Jasz
VIP Contributor
Cryptocurrencies aren't immune to the law of supply and demand. When the supply is high and demand is low, prices fall. With that in mind, it makes sense that many people are wondering why anyone would still be buying cryptocurrencies when their value has dropped so drastically.
The answer is simple: there are still many reasons to buy cryptocurrencies today. First and foremost, there's the fact that cryptocurrencies have a finite limit on how many will ever exist. This is known as "cryptographic scarcity". This means that as more people invest in crypto, the finite supply of crypto increases in value.
This creates a sort of self-fulfilling prophecy, the more people invest in crypto, the higher the price rises; then, when the price falls again after reaching a peak, those who invested at its height are left with tokens worth less than they paid for them initially but still more than they would've been worth had they not invested at all. So even if you bought some cryptocurrency when it was at its peak price, you could still make money by selling those coins back on an exchange in future because they're worth much less now than they were then.
The answer is simple: there are still many reasons to buy cryptocurrencies today. First and foremost, there's the fact that cryptocurrencies have a finite limit on how many will ever exist. This is known as "cryptographic scarcity". This means that as more people invest in crypto, the finite supply of crypto increases in value.
This creates a sort of self-fulfilling prophecy, the more people invest in crypto, the higher the price rises; then, when the price falls again after reaching a peak, those who invested at its height are left with tokens worth less than they paid for them initially but still more than they would've been worth had they not invested at all. So even if you bought some cryptocurrency when it was at its peak price, you could still make money by selling those coins back on an exchange in future because they're worth much less now than they were then.