The Bitcoin is a coin released to the international market in 2009 that has gained more space than many expected. Unlike other more traditional ones, it is not managed by a central bank, but by a dispersed community on the Internet. This means of exchange has become very attractive since it allows transactions with low rates and without third party intervention. On the other hand, its strong valuation in recent months, may be due to the enthusiasm of some investors who went to buy the currency on a large scale.
The value of Bitcoin responds to market rules, the greater the demand for the currency, the higher its price. Eight years after its launch, a single Bitcoin goes round today, a good sum in dollars.
Some international reports indicate that the number of active Bitcoin users could approach five million by the year 2019. A service as active and in constant motion as that of cryptocurrencies causes a large number of people to register more than one address or account . By the end of 2019, a multiplication of the number of users measured in 2014 is expected, which will be approximately 4.7 million by then.
Bitcoin is volatile, but not as much as you think
Currency crises, controversial news, economic coups, anything becomes a good reason to shake, fall or shoot a virtual currency. Although the Bitcoin fluctuates more than other currencies, the movement does not become so big as to be scared. The Bitcoin market is not for the anxious, you just have to stay alert and watch out for the percentages. For example, nowadays Bitcoin is being sold 100% more expensive in Venezuela, if we compare it with the rest of the world. In Japan, however, 5% cheaper is quoted.
Today, as we approach the end of 2017, Bitcoin is affirmed and increases its quotation by more than 600%, reaching a peak level of 7300 dollars for each digital currency.
The law of supply and demand
As in any market, the law of supply and demand also interferes with the value of Bitcoin. The production, at 2120, is stipulated in 21 million coins, therefore, it is limited and when the time comes, its mining will be completely stopped.
This is so, that no more Bitcoins can be issued because it is implicit in the code, except that all the cryptocurrency producers of the world accept to modify this initial regulation. According to some pollsters and taking into account the countries with the most Bitcoin ATMs installed, the United States (554) is one of those that is positioned, with confidence, at the top of the list. Followed from far behind by Canada (135), the United Kingdom (47) and Spain (27).
On the other hand, market variations are also responsible for any oscillation. Although it is a currency that acts independently, it is not completely alien to the market and the global financial situation. It may happen that, if any foreign currency is valued or abruptly devalued, Bitcoin suffers some consequence. Examples of this have been the Brexit (the exit of the United Kingdom from the European Union) or the capital controls proposed by China.
How does Bitcoin move in the world?
Portals specialized in virtual currencies speak of Japan and the United States staying with a large part of the Bitcoin market. In contrast, although there are no official statistics, in countries such as China and South Korea the cryptocurrency has lost weight.
On the other hand, demonetization in some corners of the world can become a cause that affects Bitcoin's price. In Pakistan, 5000 rupees were withdrawn from circulation, which caused citizens to leave in search of safer options for their home economy.
The rupee in India has also been another phenomenon to consider, the 500 and 1000 bills were forbidden and people were forced to change them in the bank since, from a certain moment, they would not be useful for anything else. Looking for other alternatives, many have fallen in buying Bitcoins to protect their assets.
Venezuela enters the list of factors that determine the value of a Bitcoin. President Nicolás Maduro withdrew 100 bolívares notes from circulation, a context that has led many investors to think twice about the place where they will place their capital (especially if there are some options that will lose legal tender).
For some analysts, the use of a Bitcoin wallet can be safer than a bank account. The citizens of countries like Cyprus or Greece could have avoided certain restrictions imposed by the crisis like the Greek one of a limit of extraction of only 60 euros a day.
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