system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How is a currency's "value" determined?
gpt
Supply and demand.

If the demand for a certain type of currency increases (i.e. more people want it) and the supply stays constant, the value of the currency increases.

Conversely, if the supply of a certain type of currency increases (i.e. more of it is created) and the demand stays constant, the value of the currency decreases.