In the cryptocurrency world, you often hear that the cost for the market maker is X dollars, it can't drop further, the project's cost is X dollars, they will definitely pump and support the price, the miner's shutdown price is X dollars, a solid bottom, etc. But if you really believe these, you are not far from being harvested!
Price is never determined by cost; cost is just a psychological comfort. Miners need electricity costs, computing power requires equipment, and project parties need costs to issue tokens... These are indeed real money spent, but the formation of market prices depends solely on the willingness of buyers and sellers.
Simply put, if someone is willing to sell for 10,000 and someone is willing to buy for 10,000, the price is 10,000, even if the miner's cost is 30,000, as long as no one is willing to take over, the price can still drop to 1,000.
So the cost is fundamentally unimportant. Then how did the cost illusion in the cryptocurrency world come about? Because project parties and early holders like to use cost theory to deceive retail investors, for example: we spent 100 million on development, now the token price is only 1 yuan, it must go up, miners are all losing money, the price can't drop further, and so on.
The only two things that truly determine price are supply and demand; see if there are more buyers or sellers, and market sentiment; see if people are greedy or fearful. In the cryptocurrency world, cost is at most material for market makers to create stories, deceiving retail investors into taking over, nothing more.
Don't be brainwashed by cost theory; prices are determined by living people. Always remember that in the cryptocurrency world, what you buy is not cost, but consensus; what you sell is not cost, but belief. Cost is meant to be broken, while consensus is meant to make money!
#价格本质 #市场真相 #投资思维 #BNB
