The value of cryptocurrencies is driven by several factors, including market size, market capitalization, and speculation. The cryptocurrency market has grown exponentially over the past few years to become one of the most valuable markets in the world. Cryptocurrencies are used for many different purposes such as investing in new companies or even paying for goods and services at physical stores that accept them.The price for one bitcoin changes every day because the market fluctuates so much. In this blog post, we will discuss some of the main factors that influence cryptocurrency prices and how they can affect your portfolio.Factors that influence the value of cryptoThe market for cryptocurrencies is a volatile one. It has been growing at an unprecedented pace, and it can be difficult to predict what will happen next. While price movements are unpredictable in the short term, some factors influence cryptocurrency value on a long-term basis. Let\u2019s take a look at three of these factors: supply and demand, investor sentiment (expectations), and real-world use cases\/adoption rates.Supply and DemandOne factor that drives prices higher overtime is increasing demand combined with static or decreasing supply. This dynamic causes inflation which generally pushes prices up because each coin represents more wealth as its unit cost increases due to scarcity (i.e., limited amount). This phenomenon is well known among fiat currencies and investors, and it is also why the value of cryptocurrencies increases over time. Investors are always looking towards future growth in terms of user base\/adoption rates for specific coins as well as increasing transaction throughput on blockchains that process transactions more quickly (speed matters).Investor SentimentAnother factor that influences cryptocurrency value is investor sentiment or expectations. If people expect the price to go up, they will buy; if they expect it to fall, then they sell off their coins\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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