Factors that Determine the Price of Bitcoin? 💲💲


What’s up CryptoPeeps? It’s your girl
Maria here to deliver your daily dose of Bitcoin news. Have you ever wondered what determines the value of bitcoin? Well, wonder no more! I’m going to explain to you some of the factors that affect the price of
bitcoin and why the price changes. The supply and demand of Bitcoin plays a big factor in the prices. Currently, there is supposedly a cap of 21 million bitcoins. When that cap is reached, Bitcoin mining will no longer create new bitcoins. The supply of Bitcoin has reached 16.8 million in January of 2017. Meaning that around 80 percent of the
total amount of Bitcoin have already been mined and made available to the
public. As we all know in general economics, the price goes up when the demand cannot keep up with the supply. Number two: availability on exchanges. Platforms such as Paxful allow investors to buy and sell Bitcoin through connecting buyers and sellers in their in-house marketplace. Networks are created through these kinds of marketplaces as the exchanges become more popular. This is
because it becomes easier to gain more participants. The price is affected by
this, as it has a direct effect on the popularity of bitcoin as more people
buy and sell. By general rule, the more popular Bitcoin becomes, the higher the demand. And as we said earlier, there is a finite amount of bitcoin. So the supply stays the same, while the demand grows higher. Number three: competition Although it is believed that bitcoin is the most popular cryptocurrency, there are over
1,000 cryptocurrencies in circulation. Examples of other cryptocurrencies are
Litecoin and Ethereum. The presence of competition keeps the value of an investment in check. For example, the value of the US dollar would have been different if stronger currencies didn’t exist such as the Euro, the Yen, or the Pound. Number four: its own internal governance Since bitcoin is not regulated by a single authority, miners are put on the spot the process transactions and secure the blockchain. If they wanted to tweak or change the software, then it has to be the decision of the consensus. Because of
this, members of the Bitcoin community feel that solving fundamental issues can
sometimes take too long, particularly the issue of scalability. At this moment, the Bitcoin software is only able to process about 3 transactions per second, which
is incredibly slow for how popular it is. As of now, the community is trying to
figure out ways to speed up the number of transactions. Sometimes, when these changes are applied, they turn into a whole other cryptocurrency. Examples of this are Bitcoin Cash and Bitcoin Gold Investors then sometimes decide
that the new currency isn’t as valuable, resulting in the new currencies not
having enough value as bitcoin. And that’s all we have for today! I hope you all learned something new! Tune in to the next episode, where we’ll dive deeper into the world of bitcoin. Once more, this is Maria and I’ll see you guys next time on WeTheCryptos!

51 thoughts on “Factors that Determine the Price of Bitcoin? 💲💲”

  1. As far as i know, Bitcoin price is determined by supply and demand. Supply is well defined and well controlled. New coins only enter the system through mining. Mining generates new coins as an incentive for proof of work. This process generates new coins at a fixed rate. The number of bitcoins in circulation at any time is calculable. (One factor that should not be forgotten is the amount of bitcoin that are being kept in reserves. In velocity of money calculations these are considered out of circulation)

  2. I had no idea that bitcoin was influenced by these factors, it is impressive how many of these can make it go up or just go down.

  3. Thank you for sharing such a useful and important information with us. Most of the people only heard about bitcoin but they don't know what is bitcoin and how it's price determined. I was also confused but now, I'm cleared.

  4. Bitcoin prices is a true roller coaster. Nobody now for sure what is going on with the market. Great video, shared.

  5. Thanks. Have a much clearer understanding of the different types of cryptocurrency and the nature of demand and supply. What happens when no more bitcoin can be mined?

  6. I always wondered what determined the value of Bitcoin. This is why I love WeTheCryptos, your videos are so interesting and I always learn something new. Keep it up!

  7. The factors seems to be true since i have gone through some blogs related to bitcoin price. Thanks for sharing!

  8. wow this is so interesting. i really like the video. i was interested in bitcoin for so long and therefor i love your video, you explained everything that i needed to know

  9. Bitcoin's price is always changing in relation to fiat currency. Another way to look at it. This video very helpful many thanks for explanation to know in deep.

  10. Hey, a new host! I've been watching your videos guys and all I can say is good job! I always knew supply and demand would come in place as a price factor.

  11. The new host is great! A lot of factors can make the price of bitcoin and now I know new factors, thanks to you!

  12. Excellent factors explained about the price of bitcoin. It is really good to hear that 80% of bitcoin mined and already available to the public. Thanks for sharing.

  13. The way this video describes the factors that control pricing of bitcoin is really awesome. Thanks for sharing such detail view indeed.

  14. I've been watching your videos guys and all I can say is good job! I always knew supply and demand would come in place as a price factor.

  15. This is really great! Never imagined that bitcoin would be so easy to decipher even from experts in economics.

  16. This is the only video I genuinely understood. Thanks for the great simple yet Efficient explanation!

  17. It is really up-to-date and very informative video about factors to determine price of Bitcoin. Thanks.

  18. I am not surprised that the actual price of bitcoin is largely variable, because lot of factors as mentioned in this video is influencing its real price.

  19. Several factors can influence the price the supply of bitcoin and market demand for it. One may tend to think that the lack of control translates into chaos when using the currency. But the reality is that blockchain, the technology behind Bitcoin, is secure and accurate.

  20. YEP! As many of us already know, the bitcoin has the "natural tendency" of going up, as it's a finite number of bitcoins and the market cap of bitcoin is still low. And that is because it's not even close to the lasts bitcoins to be "made". keep up the good work!

  21. I'm a newbie about Cryptos and it's great to know the basic economics rules that determine if cryptocurrency up or down… Pretty useful info. Cool posting!

  22. The biggest factor that affects is panic. People panic when they hear a bad news ( probably fake) and they sell their shares. That is the main reason for bitcoin fall.

  23. Always wondered what determined the value of Bitcoin. This is why I love WeTheCryptos, your videos are so interesting and I always learn something new.
    Have a much clearer understanding of the different types of cryptocurrency and the nature of demand and supply.
    I had no idea that bitcoin was influenced by these factors, it is impressive how many of these can make it go up or just go down.

  24. informative video. the anchoring was very good. thank you. got an idea about what determines the value of Bitcoin.

  25. You are a bitcoin expert, I watch every video you've got and everything is better and better !!!

  26. Nice and very informative video. I am very interested to know more about bitcoin and your channel is best to gain crypto knowledge.

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