As a young-star in the crypto business i was beginning to wander why there is a sudden surges in the price of bitcoin and other altacoin and then i decided to delve into a quick and intense research to have an answer to this troubling question and be at rest with myself and my little investments. As a result of the research i was able to get hold of some basic factors i really did found help and as such i decided to share the outcome of this search of mine with you, please allow me to proceed:
- Government Regulation
Each time a government releases official statements about the regulation of digital currencies, the price of bitcoin is normally affected. Even if the actions of that government are not related to the virtual currencies directly, the impact will still be felt.
- Media Influence
The media can also influence the bitcoin price significantly. Media hype can easily lead to an increase in the price, while negative news can lead to a decline in the price. This can be also seen as a fud by whales in the business, they scare novices and they get to buy their coin at a very cheap cost and sellout with a better and massive price.
- Stability of the Bitcoin Network
Stability of the bitcoin network is a major factor that most bitcoin enthusiasts are concerned about. Most people want a secure network where they will not lose their money. Unlike the conventional currencies like euros and dollars, bitcoins are largely perceived as economic bubbles as they are only valuable when exchanged with other currencies, but do not have any inherent value on their own.
- The Bitcoin Demand and Supply
The price of bitcoins is largely depended on the demand and supply. This means that high demand and low supply often leads to an increase in the price. Note that bitcoins have a controlled supply whereby the total number of bitcoins in circulation must never be more than 21 million. Due to the limited supply, there are speculations that the bitcoin price will continue to rise with time.
5.Wider Mainstream Acceptance
This is another major factor that influences the price of this crypto-currency significantly. Even if it has faced a number of challenges and detractors, many well-known companies and businesses have started accepting bitcoins as a means of transaction. For instance, sites such as Reddit and WordPress are currently accepting bitcoins as a means of payment.