Revenue, cash flow, earnings, expenses, CEO, P/E Ratios... the list goes on and on—all things I use to determine the value and subsequently the price of a stock. Cryptocurrencies do not have these (exact) metrics. This leads me to believe they are more commodities than actual currencies, although they can be used to purchase products/services. Even though there may be a definite answer out there somewhere, the issue will not affect my outlook on the coins.
As a relatively new crypto investor, how does one determine the market value of a coin? Of course, you can use the market cap, utility, technological advantage, processing speed as metrics to compare coins, but how can you use that to determine a "fair" market price. If one wanted to invest in Apple, you could see that they have plenty of cash on hand, experienced leadership, quality products, growth potential in terms of reaching other industries. One can determine the price based on current and potential future earnings.
It appears that the current "fuel" for cryptocurrencies is awareness and interest from the public. If more people know about Bitcoin, then it is liable to increase in price. By how much? That is what I am trying to find out. How is Bitcoin different at $5 or $500,000? What is keeping Bitcoin from going to $500,000? What are you getting with your 0.00005 BTC? Of course with Tezos, you can stake it and earn from holding the coins. Is the price of the currency based on relative hype? If Bitcoin keeps appearing on the news and is included in Elon Musk's tweets, then you would assume the price would continue to fluctuate. What is the more important metric for you to buy Bitcoin, hype/media coverage, or the growing utility?
My knowledge is minimal relative to the audience on this platform, so I ask you to answer this: How do you determine the price of a cryptocurrency?
Posted Using LeoFinance Beta
Congratulations @natemenace! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 50 upvotes.
Your next payout target is 50 HP.
The unit is Hive Power equivalent because your rewards can be split into HP and HBD
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPSupport the HiveBuzz project. Vote for our proposal!