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How do cryptocurrencies get their value

How do cryptocurrencies get their value

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You can learn more about used to describe any altcoin exchange, stores value, and is our editorial policy.

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WHAT IS BITCOIN AND WHY IT HAS VALUE. BEST EXPLANATION EVER.
The value of cryptocurrency is determined by supply and demand, just like anything else that people want. If demand increases faster than supply, the price goes. Cryptocurrencies often receive credit for its resistance to inflation. Commodity money retains its value because of the material used to create it, like. The value of cryptocurrencies can be affected by their supply and demand on exchanges. However, their usefulness or utility in decentralized.

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In November , CoinDesk was acquired by Bullish group, owner of Bullish , a regulated, institutional digital assets exchange. A tough competitor can reduce demand for a cryptocurrency, as users may turn to alternatives. Cryptocurrencies have also consistently maintained a higher volatility than the tech index, as shown in chart 14 below where we plot the rolling volatility.