Re: Factors affecting the price of Bitcoin

#4
Since Bitcoin's network has been virtually unusable in any sort of exchanges it's mainly just speculation at this point. I highly doubt BTC will remain above 10k for the long term, as it has literally zero use and the mainstream will eventually understand that. Most investors are similar to wall street investors in the 1929's, it was a tool for them to make money and all they understood was that it had some complicated inner workings that they had no desire to understand.

Also, the blockchain is not here to stay. I think maybe 10-15 of these coins will stick around and serve a real life purpose in the future. Blockchain technology is something that is very overhyped, and many companies are just using these ICOs as a scammy form of an IPO while their 'coins' have zero use.
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Re: Factors affecting the price of Bitcoin

#5
kenzie wrote:
December 17th, 2017, 7:47 am
What are the main things influencing the price of bitcoin?
I do not understand clearly what things Bitcoin price depends on? I feel quite uncomfortable because I'm unsure about the stability of my investments in bitcoin.
Could anyone list the main factors?
There are a number of factors that affect the price of Bitcoin over time.

The supply and demand of the market - This factor is important. Today, Bitcoin has no physical equivalent in the real world, so BTC is sold in exchanges. The fundamental principle of the economy says that if people buy a coin, its price goes up and if people sell the coin, its price goes down. Bitcoin is not the exception. In the fall of 2013, the price rose 10 times as a result of Chinese demand.

The total amount of Bitcoins and Bitcoin holders - The total amount of Bitcoins is 21 mln, but they occur over time.
Currently, there are around 16 million BTC and more than 14 million people have wallets with BTC. This number is growing rapidly and since the number of Bitcoins is fixed, the price will continue to rise.
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Re: Factors affecting the price of Bitcoin

#6
rominakash wrote:
February 2nd, 2018, 4:10 pm
kenzie wrote:
December 17th, 2017, 7:47 am
What are the main things influencing the price of bitcoin?
I do not understand clearly what things Bitcoin price depends on? I feel quite uncomfortable because I'm unsure about the stability of my investments in bitcoin.
Could anyone list the main factors?
There are a number of factors that affect the price of Bitcoin over time.

The supply and demand of the market - This factor is important. Today, Bitcoin has no physical equivalent in the real world, so BTC is sold in exchanges. The fundamental principle of the economy says that if people buy a coin, its price goes up and if people sell the coin, its price goes down. Bitcoin is not the exception. In the fall of 2013, the price rose 10 times as a result of Chinese demand.

The total amount of Bitcoins and Bitcoin holders - The total amount of Bitcoins is 21 mln, but they occur over time.
Currently, there are around 16 million BTC and more than 14 million people have wallets with BTC. This number is growing rapidly and since the number of Bitcoins is fixed, the price will continue to rise.
News in the media - There is always a human factor involved - that is, the way people can react to the news. For example, remember the price drop of 25 percent after the arrest of Ross Ulbritch or the new price record in anticipation of the audience of the Winklevoss ETF.

Technical aspects - Bitcoin has an open source code, so everyone can examine it. New updates to correct some errors and weaknesses in the code can give a boost to the price growth. Meanwhile, successful account hacks or server attacks can reduce the exchange rate. In August 2016, some hackers discovered a security problem in Bitfinex and the price went down later.

Political and economic events around the world - In the era of globalization, decisions in a single country can influence the whole world, that is, accept Bitcoin as a means of payment in Japan.

High volatility - Volatility is the degree of variation of the trading price over time. Volatility refers to the amount of uncertainty or risk in the value of a security. Greater volatility means that the security of a security can potentially spread over a wider range of values. In other words, the price of security can change drastically in a short period of time in any direction. The volatility of Bitcoin is around 10 percent at the moment, but it is going down.
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Re: Factors affecting the price of Bitcoin

#7
rominakash wrote:
February 2nd, 2018, 4:10 pm
rominakash wrote:
February 2nd, 2018, 4:10 pm
kenzie wrote:
December 17th, 2017, 7:47 am
What are the main things influencing the price of bitcoin?
I do not understand clearly what things Bitcoin price depends on? I feel quite uncomfortable because I'm unsure about the stability of my investments in bitcoin.
Could anyone list the main factors?
There are a number of factors that affect the price of Bitcoin over time.

The supply and demand of the market - This factor is important. Today, Bitcoin has no physical equivalent in the real world, so BTC is sold in exchanges. The fundamental principle of the economy says that if people buy a coin, its price goes up and if people sell the coin, its price goes down. Bitcoin is not the exception. In the fall of 2013, the price rose 10 times as a result of Chinese demand.

The total amount of Bitcoins and Bitcoin holders - The total amount of Bitcoins is 21 mln, but they occur over time.
Currently, there are around 16 million BTC and more than 14 million people have wallets with BTC. This number is growing rapidly and since the number of Bitcoins is fixed, the price will continue to rise.
News in the media - There is always a human factor involved - that is, the way people can react to the news. For example, remember the price drop of 25 percent after the arrest of Ross Ulbritch or the new price record in anticipation of the audience of the Winklevoss ETF.

Technical aspects - Bitcoin has an open source code, so everyone can examine it. New updates to correct some errors and weaknesses in the code can give a boost to the price growth. Meanwhile, successful account hacks or server attacks can reduce the exchange rate. In August 2016, some hackers discovered a security problem in Bitfinex and the price went down later.

Political and economic events around the world - In the era of globalization, decisions in a single country can influence the whole world, that is, accept Bitcoin as a means of payment in Japan.

High volatility - Volatility is the degree of variation of the trading price over time. Volatility refers to the amount of uncertainty or risk in the value of a security. Greater volatility means that the security of a security can potentially spread over a wider range of values. In other words, the price of security can change drastically in a short period of time in any direction. The volatility of Bitcoin is around 10 percent at the moment, but it is going down.
Hi Rominakash.
I think volatility is the main factor of Bitcoin popularity. Once BTC price is stable like USD/EUR, no one will care about it because there will be no opportunities to earn fast money. Thus, there is a problem: so long as Bitcoin is volatile, it can't replace fiat currencies, if it's stable, no one cares about it.

My point is that the society is not ready for Bitcoin yet. We need to do a hard work to make people believe that often there is no need for a central authorization, that decentralized money is a good thing. Today people love Bitcoin only because it can bring fast profit.


Human is a lazy creature by its nature and doesn't want to take responsibility for keeping his wealth and learn about blockchain and cybersecurity. I think it's the biggest hurdle of global accepting Bitcoin.
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Re: Factors affecting the price of Bitcoin

#8
alexanderisora wrote:
February 3rd, 2018, 8:17 am
rominakash wrote:
February 2nd, 2018, 4:10 pm
rominakash wrote:
February 2nd, 2018, 4:10 pm


There are a number of factors that affect the price of Bitcoin over time.

The supply and demand of the market - This factor is important. Today, Bitcoin has no physical equivalent in the real world, so BTC is sold in exchanges. The fundamental principle of the economy says that if people buy a coin, its price goes up and if people sell the coin, its price goes down. Bitcoin is not the exception. In the fall of 2013, the price rose 10 times as a result of Chinese demand.

The total amount of Bitcoins and Bitcoin holders - The total amount of Bitcoins is 21 mln, but they occur over time.
Currently, there are around 16 million BTC and more than 14 million people have wallets with BTC. This number is growing rapidly and since the number of Bitcoins is fixed, the price will continue to rise.
News in the media - There is always a human factor involved - that is, the way people can react to the news. For example, remember the price drop of 25 percent after the arrest of Ross Ulbritch or the new price record in anticipation of the audience of the Winklevoss ETF.

Technical aspects - Bitcoin has an open source code, so everyone can examine it. New updates to correct some errors and weaknesses in the code can give a boost to the price growth. Meanwhile, successful account hacks or server attacks can reduce the exchange rate. In August 2016, some hackers discovered a security problem in Bitfinex and the price went down later.

Political and economic events around the world - In the era of globalization, decisions in a single country can influence the whole world, that is, accept Bitcoin as a means of payment in Japan.

High volatility - Volatility is the degree of variation of the trading price over time. Volatility refers to the amount of uncertainty or risk in the value of a security. Greater volatility means that the security of a security can potentially spread over a wider range of values. In other words, the price of security can change drastically in a short period of time in any direction. The volatility of Bitcoin is around 10 percent at the moment, but it is going down.
Hi Rominakash.
I think volatility is the main factor of Bitcoin popularity. Once BTC price is stable like USD/EUR, no one will care about it because there will be no opportunities to earn fast money. Thus, there is a problem: so long as Bitcoin is volatile, it can't replace fiat currencies, if it's stable, no one cares about it.

My point is that the society is not ready for Bitcoin yet. We need to do a hard work to make people believe that often there is no need for a central authorization, that decentralized money is a good thing. Today people love Bitcoin only because it can bring fast profit.


Human is a lazy creature by its nature and doesn't want to take responsibility for keeping his wealth and learn about blockchain and cybersecurity. I think it's the biggest hurdle of global accepting Bitcoin.
Thanks for your answer. Very good point. ;) ;)
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Re: Factors affecting the price of Bitcoin

#10
kenzie wrote:
December 17th, 2017, 7:47 am
What are the main things influencing the price of bitcoin?
I do not understand clearly what things Bitcoin price depends on? I feel quite uncomfortable because I'm unsure about the stability of my investments in bitcoin.
Could anyone list the main factors?
Being a very recent creation currency, I think it will be very difficult to have a stable bitcoin in the short term, because more and more people are hosting this currency which makes it more attractive and therefore more demanded , this makes its value increase.
But when it falls its value may be due mainly to the fears that involve the security risks of this virtual currency, cyber attacks, etc.
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