It is 2017 and there has been no other hot topic that has attracted more attention to the public than the crytocurrencies.
Everyone seems to be an expert now just because they have heard the word Bitcoin or Blockchain.
If ever before 2017 you see crytocurrencies like Bitcoin, Ethereum, Litecoin etc, you know that the price of these tokens are quite expensive now.
Bitcoin has skyrocketed this year and is at $ 3500 per coin! Ethereum is stabilizing around US $ 250 and Litecoin at around US $ 60.
There are more than 1000 coins in the market and each coin has its own value.
But, why is a coin worth its value?
Why do they go up, why do they come down?
Well, a currency needs two important things to have long-term sustainability and raise the price.
1- Users / Portfolios - People who are buying and selling digital currency in exchanges while using storage methods to maintain their currencies.
This makes sense as it is the classic supply and demand of currencies.
Usually blockchain projects emit millions of coins that give value to your company and you can buy them in the exchanges, the amount you want, from hundreds of thousands to a 0.0000001 of a coin.
2- Business / Usability - If a company accepts a cryptocurrency as a form of payment, this gives usability currency.
Now, what do I mean by usability?
The Value In Cryptocurrency Explained By A Crypto Hedge Fund CIO
Well, these coins are an exchange of value!
Many people are using them only as investments, but the idea is to use cryptocurrencies as a value exchange, that is, to be able to buy tangible products or services, then that crytocurrency has a great advantage over coins that are only a means of investment, speculative.
For example, Bitcoin between 2009-2012 had ZERO Usability!
Only the early adopters began to become users as such and trying to send Bitcoins as a money transfer from person to person
Simple then, user base and usability.
What makes the user base and usability grow? That requires a deeper analysis that can be found in my next post.