Cryptocurrencies, which are among the most talked about investment tools in recent years, are the largest cryptocurrency (Bitcoin).BTC) started to get back on the agenda as it entered an uptrend. Bitcoin, which started 2023 at the $16,500 level, gained more than 60 percent in a few months and 27 thousand dollars levels reached. As such, Bitcoin was one of the most profitable investment tools of 2023.
So BTC, how is it? at high rates Can you experience price changes? In this content bitcoin price Let’s take a closer look at the factors that influence this. If you already have a Bitcoin investment or are considering investing in Bitcoin, pay attention to the points in this article. your strategy you can create.
Factors that affect the price of bitcoin
- Balance between supply and demand
- Mining
- Security issues and regulations
- media influence
- Economic and geopolitical developments
These are the main things that determine the price of Bitcoin. Of course what exceptions may occur and the BTC price may suddenly unexpectedly enter an uptrend or downtrend.
Balance between supply and demand
Just as we talk about the balance between supply and demand in investment instruments such as gold, silver or stocks, the same is true for BTC. valid. Because the question of supply and demand is the main problem that the market creates. The fact that Bitcoin is not a physical commodity is due to the balance between supply and demand of this cryptocurrency. will not be affected can make you think. However, this is not the right approach.
Total supply of Bitcoin 21 million usual. When Bitcoin was launched, a very large part of it was encrypted. The passwords, which have been solved by mining, have released more than 18 million Bitcoins to date. The remaining few million units will be launched around 2140. If the demand for Bitcoin is constantly increasing during those years, then the price of Bitcoin, which we denote today in thousands of dollars, will be in the millions, maybe millions, back then. billions of dollars levels will be reached.
Mining
As we just mentioned; Bitcoin is not a currency printed by a central bank. Satoshi NakamotoBitcoin’s algorithm printed 21 million Bitcoins that day. However, these are encrypted and require special devices to decrypt them. These are the people who buy these devices. miner it is called.
Bitcoin miners use mining equipment to make a profit, and their cost there is. Since the profit of a single device is not enough, factory-sized facilities are set up. Of course they have costs. The higher the cost of the miner, the higher the asking price for BTC. This situation changes the price of Bitcoin. hits directly.
Security issues and regulations
Crypto assets, in general on decentralization they were built. And quite new technologies. As such, trust in cryptocurrencies is not very high. Moreover, so are the cryptocurrency scams we come across from time to time to violate trust can cause. This is where regulations come into play.
The world’s largest cryptocurrency exchange Binanceis one of the leading institutions in the cryptocurrency community that want regulation. Because according to Binance, regulation is the only thing that can be done to protect both the future of the industry and the investor. Let me also point out; almost every country is actively working on cryptocurrency regulation. As these rules become more widespread, confidence will increase. It will not surprise anyone if this has a positive effect on the price of Bitcoin.
media influence
bitcoin price when it enters an uptrend, it is talked about on news channels. Especially with the sharp rises in bull times… This allows more people to know about Bitcoin and other crypto assets. As such, people invest their money in cryptocurrencies. Good demand is increasing. An increase in demand has a positive effect on prices.
However, the opposite can also happen. cryptocurrencies, traditional financial system They exist to replace them, and for this to happen one day is not something some people want. Again, the media card is played and related to Bitcoin and other crypto assets. negative news starts pumping. Sales are up and prices are down.
Economic and geopolitical developments
Turkey is one of the countries with the most cryptocurrency investments in Europe. comes first. Have you ever thought about why? Yes, some of us do indeed invest in Bitcoin and other cryptocurrencies to earn more profit. However, the main reason many people rely on cryptocurrencies is the depreciation of the TL viz are not affected by inflation.
Don’t just think about this in Türkiye. If the crisis broke out in the US, the number one economy in the world, the dollar would be very serious. depreciation it is lived. The Russian currency, which has been at war with Ukraine for more than a year, is being declared invalid by other countries, tying Russia’s hands. Bitcoin, which is not tied to any person, institution or country, will survive even if the apocalypse breaks out. Such capabilities make Bitcoin the number one currency of the future can become…
How has the price of Bitcoin changed over the years?
Above you can see how the price of Bitcoin has changed over the years. Not until BTC first went on sale $0.003 could be bought for it. Bitcoin, which was pretty worthless in its early days compared to today, hit the $1 level for the first time in 2011. 10 years later, i.e. in 2021, we talked about the level of 40 thousand dollars, Bitcoin, the all-time high in the following periods of the year. 69 thousand dollars he saw.
After the peak, a major downtrend began in Bitcoin. This drop was so deep that Bitcoin will be released in January 2023. 16 thousand dollars dropped to levels. Of course, this process did not happen by itself. As crypto-currency fraud increased, the bankruptcy of some exchanges threw the industry into trouble. However, despite everything, the $16 thousand level has been a bottom level for BTC and the king of the cryptocurrency world is now again. to get up tendency shows. The question is how long this increase will last.
REMARK: This content should not be considered investment advice. Cryptocurrency investments are riskier than any other investment. Therefore, before you decide to invest, you should evaluate all the risks and shape the steps you are going to take accordingly.
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Source: Web Tekno
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.