin.
Therefore, when investing, you see not only the price chart of the crypto asset you invest in, but also Bitcoin. price chart you must follow.
In the image above you can see the 10 largest crypto assets in the world. On the far right of the tab is Bitcoin, the last of this cryptocurrency for a week price chart.
If you notice, the price charts of all crypto assets are similar, except for dollar-pegged stablecoins such as Tether (USDT) and USD Coin (USDC). The dominance in Bitcoin increases the value of other assets. hits directly.
For almost anything worth money around the world balance between supply and demand has. We can explain this expression in the simplest terms as follows: the more demand for an asset is produced over time, the more valuable it becomes. This situation is of oil on toilet paper until valid. As for crypto assets…
The maximum number of Bitcoins you can buy in the world amounts to 21 million. When all these Bitcoins, some of which are still encrypted, are in circulation, no new Bitcoin will be produced. This situation could directly increase the price of Bitcoin if demand is as it is right now.
This is because the high demand for a scarce asset causes its price to rise. The opposite is also true. There are trillions of crypto assets being minted today. If there are not enough buyers for it depreciation will be inevitable.
Each crypto asset project is implemented to serve a specific purpose. Team; what to do in days, weeks, months and years known as white paper writes to documents. Everything in the white paper is actually the words of the team.
When promises are kept and projects are developed as intended, an environment of trust is created and the crypto asset gains value. The final endings of projects that conflict with what is written in Whihepaper is to disappear.
In the cryptocurrency communityburn coinsThere is an expression called “. This term means the destruction of a certain amount of crypto assets at a predetermined time. Burn transactions do not directly affect the price movement of the crypto asset, but it is important for the balance between supply and demand Regular burning reduces supply.Increasing demand means the crypto asset evaluates.
Bitcoin is a cryptocurrency produced by mining. Miners who manage to decrypt the passwords earn Bitcoin as a reward. There is a balance here: for cryptocurrency mining there is one cost (such as mining equipment and electricity).
The higher these costs, the higher the price miners will offer for sale. After all, cryptocurrency mining made for charity it’s not a job. Huge facilities are being set up and profit is being sought.
You wake up one morning and you start watching crypto assets talk on TV. Especially Bitcoin prices, morning news or in the main news bulletins starts talking. After a while, you will see a few crypto assets like Bitcoin being talked about as well.
At the end of the job, from professional investors to those who have nothing to do with the event. Even the local shopkeepers he talks about crypto assets. This situation has a positive effect on prices. Pumping around negative news about cryptoassets has the opposite effect.
Sometimes a single large investor (whale) or a group of investors buy a single cryptocurrency. Sometimes this happens for a few days, sometimes for a few minutes. Large purchases lead to an increase in the price (pump). Sell ​​lower prices (dump).
We have already mentioned that every crypto asset has a production target. These purposes are of great importance to the price of the crypto asset. As a crypto asset shopIf it’s being used for gaming, art, or anything else casual, know it’s worth it.
However, crypto assets that appeal to a very small segment of society or that won’t really work have been valued. will have a hard time.
billionaire businessman Elon Muskis one of the largest speculators in the cryptocurrency community. Elon Musk has become such that every word that comes out of his mouth has a counterpart in the cryptocurrency community. Perhaps some of you remember; WhatsApp made some controversial decisions for a while and there was a lot of talk about Signal, an alternative, during that time.
Elon Musk posted posts praising Signal and saying he invested in the platform. had said. Subsequently, numerous investors started investing in a company called “Signal Advances” and increased their share value 13 times. With Signal, the company’s mobile application called Signal Advances, had no ties.
Unfortunately, such events directly affect crypto asset prices. This, however very big risk It should not be forgotten that it is. Elon Musk, who flew Dogecoin (DOGE) with a word today, can make investors become DOGE enemies tomorrow. For safer investments in crypto assets, which are far from speculation It is useful to give preference.
Source: Web Tekno
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.
