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/biz/ - Business & Finance

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21011814 No.21011814 [Reply] [Original]

How is price calculated with alt coins, is it purely people buying in? What's the point of holding a coin with no return? Do we drive the value? If so why should a coin grow in value just because a business is doing well, when it's us who drive the price.

>> No.21011954

Plz

>> No.21012889

Speculation on big businesses needing the token to use the crypto project it's attached to.
Ie if you want Link's data feeds, you need to pay node operators in Link.

>> No.21012950

Think of them like vidya arcade tokens.
There's a fixed supply, the counter runs out of tokens and some rich kid comes in wants to play Street Fighter and you have fat stack to sell

>> No.21012975
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21012975

Another question, how does raising the price of a coin increase it's marketcap if not all the coins are liquid? If price increases by speculation, no new money has entered the market, just new demand.

>> No.21013057

>>21011814
Learn how order books work.

>> No.21013093

https://en.wikipedia.org/wiki/Supply_and_demand

>> No.21013389

>>21011814
>What's the point of holding a coin with no return?
it's all a ponzi, only marketing narratives differ.

The only exception are coins/tokens that have, or are going to have, some form of real income from staking, burn or dividends. Note that inflation alone is not real income. Eth2 is sound because users buy it for fees, it gets burned, stakers get new eth.