What Determines The Value Of Ethereum And Other Crypto

Cryptocurrencies are some of the most volatile yet profitable assets in today’s world. Prices can go all the way up, and then suddenly go down, causing millions of users to lose billions and even trillions of dollars of funds within a few hours.

No central authority backs cryptocurrencies the way fiat and other government-sanctioned exchange mediums are backed. Like Ethereum, for instance, cryptocurrencies are generally decentralized, meaning they get their value from several other factors asides from demand or supply.

In essence, cryptocurrencies is more similar to a commodity that functions as a store of value which is why the following factors influence its prices and that of other digital assets:

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• The news and social media
• Supply and demand
• Regulations and legal requirements on crypto sales and their use
• Cost of production (mining)
• The competition from other cryptocurrencies
• Availability on crypto exchanges
• Internal governance

Do you know which other factors could influence ETH and other crypto?

Source

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