Have you ever wondered what the price of Bitcoin and other cryptocurrencies could have been ? Providing a timely answer to this question is not simple but ... nothing prevents us from trying, with a mini guide to this important topic!
Regulations
The first element that can influence the criptovalute quotation is linked to the regulatory framework. It is no coincidence that every time a government issues official statements on the possible regulation of digital currencies, the price of Bitcoin is immediately influenced. Whenever there are restrictions on the use of bitcoins, prices change drastically.
Media Influence
The media can significantly influence the price of Bitcoin. The media hype can in fact easily lead to a price increase, while the negative news can lead to a drop in the price. For example, news about hacker attacks on websites and cryptocurrency services can cause panic among bitcoin users, causing price drops.
Sustainability
The stability of the cryptovalutary network is an important factor that most fans are concerned about. In fact, most people want a secure and sustainable network, in which there is no risk of losing their money. Unlike traditional currencies such as euro and dollars, however, cryptocurrencies continue to be perceived as "economic bubbles" ready to burst.
Supply and demand
The price of bitcoins depends largely on the trend of supply and demand , as happens in any market. This means that a strong demand and a poor supply often lead to a price increase. Note however that to "simplify" (only in some ways) the context is the evidence that bitcoins have a controlled supply, so the total number of currency in circulation will never exceed 21 million pieces. Because of the limited supply, it is easier to speculate that the price of Bitcoin will continue to increase over time.
Broad commercial acceptance
This is a decisive factor for significantly influencing the price of cryptocurrencies . When some of the most famous companies started accepting Bitcoin as a transaction tool, its prices benefited. Therefore, an increase in the number of sellers who accept this type of instrument will certainly lead to a price increase.
Technologic innovations
The technological advances and innovations have the potential to significantly affect the price of criptovalute. For example, the integration of Bitcoin into the payment system of PayPal has increased awareness and stimulated a great interest in digital currencies in most people. In addition, many startups have started using crowdfunding platforms that accept cryptocurrencies, with Ethereum being the best example.