The price of Cryptocurrency fluctuates on a daily basis just like any other asset traded on the stock market. Nonetheless, The top 5 Most expensive cryptocurrencies have managed to reach a combined Market Cap of more than $300 Billion.
The price is set by the supply and demand of an asset. If the demand is high and the supply is low, the price will go up. On the other hand, if the demand is low and the supply is high, the price will drop.
However, the supply of most of the Cryptocurrency is limited. For example, the limit to Bitcoin is 21 Million. Which means there will never be more than 21 Million Bitcoins in existence.Which means the factors that primarily affect the Demand for Cryptocurrency drives its price.
These factors include its Scientific value, Technical Value–Censorship resistant, Social Value– Public Decentralized ledger. Due to these factors, individuals are putting their trust in this asset and eventually playing a big role in its boom.
The US dollar has intrinsic value as the Government accepts it. Similarly, gold has intrinsic value as it is used to make jewelry. These two assets have a certain purchasing power which helps in gaining the trust of normal people. But on the other hand, Cryptocurrency has no intrinsic value. So, how did the price of Cryptocurrency increase this much?
As people think Cryptocurrency can never be hacked or broken into, its intrinsic value has increased. People like this secure payment mechanism which is more convenient than paper money, which hides its holder’s identity, which is global, which can be accessed from anywhere on the planet.
The Top 5 Most Expensive Cryptocurrency at Present
1. Bitcoin (BTC)– Currently trading at more than $10,6oo.00 (04:30 AM GMT, 19th February 2018). It is the first peer-to-peer payment medium built upon the blockchain technology.
2. Bitcoin Cash (BCH)-Bitcoin Cash was invented to solve the problem with small block size. Bitcoin’s block size was primarily set at 1 megabyte (MB). This small size decreases the transaction processing time of Bitcoin. Bitcoin Cash is a fork of Bitcoin Classic which survived compared with its other not so successful peers Bitcoin XT, Unlimited Bitcoin. It is priced at roughly $1,500.00 (04:30AM GMT, 19th February 2018).
3. Ethereum(ETH)– Priced at roughly $935.00 (04:30 AM GMT, 19th February 2018). Like Bitcoin, Ethereum is also a decentralized blockchain network. The Ethereum network can be used to run any programming code for a decentralized application. It is also an online programming language running on Blockchain that supports the creation and operation of Smart Contracts and Distributed Applications. A recent project-Crypto Kitties, was built on the Ethereum network. You can trade and breed your own virtual cat on the network. And most interestingly the price of the cats are dependant on its uniqueness.
5. LiteCoin(LTC)- It was all set to become the next big thing. As of 04:30 AM GMT, 19th February 2018, the price of LTC token is $218.00.