Topic: What determines the price of a Product or Coin? - page 3. (Read 549 times)

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.

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.

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?




Related post:
Do you compare prices or bargain before making purchases?
https://bitcointalksearch.org/topic/--5512379