How cryptocurrency price changes

For most cryptocurrencies, price changes can be tied to the concept of demand and supply. The price will normally fall when the demand by the traders is lower than the token supply, and rise when the demand is higher and the supply is limited. The usefulness of the token and the difficulty in mining affects the coins supply and demand, thus influencing the price changes. A difficult mining process limits the coin supply, thus increasing price pressure when the demand is high. The price will also change depending on the hype and human emotions which drive demand. Negative publicity leads to a decline in the cryptocurrency’s prices due to reduced demand, while a positive publicity results in a greater adoption, thus resulting in an increase in the prices. Previously we used the phrase “for most cryptocurrencies”, but there is also a type of token called a “stable” coin whose price is tied very closely to the value of some government-issued fiat currency. IN THEORY, the price of these types of currencies is super stable and never changes much. A currency called Tether is one single example of a stable coin tied to the US dollar.