She noted that the Tinkerbell effect, which describes things that are thought to exist only because people believe in them, plays a significant role in determining the value of BTC and other cryptos. To this end, Laboure believes it is difficult to specify the exact value of the flagship cryptocurrency.
Factors driving BTC’s growth
However, she believes four factors are responsible for pushing BTC’s price up and down over the years. The first aspect is psychology. Like in the case of diamonds, Laboure believes the price of BTC and other cryptos will rise depending on what people think it is worth.
The second factor is demand and supply. With BTC having a fixed cap of 21 million coins, she believes it will continue soaring as demand increases. At the moment, more than 90% of BTC’s supply is in circulation, meaning demand will increase exponentially.
Another aspect is regulation, which Laboure believes is coming soon. She pointed out that clear guidelines in the nascent asset class might help onboard more users. Regulators and lawmakers have previously called for the swift regulation of the crypto space, especially after TerraUSD (UST) and Terra (LUNA) imploded.
Finally, she spoke about volatility, noting that the crypto market has been volatile for many years and is unlikely to change soon. However, Laboure believes friendly regulations will help increase the crypto space’s liquidity, thus reducing volatility.
Laboure said financial literacy is…
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