What does the intrinsic value of crypto depend on?

[bayu7adi]

Maybe I'm old school but whenever someone asks how to determine the intrinsic value of a coin I always think about how secure the network is. I think it makes sense, especially when you're using a PoW-based coin. If the value of one coin is less than the value to secure the network, then its value would be lower. For example, you could argue Bitcoin is expensive because the cost to mine new blocks is so high, which in turn secures the network and encourages miners to keep doing that.

related, but there is also a trust factor that must be built in an ecosystem... we know that Bitcoin has a higher level of trust than other coins, so calculating the burden experienced by miners in the PoW consensus can be our benchmark for estimating the optimal price range... in my opinion the position of miners who maintain security is also one of the determinants of the intrinsic value of a coin... but with the main condition, community trust must be strong... IMO community trust is still the main thing in determining this intrinsic value.

[legend45]

Maybe I'm old school but whenever someone asks how to determine the intrinsic value of a coin I always think about how secure the network is. I think it makes sense, especially when you're using a PoW-based coin. If the value of one coin is less than the value to secure the network, then its value would be lower. For example, you could argue Bitcoin is expensive because the cost to mine new blocks is so high, which in turn secures the network and encourages miners to keep doing that.

related, but there is also a trust factor that must be built in an ecosystem... we know that Bitcoin has a higher level of trust than other coins, so calculating the burden experienced by miners in the PoW consensus can be our benchmark for estimating the optimal price range... in my opinion the position of miners who maintain security is also one of the determinants of the intrinsic value of a coin... but with the main condition, community trust must be strong... IMO community trust is still the main thing in determining this intrinsic value.

Becoming a miner requires capital and costs that must be paid, if the results of mining are smaller than the costs, it is certain that the miner will not mine anymore because all they get is losses.
The price of bitcoin is determined by demand and supply, bitcoin supply is limited and if demand increases, the price of bitcoin will certainly increase.

[pieppiep]

Becoming a miner requires capital and costs that must be paid, if the results of mining are smaller than the costs, it is certain that the miner will not mine anymore because all they get is losses.
The price of bitcoin is determined by demand and supply, bitcoin supply is limited and if demand increases, the price of bitcoin will certainly increase.

It is true, That mining activities does entail a huge amount of capital. However, the major task in research is to make sure that the amount of outcome that is realized reflects the amount of input chucked in. In this case, one has to remain efficient and calculate costs well enough to retain the positive results achieved. That is why in situations, where income is not as expected, or even lower than costs, what should be done, whether to continue or stop this business, becomes a major issue.

Besides, there are also characteristics of the place used related with the weather and electricity conditions. The current price of bitcoin due to modest miner performances and constant high demand is promising for the value of bitcoin to rise alongside the market interest. However, many in my place have been compelled to cease mining Bitcoin because the outcomes received are reducing and with maintenance costs, including electricity, are continuously rising.

[malah]

Maybe I'm old school but whenever someone asks how to determine the intrinsic value of a coin I always think about how secure the network is. I think it makes sense, especially when you're using a PoW-based coin. If the value of one coin is less than the value to secure the network, then its value would be lower. For example, you could argue Bitcoin is expensive because the cost to mine new blocks is so high, which in turn secures the network and encourages miners to keep doing that.

related, but there is also a trust factor that must be built in an ecosystem... we know that Bitcoin has a higher level of trust than other coins, so calculating the burden experienced by miners in the PoW consensus can be our benchmark for estimating the optimal price range... in my opinion the position of miners who maintain security is also one of the determinants of the intrinsic value of a coin... but with the main condition, community trust must be strong... IMO community trust is still the main thing in determining this intrinsic value.

Becoming a miner requires capital and costs that must be paid, if the results of mining are smaller than the costs, it is certain that the miner will not mine anymore because all they get is losses.
The price of bitcoin is determined by demand and supply, bitcoin supply is limited and if demand increases, the price of bitcoin will certainly increase.

I think Bitcoin mining has never been profitable unless the miner has the capital and has the ability to produce the amount of yield. There is always better technology available to be used to cut down the expenses incurred during the operations.

Having a scarcity value in its protocol a little number of bitcoins available raises the prospect of increasing demand cherishes it for a higher value. This makes mining and investment activities to stay afloat as long as the market is growing.

[Crwth]

Well, I think it's within the market, where it will be determined by supply and demand. Of course, we know that the price is determined by that, and cryptocurrency isn't like traditional assets, where there are physical things. Once people understand that, explaining what people can do will be easy and maybe beneficial to them.

[densus88]

Well, I think it's within the market, where it will be determined by supply and demand. Of course, we know that the price is determined by that, and cryptocurrency isn't like traditional assets, where there are physical things. Once people understand that, explaining what people can do will be easy and maybe beneficial to them.

Cryptocurency is a digital currency that does not have a physical form like traditional assets. That's what makes many investors interested in investing in crypto assets because the market is always determined by demand and supply, when many investors come to buy crypto, it makes the price of the coin go up. The market runs according to the law of supply and demand. And also determined by the existing news, because news also greatly affects prices in the crypto market.

[enwi]

Well, I think it's within the market, where it will be determined by supply and demand. Of course, we know that the price is determined by that, and cryptocurrency isn't like traditional assets, where there are physical things. Once people understand that, explaining what people can do will be easy and maybe beneficial to them.

Each cryptocurrency presents features that differ from conventional assets aiming at the fact that the value of the former solely depends on supply and demand. Their weakness you know is also their strength that they are not physical forms and can easily reach out to anyone in one part of the world or the other.

This means we can perceive new opportunities in a financial world that does not have any reference points anchored in things, as in the past. When m1ore people become convinced about the opportunities that are offered by the cryptocurrencies every day by day, the discussions regarding the best ways for the use them to accomplish the certain financial objectives become more important and fascinating, which can be used to earn such additional bucks.

[Publictalk792]

Each cryptocurrency presents features that differ from conventional assets aiming at the fact that the value of the former solely depends on supply and demand. Their weakness you know is also their strength that they are not physical forms and can easily reach out to anyone in one part of the world or the other.

This means we can perceive new opportunities in a financial world that does not have any reference points anchored in things, as in the past. When m1ore people become convinced about the opportunities that are offered by the cryptocurrencies every day by day, the discussions regarding the best ways for the use them to accomplish the certain financial objectives become more important and fascinating, which can be used to earn such additional bucks.

Cryptocurrencies are different from traditional currency because their value comes from how much people want to buy and sell them means it is on demand. If we are digital so it can be weakness but it also makes them easy to access and use anywhere in world. And this creates new financial opportunities that are not limited due to physical boundaries. As more from us understand benefits of cryptocurrencies it becomes more important and interesting to discuss best ways to use them to achieve financial goals. These conversations can help many from us to find new ways to grow their money and earn extra income.

[densus88]

Each cryptocurrency presents features that differ from conventional assets aiming at the fact that the value of the former solely depends on supply and demand. Their weakness you know is also their strength that they are not physical forms and can easily reach out to anyone in one part of the world or the other.

This means we can perceive new opportunities in a financial world that does not have any reference points anchored in things, as in the past. When m1ore people become convinced about the opportunities that are offered by the cryptocurrencies every day by day, the discussions regarding the best ways for the use them to accomplish the certain financial objectives become more important and fascinating, which can be used to earn such additional bucks.

Cryptocurrencies are different from traditional currency because their value comes from how much people want to buy and sell them means it is on demand. If we are digital so it can be weakness but it also makes them easy to access and use anywhere in world. And this creates new financial opportunities that are not limited due to physical boundaries. As more from us understand benefits of cryptocurrencies it becomes more important and interesting to discuss best ways to use them to achieve financial goals. These conversations can help many from us to find new ways to grow their money and earn extra income.

There are many advantages that we can get from crypto currency compared to traditional currency, FIAT. Crypto is a decentralized system and no one can control it, the price is determined by the high demand and the amount of available sppply.
By using crypto we can get financial freedom.