Its value is based on its popularity at a given time, which is influenced by factors such as the number of people using it, the ease with which it can be traded or used and
the perceived value of the currency and its underlying blockchain technology.
Just like in the stock market, cryptocurrencies can be bought and sold depending on
the perceived value of the currencies.
Not exact matches
The Finance Ministry
of India touted what it
perceives as a lack
of intrinsic
value in virtual
currencies as reason to equate them with Ponzi schemes.
All forms
of securities may decline in
value due to factors affecting securities markets generally, such as real or
perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or
currency rates or adverse investor sentiment.
... arts journalists started asking lots
of money - centric, sometimes philosophical questions — about
perceived cultural
value; what a work can really be said to be «worth»; and why art
of every age is now
perceived as a kind
of currency in its own right.
Since mid-2015, the U.S. dollar and other international
currencies including Bitcoin have been
perceived as ideal alternatives to the bolivar for both businesses and individuals because
of the high international
value of these two
currencies.
While this could be seen as strength, the fact that Bitcoin is a fiat
currency which is accepted only on the
perceived value of other bitcoin users makes it highly vulnerable to destabilization.
Since most people find it difficult to
perceive the
value of solar panels, the blockchain can help certify the production and also help in tracking electricity as a
currency.