What drives value?12 years ago, the world knew nothing about cryptocurrencies. When the first cryptocurrency, Bitcoin, came about in 2009, Mr. Warren Buffett dismissed it as absolutely without any value. But in so short a time, cryptocurrencies are gaining much headway in the financial landscape, sending big-named institutional investors such as PayPal and Microstrategy to march and scramble to gain big chunks of the crypto cake, particularly Bitcoin, with the latest being Elon Musk of Tesla.So, What\u2019s with Cryptocurrencies?How did it become such a valuable asset even with its fickle-ish market attitude that is not that easy to deal with? Value pops up from nowhere. There must be factors that this digital, Internet-based currency has become what it is today \u2014 a very attractive and valuable investment instrument.1. Utility of the CoinOne good thing about the disastrous ICO bubble was that it blasted into obscurity a lot of coins that did not have any utility at all. Those who remained strong were founded on legit projects and teams that continue to enjoy community backing and participation from users, developers, miners, and investors. A project makes use of its native coin to make transactions viable within an ecosystem. The utility coin is what the system recognizes as a payment medium or mode of exchange between transacting peers. Coin holders, depending on how many they hold, can enable them to have a voice within the community like voting rights or a certain amount of influence over designs or processes. The coin\u2019s usability\/utility makes it valuable. And the more transactions there are the coin\u2019s demand increases. And so its value.2. The Scarcity of the CoinDigital coins are unlike fiat currencies, which can be printed with reckless abandon. Cryptocurrencies are finite in nature, meaning they have only a limited number of supply. What makes\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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