Digital currency, otherwise known as Bitcoin, is the new up and coming trend. People don’t only use it to make transactions; they also invest using this form of money. Bitcoin is the only currency in the world that is not controlled by the government or any country. None of it can be corrupted or misused in any way; it is the purest currency that has ever existed so far. However, this also means that the value of the money is confusing. No one really knows what drives the price of Bitcoin. It can skyrocket at one point, and fall in another. Here are some factors that we think affect the price of Bitcoin.
Millenials might accept the Bitcoin with an open-mind, but there are plenty of people out there that are still cautious about using Bitcoin. Negative news related to Bitcoin can profoundly impact the demand for Bitcoin. For example, if there is news about a hacker that stole millions of dollars in Bitcoin, it will make people afraid of using digital currency. This will then bring down the price of Bitcoin in stock markets, and its value will decrease. We recommend those who are worried to head for a bitcoin self directed IRA info so that they are well informed of news about Bitcoin.
You might be confused as to how crypto-holders or those who have Bitcoin can influence the price. There are many types of crypto-currencies, but the most trusted one is Bitcoin, And as long as crypto-holders have their trust in Bitcoin, the price will remain high and steady. If you are a trader, it’d be good to observe what’s happening in the crypto community. Study more forums about Bitcoin and read the news, know what to do with your Bitcoin to avoid loss. Even if you are not thinking about making a move with your Bitcoin, it’s always best to know the big picture of what’s happening and where other holders are going with their Bitcoin.
Bitcoin is referred to as ‘fiat’ money, which means it is not regulated by the government. However, as much as many states are confused on how to define cryptocurrency regarding the law, some countries have released laws for Bitcoin. These countries are mostly developed countries, such as the UK, Japan, and the USA. In Japan, stores are allowed to accept Bitcoin as payment, so the price of Bitcoin has increased since then.