Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)
* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand
Etc,
I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.
What do you think?
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)
* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand
Etc,
I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.
What do you think?
Some general factors impact the price of a commodity or coin, and you have indeed enumerated them. There are however other factors which can influence the demand significantly. For example, perceived value and branding will carry more effects on the prices rather than product quality or value. The reasons behind the higher price of luxury brands or popular cryptocurrencies such as Bitcoin are because of the amount of trust and awareness that they create. But of course, there's also the role of market sentiment and hype. Especially true in cryptocurrencies, this one can spike demand caused by fear of missing out (FOMO). Meanwhile, shocking bad news can cause the market to drop sharply. Innovation and uniqueness are very important. If a product or coin offers a new solution or solves a specific problem, it will get a premium price.
Additionally, there are governmental regulations in terms of demand. More specifically, in this crypto space, a positive policy can certainly boost the demand, whereas illegal policies may drop the demand drastically. Network effects are also important. For example, as more users enhance the value of a digital product or coin, for example, Bitcoin goes up with more people using it. Lastly, macroeconomic factors such as inflation interest rate and uncertainty of the economy may affect demand. This holds particularly for the assets that are considered store of value. When economic activity is unstable People may want to reposition their assets to cryptocurrencies like Bitcoin. Pushing both demand and prices upwards and these bigger factors, when added to the factors you listed forms a more comprehensive view of what is influencing the prices within the market at this time.
