Bitcoin is one of the most talked-about subjects in the global financial industry these days. It is currently valued between $50,000 and $60,000, which makes it equal to gold. No other product or service in the past has managed to stand on the same scale as gold, which is why this cryptocurrency has a lot of eyes on it.
Not only that, but many experts think that Bitcoin’s value will continue to rise and even reach $100,000 in the fourth quarter of this year. One of the most commonly asked questions on this topic is what actually determines the price of 1 Bitcoin?
After all, banks and governments have no control over it, so which factors come into play when the value of this cryptocurrency is determined. That is exactly the topic that we are going to take a look at. We’ll be naming some of the factors that influence Bitcoin’s value daily. Without any further ado, let’s dive into the details.
Supply and Demand
As with any product/service on the market, one of the biggest things that influence its price is the supply and demand. But how is Bitcoin supplied to the network if it is highly decentralized and self-sustainable? There are two answers to that question. The first one is Bitcoin mining. This is a process in which miners record and verify Bitcoin transactions. The more transactions are recorded, the more Bitcoins as rewards miners will receive.
The second factor that impacts Bitcoin’s supply is the number of Bitcoins that the network allows to exist. It is expected that by 2032, around 99% of all Bitcoins will be mined and it will take a lot of time to mine the rest 1%. Experts think that 100% of Bitcoins will be mined in 2140.
As for the question of where do people manage to make a profit with Bitcoin, the answer is trading sites such as the-newsspy.org/. All you have to do to gain access to the services of this trading site is register. The process is extremely fast and simple. You supply the platform with basic information about yourself. Then, you choose your preferred payment method and start trading with Bitcoins.
The next factor that has managed to make an impact on Bitcoin’s value is the institutional interest. Up until a few years ago, Bitcoin was mostly used on the black market, which is why this factor didn’t have any role. But these days, many global brands have started accepting Bitcoin as a payment method.
The wide acceptance leads to higher stability, which ultimately leads to an increase in value. If you are wondering what are some of the global brands that accept it, the list includes the likes of Tesla Motors, Expedia, Starbucks, Microsoft, Wikipedia, AT&T, Shopify, Overstock, Whole Foods, and many more.
All of these companies have accepted the fact that Bitcoin has tons of advantages over regular payment methods and that it is a very efficient and effective way to pay online. The advantages are also the reason why more and more people decide to use it for payments online.
The final factor that we are going to mention is the competition. We are sure that you are familiar with the fact that Bitcoin is not the only cryptocurrency on the market – there are hundreds of others. But, the good thing about Bitcoin is that it is superior compared to other cryptocurrencies, which is why it is the most valuable. That is the case with every product on the planet – the better it is, the higher its price will be.
Bitcoin has greater security, greater liquidity, and much greater institutional interest than the rest of the competition.