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Cryptopricing: Whence comes the value for cryptocurrencies and NFTs?

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  • Zhang, Z. John

Abstract

This article provides a critical review of pricing issues related to cryptocurrency and NFTs from a marketing perspective and tries to answer the question of whence comes the value for cryptocurrencies and NFTs. It shows that the value for a cryptocurrency like Bitcoin hinges on the collective belief in the marketplace in its long-term survival as a store of value and a unit of exchange. As such, the belief can give rise to a plethora of pricing equilibria for Bitcoin, and it can also be swayed by many demand factors. Consequently, Bitcoin prices will beset with uncertainties and speculations for the foreseeable future and can swing widely and wildly at times. However, the plethora of pricing equilibria also suggests that it is unlikely that Bitcoin may suddenly disappear after its long, successful run so far. In contrast, NFT prices find their value bases not so much in the collective belief in NFTs as a viable product category, although there are many reasons for optimism in that regard, but in the willingness to pay by individuals that depends on many familiar and well-studied factors. This article proposes many pricing-related research questions.

Suggested Citation

  • Zhang, Z. John, 2023. "Cryptopricing: Whence comes the value for cryptocurrencies and NFTs?," International Journal of Research in Marketing, Elsevier, vol. 40(1), pages 22-29.
    • Handle: RePEc:eee:ijrema:v:40:y:2023:i:1:p:22-29
    DOI: 10.1016/j.ijresmar.2022.08.002
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    References listed on IDEAS

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    1. Dowling, Michael, 2022. "Fertile LAND: Pricing non-fungible tokens," Finance Research Letters, Elsevier, vol. 44(C).
    2. Reto Hofstetter & Emanuel Bellis & Leif Brandes & Melanie Clegg & Cait Lamberton & David Reibstein & Felicia Rohlfsen & Bernd Schmitt & John Z. Zhang, 2022. "Crypto-marketing: how non-fungible tokens (NFTs) challenge traditional marketing," Marketing Letters, Springer, vol. 33(4), pages 705-711, December.
    3. Dowling, Michael, 2022. "Is non-fungible token pricing driven by cryptocurrencies?," Finance Research Letters, Elsevier, vol. 44(C).
    4. Ko, Hyungjin & Son, Bumho & Lee, Yunyoung & Jang, Huisu & Lee, Jaewook, 2022. "The economic value of NFT: Evidence from a portfolio analysis using mean–variance framework," Finance Research Letters, Elsevier, vol. 47(PA).
    5. Xia, Yufei & Li, Jinglong & Fu, Yating, 2022. "Are non-fungible tokens (NFTs) different asset classes? Evidence from quantile connectedness approach," Finance Research Letters, Elsevier, vol. 49(C).
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    Cited by:

    1. Zhang, Xu & Naeem, Muhammad Abubakr & Du, Yuting & Rauf, Abdul, 2024. "Examining the bidirectional ripple effects in the NFT markets: Risky center or hedging center?," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    2. Ante, Lennart & Wazinski, Friedrich-Philipp & Saggu, Aman, 2023. "Digital real estate in the metaverse: An empirical analysis of retail investor motivations," Finance Research Letters, Elsevier, vol. 58(PA).
    3. An, Jaehyung & Mikhaylov, Alexey & Chang, Tsangyao, 2024. "Relationship between the popularity of a platform and the price of NFT assets," Finance Research Letters, Elsevier, vol. 61(C).

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