From the answers in the chat to the questions "what is fundamental in crypto"
- Is there a fundamental in crypto?
- Yes, Crypto is just a financial market, and the fundamentals in all financial markets are the same
Demand/supply and the impact of demand and supply on value formation.
Cryptocurrency is no different from the stock market except for its scale and regulation; these are exactly the same companies that have tokens instead of shares, and depending on how the company develops, the ratio of supply and demand changes, which forms the price.
You came to the exchange and bought a coin there, there was a demand for the coin.
You came to the store, bought rice and created a unit of demand for rice.
The store sold you rice - it met your demand with its supply.
At the exchange they sold you a coin and satisfied your demand with supply.
The point here is that it doesn’t matter what there is demand for, if there is one.
If some buy and others sell, it doesn’t matter what it is, the value of any product depends on the difference between supply and demand.
Crypt, rice, flour, shells, services, tarot cards, moon plots or urine for urine therapy.
And there are exactly the same stages as in any financial market, ever since people learned to exchange resources for services and to form a price for a product or service in shells.
High demand and lack of supply - growth
Huge supply and no demand - fall
Demand that is immediately satisfied by an equal supply is a sideways movement.
And the reasons that influence the changes are the same, from advertising campaigns of individual projects to the political situation.
The difference between the stock market and crypto as I wrote above is the lack of full regulation and a very small scale, this makes the market more volatile and the risks of scams of individual projects are higher.
But the fundamental is the same.
Accordingly, the fundamentals of all financial markets are the same and it is important to spend time studying them.
