Cryptocurrency has both speculative value and utility value. Speculative value refers to the perceived worth of the cryptocurrency based on market demand and supply dynamics. For example, the value of Bitcoin may go up or down depending on how many people are interested in buying or selling it.
On the other hand, utility value is derived from the cryptocurrency's ability to serve a specific purpose such as acting as a mode of payment or facilitating cross-border transactions. For example, the utility value of Ethereum lies in its smart contract capabilities which can be used for a variety of purposes such as crowdfunding and digital asset management.
Therefore, cryptocurrencies have value based both on their speculative potential and their utility functions.
Release time 2023 06 02