🪙Cryptocurrencies were created not to let the central government have the autonomy to regulate an individual's funds. And because they have a fixed supply, devaluation through inflation is next to non-existent. Supply and demand is the most important determinant for crypto market prices.
🏦Since any central authority does not back cryptocurrencies in the same fashion as fiat currencies or another government-sanctioned medium of exchange, they derive their value from other sources, including:
✔Supply and demand
✔Cost of production
✔Availability of exchanges
✔Competition
✔Governance
✔Regulations
📺We can also add as a reason for price fluctuation the speculation and media coverage because speculation and media coverage fuel price swings in crypto and mainstream markets.
📈The positive and negative reporting in the media can drive the price up or down. In case of negative press, fewer people want to purchase it, while the crypto owners consider selling what they do to lessen their losses.
🚀As cryptocurrency grows and develops, it will likely display extreme fluctuation until it attains full maturity regularly. So if you're just starting in the crypto market, you can kickstart your cryptocurrency portfolio with Coinswap Space! Join us now!
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