Will the value of a cryptocurrency change forever?

Crypto

In brief, there is no way we can tell how much value a crypto will have and when. This is indeed a very difficult task to read where the masses are heading towards in the long term however, we can predict what will happen in a short span of time. 

The value of crypto can change and fluctuate forever, provided there is no external interference or manipulation. When a crypto has reached its threshold it will be a time when there is enough supply in the market and there is continuous trade so much so that it is very difficult for even thousand people to change the price according to what they want to offer as there will be million others who will still trade at the same price even if many sells their tokens for free.

Hence the prices will remain static at this point but it will not be impossible to change it either.

How can we achieve a stable price for a Cryptocurrency ?

As mentioned a stable value will mean that almost everyone wants to purchase the token on the same price. But how can we make this happen?

The answer is simple, by making everyone follow the crowd. But as simple as it seems the task is difficult too.

On a long run this can come by itself too. The only thing that the project leading team needs to do is get more and more people involved in the trading of its crypto.

Once a market of hundreds of millions  is covered the things will start to happen by itself, though it may take time.

Next step would be to make people do thousands or even millions of trades every hour with their tokens and that is one of the most difficult tasks to do.

As people own crypto for the reason to make a profit out of it, hence there are more people who hold their crypto for a while rather then sell them instantly.

Hence for increasing the trades services or materials must be purchased using crypto. Thus paving a way for another difficult task i.e. to create a market outside simple trading. 

External factors affecting the value of a crypto:

Though it may seem like crypto is 100% without the influence of any outside organization but the truth is that its value may get affected due to people who have some influence over masses.

Like for example if a crypto that was created in a particular Country A gets popular in the whole world, then for any reason if Countries B, C, D.... decide to ban this token or ask then it is most likely that the prices of the token will fall because more and more people will try to sell their tokens to save their money. 

This is something that we have seen recently, after India imposed a heavy 30% tax on crypto gains more and more people sold their crypto before the imposition date. As a result there was a dip in the prices of almost all tokens in the market.

Not only countries but people with influence on social media like YouTubers or Instagram influencers can also affect the value pf crypto prices.

How does the value of Cryptocurrency change?

The way how crypto work is much different then regular currencies but it is not different than regular commerce either. The main thing that affects the value of cryptocurrency is Demand and Supply. A crypto is like a product in the market that needs to be sold. The only difference is that instead of being a physical commodity it is a virtual/digital commodity. If there is a cryptocurrency which is in great demand and only a less number of tokens are available then it is reasonable to sell it at a higher prices else if the crypto is not so popular then it will be cheaper too. The perfect example of this can be seen in case of shib coin. There are so many of them that they 1 coin will cost  you a 100th fraction of the paisa. 

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Other than this the Primary reason that results in the rise and dip of the prices are we the people who buy it. The value of a crypto can fluctuate depending on how much you are willing to pay for that crypto. It is as simple as this: if you feel that crypto prices will spike then you buy it at a higher price (thus contributing in the spike), if not you can offer lesser money too. On the other side it depends on the sellers, if the seller feels that a particular crypto will dip and fears a loss then he sells it instantly for a cheaper price (thus contributing in the dip), else he sells in whatever he feels is a suitable price to sell it. 

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