What influences Bitcoins fate?
Feb 19, 2018 Posted / 3774 Views
Demand and supply is the dominant factor in any industry’s fate in the real world market. But is the same factor responsible for the surge and the plunge in Bitcoin’s price? What exactly influences or controls the price of the reigning and most popular digital/ virtual currency of the world? The answer to such questions cannot be summed up in few lines. The virtual world can be termed larger than life, so such factors are quite elaborate as well. There is wide range of aspects in the scenario. The demand for Bitcoin has progressively increased since its birth. Let us know about few important elements which decide the fate of Bitcoin in the crypto world.
The value of bitcoin is principally depended on the demand and supply rule. This implies that the high demand along with low supply often leads to a boost in the price. Note down that bitcoin have a restricted supply thus the entire number of bitcoins in distribution by no means be more than 21 million. Owing to the restricted supply, there are conjectures that the bitcoin price will persist to go up with time.
The media can also manipulate the bitcoin price extensively. Publicity by the media can effortlessly directly lead to a surge in the value, even as the negative reports can lead to a plunge in the price. Like for example, news related to bankruptcy on bitcoin websites as well as services can become the reason for panic amongst bitcoin users, which can lead to price dips. Negative reports regarding government regulations plus news on the utilization of bitcoin in illegitimate dealings like drug transactions, money laundering etc have a similar impact on the bitcoin price.
This can be the main factor that influences the value of this cryptocurrency notably. Even though it has gone through numerous challenges as well as critics, a lot of renowned companies plus businesses are on the track of accepting bitcoins as a method of transaction. A rise in the number of vendors accepting this sort of currency will absolutely lead to a boost in the value of bitcoin.
Every time a government makes an official statement concerning the regulation of digital currencies, the value of bitcoin is generally affected. Although the procedures of that government are not connected to the digital currencies openly, the collision will still be sensed. If there are limitations on the utilization of bitcoins, their value changes considerably. on the other hand, due to the secret nature of the bitcoin transactions, the majority of the governments are putting up firm rules to get rid of this anonymity.
This is one more chief reason that can manipulate the bitcoin value. For example, traders can from time to time buy a huge amount of bitcoins from the market consequently to create the phenomena that the price is rising prior to dumping them back again in the market, therefore making unprecedented gain from it. Severe cases, for instance, a 51 percent mining attack or else the publication of bitcoin codes owing to hacking can also radically have an effect on the bitcoin price as the majority people will be forced to put up their bitcoins for sale in dread of making any lose.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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