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Value Determination of Cryptocurrency


Money, at its core, derives its value from a belief system. It operates on the belief that it can be exchanged for goods and services when needed. This exchange rate is established based on the collective recognition of its value among the masses. However, if money were backed by tangible assets such as gold or silver, its value would rely on a belief system tied to the collective consensus that these precious metals possess inherent value. Nevertheless, upon closer examination, the value attributed to gold, silver, or even paper currency is a product of social agreement and a perceived value assigned to them within the realm of commerce.

The value of Cryptocurrencies is also derived from this belief system itself. People started utilizing them for transactions and for exchanging goods on the basis of belief systems and social agreements. Therefore, it is safe to conclude that the belief system accorded Cryptos value to the extent that Cryptos exchanges emerged and people started buying and selling them on the exchange. It has now become one of the forms of investment. They are vividly used even as a private currency amongst many communities and businesses. EquiPay is going to list EQPay coin on the crypto exchange soon to make it one of the prominent Cryptocurrencies in the world.



Unlike money or equity shares, the value of Cryptocurrencies is unpredictable as they are extremely volatile and risky given their value cannot be fixed/concluded. However, we may make out some valuation on the basis of the amount of hardship required in mining and staking of the currency, the maximum quantity that can be mined, and the kind of encryption involved. The amount of computing power required to mine a Cryptocurrency may also contribute to the determination of the price. Assorting computing powers for mining and staking is an extremely expensive affair and therefore may play a crucial part in fixing the initial price and determination of the maximum quantity that can be mined.

Although the listed factors may contribute towards fixing an initial price, however post the listing on the exchange, it purely depends upon the demand and supply of the Cryptocurrency. There is no determined logic that can be observed or predicted when it comes to demand and supply in this case. It can run over false news, sentiments, rumors, and a tweet by a celebrity. Recently, Elon Musk tweeted about several cryptos making them inflate massively in just a day. However, these are extremely risky as the prices go down in a blink of a second as well.

Crypto mining is really an interesting affair as it involves a high level of computing power. The mining of EquityPay coins requires a low level of computing power making the mining affordable to everyone. Old or low-powered computers can be utilized for mining and staking. There is a lot of development going on around Cryptocurrencies which is going to make it affordable to all, which may lead to further enhancement in their usage amongst the masses and their valuation.



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