Hey guys. I need a bit help in understanding how the value of a digital currency fluctuates. I noticed two things which may be just coincidence. Can anyone explain? 1) When dollar value falls so does decred's. 2)When ticket prices become very high, decred's value reduces. Thanks in advance.
Value of any crypto currency is depend on exchanges they are on (Like ,Bittrex,poloniex,etc) . When coin is added on exchange, trading starts from 0 . For now you can only trade BTC with decred . Ticket price should not affect Decred price .( But now when ticket price is high people desperately try to invest and multiply there DCR as they can not buy ticket at high price, because of that supply of decred increases on exchanges and as decred is new in market demand is not that much thats why price of decred falling . this could be the reason if u think price of ticket affects decred price)
1) That makes sense. Currently DCR is tied to BTC which is tied to USD so both USD and BTC price will affect the price of DCR. 2) I can't say I've seen that. If you at https://dcrstats.com/ you see from the 7th to 9th of March when the ticket price drastically increased, so did the price of DCR. Similarly when the ticket price dropped there was no noticeable change in the price of DCR that could be attributed to the ticket price. I think that's just coincidence. Overall, don't let the current price drop bother you. I'm actually going to be buying a bunch as soon as my ID clears on an exchange. The coin is still new so it's finding it's price. Once people see its advantages and that it will be around to stay, it will go up in the future.