In what ways is the price of Bitcoin affected?

Supply and demand are direct answers for economists – but there’s something to tell the story behind scenes that show more than the fundamental moves that impact bitcoin prices.

In the end, there is no value other than the perceived value – and that makes Bitcoin’s price – its perceived value – like a stock and its profit and earnings expectations.

News

News affects Bitcoin price. Satoshi Nakamoto was launched when Craig Wright brought prices up and when all the free press provided a free advertisement for Bitcoin. As the community grows for the press – when 10 million wallets become 20 million – the number of participants increases and so does the basic demand. News increases demand directly from people involved in the operating system.

We follow some social data showing how fast the bitcoin community is growing and how it works about chats – reddit article, Twitter followers … You can play around with this data here and plan against BTC prices with a host of other metrics.

The halving of the block reward in 2016 will be an exciting time for bitcoin price as it will have huge consequences for the mining industry and it can cause Bitcoin price to drop once created. out a large amount.

Ecosystem technology

When the ecosystem is built around bitcoin, it can achieve the need for discount potential in the case of Airbitz, for example. – Possibility to buy amazon with discounts or with Starbucks coupons! This is the snowball effect, and where a lot of heated discussion has talked about whether bitcoin is a killer app that automatically brings trends even when users don’t realize. They are using it.

Government policies

Although Bitcoin’s monetary policy is not subject to Government policy, that does not mean that it is not affected by the Government’s policy. For example, in recent Chinese moves, Bitcoin itself has been used as a means of getting rid of the local currency and as a flight to safety. Therefore, increasing the demand and supply of the world economy and controlling capital.

When Russia bans bitcoin or thee UK, there will be changes in value due to the legal structure that we introduce to the technology. Just like when the IMF released a report calling for softer regulation, this would spur higher prices as it meant governments were being encouraged to allow monetary growth.

Read more about the legal status of Bitcoin and Crypto Currency here.

Technology

Bitcoin technology has been thoroughly tested for its inability to send transactions cheaply due to volume restrictions. Although this is a top management issue, it has focused on its own technology, highlighting its internal DNA as a cause for value change.

Management

This is linked to the previous view. Rigid internals for bitcoin development can lead to distrust (value perception) and thus drive down prices. Like a stock losing its long-term innovation – Governance is an important factor in determining value because it is uncertainty or assurance in leading the community. Open Source projects like Bitcoin generally have problems with leadership and development direction – how, when and if bitcoin addresses these issues, which will be the deciding factor. its price stability.

Source

Bitcoin’s value depends on its origin. For example, a bank deposit derived from crime proceeds may be worth less than an amount regardless of the circumstances. There are black bitcoins and white bitcoins so a difference in price may occur here. But the point here is about what affects bitcoins values.

Compete

Following Porter’s model of five competitive forces (Porter’s five forces), but the competition does not play a big role in the value of bitcoin. Other competitors may break Bitcoin’s value from many angles considering whether all of them are crypto currencies, and competitors could steal Bitcoin’s dominant market position if the leadership and development direction make blocksize become a speculation of errors for increased transaction costs.

Therefore, all of these factors have a major impact on supply and demand which in turn affect the value of bitcoin. It can be influenced by many ways that all play a role in creating an image and a perception of its value. Can you rate Bitcoin or another crypto currency? – one question for another.