Topic: What determines the price of a Product or Coin? (Read 197 times)

You have given good examples in terms of regulations however I would not say that Elon Musk's tweets have that much affect on bitcoin. On memecoins, yes it is easily affected by things like social media hype but Elon Musk does not have that much control over bitcoin that he can just tweet something and the market moves toward it. Dogecoin is the only coin I know that can be heavily affected by Elon Musk.
Unfortunately, some projects do not even have that much technological excellence to be valued high. It won't last long but it can certainly get expensive prices just from hype and community support alone.

This is exactly what get some products there edge against orders, the type of marketing and the investors there all so go a long way, for example bitcoin became a currency or product with the fastest growth rate at the moment as many investors are coming, the reason been that it solves the problems associated with the current traditional market. So every product coming in must try to break this niche and then when they get the attention the demand will actually be factor to increase the price.

Taking cryptocurrencies into consideration you will see even Altcoins coming through what the first tend Fi get is go with the trend and also get top or former successful project builders on their team and then it grows the price through demand. Look at this Alticoin called Solana; some Altcoins or shitcoin traders actually started to turn their attention to it when they found out that it uses less fees and it trading memecoins were a bit faster than Ethereum. This pushed the price of the coin from around $20 to $180 in less than a year, although I don’t fancy Altcoins but it tells you that once you can market the product well the price will be base on the demand

OP, the factors you mentioned above are no doubt what's responsible for the price of a product or coin to be on the increasing side but bringing all these factors to coins, you will begin to realize what pushes a coin to be high side or has a fall in price is because of the hype or news given about them on social media that got people to invest or dump it the more in the market, affecting its price.

Most investors we have this day in the cryptosphere don't even know about the utility of the coin they are investing in. What they are after is its quick profits and the hype the coin they investing in is receiving in the market. Every other thing about the coin they don't care to know about it

You said a lot if we factor in just the product but as for crypto coins, there are many hidden things that determine the price of coins. The demand and supply of a project determined how big the coin price will soar, the team behind the project if they have any reputation before the launch of tbe coin and how they developed the project, the way trend of the project if it's a new trend or just another repackage coin that is already in the market.

There are hidden features that I think we need to look into and they are not discus at the base level of the coin price, you have to use extra eyes to see this metrics, some involved chain analysis. There is high manipulation in crypto price and its because of the coin circulation, there whales and market makers that don't look at the base metrics, the metrics may be quack but the price can still be manipulatd to how they want it to be even though the project is rubbish. This may not apply to other products but coins specifically.

I agree about marketing. The better the marketing, the more convincing that the people will buy the product regardless of they need it or not. At the same time, the advertiser is also one of the reasons why a person buys a product. So, a good choice of the advertiser for the marketing is also one of the reasons why the convincing becomes greater and with that, the demand gets higher. But I believe that this is only a secondary thing about the valuation of the product.

The entire costs really differs per area and with the logistics, materials, manufacturing and stuff, that's how it is being determined based on how it's made. But with that, the category of marketing will get into the attractiveness of the product based on how it was marketed and advertised by the company. That's also giving the brand to have more value because of how much they're paying for their brand to get these deals with good marketers and endorsers.

I'm sorry, but i have to argue if you're a little bit wrong. This is because almost all of factors above were not really applicable to the meme token. And it seems to me you don't pay attention to the meme token.

A meme token's price fully depends on supply and demand. It ignores all the factors you mentioned. It lacks quality, is easy to produce, and is in heavy supply. But, these days, meme tokens gained more attention than utility products or coins.

Marketing.

Sometimes people don't even need a product, but they still buy it because they are persuaded by propaganda. Moreover, this propaganda also helps boosting the price of the product to unreasonable costs. Take Iphone for an example. It's not necessary to swap from model to model each new year paying a fortune for it, but people still do this because it's a matter of social and financial status.

Their necessity isn't to use the product itself, but to boast themselves to the social group where they are inserted.

When I purchase products that we need, I usually look at the quality of it. The longevity and sturdiness of it are bang for the buck. That's why I don't buy asap and still need to conduct some research and comparison of prices. If my needs suit the cheaper quality of the product and it's fine for some temporary use, I'd consider that. But for most of my things, I always look after the quality and compared to the cheap ones with daily use of the products, compute how much you'll save when you buy the quality ones than the many times of cheaper ones but lesser quality.

However, the first thing I consider before buying a product is its usefulness. I don't want to spend money on a product I don't need. Second, the quality of a product also matters to me, and most times, quality items are durable. Attractiveness, size, and ease of use are not usually under my consideration.

Government policies also play an important role in the price of a product or coin. If the policies of a country favor a coin, the price might increase. There have been speculations that if Trump wins the US elections the price of cryptocurrencies might skyrocket.

No need to make it complicated. Only supply&demand determines an asset’s price. Remember though, price and value are not the same thing. Since you said “price” in the title then it is what it is.

Buffett has a nice quote about that one:

“Price is what you pay, value is what you get.”

Some shitcoin might do a x100 run in a week. Its fundamentals ain’t no important. If the majority of the supply is in one guy’s hands, the price can go anywhere.

That’s why I try to invest in assets that have intrinsic value. I don’t like to speculate. When it comes to intrinsically valuable digital assets, you can’t simply beat bitcoin.

Quality only can be assess in practice. It's hard to assess it accurately on white paper or pitch deck that is easily polished by project teams to mislead investors.

Projects can promise with utility but people have to consider other things like is it safe for their money to use that cryptocurrency?

Long lasting means that cryptocurrency survives through many practical tests and many hardest times of the market, so if it managed to survive, it is good evidence of survival strength, quality and adoption of that cryptocurrency in societies.

Not true. Bitcoin Cash, an altcoin, with bigger block size than Bitcoin, has worse reputation, smaller adoption, and lower price than Bitcoin.

It is considerably less safer to use Bitcoin Cash blockchain for your fund transfers.
https://howmanyconfs.com/

When it comes to altcoins the main thing determining their "price" is hype and the pumping team's capability to maximize on that potential. Note that it is about price not value because value is only determined by utility while price can change based on a lot of things and most of the time it is not sustainable (like in the case of pumps).

It is the personal work of each person who is involved in the preparation of the back and also the seller. This is because of getting less money and not meeting household expenses. But some people also do this to get richer.That's why the company is making huge profits and People getting poorer and poorer but along with this, bad products are also recommended and many people suffer from this too.This is their pressure and people want to make money with this product but the company humiliates other companies in their profit cycles.This should not happen at all. Our government has harassed everyone for the high cost of everything. If the government does not borrow and taxes are not high, everything can be done.

I agree with all the factors you mentioned if we are talking about a consumer product in our real life. But if you rely on these factors to evaluate and price a coin, that is not entirely correct. I mean crypto market is full of scams and manipulations, everything is just empty ideas or theories. Aside from bitcoin, there is still no project that has practical applications or provides real-world use cases, so far. It's all speculation, bump & dump and disappear. Or to put it bluntly, crypto is like a giant casino, where nothing is trustworthy except bitcoin.

It is true that we need to rely on those factors to evaluate a new currency, but let's not be naive and believe too much in what they draw and want us to hear.

It is the perception game, especially in the context of new coins. If you are able to build a perception that your coin has huge potential to the upside, no matter what the reality is, your coin will have lots of buyers and holders. Product quality or usefulness is of less importance if you do not have the compatible perception of your coin in the minds of the masses.
So social perception is everything when it comes to new coins.
People do not care about legality, usefulness, technology, etc.; they just want the feeling of 'buying a coin that has 100x potential'. That is why these terms are like 10x. 100x, 10000x.. have become the defining feature of new coins; no one cares about going into details. Even people who understand that a particular coin is just a hoax will still buy it because they know that the social perception of the coin is on the upside.

Then we have tons of shitcoins with at least $100 Million market caps that don't give any usefulness, easily created, unlimited supply, etc etc.

What you mentioned above are mostly related to "cost" which obviously you will not sell lower than your cost! at least you sell above from your cost in order to earn profit.

I would say what determines the price is market price (how much other people sell it), marketing and the way you manipulate your product.

I think that on top of what you wrote, there is one thing that you haven't mentioned - Manipulation. There is manipulation everywhere, in coin, in produce price. Top businesses always try to make monopoly or cartel agreement. During monopoly, they can play with the price of the product or the service the way they want because they are the only producers and users are forced to pay whatever the company wants them to pay. During cartel agreements, companies agree to sell the product for a specific price and do not sell it lower than a certain price. They sometimes manipulate the supply to artificially increase the price or cause panic in people.
There is a lot of price manipulation in cryptocurrencies where whales either increase or decrease the price to liquidate long positions or short positions.

All the above mentioned are all good factors that can increase the product or services in terms of demand but it can also have some little disadvantage, however let's talk about a good quality products, we no that almost everybody will always go for the good quality products because that is what determines the longevity but let's not also forget that the price will also be very high and there could be some persons who may not afford it so they would go for the ones that are less quality in other for them to afford it, so that's how most consumers behaves sometimes.

However in terms of making a product scarce, actually is also another thing that makes the price go very higher but only if the thing has a significant meaning to the public, so there would always be people who would buy at any amount of money but if in a case were people do not value it even if it becomes scarce nobody would even notice it because I have visited a friend numerous times on his business and I saw so many product who have been there for years in his shop without anybody coming for it do to the fact that nobody is interested on such product even if is very rare in the market and now he is planning to sell at any price to avoid losing completely when it expires, so actually before thinking about any scarcity, the product must be very importance to the consumers.

Some things to add from my point of few, regulation may play a huge role in setting demand, as new laws and government bans can result in large drops in price. On the other hand, favorable regulations raise demand. For example, the banning of crypto mining in China depressed Bitcoin's prices, while the opposite of that pro crypto moves in countries such as El Salvador and Hong Kong-have been a catalyst for the bullish trend. Media can also influence demand strongly. Good news can send the price soaring, as with Elon Musk's tweets; bad news can trigger panic selling.

On the other hand, not everything that is very difficult or very long to produce is always in high demand. For example, in cryptocurrency, it can be found very often that new technological advancements with faster speeds of transactions oust the very difficulty of how it was mined. It's also not just piecing together the most important on the list but takes into consideration how external influences such as regulation and media can influence demand.

You have pretty much summarized the factors that drives the demands and supplies of products. It's true that demand for a product don't just happen, there must be factors that drives it and you have expanciated on most of them. What I can add is that when it comes to a cryptocurrency like Bitcoin, news is one of the determinant factors that can affect it's demand and supply. It could be news of war, crisis, a country or whales dumping their BTC into the market, disasters etc. Bitcoin is volatile and a speculative asset so basically news is one of the fundamentals that determines it's price.