What factors influence bitcoin price?

Nowadays almost everyone knows what a bitcoin is and millions of geeks and not only are tracking its price. But what factors influence it?

Let’s start with some general info. Bitcoin is the first decentralized digital currency as its system functions without central bank. The network is peer-to-peer and transactions are made between users directly through the use of cryptography, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009. Bitcoins are created as a reward for the process named mining.

1. Regulation

It’s one of the greatest fears of the cryptoworld, as lots of people are rather doubtful about bitcoin future. The matter is that now bitcoin isn’t regulated by any government, but some of the countries are struggling to define it. And, of course, their attempts to do it affects the bitcoin price. Do you remember what happened when China decided to ban blockchain technology? The Bitcoin price decreased dramatically but restored quickly.

2. Speculation and manipulation

These words are always connected with the world of money, whether it’s paper or digital people speculate it easily. And here the fact that early investors made 700% in a year is crucial. This year the flow of people who are seeking for digital world fortune has driven bitcoin price to new incredible height.

3. Technology

Technologies and innovations are inseparable from cryptocurrency world and they continue to change it. To make it clear, let’s take a look at our CrowdCoinage OS. We decided to start crowdfunding platform based on Ethereum blockchain to create a wide variety of financial services that will be based on crypto currencies and blockchain.

Also, Bitcoin was integrated in Paypal’s payment system and attracted attention of million people all over the world.

4. Media

Thanks to the Internet, news are spread lighting fast and they do influence the price. In case some negative news are published, for example, about some hacks on cryptocurrency services, it results in decrease at bitcoin price. Otherwise, media hype provokes bitcoin boom and leads to price increase.

Note that some messages from official members of the government are the most influential here as well.

To sum up, here we described just a few factors that seemed the most interesting and important to us.

The list may be continued right along as crypto world changes every day and anything that is unnoticeable today may turn into a key factor tomorrow.

Website — Telegram — Twitter — Facebook — Youtube — LinkedIn — Reddit — Bitcointalk