Topic: Who Drives Crypto Prices? Is Crypto Really Being Adopted by Society? (Read 147 times)

Institutional influence is not a separate type of force. There's only two types - speculation and adoption. If someone buys with a goal of selling later, they are speculating. If someone buys and plans to pay with Bitcoin, they are adopter. Institutions are most likely speculators - they will dump Bitcoin when the price goes high. Tesla already did that. Microstrategy says they are maximalists, but only time will tell if they actually want to use Bitcoin, or if they wait for opportunity to dump it.

If majority of the market is speculators, then it explains why the price is so volatile, and it means a bleak future for Bitcoin - eventually speculators will move on to a new asset and Bitcoin will crash.

Depends on the coins.

Decentralized coin e.g. Bitcoin and Monero, the price is determined by demand and supply, no one is controlling the price.

Centralized coin e.g. Ethereum, XRP, etc, the price are determined by the creator, team, demand and supply. This is because centralization has a risk of manipulation.

Stable coin, the price is determined by the team because they need to burn and increase the supply to make the price stable at $1.

It is only bitcoin that has the potential to all what you said OP and not any cryptocurrency. What really influence the price of bitcoin is demand and supply and no matter the manipulation in the market and adoption,it still boils down to demand and supply. When more people adopts bitcoin, the demand increases and there will be shortage of supply. This is the reason why it is advisable to give bitcoin awareness to people so that they can also buy bitcoin. That is why you see that if bitcoin is accepted by all countries,the price will be very high because the demand is higher than the limited supply.

When it comes to the crypto market, it's pretty clear that speculation and the influence of big players have a role to play. But what's still up for discussion is exactly how much they drive those wild price swings. And while cryptocurrencies have this exciting potential to completely shake up the way we do finance, the reality is that they haven't quite taken off in everyday use just yet.

I gotta say, as this whole crypto world keeps changing and evolving, it's gonna be pretty interesting to see how these factors pan out. Personally, I think the real trick to making crypto a success down the road is finding that sweet spot between people buying them like crazy and actually using them for real stuff. Like, if you can use crypto to buy stuff or keep your money safe, then they're way more likely to become a regular thing for everyone. But if they just end up being something folks buy and sell without much actual use, then who knows where they're headed in the long run?

Yes, I totally agree with you on what you just said, because likewise not only do demand and supply affect to basic economic strategy (i.e the price of goods & services), but it's also applicable to Bitcoin, whereby the higher it's demand, the more its price is likely to increase due to it's limited supply and likewise the lesser it's demand, the more the price is also likely to drop too, and as such cover all other factors such as speculation, cost of mining equipment & e.t.c..

It doesn't matter who controls the price of bitcoin the real deal about bitcoin is its acceptability in our society increasing day by day. There was a time when people used to call it scammer coin. Most of the user of the Bitcoin network was miners, gamblers, hackers, and drug dealers because of its privacy and decentralized manner. Now the situation has changed and it has come to the national level. Some small countries have already declared bitcoin as legal tender and some wanted to. Countries like Bhutan wanted to mine bitcoin because they didn't have much income source for their country. A few years back no one even thought there would be govt backup Bitcoin mining firm one day. Now many will call me mad but I will not be surprised if in the future the world will use Bitcoin as one of the research currencies for the bank.

This will be the normal experience to always expect from the people, they will have a second thought towards cryptocurrencies but if you're been specific here, you will know that the area to center this discussion about is bitcoin exempting other cryptocurrencies, what drive bitcoin price is totally different from what drives other cryptocurrencies, the people may know this while some may not because of their level of exposure on how bitcoin differs from every other cryptocurrencies, the market demands and supply drives bitcoin price, the stakeholders make decisions on other cryptocurrencies and uses their investment to drive the decision on the crypto project they support in cryptocurrency unlike bitcoin which rely only on it network.

Talk directly about bitcoins, not cryptocurrency in general.

Bitcoin does not just promise revolutionizing the traditional financial system, bitcoins is already doing it.

It is still a matter of contention because of how some people have adopted and accepted the opinion of the most governments and some other individuals about bitcoins. There will be more practical usage for bitcoins when it becomes accepted by the people who are pushing the false narrative of it's unreliable nature.

Let me respond to you through your subheadings or your caution  of your thread. Its understanding very obvious that bitcoin have to increase in two things and this two is what affects the price of bitcoin respectively, the first is the demand of the demands market, second is the supply of the market, if bitcoin is being demanded more it triggers or being an effect on the bitcoin market of bitcoin and the price will increase, while when the supply in the market is of higher potential than the demands it also involves in decreased of bitcoins price in the market.

Also, mining facilities affect the price of BTC. Mining network is the key factor contributing to transaction speed. Stability of the system also depends on the improvements of protocol, which can efectively reduce the amount of data exchage. The other factors also include inflation rates of main fiat currencies and adoption rates.

Op, first of all, you are talking about the general term cryptocurrency so, while you are talking about cryptocurrency it covers the coins, tokens, and other aspects of the market We can say that this is still not getting global attention, for now, you need to be centered around the Bitcoin better we if you replace the points of discussion with the Bitcoin rather then the Cryptocurrency, otherwise you can move the topic to the Trading discussion or Altcoin where you can have a brief feedbacks related to the general term cryptocurrency.

For the points OP you are talking I can give a good answer from the Bitcoin perspective but as in above I had said you are using the term cryptocurrency so in cant be specific in my answer.

Take note that it is not all cryptocurrencies that are decentralized p2p money that is different from the current financial system, this very use case is for BTC and not all crypto which includes altcoins and tokens. Cryptocurrencies that have utility are being adopted for all the use cases they offer, while there are some coins which are only useful for speculation.

The difference between speculation and utility is clear, a coin like BTC has its utilities, and speculation is one of them, because you can buy it and expect to sell it for a higher price later, but that's not its only utility, it is also decentralized money. But there are certain coins that are only useful for speculation, and because they lack any real utility, they don't get any adoption and they become useless after sometime. BTC is fulfilling its potential because people spend it, trade it p2p and also use it for local and cross-border payments without any censorship or need for permission.

Cryptocurrency has become a global phenomenon, capturing the attention of investors, tech enthusiasts, and the general public alike. As digital currencies continue to gain prominence, a hotly debated topic revolves around the driving forces behind their prices and the level of adoption they have achieved within society. In this article, we delve into the controversial question: "Who really drives cryptocurrency prices, and is cryptocurrency truly being utilized by the masses?"

The Speculation Factor:

One of the primary factors contributing to the volatility of cryptocurrency prices is speculation. Unlike traditional financial markets, the cryptocurrency market operates 24/7, allowing traders and investors to engage in continuous trading activities. However, this non-stop trading environment has also given rise to rapid price fluctuations, which are often driven by speculative trading rather than fundamental factors.

Critics argue that the extreme price volatility associated with cryptocurrencies makes them less suitable for use as a stable medium of exchange or a reliable store of value. Instead, they contend that cryptocurrencies are being predominantly treated as speculative assets, resulting in a market that can be easily manipulated by big players and whales.

Institutional Influence:

The entry of institutional players into the cryptocurrency space has further fueled the debate about price drivers. High-profile endorsements, investments, and partnerships involving major financial institutions have led some to believe that these institutions hold considerable power in influencing cryptocurrency prices.

Advocates of this viewpoint argue that as institutions integrate cryptocurrencies into their portfolios, their substantial buying power could lead to price surges. Conversely, the sale or withdrawal of investments by these institutions could trigger price drops. This situation raises concerns about the extent to which institutional actions contribute to the inherent volatility of cryptocurrencies.

Utility and Adoption:

Proponents of cryptocurrencies often highlight their potential for revolutionizing traditional financial systems and enabling peer-to-peer transactions without intermediaries. However, critics question the actual level of adoption and utilization of cryptocurrencies in daily life.

While some businesses and platforms accept cryptocurrencies as a form of payment, the adoption rate is still relatively low compared to traditional payment methods. Cryptocurrencies face challenges such as scalability issues, regulatory hurdles, and price volatility, which can hinder their widespread use for everyday transactions. This has led skeptics to argue that the narrative of mass adoption remains largely unfulfilled, and cryptocurrencies are primarily being held as speculative assets rather than being used for their intended purpose.

Conclusion:

The controversy surrounding the drivers of cryptocurrency prices and their actual adoption by society continues to be a topic of heated discussion. While speculation and institutional influence undoubtedly play roles in shaping the cryptocurrency market, the extent to which they drive prices is subject to ongoing debate. Likewise, while cryptocurrencies offer the promise of revolutionizing traditional financial systems, their current level of adoption for practical use remains a matter of contention.

As the cryptocurrency landscape evolves and matures, it will be essential to closely monitor developments in terms of both price drivers and adoption trends. Striking a balance between speculation and utility will be key to determining whether cryptocurrencies can truly achieve their intended transformative potential or remain a speculative phenomenon in the financial world.