Known for its unique features and great perks, bitcoins are considered to be the most popular crypto-currency in the world; hence, more and more people want to acquire these digital coins. Read more about how to get them by clicking here. There are important things you must consider to get bitcoins and one of them is the Bitcoin Price.
Among other currencies in the world, the Bitcoin Price can be considered one of the most unpredictable as the changes in its rate is extreme. It has dropped as low as $3 and it reached the highest peak at $260. Hence, as bitcoin enthusiast you must know the aspects and factors that affects Bitcoin Price and the how to use the Bitcoin calculator and the Bitcoin chart.
– Supply of Bitcoins
It is of general knowledge that the price of bitcoins follows the law of supply and demand. The higher the demand and the lower the supply of bitcoins, its price will surely soar. Bitcoins has controlled supply wherein the number of bitcoins in existence must never exceed 21 million. This explains the reason why the difficulty of bitcoin mining increases for every block mined as the amount of bitcoin mined decreases. Since it has limited supply, there have been speculations that its price will surely rise over time.
– Demand of People
If more and more people will utilize bitcoins, its demand will surely rise as given the fact of its limited supply, and so is its price. Since bitcoins have been widely used not only in the internet but also in the real world, the demand for this is expected to rise. However, since this involves money, people are being careful and can be hesitant to the stability of bitcoin network. On the other hand, negative predictions can also create fear and uncertainty. And these can decline the use and demand for bitcoins; hence, its price will decrease.
– Stability of Bitcoin Network
The stability of Bitcoin Network is the number one concern of bitcoin enthusiasts. It is important to make sure that it is secured despite the fact that bitcoins, like dollars and euros, are bubbles. Bitcoins are considered economic bubbles since they only have value in exchange but have no inherent value. Hence, if the majority stopped accepting and using bitcoins, this “bubble” will burst and its price would drop to zero. And since the value of bitcoins is based on the inconsistent views about its future, it affects the number of people that will utilize bitcoins. However, Bitcoin Network has already proven its security for almost 4 years since it started in 2009. A good proof to that are the ubiquitous and emerging fields accepting and using bitcoins in both cyber and real world.
Yes, Bitcoin Price is indeed unpredictable because there are several factors that can affect its value whether it will soar or fall. However, if you see this perspective in a broader sense, you will take note that the change in price of bitcoins is solely in the hands of bitcoin users. As if you get the better grasp of it, the main point is that the Bitcoin Price merely depends upon the demand of people for this digital currency. Bitcoins are definitely legal to use; to know more about the legalities of the use of bitcoins, please visit our Bitcoin gambling legal page.