<s>[INST] How can you determine the value of a cryptocurrency? [/INST] Most often the value of a cryptocurrency is based on supply and demand. If there's a surplus, the price of a coin might drop. This might happen when a large amount of currency is offered for sale. When there is a lot of demand, the price of a coin might rise.

For example, the base price of a Bitcoin at the moment hovers around the combined cost for mining a coin. This is to be expected, because if the price drops below the average cost of mining a coin, less efficient miners will stop mining. This will lower supply, raising the price and thus compensate the price up to the supply/demand equilibrium.</s>