Cryptocurrencies are difficult to value. They are not imbued with value through technology alone. Rather, it’s the market of buyers and sellers that determine the value. Today the market contains an abundance of speculators whom create wild oscillations in the values of cryptoassets. In theory, the market will mature and converge on appropriate valuations over time. To get there, the market will need a larger userbase that is not concerned with speculation, but real use.
Many variables factor into which cryptos people value and purchase. Brand, scarcity, and network effect are elements that keep Bitcoin in the lead for the moment. However, it’s possible that more expressive technology from Ethereum or other upstarts will eventually reign supreme. Other differentiators such as scaling could crown the ultimate winners.
