What are the driving factors for crytpocurrency valuation?
Scarcity? Utility? Use? Demand? Network? or am I off base already?
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It's always depend on the use and demand of a cryptocurrency, the more useful it is for the people, the more demand and a higher price it would be. And it's one of the most important factor for a cryptocurrency that will help to everyone to choose the best crypto that we might use for investing or trading that will give us the profit that we always wanted.
That is the rule of the market no matter what kind of market it is. Keep in mind that everyone is going to go after that thing which is giving you maximum returns. Since bitcoin is having a strong history of making people rich with minor investments, so majority of the crypto currencies users are the ones who are supporters of bitcoin. The high demand of bitcoin obviously eventually leads to the high price.