The price of Bitcoin has fluctuated wildly over the last several months. Several factors affect the price. Some factors are related to the level of utility. Mark Yusko, founder of Morgan Creek Capital, predicts that Bitcoin will be worth over $400k in the long run. Ultimately, the price of Bitcoin reflects the level of utility it holds. However, one thing that hasn’t changed is its decentralized nature. Those factors can affect the price at any point in time.
It is a decentralized currency
There are many factors that affect the Bitcoin price. First, the currency does not have a central authority to guarantee a minimum value. This means that if a large group of merchants leaves the system, the Bitcoin price will drop significantly. This can be a disaster for users who have significant amounts of money invested in Bitcoins. So, while the decentralized nature of Bitcoin is a blessing, it can also be a curse.
It is influenced by the level of utility
In the present study, we tested whether shelf price reflects consumer preference for the level of utility and whether it is influenced by the informational reinforcement of a brand. We found that the utility for biscuits was higher than for baked beans and fruit juice. However, the utility for baked beans was not different from other products. Likewise, biscuits have higher utility than fruit juice. This study also reveals that consumer preference for the level of utility reflects a brand’s appeal.
The average utility of the biscuits was similar across the three time periods. The biggest difference was found between the second and third period for biscuits, where the difference was as high as 2.79 (8.75% of the smaller value).
The marginal utility of a good or service decreases as more is available. A person may receive 10 utils for the first slice of pizza but will get less when he eats two more slices. The inverse relationship between the price of a good and the quantity that society will purchase is based on this theory. It has been used to calculate the prices of many products, including those that are free of charge.