How Is Cryptocurrency Valued Training Ppt

Slide 1

This slide illustrates that even as cryptocurrencies are generally decentralized; their value is derived from sources, such as Supply and demand, Production costs, Exchange availability, Competition, Governance, Regulations, and The Team & The Community behind it.

Slide 2

This slide lists that the value of cryptocurrencies is determined by supply and demand. in its simple and most universal form. When demand exceeds supply, cryptocurrency increase in value.

Slide 3

This slide highlights that mining is the process through which new cryptocurrency tokens are created. Verifying the blockchain necessitates the use of computing power. To mine Bitcoin, participants invest in pricey equipment and power. As mining expenses rise, the value of the cryptocurrency increases as well. Miners will not mine if the value of the money they are mining is insufficient to cover their costs.

Slide 4

This slide states that when a cryptocurrency gets listed on additional exchanges, it increases the number of investors ready and able to purchase it, raising demand. Everything else being equal, when demand rises, so will the price

Slide 5

This slide highlights that there are dozens of cryptocurrencies, with new projects and tokens being launched daily. The barrier to entry is low for “newbies”, but producing a sustainable cryptocurrency also requires growing a network of cryptocurrency users

Slide 6

This slide states that cryptocurrency networks seldom follow a rigid set of rules. Developers modify projects in response to the community that utilizes them. Some tokens, known as governance tokens, allow holders to vote on how a token is mined or used in the future. To make any modifications to the governance of a token, stakeholders must reach an agreement.

Slide 7

This slide explains how regulation is essential to facilitate cryptocurrency trading. ETFs and futures contracts provide investors broader access to cryptocurrencies, enhancing their value. Regulation may also allow investors to take short positions or gamble against the price of cryptocurrencies via futures contracts or options. This should result in improved price discovery and lower volatility in cryptocurrency prices.

Slide 8

This slide highlights that the reputation and experience of a project's team can substantially impact its success or failure. A red flag is if the team is not freely disclosed (bitcoin is the exception). You should also consider the team's previous expertise in the crypto sector and other projects they've worked on. Projects with well-regarded CEOs or collaborations with established businesses are other signs of success.

Slide 9

This slide states that the community that supports the initiative determines many crypto projects' viability. The passion and  the size of the community play a big part in the project's early and ongoing success, yet you should be cautious while evaluating a currency or token.