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Sunday, August 4, 2019

What Determine the Value of Bitcoin



Bitcoin is the cryptocurrency based on the Blockchain Technology. Satoshi Nakamoto Develop Bitcoin in the year 2009. He solves the double-spending problem of cryptocurrency.

Bitcoin is the most valuable crypto is rapidly fluctuating with time. What is the cause of massive fluctuation?


When the prices of Bitcoin get higher everyone is willing to sell which increases the supply ultimately decreasing the price.

Further, decreases in the price encourage more buyers that in turn increase in price due to high demand.

Some of Factors that Influence Bitcoin Price is


Supply and Demand


Like other systems the supply and demand of the Bitcoin is largely influence the price of Bitcoin.

The official website of Bitcoin states that Bitcoin's price is fluctuated by supply and demand. More is the demand higher will be the price. Less is the demand lower will be the price.

Government Regulation


Government regulation has a profound impact on the price of Bitcoin. Acceptance of Bitcoin as currency by governing bodies increases the price of Bitcoin.

Further, the ban of Biotin by some government bodies reduces the price of Bitcoin.


Number of Competing Crypto


After the rise of Bitcoin, there is numerous cryptocurrency like the Ethereum, Lisk, Neo, Libra, and others are emerging.

The new cryptocurrency is backed by various popular firms. This causes massive fluctuation in the price of Bitcoin. As the buyer can divert towards new forms of investment.

Number of Traders


The total number of traders in Bitcoin influences the price. Higher the number of traders surge will be the price.

Availability Through Exchanges


Availability through the exchanges especially the dominant one increases the market price of the currency.

As popular platforms have a significant number of investors which increases the price of Bitcoin.

Conclusion


Bitcoin value is determined primarily by its supply and demand. Further, government regulation, number of traders, new emerging crypto, availability in major exchange platform can have an impact on the price of Bitcoin.




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