Both Bitcoin buyers and sellers attention on the market is always focused on the cryptocurrency price. This is a defining factor that empowers traders to makes decisions on whether to buy or sell Bitcoins. Every day, experts make forecasts about the price based on fundamental or technical analysis and market players are closely following any news that may affect the price and value of BitcoinCT r: 10 . In this article we will try to understand what factors affect the growth or decline of Bitcoin price rates. But first, let us recall what represents the price of Bitcoin.
Bitcoin has value for several reasons: Bitcoin is money and an alternative to fiat money . Bitcoin has all the features that are inherent in money – it is divisible, durable, recognizable and most importantly, it is accepted as a payment. Unlike fiat money or gold , Bitcoin has no physical embodiments and is not backed by physical items but rather it has a mathematical and technical basis.
People trust in this currency and this trust is increasing.
Bitcoin is already a common means of payment among its users, and its acceptance ia spreading fast too.
The cost of Bitcoin is determined by its users, and only by them.
Factors that affect the price
Now let’s try to find out what factors affect the growth of the Bitcoin price. The price of any currency or commodity, as it is known, is determined by supply and demand.
The first factor that affects the price of Bitcoin, in our opinion, is its limitations, both in quantity and in production time. The total number of Bitcoins has long been known – only 21 million. Thus, the time at which newly created or mined Bitcoins will be available is predictable, and the production rate is decreasing. This […]
