Crypto assets are increasingly popular as part of an investment portfolio. Price movements that offer attractive potential returns are one of the main reasons investors are interested in collecting these assets. However, many still question how digital assets like crypto can have value. This article will discuss the main factors that make crypto assets valuable and worthy of investment.
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Factors That Make Crypto Valuable
1. Scarcity
In economics, the value of an asset is determined by two main factors: scarcity and utility. Scarcity means the asset has a limited supply. In the case of crypto, many assets have a maximum supply that cannot be increased at will, such as Bitcoin, which has a limited supply of 21 million coins.
This scarcity makes Bitcoin and other crypto assets more valuable than other assets that can be produced without limit, such as fiat currencies. Moreover, unlike gold, which can still be found and mined, Bitcoin's supply has been set from the start. Therefore, the more people want Bitcoin, the more its value tends to increase.
2. Utility and Use of Crypto
The value of an asset also depends on its utility. Crypto has various functions, such as store of value and digital transactions. As a store of value, Bitcoin has proven to maintain and increase its value in the long term. For example, in 2016, Bitcoin price was only around 400 US dollars, but now in 2025, its price reaches 82,000 US dollars.
In addition, cryptos like Ethereum have broad utility in the digital finance world. Smart contract technology enables the development of decentralized finance (DeFi) applications, NFTs, and various other blockchain-based services. As this ecosystem grows, the demand for crypto increases, which ultimately contributes to the increase in its value.
3. Blockchain Technology
One of the main factors that make crypto valuable is the blockchain technology that supports it. Some of the main advantages of blockchain include:
- Transparency: All transactions are recorded in the blockchain network and can be accessed by anyone, increasing trust and security.
- Decentralization: Unlike traditional financial systems controlled by certain parties, crypto operates on a peer-to-peer network without a central authority, making it more resistant to manipulation and censorship.
- Borderless: Crypto enables cross-border transactions without the need for currency conversion or the involvement of third parties like banks.
With these advantages, many people see crypto as a more efficient financial alternative than traditional systems, which further increases its value.
4. Public Trust and Perception
In the field of economics, the value of an asset is often determined by public trust. Fiat currencies hold value because people believe they can be used as a medium of exchange. The same principle applies to cryptocurrencies. As long as the public continues to trust and use crypto, its value will persist.
This trust extends beyond the asset itself to its entire ecosystem. For instance, Ethereum has value not only because Ether can be used as currency, but also because a wide range of applications and projects are built on the Ethereum blockchain. Additionally, factors such as community support, technological development, and institutional adoption significantly influence public perception of cryptocurrencies.
Read also: Gold-Based Crypto Investment: Understanding How It Works
Crypto has value due to various factors, such as scarcity, utility, blockchain technology, and public trust. With the increasing adoption of crypto, the potential of this asset as an investment is growing stronger. However, it is important to understand the risks involved and always do your research before investing.
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Source:
Cryptocurrency Explained With Pros and Cons for Investment. Accessed in 2025. Investopedia.
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