What makes the value of a coin?

[Jochen]

What is it exactly that makes value to a coin?
I see for example, Ripple has a marketcap of $ 2,625,623,101 but it's only 0.026 cent for 1 ripple, while Litecoin has a marketcap of $ 572,859,937 and 1 ltc is around 23$. It is because of the numbers of transaction, the number of miners, total members... ? Or is it because ripple has a total supply of 99,999,998,252 XRP and Litecoin as an example only 24,312,642 LTC? Very newbie question for most of you i guess but yea

Grtz,

[peat]

test

[btcmonster]

the supply and demand control the price more supply and less demand = cheaper coins

[guybrushthreepwood]

What is it exactly that makes value to a coin?
I see for example, Ripple has a marketcap of $ 2,625,623,101 but it's only 0.026 cent for 1 ripple, while Litecoin has a marketcap of $ 572,859,937 and 1 ltc is around 23$. It is because of the numbers of transaction, the number of miners, total members... ? Or is it because ripple has a total supply of 99,999,998,252 XRP and Litecoin as an example only 24,312,642 LTC? Very newbie question for most of you i guess but yea

Grtz,

Well, those are rated by market cap, not value. Ripple also looks to be a massive scam.

[coinspoolco]

Well, the answer is same for the question : What makes the gold value ? It has no major use, but still people accepted it as a valuable metal. So coins has value because people accept it as a value, and can be generated only with work. The answer for the other question, the difference between the prices are mostly because of the difficulty to gain one, and the popularity of the coin.

[akujin]

Popularity?  

[hilariousandco]

Well, the answer is same for the question : What makes the gold value ? It has no major use, but still people accepted it as a valuable metal. So coins has value because people accept it as a value, and can be generated only with work. The answer for the other question, the difference between the prices are mostly because of the difficulty to gain one, and the popularity of the coin.

Gold has intrinsic value for several reasons. It's a precious metal for a start, and can be used to make things like jewellery and teeth etc.

[coinspoolco]

The consumption of gold produced in the world is about 50% in jewelry, 40% in investments, and 10% in industry.
In 2012 there was 3163tonnes of gold consumed, and actually 10% of it was used for industry which should have target its price, because only industrial use of gold grows the economy.

There was nearly 20.000 tonnes of copper consumed in 2012, and the major % of it went to the industry.
So actually its the people who are making something valuable.

[peat]

WHile I wrote this a few others replied as well

Jochen

Intro
I am a financial person more than a cryptocurrency person but in the interests of getting my postcount up I will advise that :

Market capitalisation is the value ascribed to the business (or currency in this case) which is calculated by the number of shares times the market value.  So if Company XYZ has one billion shares and the price on the sharemarket is $40., then mkt cap is $40b.

As market price fluctuates so does the ascribed value  - sometimes quite dramatically.

[batoelrob]

Things like; first coin, development team, transaction speed, marketing

[zackclark70]

nowdays people buy every and any junk coin ( coins are getting 1,000,000 usd in less than a week even when there total junk lol

[pao_de_lo]

increased demand, higher price

maior procura, maior preço


I'm from Brazil

[Flashman]

The most basic point however, is that something is worth whatever someone else is willing to pay for it.

What someone is willing to pay, has some component of expected future value. Thus when there looks to be obstacles to adoption looming, either governmental indecision or governmental obstruction the prices tend to fall.

[peat]

I need convincing that the mkt cap of a currency or coin is comparable to that of a listed company.
The use of market cap  doesn't have the same relevance in ascribing value to a medium of exchange as it does to a profit seeking enterprise.

However the following relevant saying surely does apply
It is quite common for people to ask why the price of a share went up of down and people will ascribe reasons however the only absolutely true and inescapable reason is that more people wished to buy it than sell it. '

[trl55238]

What is it exactly that makes value to a coin?
I see for example, Ripple has a marketcap of $ 2,625,623,101 but it's only 0.026 cent for 1 ripple, while Litecoin has a marketcap of $ 572,859,937 and 1 ltc is around 23$. It is because of the numbers of transaction, the number of miners, total members... ? Or is it because ripple has a total supply of 99,999,998,252 XRP and Litecoin as an example only 24,312,642 LTC? Very newbie question for most of you i guess but yea

Grtz,

Since it's not backed by a physical commodity. The value of cryptocurrency is derived from the relationship between supply and demand. The supply side is determined by the original dev's specifications for production of the coin, in conjunction with the ability of individual(s) ability to produce that coin. Rarity, in this instance, is what has attracted so many. On the demand end of the equation, it is determined by the usability/utility of the coin in addition to the speculative value --that is, the value each individual, and therefore the collective market, place on it for their myriad reasons. The ability to make fast, quasi-anonymous payments across the globe for low fees is what attracted many to Bitcoin in its infancy. Obviously, it has presently grown past that seemingly single use as proven by its recovery from the closure of a certain large black market website.