I'm sick of muh market cap responses to price.
According to: https://bitconnect.co/bitcoin-information/10/how-is-the-price-of-cryptocurrency-defined
Price is defined by a variety of indicators:
- Limited Supply and supply/demand (here is where muh market cap people end their thinking)
- Energy put in in the form of electricity to secure the blockchain (increased energy means less profits for miners which means they're less likely to mine X token)
- Blockchain difficulty level (difficulty auto increases with increased mining which correlates with increased attention)
- The utility of the currency, and how easy it is to use and store (see utilitarianism: https://plato.stanford.edu/entries/mill-moral-political/)
- Perceptions on its value by the public (we're not yet at this stage and will have to figure out ways to make it acceptable to the larger public)
- Price of Bitcoin. (gateway into the market as a whole)
- Media (rumours, shills, and "facts")
- Investors (fudders et alia.)
- Scams (ponzi and others)
- Market dilution (how many of the same type of token exists for a given application)
- Innovation (how functional/innovative is this compared with existing applications? does it really need blockchain to function?)
- Confidence in traditional systems (centralization is being undermined by decentralization)
- Legal/Governmental issues (regulation has the capacity to stifle innovation to a degree but in practice it changes the way people invest / focus on viz. Monero and other anon "coins")
These are a combination of quantitative and qualitative factors (best thought of as a spectrum or being represented on a number line). Don't fall into the trap (meme) of valuing a single way to measure value.
> Also, they're not really currencies in a technical sense but bridge the gap between currency and asset through virtue of use. I prefer the term "token" but whatever.
>>3261835
.... That literally what market cap is you dumb shit. price means nothing when shit like
https://coinmarketcap.com/currencies/42-coin/
exists.
>>3261865
Are you dense? Scarcity also causes perception of value.
>>3262092
i think that's overrated and most people prefer paying small amounts of money for large amounts of coins, because large numbers