Calculation and Growth of Bitcoin Price Graph

What are the factors that influence the rise and fall of Bitcoin prices?

1. Volume And Distribution of Bitcoin
   As a relatively young digital currency, the volume of Bitcoin is still very small when compared to other assets such as gold bars, let alone conventional currencies like the US Dollar. As of Q4 2015, the amount of Bitcoin in circulation is only about 14 million, or much smaller than the US Dollar total of 1.3 trillion USD.

this is because the volume of Bitcoin has not been much and the circulation is not evenly distributed, so the Bitcoin movement is very sensitive and labile to the actions of its holders. When a person buys or sells Bitcoin in large quantities, then the price can instantly move extreme. If in the future the volume of Bitcoin is increased and the distribution is evenly distributed, then the volatility will slack off by itself.

1. Speculation of Trader
   The number of current Bitcoin users who make it a trading asset more than those who actually use it as a medium of exchange. This is because the relevance of Bitcoin itself is still minimal, so its use has not been spread and familiar among the wider community. So many users then prefer to take advantage of Bitcoin as a trading instrument in investment activities.

The main purpose of traders is to earn a double profit from the difference in Bitcoin price fluctuations, so they are the fastest party to respond to a global issue. Either manifested in a buy or sell act, the act that is often speculative it obviously has a big effect on Bitcoin volatility.

speculation of bitcoin trader

The circulation of information such as the refusal of a country to legalize the use of Bitcoin can be bad, so often Bitcoin traders respond by opening sell orders. On the other hand, positive news such as the growing number of big merchants like Amazon that receive Bitcoin, can be greeted with the purchase of Bitcoin in large quantities by traders.

1. Fraud Mode Involving Bitcoin
   Because of its potential to gain big profits, it is no wonder if many parties are not responsible then make Bitcoin as a new object of fraud involving investors. They will persuade potential investors to entrust him as a curator with the lure of growing profit on a regular basis and multiply.

Although there are many other factors that can influence the growth of Bitcoin growth pedant, but the above three things are considered as the main cause. Thus, study the factors that affect the price of Bitcoin karana activities that have the highest risk. Consult your financial consultant before making a decision. It is hoped that you can make that into consideration before you buy or sell Bitcoin, especially to illegal brokers.