🔍 Who values a cryptocurrency?

👉 The market does.

People, companies, institutions, and traders are the ones who, by buying and selling, define the price in real-time. If more people want to buy than sell, the price goes up. If there are more sales than purchases, the price goes down.

⚙️ How is value determined? – Main factors

1. 📉 Supply and demand

Limited supply (like Bitcoin, with only 21 million): tends to increase in value if demand rises.

Growing demand due to adoption, use, or speculation: the price goes up.

2. 🛠️ Utility of the project

Does it serve any real purpose?

Example: Ethereum allows for the execution of smart contracts, which is why it has demand beyond mere speculation.

3. 📡 Technology and scalability

Is it fast, secure, decentralized?

Example: blockchains like Solana or Avalanche gain value due to their speed and low fees.

4. 🧠 Trust and reputation

The community, the development team, partnerships (for example, companies that use that crypto).

A hack or scandal can destroy trust (e.g., Terra/LUNA).

5. 🪙 Tokenomics

How many tokens are there? How are they distributed? Is there burning? Is there inflation?

Good economic design provides stability and predictability.

6. 🌐 Institutional and regulatory adoption

Large companies or countries that accept or use cryptocurrencies increase their value.

Positive regulatory news also boosts prices (like BTC ETFs or pro-crypto laws).

7. 📈 Speculation and market sentiment

Many investors buy "because it's going up" or due to hype.

This can temporarily inflate the price (bubbles).

📌 Quick example: Why is Bitcoin worth so much?

Limited supply: 21 million.

High global demand.

High institutional adoption.

Trust as "digital gold."

Perception as a store of value (especially during inflation or fiat crises).

High liquidity and media presence.

#Cryptojosae