According to the Business Insider, it was found that Bitcoin is considered to be the first cryptocurrency introduced in 2009 and its value has immensely skyrocketed over the past couple of years.

Afterwards, other cryptocurrency had come into existence, such as Tether and Ethereum, which quickly gained mainstream attention over the years and grew in price. However, crypto still hasn’t become a tangible thing and is not tied to companies the same ways stocks are. Yet despite all that, crypto holds significant value.

Why is Crypto so Valuable?

In simple terms, cryptocurrency has remained valuable over the years simply because people give it value. According to the chairman of Bitcoin Foundation, Brock Pierce, “It comes from shared belief, from consensus. People have a difficult time wrapping their heads around cryptocurrency because it doesn’t fit into any of the conventional buckets.”

Crypto works mostly like assets and the given price of any underlying asset will be dependent on the market’s characteristics. And just like any other central bank currencies, individual tokens in crypto spaces have diverse characteristics that prevent depreciation while helping to retain its value within the market. Hence, there are various principles that dictate the worth of cryptocurrency.

Selling High and Buying Low

When you are looking to invest, the key to making a profit is to sell something for more resources or money than the amount it took you to acquire it. It is an ideal strategy that investors use when looking at bonds or stocks, essentially hoping to buy security for less money that they can get for it later on.

Through crypto, retail investors and other professionals can buy coins and hold onto them for a long time with the goal of selling them for more money in the near future. This way, users are able to increase the price of coins as the supply is essentially decreasing while there is a growth in its demand.

Supply and Demand

The law of supply and demand shows a relationship between the buyers and sellers – which means that the price of an item tends to increase when there is a decrease in its availability. Conversely, the price of the item decreases when there is a lot of the item to go around and essentially when things are rare and desired by many people, it increases in value.

Similarly, cryptocurrencies have a limited supply – which is primarily the reason why the price of cryptocurrencies continue to go up with time. And as more people continue to purchase them, their worth increases simultaneously.

Consequently, these reasons go to show that investing in cryptocurrency right now can yield immense benefits for you. Consider approaching Lapoyoma – a highly decentralized P2P blockchain payment network that allows users to utilize virtual money to pay for various goods and services.

As a financial platform, the company is designed to offer tokens for everyday convenience stores, grocery stores, and gas station shoppers, to name a few. It also leverages blockchain technology and 4% of all of its transactions are directed into a Buyback Wallet which allows customers to win a reward for every purchase they make.

Topics #Bitcoin #Business Insider #Crypto #cryptocurrency #Ethereum #Tether