Among all the cryptocurrencies, bitcoin is the most trustworthy and valuable crypto coin. With its invention, people thought that it would not last long. However, as more people are understanding the value of bitcoin, the more its value is increasing. There are a number of factors like stock grants, the purchasing of stock grants, government policies, and market supplies that determine an impact on Bitcoin pricing.
There are many influencers who took the side of cryptocurrencies only to make it more acceptable. One such persona is Elon musk, the CEO of Tesla Inc. he invested in cryptocurrencies.
The market of cryptocurrencies constantly goes up and down. Thus, it is highly volatile. However, there are factors that affect the value of bitcoin. What are those factors? Here they are – find more info here
Demand and supply
The demand and supply make a huge impact on bitcoin. The amount of bitcoin circulating is a very small percentage of the total amount of bitcoins available. Most of the bitcoins are kept as savings. Therefore, most of them are not always available for you to buy. The government regulations on sale and purchase differ a lot on the condition of Bitcoins. Internal governments and news updates also give a new kind of impact on the price of the coins.
The popularity and acceptance of bitcoin highly affect its value. The high acceptance helps in increasing the value. On the other hand, if the popularity or demand is low, it decreases the value of bitcoin. Therefore, the value is directly connected with its demand.
Nowadays, many businesses, organizations, and people are using bitcoin as one of their transaction modes. As it is getting more accepted day by day, the popularity will only increase in the future.
Media plays a great role in the up and down of the price of not only bitcoins but other cryptocurrencies as well. Whenever the media puts their attention on anything, it grabs the public eye. Therefore, the rising popularity of bitcoin is also another product of media attention. If there is anything called regulatory news, then this has a major impetus on the price of Bitcoin. For instance, when there was news of forking for Bitcoins blockchain into Blockchain cash, it resulted in extreme volatility and also affected the value of the Bitcoins.
Whenever anything happens, it spreads via social media platforms. So, whenever it happens, everybody gets to know about it. The same thing happens with crypto. Whenever news reaches the entire market, it starts affecting the value of bitcoin.
Government rules and regulation
Do you know that crypto coins are banned in some countries? From its beginning or invention, cryptocurrency is only getting more and more popular. Some even say that it has more potential than the fiat money. It does not involve any third party. No organization or governing body is involved in cryptocurrencies. According to some experts, it might take the place of fiat currency someday. Therefore, the government has some regulations on it. Its decentralized and unregulated nature is what makes it more unacceptable to the government.
Market capitalisation is known as market cap. This is one of the important features that decide the value of bitcoin in the market. The calculation is easy. You can get it by multiplying the value of each coin with the total supply of the coin.
Competitors of bitcoin
Undoubtedly, bitcoin has the most value among all the cryptocurrencies across the world. However, there are numerous other crypto coins available in the market. Some of the most popular ones are Ethereum and Tether.
While talking about market cap, bitcoin holds the highest value. The other highly valued cryptocurrencies are Polkadot, Tether, Binance coin, Cardano, Ethereum etc. they also have high market caps.
There is a special process of bitcoin mining. Miners create bitcoin by the blockchain method. Whenever a new bitcoin is introduced to the market, the value of the coin is only changing over time. The price of one Bitcoin and the entire process of mining and market condition must be thought of before you go for investment.
Also, as there will be only 21 million Bitcoins available in the market, the scarcity will only increase.
These are the factors affecting the up and down of bitcoin price. And, if you need to make safe investments.