Cryptocurrency Price Factors
Hello, friends today we are going to discuss how cryptocurrency price decided in the market. We will cover all aspects of how the Cryptocurrency price decided before and after the exchange launch.
Also, we are going to cover all important point which affects cryptocurrency price. How cryptocurrency price decided is really a big challenge for each and every analyst and expert.
Today along with how cryptocurrency price decided we will also cover how the price could be stable and what are the benefits of crypto price or BTC price stability.
How Cryptocurrency Price decide Before Exchange Launch
Whenever a cryptocurrency company launches its ICO, the company set some basic parameters.
Here companies can also launch in two types: With Product or Without Product.
In both cases, the initial price is determined on the basis of different standards. But when the initialization starts, then the initial value is increased based on demand and supply.
If you have a good concept and it is going to benefit society, then people will like this concept more and the demand in the market will increase.
Sometimes there may be two reasons why demand in the market does not increase even when the product is good.
The first reason is that the product has not been marketed well. And secondly, people do not understand your concept.
In these two cases, we need to be very careful because the same type of ICO gets drowned.
Let us now talk about the price determination of cryptocurrency. First of all, we talk about the price of cryptocurrency launch without any product.
(I). Initial Price For Product Less Company
This parameter can be equal to the total initial coast and may also be based on some other elements.
Like how much time was spent in developing the whole system and how many people contributed to it.
Here the manufacturer keeps in mind that the future of this concept is going to be much needed and how people will benefit from this.
(II). Initial Cost of Product Based Company
In this case, the initial value is determined according to the product post. All the standards mentioned above are followed here but along with the product’s manufacturing cost is also added.
At present, people are reliant on product-based companies because here the chances of loss are low.
The whole multi-level marketing industry has become a product base today.
How Cryptocurrency Price Decided After Exchange Launch
After the launch of the exchange, the company’s price control is over. As we all know that cryptocurrency does not have any kind of product and its utility is not there, then the price is determined only on the basis of trading.
But sometimes there are some surprising facts about which we can not say anything clearly.
When a cryptocurrency is launched on the exchange in the world, then we can not control how many people will buy and sell there in a single day.
According to an article published in the Wall Journal Street, the next crypto price is decided on the basis of the previous 24 hours trading volume basis.
What Will Happen if Company is Product Based With Usability?
If the company is a product based then the price will not be affected more with trading volume. But for this, there should be proper usability of that particular cryptocurrency.
Likewise, If the company have more merchants and more customers are using that crypto to purchase products then the price could be stable.
How Bitcoin Price is Decided?
When we think about how cryptocurrency price decided then the first question that arises in our mind is how Bitcoin price is calculated?
Actually, Bitcoin case is some different than other cryptocurrencies. Bitcoin owns its more than 60% assets. Simply we can say that Bitcoin is the king of all cryptocurrencies.
Bitcoin’s Monopoly runs in the world of cryptocurrency. Suppose you want to trade Ethereum then you have to buy bitcoin first and then convert it to Ethereum.
And Bitcoin price calculation depends upon trading as well as other cryptocurrency markets. And since now no one knows the exact matter behind Bitcoin price.
How did the cryptocurrency price decide?
All cryptocurrencies except Bitcoin like Litecoin, Ethereum, Ripple, Dozcoin, etc price is calculated on the basis of the trading volume.
Actually, exchange owners calculate the previous 24 hours trading volume and measure it with the blockchain mining capability.
Then as per the demand and supply, they decide the exchange price.
Still, some currency markets are showing very active in their utility. As their use in the market increases, there will be some stability in their prices.
Cryptocurrencies cannot be controlled with anything other than utility.
So I hope everything is clear now how cryptocurrency price decided in the market. If we will discuss the new upcoming cryptocurrencies which are in their exchange phase. Or in their ICO time interval, their price will be calculated on the basis of trading volume and usability basis.
Actually, it doesn’t matter that cryptocurrency is central or not but after launching on the exchange they all are controlled by the public.
There may be some limitations like sales limit, fiat conversion value and so many other points which could control price.
Otherwise rest things will be automatic, the company will have no control over it. It will be handed over to the exchange and merchant platform.