STEEMCRYPTOCHALLENGE #5 - I LOVE BITCOIN : The music parading the price of bitcoin
Happy new month to the entire steemit team and everyone participating in this challenge.
Today we will take a quick survey regard the fluctuating value in bitcoin price.
It is no longer a story that bitcoin has gained popularity all over the world, despite warnings from government who are slow in accepting the future of money. The price hitting over 13500 USD is not even scary for investors to back out, rather they are yearning for more. From our recent study we have seen bitcoin not as a value per say, but a blockchain.
Prices are very unstable.
Bitcoin can be seen to be an investment because when purchased has a propensity for growth and not investment because it can be used to pay many currencies nowadays around the world. Some investors has classified bitcoin as a virtual.
Bitcoin is not issued by any government policy, not even a bank and like many other business, is influenced by so many factors we would be considering in a moment:
Competition
Competitors on cryptocurrencies are increasing by the day as new cryptocurrencies are being released, though bitcoin has being the dominant coin since it was first created cryptocurrency and investors have accepted it. Dormancy is due to its high visibility. Its closest competitors are Etherum(ETH), bitcoin cash(BCH), litcoin(LTC), among others. The presence of these currencies in normal market setting is supposed to force the price downwards but bitcoin has proved to be king over them all. However we cannot conclude in a hurry, let’s see what the future holds for bitcoin.
Availability of currency exchanges
The more popular a cryptocurrencies become the easier it becomes for investor to accept and trade with it, a network effect is being created. Bitcoin presence on exchanges implies a level of regulatory compliance regardless of the legal grey in which the cryptocurrencies operate.
Regulation and Legal activity
Various country regulations and acceptance have hindered the awareness of bitcoin currencies. There has been serious debate on how to classify such a currency, the security and exchange commission (SEC) classifies cryptocurrencies as securities, while the U. S. commodity future trading commission (CFCT) considers bitcoin a commodity. This confusion has built uncertainty. Speculation has it that it can affect the market price of bitcoin either by allowing access to investors who cannot purchase an actual bitcoin thereby increasing demand or reducing [rice volatility by allowing instis investor to pick the avialble bitcoin on a bet.
Supply and Demand
Supply and demand affect virtually all business setting, bitcoin is not left out. Only countries with constant exchange rates can partially control the value of currency circulated, changing open market regulations and much more.
Bitcoins comes at a slow rates as its protocol allows it to be created at a fix rate. New bitcoin are then introduced into the market when miner process blocks of transactions. The slowing of bitcoin circulation by halving of block rewards offered to bitcoin miners and can be thought of as artificial inflation for cryptocurrency.
The supply may be impacted by the number of bitcoins the system allows to exist and circulate. Research says that we have about 21 million in circulation and once the number is reach, mining activities will no longer create more bitcoin. This will control the amount of bitcoin released in for circulation to keep it at a low supply and will release in the surge increase in price.
In conclusion, bitcoin price can't predicted accurately though a close guess can be made. The system has been built to regulate the supply of bitcoin which will parade the price, by speculations we can say bitcoin price will be on the rise and is bullish.
Thank your for this challenge even as i look forward to the challenge from tomorrow.