Proof-of-work crypto prices are based on 1) mind-share 2) sentiment/momentum 3) ... | Hacker News

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		pradn on April 30, 2021 \| parent \| context \| favorite \| on: Stock Market Returns Are Anything but Average Proof-of-work crypto prices are based on 1) mind-share 2) sentiment/momentum 3) institutional backing (hedge funds and companies legitimizing them) 4) price of electricity 5) cost per hash 6) hardware supply 7) legality/illegality/regulation. Proof-of-stake currencies only lack #5, cost per hash. What I'm trying to say is that there's components to the price that can drive purchase/sell decisions.

thehappypm on May 3, 2021 [–]

No, proof-of-work crypto prices are based on supply and demand. Simple as that.

pradn on May 4, 2021 | [–]

Yes, but supply and demand can be further broken down into these and other factors.

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