How the value of cryptocurrencies is determined

The value of cryptocurrencies, like any other currency in the world, or like any product, depends on the market. By that, I mean that we depend on supply and demand, on how much a person is willing to pay for that product.

How is the value of cryptocurrencies determined? For example, WaterCoinAcua (WCA) works the same and in all currencies it is the same. It depends on how much a person is willing to pay for WaterCoinAcua and it also depends on how much a person is willing to pay for a WaterCoinAcua (WCA).

In the case of Bitcoin, since its inception it has grown by more than 1000 percent, it has grown exaggeratedly and its system in the last few months had a value of over 21 thousand dollars.

Why? As many people want this currency, they want to own this digital currency and, for the same reason, the price goes up. Sometimes too. As we can see, the fact is that during this week, at that time, we were in a bear market and that’s what we understand that many people are not willing to pay so much for this cryptocurrency, for this digital audience and for that, we see a value currently above the ten thousand five hundred and eleven thousand dollars that exist. Why? Because there are a lot of people offering. So it’s that simple. The more people are willing to pay, the more digital currency will be worth.

Other very important factors that we must consider that determine the value of cryptocurrencies are the following, for example:

• Portability
• Durability
• The security
• Easy handling
• Divisibility

Portability? That it’s much easier to take it from place to place. For example, let’s compare gold and money.

It’s much easier to carry your digital coins, because on a device like a flash drive, you can have thousands and millions of reais or the same thing on your computer and even on a web device. And then it is much easier to transport, this portability factor goes hand in hand with another important factor such as durability.

Let’s compare WaterCoinAcua’s durability to cash and gold.

Well, in the case of gold we know that the durability is very high, that is, gold can remain in perfect condition for thousands of years, because in the case of physical money it is not like that. How many people have had the experience of seeing accounts that our parents or grandparents used and are accounts that are maybe 30 years old and are already totally abused? That’s not the case with WaterCoinAcua (WCA), as it has no physical form, it’s not tangible, and the way you keep it online or on an electronic device, it can last for decades, two or centuries.

Now the security, the security in the case of WaterCoinAcua (WCA) is very high. Because the blockchain works with encryption and transaction logging. It’s almost impossible to steal it. They’ve tried a lot of things, they’ve tried a lot of hackers to try to break the security of that kind of technology and they haven’t been successful. So this gives us the confidence to know that it’s a safe system compared to banknotes as we normally know them or even gold. This is how the value of cryptocurrencies is determined.