Post
Topic
Board Bitcoin Discussion
Re: What factors can affect to price of bitcoin?
by
LanzCoinPress1994
on 11/04/2018, 15:39:40 UTC
What factors can affect to price of bitcoin? Can price of bitcoin depend on world economic factors or economic occurrences?

Hi!

Bitcoin is the first most popular digital cryptocurrency. Bitcoin price changed due to many reasons. That is important to understand the reasons before predicting the price of bitcoin. The main factors that can influence the bitcoin price:

1. Government Regulations
Many governments release official statements about the regulation of digital currencies. That affect good or bad in both ways. As an example, The news about “Chain banded bitcoin exchanges " causes to drop Bitcoin market.

2. Media Influence
The media can also influence the bitcoin price significantly. Many FUDs and fake news spread through social media. That makes people panic about bitcoin. That cause to drop the bitcoin market.

3. Supply and demand
High demand and low supply often lead to an increase in the price. The total amount of bitcoin is 21 million. Hence supply is fixed that lead to high demand.

4.  Technological Changes and Innovations
The advancements and innovative efforts in technology have the power to influence the price of Bitcoin.
•   The launch of various ICOs with the aid of decentralized platforms that include the Ethereum-like smart contracts.
•   Another innovation is using blockchain technology for streamlining supply chain and improving transparency in various systems.

5. Market Manipulation
Traders can sometimes purchase huge chunks of bitcoins from the market. That makes the price to appear like it is rising before dumping them back to the market, hence making unheard-of profits from the same.

The main factors that can influence the world economic differ from bitcoin. You can refer those things to below links;
1. http://www.managementguru.net/factors-influencing-global-economy/
2. https://www.cfr.org/article/global-economy-2018

Personally, I believe bitcoin price will not completely be related to the global economy. But some of the factors will influence the price of bitcoin.

Thanks
Have A Nice Day!