Cryptocurrency appreciation, is something any crypto holder looks forward to every single day. And because this market is still unstable and it can cause our emotions to play tricks on us. One day bitcoin is at 10k and in less than a week it might be at 7k. If you are not careful it can make you feel depreciated and you start to experience symptoms of cognitive dissonance, “why did I buy this?” “I should’ve never gotten involved” “I hate cryptos!” — When in truthyou are an appreciated important piece to the coin appreciation, you and every person within a coin’s community. Further along I’ll explain a little more…
Anyhow, even though it is tempting to follow the motions, we must understand how it works, and the level of growth and progress mother-coin bitcoin has had since it’s birth. Bitcoin was born in 2009 technically worth nothing, literally zero. In 2010 the highest price paid for it was 0.39 cents. Only 1 year ago in 2017, as of today’s date May of 2018, bitcoin was worth a little over 2k, and only one year later, it is worth 7,490$. I mean seriouslly, what a beautiful organic journey, expected for any serious coin or token.
With that being said.
Cryptocurrency only has value because just like any other unit of account, people think it has value. It has the ability to store value, and to be used as a medium of exchange. And this is how any currency gets its appreciation from, including FIAT. People value it and create demands for it.
Appreciation refers to the price and value of a coin, and it is important to understand there is a difference between price and value.
Price is what you pay for your crypto, “how much!?” and value is what it gives you, what you get from it, “what problem does it solve?” “what is it needed for?”.
As of this moment cryptocoins are still in the process of gaining value, that is where we all come in with our participation. We add value to it. As we invest in them, as we believe in them, as we keep on making a way for them around the world, opening doors within businesses, we are adding value to them. As we take charge of our own money, we add value to it. As we create new paths, for educations and health systems, we add value to it. But indeed, it is a process. As we generate a demand for crytos we add to their price and value.
The more people invest in them the more the prices go up, as well as the value, a limited supply on a high demand makes prices go up.
For example: If there are 10 coins, and 10 buyers, 1 coin for each at the price of 1$ each, all coins are sold and new buyers eventually show up. If I bought it for 1$ I cannot sell it for 1$ correct? So, when I sell for more than what I purchased it for, I INFLUENCE the price growth. Now we might have 20 people who might want to buy the same 10 coins in the market out of the hands of their holders, a limited supply plus a higher level of demand, will naturally cause the coins to rise in price and value.
Coin burning is also a method used in cryptocurrency to appreciate coins, and to reward token holders.
You see, the law of supply and demand is a basic principle around economic government. The increase in supply means the price goes down, and when it decreases price goes up, as seen above.
“If the market cap is 1 mil, and there are 1 mil coins, that means each coin is worth $1. If you burn 33% of the coins, you then have 666,666 coins worth $1 mil. Each coin is now worth $1.50.” — Rahul Behera from Criptosmaniac.
When investing in cryptos, its not always the smartest thing to invest only in big coins like Bitcoin, because their prices are now so high, that if the price is at 7k, it would take so much for it to appreciate. 50% would be 3, 500$ increase in price in order to see any appreciation, that is a lot! Now, when you invest in smaller coins like Winco, let’s say at .3 cents a piece the appreciation is much faster, more probable, more assertive. 100% appreciation would be only .6 cents. Right?
Coin appreciation partially depends on our conscious trading and understanding. As always, we strongly believe in an educated community, that knows why they are doing what they are doing, and not just following a crowd. We value conscious trading, because it gives value to our coins.
Get involved with cryptocurrency communities, we cannot emphasize enough the importance of a strong community. Read, comment, share and study about cryptos in general, but especially the ones you happen to be a token holder. It’s important to know what is happening with them. And do not get discouraged as prices go up and down at every moment, just stay focused, and purposely choose not to go with the motion, and understand that your involvement is giving it value, an appreciated value. We are all responsible for it’s growth.
You might want to check out our blog that explains how the cryptocurrency price listing websites like WorldcoinIndex actually works.
Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and risks involved.