Today, all the people worldwide have heard something about Bitcoin. Even if they don’t know how the whole blockchain system works, they have already accepted the reality where cryptocurrency is something you can invest in. But why the price of Bitcoin is high? What’s the future?
Bitcoin it’s not regulated by any government and people are curious about what impacts the price of Bitcoin.
Bitcoin and Cryptocurrency: Facts and Stats
Here you can learn some interesting facts and stats about Bitcoin and Cryptocurrency.
What Determines the Price of Bitcoin?
There is a limited amount of Bitcoins that can be mined. Unlike fiat currencies, no one can create more BTC (Bitcoin) coins than the set number. The maximum number of BTC that can be mined is 21 million coins. When all the coins are mined, people can only trade and buy BTC.
Also, the central bank or any other central authority does not regulate Bitcoin or its price, so who does? what factor affects the price of BTC?
Here are some important facts about the price of Bitcoin:
The two most important factors are demand and supply. If there is demand from users, they keep buying BTC, and then the price goes up. For example, recently Tesla (Elon Musk’s company) has bought around 1.5bn of the BTC currency. This caused a 17% rise in price on Bitcoin.
The costs of producing BTC coins. The mining process is pretty expensive. You need certain equipment, electricity, etc. It takes money and it affects the price of digital currency.
Competition. BTC is one of the most popular cryptocurrencies out there. But there are other coins to invest in. So there are more options for investors and the prices regulate themselves. The competition among the most popular currencies keeps the prices down.
The monetary rewards are set to miners of BTC for verifying the transactions made within the blockchain system. Whenever the transaction is verified by users, they receive certain rewards. This also impacts the price of 1 BTC.
The number of exchanges where users can trade BTC for other currencies.
The price of BTC is volatile even though the currency is one of the most popular digital currencies out there. The market of BTC is pretty big compared to other currencies, but it’s not as big as the market of fiat money or gold.
That’s why most cryptocurrencies have faced the prices go down and up so fast. The trading volume of BTC is big, but not as big as the trading volume of fiat currencies or gold. You should also note that the prices are affected by positive or negative news.
For example, if there is a rumor that it’s beneficial to invest in a certain currency, then the price might go up since the demand is increased.
Such factors as uncertainty of the future of cryptocurrency as of the trade of value, risks of the currency for big holders, security breaches also can impact the price of BTC.
Most factors that impact the price of BTC are different from the factors that impact the price of fiat currencies, such as the dollar or euro.
What’s The Future of Bitcoin?
Cryptocurrency is only in its initial stages, so it is too soon to assume whether a cryptocurrency will be the future of money or what will be the impact of Bitcoin in the coming years.
With its increasing popularity, Bitcoin users predict that by 2024 many different types of Bitcoin will be released.
Reports show that Bitcoin will hit a staggering $500,000 by 2030.
The popularity of this form of currency is expected to grow as it is decentralized, safe, and anonymous.
The fact that many technology-savvy individuals and companies are using encrypted currencies indicates that the future of Bitcoin or cryptocurrencies as a whole is going to be bright.
Cryptocurrencies, especially Bitcoin, are gaining popularity among investors. It is hard to say whether it will become as popular as fiat money, but it is a good investment if you buy it at the right time.