Blockchain has been a topic that’s going on around a lot, and that cryptocurrencies are gaining popularity, especially after the acceptance of Cryptocurrencies as a payment method by big companies. But, supposed to be specific, Bitcoin. It’s nearly impossible in today’s world that people may not be aware of what Bitcoin is.
But what many may not be aware of is how it started with,and btc price is right now. BTC is an acronym used for Bitcoins, while all other Cryptocurrencies have their acronyms.
Back in 2010, when it initially began price of BTC was somewhere near $0.0008 to $0.08 per coin, and now, after a decade and a year more, the prices are soaring off high, and now it’s ranging nearly around $55000.
So, what determines the price of Bitcoins?
Like the normal physical currency values changes on laws and economic growth, it is not the same for Bitcoins. This is because any governmental authorities do not regulate BTC, and hence the same laws of fluctuations don’t apply to Bitcoins.
So what leads to these fluctuations? What influences BTC price?
There are a few factors that are responsible for the fluctuations of bitcoins price. But before we start, it’s also important to remember that the fluctuations in any cryptocurrency happen way too fast. Right now, if it’s 5, two minutes later, it’s ten and then drops to 7, all these just in a matter of few seconds. But that doesn’t mean that there’s too much risk for short-term gain, probably yes, but if it’s a long-term investment, then a good profit is surely expected.
Coming back to factors, the main factor that determines the price is the demand and supply. If the demand is more than the supply, the price rises and if it’s less, then the price drops. One another factor is the competing Cryptocurrencies. A good example can be Ethereum, something that’s catching everyone’s attention, which has eventually led to the decrease of bitcoin price.
Though there are more factors, these two factors make a difference in the price of any Cryptocurrencies.