What makes the value of an asset grow? Is it the market demand? Or maybe the asset supply? Or because the asset is popular or has great use cases? In my opinion, all these things play a role in deciding whether or not an asset is worth growing. The same is true for cryptocurrencies.
In this article, we will try to understand what makes the Libra coin a growth-worthy cryptocurrency by discussing the factors that affect the coin’s value and growth. Let’s get started.
Factors that affect the growth of a cryptocurrency
There are many factors, small and big, that might affect the value and future growth of a coin. Some of these top factors include coin supply, demand, use cases, and the project/product behind the coin.
If the supply of a cryptocurrency is limited, its value will certainly increase over time given that the project has a good and consistent demand in the market.
The demand is certainly a major factor in deciding the value and growth of a coin. The higher the demand for an asset, the higher will be its value and the more likely it will grow in the future.
More than anything, the usability of a coin is what affects its price. If crypto has no real use, it will likely lose value over time, as compared to a coin with real use cases. For example, bitcoin is a digital currency that is accepted in many countries and can also be used for payments across several online/offline merchants, which is the reason why crypto is growing.
Another thing that makes a crypto growth-worthy is how unique it is and what type of problem it solves and how. For example, ETH was the first coin to enable the development of smart contracts and DApps, which makes it quite unique and popular.
In addition, the value and future of a coin also depend on how powerful the project or the product behind the coin is. Whether there is a real demand and market for the coin. If not, the crypto will likely lose significance over time.
Why Libra Coin is a Great Coin with a High Potential to Grow
Libra coin is a powerful digital payment currency backed by the Libra Ecosystem and designed to be usable across a variety of online/offline merchants for quick & secure payments globally.
Libra coin has a fixed maximum supply, which means the coin value will keep increasing at a steady pace because of healthy market demand and a global community of thousands of users.
Most importantly, the Libra coin has a significant range of use cases in the form of the type and number of venues where the coin can be used. For on, Libra is the native coin for the Libra e-commerce ecosystem and powers the entire operations, including all transactions within the Libra platform. It can be used by buyers and sellers on the Libra platform to transact with each other with complete privacy and security. It will allow e-commerce merchants and traders to accept quick & secure payments from their customers using cryptocurrencies. In addition, the Libra coin will also empower the future products & services of the ecosystem, including the Libra Pay, Libra Exchange, Libra Marketplace, ATM, Libra Card, PoS, and others.
Also, Libra is backed by a powerful team of blockchain experts and investors who believe in the project and will do everything to see it grow. So, investors can relax and know that their investments in the Libra coin are safe and will grow consistently with time.