Uncommon Factors That Drive a Cryptocurrency’s Price

Cryptocurrencies offer a unique and secure way to conduct transactions online, without the need for a third party. However, not all cryptocurrencies are created equal. That’s because different cryptocurrencies have different strengths and weaknesses. As a volatile asset, cryptos have been associated with increased risk to users. One of the most important factors that determine a cryptocurrency’s price is its supply and demand. In this article, we’ll explore some of the uncommon factors that drive the price of a cryptocurrency. Internal Factors Hash rates Hash rates are figures used to map the computation power available on a given blockchain network via mining. They are the indicators used to assess the health of a given blockchain network. A hash rate is an integral facet of cryptos and the blockchain system that serves as the backbone of any cryptocurrency. Hashing enables the blockchain network to run and validate data stored on the distributed ledgers of the crypto. Thus, while being an integral part of the network, hashing is often regarded as a maintenance aspect of blockchain networks. The networks’ hash rate is subject to fluctuations that stabilize and have minimal effects in the long term. However, this feature has in the recent past showcased its influence on the price of crypto. In the case of ethereum, the network’s hash rate decreased dramatically. This lowered the network’s computing power like never before lead...