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Home 2018-05-23T19:51:21+00:00
bitcoin how to buy
Like other currencies, the Bitcoin value is not static. It changes with time. Sometimes, the price of Bitcoin rises. This was the scenario during the last quarter of 2017.  Other times, it fluctuates as evidenced on January 2018. As such, any entrepreneur looking forward to investing in the new booming cryptocurrency business must understand the trends and cycles of this trade.
To understand them, you need to have insightful information about the factors and issues affecting the value of Bitcoins. Otherwise, without such information, loss-making will become the daily trend of your business. However, it is not a walk in the park given that no intermediary or central bank is controlling the digital currency. To help you out, here are the top 5 factors that determine the Bitcoin Prices.
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DEMAND AND SUPPLY OF THE COINS

If it is not your first entry in the business field, you are aware of the demand and supply laws. You know that a rise in demand with low supply leads to an increase in the commodity price. Similarly, the Bitcoin trading value relies on these forces. As you know, Bitcoin mining is set to certain limits. Hence, the supply of Bitcoins relies on the willingness of the holders to transact with them or the availability of mining costs. As such, when the demand exceeds supply, the coins price continues to rise, and the opposite is true.

AWARENESS AND ACCEPTANCE OF THE COIN BY THE PUBLIC

As you know, people are always skeptical in accepting new ideas and developments. This aspect is not different in Bitcoins. Since people are familiar with fiat or Canadian dollar, they fail to understand how a digital currency can work. Notably, many renowned financial experts and banking experts issued advisories to the public to avoid cryptocurrencies. Such issues affected the Bitcoin price during the initial stages.
However, in the recent years and 2017 in particular, many experts with cryptocurrency knowledge have taken initiatives to disseminate information to the public about the virtual currencies. As a result, they have gained high acceptance which in turn enhanced their demand beyond what the market can supply. So, public awareness and acceptance are critical in determining the virtual coins value.

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SOCIAL MEDIA AND NEGATIVE NEWS ABOUT CRYPTOCURRENCY

One of the bits of advice you will get from a business expert is to keep your ears open to the trending news. As a Bitcoin entrepreneur, you need to know what is happening in your niche so as to develop your survival tactics. This news is an essential aspect of a business. However, all news is not credible. Some people use the negative news as a way of beating competitors or discouraging others from venturing on the field.
In this essence, when negative news about the Bitcoins is disseminated either through online or media channels, definitely, their prices show a downward trend. For instance, news about China banning Bitcoins, online frauds that led to the theft of millions worth Bitcoins, and negative advisories that referred the coins as timed bubble or Ponzi scheme has had a negative impact on the Bitcoin prices.
Nevertheless, the same news can work miracles in the long run when people realize the reality of it. Why? The negative news attracts a large audience which in turn popularizes the Bitcoin. As such, it stimulates high demand in the long run.

PUBLIC PERCEPTION

While digital currencies are revolutionizing how people do business, the public perception of them is still wanting. Some people view the coins as the future of the business transaction. Others are not ready to follow into the trap and view it as a pyramid scheme. With the two competing perceptions, the impact is either a fall or a gain of the Bitcoin prices. So, the positive public perception will lead to a rise in price and the opposite is true.