Join 100,427 users already on read.cash

Which thing decide the price of Bitcoin

3 28
Avatar for Banikhan
Written by   24
5 months ago

Bitcoin is crypto currency which was developed in 2009 by Satoshi Nakamoto on bitcoin every transaction is recorded and those transactions are controlled by Blockchain.
we know that for getting traditional currencies we have to go central bank bad bitcoin is not issued by any central bank for investors buying a bitcoin is different from purchasing a bond because bitcoin is not a corporation consequently there are no corporate balance sheets or form 10k to review ,no fund performance to compare and other traditional tools for choosing an investment.

how bitcoin price is decided?
As I have mentioned earlier that bitcoin is not issued by any central authority so there is no inflation rates and economic growth which controls the value of bitcoin like it controls the value of traditional currency.

There are Different factors who are Influencing the price of bitcoin

1-The supply of bitcoin and market demand for it

2-by the mining process the production of bitcoin

3-the competitors of bitcoin

4-regulations governing its sale and use

5-media news

supply of bitcoin

As we all know that bitcoin unlimited in this road there are only 21 million bitcoin which can be produced and about 12 million of them has been transacted so there are just limited number of bitcoins the supply of an asset plays a vital role in determining its price . There are fixed numbers of bitcoins which could be produced per year. So we can say that supply of bitcoin is reducing because more investors are entering in the market and this is making difficult to supply bitcoins.

Demand of bitcoin:-

As i have mentioned that bitcoin numbers are limited it means that the demand of bitcoin is increasing day to day basis . Bitcoin popularity graph is increasing and it is attracting new institutional investors . Bitcoin is most popular in those countries whose currencies are low and they wanted to be in the market

production of bitcoin:-

like other commodities production of things plays an important role in pricing of the item same happens with bitcoin . Bitcoins are mined and this process is not so simple in this time because competition is so tough . When bitcoin was just introduced it was easy to mine because there were no so many users who were eager to have bitcoin at during initial days one can easily mine many bitcoins in months so it was not hard but now bitcoin mining is a difficult process and it will take so much time. Bitcoin mining is consist of miners who are doing mathematical tasks on their computers and trying to mine bitcoins.
Too be continued ......

5
$ 0.67
$ 0.66 from @TheRandomRewarder
$ 0.01 from @Mafer8866
Sponsors of Banikhan
empty
empty
empty
Avatar for Banikhan
Written by   24
5 months ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

Bitcoin would be good investment i think there is no other choice beside bitcoin

$ 0.00
5 months ago

Yes the numbers as you mentioned is limited and in initial days it was easy to mine Bitcoin as compare to recent days

$ 0.00
5 months ago

Yes there is limited number of bitcoin which are around 21 million in the world and competition in miners is big

$ 0.00
5 months ago