Cryptocurrencies, such as Bitcoin and Ethereum, are gaining more and more value. People who invest in cryptocurrencies must first purchase them with their own money. The main way for cryptocurrencies to gain value is through the process of mining. Mining is a process that creates new cryptocurrency and verifies transactions on the blockchain. Individuals or companies that contribute computing power to mine cryptocurrency are rewarded by receiving fractions of a coin from completed computations.

Value of any currency is determined by its supply and demand. Cryptocurrencies are not physical, yet their value is determined in the same way. Supply of any cryptocurrency is limited to the number of coins that were created when it was launched. This determines that there is a finite amount of each coin available on the market. Demand for cryptocurrency will depend on how many people want to use it for transactions, which will be affected by how easy it is to use and its overall usefulness.

While the forces of supply and demand rule even in the world of crypto, here we have a scenario where as the demand increases, the value is going to increase too, and consequently that currency will be doing better.