Bitcoin is one of the well-renowned cryptocurrencies that came into existence twelve years ago. Bitcoin is designed to be independent of governments and banks, which means no government controls or backs it, and also, it is not considered as a legal currency. It is a peer-to-peer medium of exchange, and if the two parties agreed upon a contract or deal, they could complete the transfer or transactions without the permission of third parties. Investors and traders can buy bitcoins through crypto exchanges that allow users to trade bitcoin by determining the bitcoin market. Learn about immediate-edge.co platform, as it is a great bitcoin trading platform and can make you be a great trader.
There are many issues about the legality of Bitcoin because it is not legal in all countries, and even some countries have banned it completely. In contrast, others alert their citizens to use or invest in Bitcoin at their own risk. Only two main issues exist about the Bitcoin network; one is legality, whereas the other is volatility. Yes, Bitcoin makes a highly volatile investment opportunity, and this fluctuated the price of the currency. When Satoshi Nakamoto launched bitcoin in 2009, there was no currency price, but when crypto exchanges were developed and people understood it, its price developed.
In 2013, Bitcoin’s price started to increase, and it became $123.50. In the same year, its worth increased to $140 in a few months, and by the end of 2013, in December, its price increased to $1000. It was the year when bitcoin’s worth attracted investors and the general public. When the user started to adopt it more, its price increased. Despite the user adoption, many other factors influence the value of bitcoin that we’ll read in this article.
What Factors Influence the Value of Bitcoin?
There isn’t any particular factor that sets the price of bitcoin, but there are various factors that even make bitcoin complex to judge or set because its price varies a lot. For instance, even if you check the price of bitcoin on two different websites on the internet, you’ll find two different prices. There is no particular place from where bitcoin is traded, and instead, there are multiple bitcoin trading platforms and multiple exchanges from where bitcoin can be traded, and all platforms have their price of Bitcoin.
Each crypto exchange uses different data from different sources, and the Indexes are set to accumulate bitcoin’s price from different trading platforms and crypto exchanges. If you want to trade or invest in Bitcoin, users need to open an account with a specific crypto exchange and pay the price that crypto exchange has. Keep in mind that each crypto exchange has a different price of bitcoin, and it tends to fluctuate at any time because exchanges set an average price based on the information they have.
What Events Can Change the Value of Bitcoin?
Many events influence the value of Bitcoin. The major event that can influence the price of Bitcoin is the uncertainty of the government about regulating Bitcoin and making it legal in different countries. If people know that the government may ban bitcoin’s price, it will fluctuate the price of bitcoin and make it fall. Another event is about the ownership of Bitcoins, as the distribution of bitcoin is uneven. Some enthusiasts of Bitcoin are holding cryptocurrencies into their wallets, which makes it easy for them to influence bitcoin.
Also, many traders that buy and sell bitcoins in high volume can bring down the price of Bitcoin. There has been an incident when a trader crashed the market by selling a huge number of Bitcoins. You must carefully choose the right trading strategy and method as it is a volatile asset that involves high risk. Not talking about newbies, but many experienced traders have also lost their money. Bitcoin users who have analyzed the bitcoin often don’t consider bitcoin trading as the right method to earn money or earn massive gains.
Price of Bitcoin
The value of Bitcoin is highly volatile, and this is because bitcoin is a liquid asset. Investors can determine the volatility of the Bitcoin market and enter or exit the positions in the market anytime.