• About Us
  • Disclaimer
  • Privacy Policy
  • Contact Us
Best Digital Mate
  • Home
  • Business
    • All
    • Cryptocurrency
    • finance
    Why should you invest in Tata Motors Shares?

    Why should you invest in Tata Motors Shares?

    Bitcoin Investment Progress for this Decade in Seychelles

    Bitcoin Investment Progress for this Decade in Seychelles

    Dogecoin Trading Strategies: How to Profit from Volatility

    Dogecoin Trading Strategies: How to Profit from Volatility

    Vintage maps

    Why are Maps and Vintage Maps so Popular?

    Decoding Bitcoin: How it works, and it's Potential

    Decoding Bitcoin: How it works, and it’s Potential

    Crypto Wallet App for Secure Online Transactions

    Crypto Wallet App for Secure Online Transactions

    Trending Tags

    • Market Stories
    • Bitcoin
    • Litecoin
    • Harbolnas
    • United Stated
    • finance
  • Digital Marketing
    • SEO
  • Technology
  • Health
  • Travel
  • Education
  • Gaming
  • Real Estate
  • More
    • Gadgets
    • Event
    • Entertainment
      • All
      • Celebrity
      1337x Proxy Site List in 2022: Free Access to Premium Content

      1337x Proxy Site List in 2023: Free Access to Premium Content

      13377x Movies

      13377x Search Engine for Movies, Games, Software, Applications in 2023

      Movierulz ps Website for Telugu Movies, TV Shows and Webseries in 2023

      Movierulz ps Website for Telugu Movies, TV Shows and Webseries in 2023

      MKVCinemas - Watch Bollywood, Hollywood, Hindi, and Bengali Movies Online

      MKVCinemas – Watch Bollywood, Hollywood, Hindi, and Bengali Movies Online

      Desiremovies Website for Watching Bollywood Hollywood Movies for free

      Desiremovies Website for Watching Bollywood Hollywood Movies for free

      Rainierland

      What is Rainierland? and its Alternatives Websites in 2022

      Trending Tags

      • Golden Globes 2018
      • Grammy Awards
      • Explore Bali
      • Champions League
      • Harbolnas
    • Electronics
    • Training
    • Outdoor
    • Fashion & Beauty
    • Lifestyle
No Result
View All Result
  • Home
  • Business
    • All
    • Cryptocurrency
    • finance
    Why should you invest in Tata Motors Shares?

    Why should you invest in Tata Motors Shares?

    Bitcoin Investment Progress for this Decade in Seychelles

    Bitcoin Investment Progress for this Decade in Seychelles

    Dogecoin Trading Strategies: How to Profit from Volatility

    Dogecoin Trading Strategies: How to Profit from Volatility

    Vintage maps

    Why are Maps and Vintage Maps so Popular?

    Decoding Bitcoin: How it works, and it's Potential

    Decoding Bitcoin: How it works, and it’s Potential

    Crypto Wallet App for Secure Online Transactions

    Crypto Wallet App for Secure Online Transactions

    Trending Tags

    • Market Stories
    • Bitcoin
    • Litecoin
    • Harbolnas
    • United Stated
    • finance
  • Digital Marketing
    • SEO
  • Technology
  • Health
  • Travel
  • Education
  • Gaming
  • Real Estate
  • More
    • Gadgets
    • Event
    • Entertainment
      • All
      • Celebrity
      1337x Proxy Site List in 2022: Free Access to Premium Content

      1337x Proxy Site List in 2023: Free Access to Premium Content

      13377x Movies

      13377x Search Engine for Movies, Games, Software, Applications in 2023

      Movierulz ps Website for Telugu Movies, TV Shows and Webseries in 2023

      Movierulz ps Website for Telugu Movies, TV Shows and Webseries in 2023

      MKVCinemas - Watch Bollywood, Hollywood, Hindi, and Bengali Movies Online

      MKVCinemas – Watch Bollywood, Hollywood, Hindi, and Bengali Movies Online

      Desiremovies Website for Watching Bollywood Hollywood Movies for free

      Desiremovies Website for Watching Bollywood Hollywood Movies for free

      Rainierland

      What is Rainierland? and its Alternatives Websites in 2022

      Trending Tags

      • Golden Globes 2018
      • Grammy Awards
      • Explore Bali
      • Champions League
      • Harbolnas
    • Electronics
    • Training
    • Outdoor
    • Fashion & Beauty
    • Lifestyle
No Result
View All Result
Best Digital Mate
No Result
View All Result
Home Business Cryptocurrency

What gives cryptocurrencies value? Diving into Ethereum’s value

Admin by Admin
September 15, 2021
in Cryptocurrency
0
Diving into Ethereum’s value
590
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

Have you ever wondered what makes cryptocurrencies valuable? It’s even more difficult to wrap your head around why some crypto has a high price tag. It’s such a mystery because, in reality, cryptos are not physical, exist anywhere, or are endorsed by the governments.

Nevertheless, some cryptos are more valuable than fiat currencies, particularly Bitcoin, and Ethereum, amongst others. Investors buy Ethereum for several reasons, all of which are based on the value position in the crypto market. In this article, we would talk about the top 5 things that give Ether Token its value. But before we do that, let’s understand the concept of Ethereum. 

What is Ethereum (ETH)?

Table of Contents

  • What is Ethereum (ETH)?
    • Top 5 Things that give Ether Token its Value
      • Ethereum’s transaction cost or gas fees 
      • Demand and supply
      • Rising competitors
      • Media Influence 
      • Regulations
  • Conclusion

Ethereum is the network which the Ether Token runs. Ethereum also serves as a platform where developers can build projects and provide solutions. Over the years, several projects have been based on the Ethereum network, which has made it a staple in the crypto space.

This has given Ethereum the push it needs to rank second in the market based on its market capitalization. Like Bitcoin, Ethereum also uses the Blockchain to replace third parties. As such, Ethereum is decentralized, secure, and less vulnerable to being shut down by one entity. Ether is so valuable that over 18 million of it is mined every year. 

Top 5 Things that give Ether Token its Value

Ethereum’s transaction cost or gas fees 

One of the main reasons Ethereum is so valuable is because of something called gas fees. In order to send Ether, the transactor must pay a gas fee, which is similar to the concept of sending Bitcoin. Trading on DEX’s for example also comes with a gas fee, which is why some people buy or hold Ether coins to use them as payment of gas fees.

Hence, this made the coin experience a jaw-dropping demand. For example, sometime in 2020 during the DeFi boom, the network experienced more investors which increased the gas fees levels. 

Demand and supply

In any market, the law of demand and supply is quite useful. The logic behind the law of demand and supply can also be applied to understanding the value of Ether tokens. Since the supply of Ether coins is limited, this means that the demand for Ether coins cannot always be satisfied.

Note that when you don’t have an unlimited supply of a coin, it means that its value will go up. Additionally, since the demand for most crypto coins is not always constant, this explains why the value of most crypto coins, especially Ether, is not always fixed.  

Rising competitors

The crypto market is very competitive, no doubt. While there are several other cryptos investors could buy, they choose to buy Ethereum because of its large number of products, services, and applications built around it. Due to this, Ethereum also benefits from something called the network effects, which is a phenomenon where more people buy Ethereum, and it adds to its value.

Essentially, the more a particular thing is built on or used, the more it will be prominent. Moreover, over the past years, Ethereum has shown more strength and dominance in the crypto market because it is a faster and cheaper network developer to build. 

Media Influence 

The media can break or make a crypto token. How the media covers a particular crypto will influence how eager investors will be to buy the crypto. This has been one of the selling points of Ethereum. While in most scenarios, the media influences the crypto market by speculating the behaviour of the coin in the future.

Note that the power of the media is only based on their experience and knowledge. Although, it often has an enormous effect on the demand of the crypto or causes its downfall. 

Regulations

As we said earlier, the crypto market is decentralized, meaning it is neither controlled by one entity nor regulated by any government. But this is no guarantee that in the future the government wouldn’t seize control over the exchange.

In that case, it would crash the value of crypto in a matter of hours. Since there are no regulations limiting investors who want to buy Ethereum, the market is open and free to anyone.  

Conclusion

To sum things up, since we live in an ever-changing world, the value of Ethereum keeps rising and falling because of its price and popularity. While Ethereum has been able to maintain its position in the crypto market, only time will tell whether or not another coin will usurp Ethereum in the long run. 

Tags: blockchaincrypto marketEthereumEthereum’s transaction
Previous Post

10 Ways How to Buy Instagram Followers

Next Post

How Can A Guest Post Service Help Your Business?

Admin

Admin

Related Posts

Bitcoin Investment Progress for this Decade in Seychelles
Cryptocurrency

Bitcoin Investment Progress for this Decade in Seychelles

by Daniel Watson
July 25, 2023
Dogecoin Trading Strategies: How to Profit from Volatility
Cryptocurrency

Dogecoin Trading Strategies: How to Profit from Volatility

by Admin
May 1, 2023
Decoding Bitcoin: How it works, and it's Potential
Cryptocurrency

Decoding Bitcoin: How it works, and it’s Potential

by Admin
March 20, 2023
Crypto Wallet App for Secure Online Transactions
Cryptocurrency

Crypto Wallet App for Secure Online Transactions

by Admin
February 2, 2023
Next Post
How Can A Guest Post Service Help Your Business?

How Can A Guest Post Service Help Your Business?

Pointers to Guide your Strata Insurance Purchase Today

Pointers to Guide your Strata Insurance Purchase Today

Leave a Reply Cancel reply

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


The reCAPTCHA verification period has expired. Please reload the page.

ADVERTISEMENT

Recommended

Early Childhood Education Program

8 Reasons Why You Should Enrol Your Child in an Early Childhood Education Program

December 1, 2020
6 Simple Steps To Prepare For GST Registration In Australia

6 Simple Steps To Prepare For GST Registration In Australia

October 21, 2021
6 Tips to Prevent Male Hair Loss That Work

6 Tips to Prevent Male Hair Loss That Work

February 20, 2022
Dental Crowns

The Advantages of Dental Crowns

September 22, 2020
What To Look for In Software for A Hybrid Workplace

What To Look for In Software for A Hybrid Workplace

January 9, 2022

Categories

  • Automobile
  • Business
  • Celebrity
  • Cryptocurrency
  • Digital Marketing
  • Education
  • Electronics
  • Entertainment
  • Event
  • Fashion & Beauty
  • finance
  • Food and Drink
  • Gadgets
  • Gaming
  • General
  • Health
  • Home improvement
  • Internet
  • Law
  • Lifestyle
  • Outdoor
  • Pet
  • Photography
  • Real Estate
  • SEO
  • Technology
  • Training
  • Travel

Don't miss it

5 Ways to Stop Receiving Spam Emails
Digital Marketing

5 Ways to Stop Receiving Spam Emails

August 23, 2023
Boost Productivity and Ensure Brand Consistency with Digital Asset Management Software
Technology

Boost Productivity and Ensure Brand Consistency with Digital Asset Management Software

August 10, 2023
Barn Paints: Preserving the Charm of Agricultural Buildings
Home improvement

Barn Paints: Preserving the Charm of Agricultural Buildings

July 31, 2023
Why should you invest in Tata Motors Shares?
finance

Why should you invest in Tata Motors Shares?

July 27, 2023
Bitcoin Investment Progress for this Decade in Seychelles
Cryptocurrency

Bitcoin Investment Progress for this Decade in Seychelles

July 25, 2023
Ecommerce Website development
Technology

Ecommerce Website development Trends 2023

July 16, 2023
Best Digital Mate

Welcome to Best Digital Mate, your number one source for all information about Digital Marketing, Events, Health and Fitness, Technology, Travel, Fashion & Beauty, Gadgets and more. We’re dedicated to giving you the very best information about all these categories, with a focus on quality, relevancy and timely update.

Contact: [email protected]

Categories

  • Automobile
  • Business
  • Celebrity
  • Cryptocurrency
  • Digital Marketing
  • Education
  • Electronics
  • Entertainment
  • Event
  • Fashion & Beauty
  • finance
  • Food and Drink
  • Gadgets
  • Gaming
  • General
  • Health
  • Home improvement
  • Internet
  • Law
  • Lifestyle
  • Outdoor
  • Pet
  • Photography
  • Real Estate
  • SEO
  • Technology
  • Training
  • Travel

Recent News

5 Ways to Stop Receiving Spam Emails

5 Ways to Stop Receiving Spam Emails

August 23, 2023
Boost Productivity and Ensure Brand Consistency with Digital Asset Management Software

Boost Productivity and Ensure Brand Consistency with Digital Asset Management Software

August 10, 2023

Contact Us

    • About Us
    • Contact Us
    • Disclaimer
    • Home
    • Privacy Policy

    © 2021 bestdigitalmate.com. All rights reserved.

    No Result
    View All Result
    • Home
    • Technology
    • Gadgets
    • Digital Marketing
    • Fashion & Beauty
    • Business
    • Event
    • Travel
    • Entertainment
    • Lifestyle
    • Lifestyle
    • Health
    • Electronics

    © 2021 bestdigitalmate.com. All rights reserved.