Why the value of digital currencies keeps on soaring

People are making a lot of money with cryptocurrencies. Although Bitcoin is not The new digital currency (العملاتالرقميةالجديدة), its value has soared over the years and at the end of January 2018, its cumulative value was estimated to be around $190 billion. As far as making money with cryptocurrencies is concerned, the shortcut is to buy low and sell high. In the case of Bitcoin, its value has increased in the last eight years from nothing to around $1,200 in May 2017, to nearly $20,000 in December 2017 and settled at $11,000 at the end of January 2018.


On paper, anybody who held on to Bitcoin at an early stage is very wealthy today. The real question today, however, is why the value of one Bitcoin is around $11,000 and the value of new digital currencies such as Ethereum is around $1,040. The question is also why a certain Cryptokitty is now worth $100,000. While people will have many answers about this, there are only two concrete answers as to why the value of digital currencies has been increasing in the last few years. The first and the simplest answer is that, by its very nature, a digital currency (العملاتالرقمية) is a scarce asset.
According to Digital Currency News (اخبار العملات الرقمية) , only a few digital currencies exist globally. If digital currencies are to be adopted widely for use in the real world, then more people will have to buy the scarce assets. This means that the value of the cryptocurrencies will be higher than their real value today. In this story, the current price of a cryptocurrency simply reflects on the possibility that a certain digital currency will be widely used in future. The value of cryptocurrencies is also high because of the whims of a small group of speculators.

Leave a Reply

Your email address will not be published. Required fields are marked *