t’s really quite simple: If enough people agree that something is valuable, it becomes valuable. That was how ancient currencies like gold or even cowrie shells derived their value, and this applies to the value of artwork. It doesn’t matter why people desire something, only that the desire exists in high enough volumes. This is the point at which economic value is generated.

The given price of an underlying asset will depend on the characteristics of the market and, just like many central bank currencies, each token in the crypto space has different characteristics to prevent depreciation and help retain its value in the market. CoinDesk

Topics: Fungibility Durability Portability Recognizability Stability