If you store national currencies under your bed they will, over time, become worthless. References Here, we contribute to the discussion by examining potential drivers of Bitcoin prices ranging from fundamental to speculative and technical sources as well as a potential influence of the Chinese market. S Marco. Nam Nguyen. Keep me logged in.
1. Transition to Digital Economy
The price of Bitcoin has been widely volatile. From November to Decemberit increased by percent. It fell by 59 percent between January and Februaryincreased by 64 percent from February to March and then dropped again during March by 40 percent. Why does this digital currency have so many ups and downs? Many of the same factors that influence changes in the value of other items affect the price of Bitcoin.
2) Political risk
Kelly Trinh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment. All of this shows how volatile the currency is, prompting the question, what leads to such huge movements? Our ongoing research reveals four factors that affect the price of Bitcoin. These include media hype and uptake by peers, political uncertainty and risk such as the election of Donald Trump or the vote for Brexit , moves by governments and regulators, and the governance of Bitcoin itself. The split would have doubled the number of coins in circulation as previous splits have and increased transaction speed.
How else can we explain the change of the bitcoin rate and what affects bitcoin price?
Too many times have people been burned and scammed out of their money. On average this happens every four years. A recent Bank of America fcators attributes the increased value of cryptocurrencies to interest by institutional investors. Although there are certain factors that may have a negative impact on the value of Bitcoin, it is likely that in the long term it will transform into a safe asset due to its rarity. The demand for Bitcoins, meanwhile, is based on its popularity and trust among ahat members of the crypto community.
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