How is the Price of Burstcoin Determined?
Many people ask why the price of burstcoin is always going up and down so quickly. Here I will explain some very basic factors that cause burstcoin's price to change.
The main factor that causes any free market oriented entity to change price is supply and demand. Supply, in burstcoin's case, is people that own burstcoin and are trying to sell their burstcoin for a given price, and demand is people that own a different currency and are trying to buy burstcoin with said currency. Supply and demand can be thought of as a tug of war where both sides are trying to move the market one way and the middle of the rope is the current price. Supply and demand can be changed by many factors which include:
- News about burstcoin - good news equals more people wanting to buy which increases demand and bad news equals more people wanting to sell which increases supply.
- Individuals - because burstcoin is a relatively small project at the moment, individuals with only a couple thousand U.S. Dollars can affect the market.
So why does burstcoin's price change so quickly? Because of the small size of burstcoin and easy manipulation of price by individuals, supply and demand can be changed very quickly. In bitcoin's early days price changed much faster than burstcoin's. So whenever you see a 20% drop in price in one day and get worried, don't be. Burstcoin is not just filled with a lot of people who want to make money and that's all. We are a community of people who think that this coin is a good idea and that the idea behind this coin is superior to many other coins out there.
By Stupendelious - Donations: BURST-YGPR-RXJ2-XLT3-BKBZP
Thanks for the simplified information about Burst markets, stup. Here are some more tips:
- Often, altcoins such as Burst are affected inversely to the price of Bitcoin, since Bitcoin is still King of the hill. So, it can be wise to check Bitcoin's price development if you are curious about big movements in altcoins.
- If you are currently mining a lot of burstcoins, and want the value of Burst to rise, you do well to hold and not sell on the market. This way you don't contribute to strengthening market supply at low prices, which typically brings the price down.
- Instead of leaving your coins in your wallet, try to reinvest them in assets that are considered safe in Burst's integrated Asset Exchange. Many of these work in such a way that supports the price of Burst, while paying back dividends to the asset investors. This is a complete win-win situation for hodlers of Burst.
Good projects will keep or fire up interest in anything in this world. :)