2 Key Factors For Sustainable Asset Growth


Source: Tom Fisk

What determines the value of an asset?

"Many things", is a common short answer to this question and while it's true, let's discuss the two factors I find most important for sustainable growth, where real supply and demand dictates the price of an asset.

Supply and Demand

This is, in my opinion, one of the most decisive factors for the sustainable growth of an asset. Speculation plays a significant role in creating liquidity of an asset, rarely resulting sustainable growth in price.

Without any intervention, the law of supply and demand suggests that the demand of an asset increases as the supply decreases and inversely, decreases as the supply increases. In other words, the demand will be lower at a higher price (Surplus) and higher at a lower price (Shortage).


I think it's very important to note here that an enormous supply is not an Achilles heel for an asset that has a fixed max supply with a good product and usecase. What's important is the percentage of the supply you own and the marketcap at your average entry point. I.e. 1 out of 100 is the same as 10 out of 1000

Effective Marketing

Marketing creates awareness and external interest in a product, this is very important in a competitive and constantly evolving industry. With so many projects competing against each other, many good projects go unnoticed as a result of poor marketing.

It's been proven countless times, good marketing is the best way to survive a flooded market; when the demand for diamonds were on a decline, De Beers launched what is one of the most successful marketing campaigns the world has ever seen - The "A Diamond is Forver" campaign

The brilliant concept was to create an emotional link to diamonds, the sentiment being love, like diamonds, is eternal.

It is alleged that De Beers manipulated the diamond market by controlling the supply to create a false sense of scarsity, however with cryptocurrency being decentralised, the supply can't really be hidden to create an illusion of scarcity.

Share your opinion on what drives price below 👇


The diamond cartel is real.

100%. its a bit better now that De Beers doesnt control the monopoly but its definitely still alive and well