Governments across the world are trying hard to control the price of Bitcoin since it continues to increase at an alarming rate. It’s done to protect the investors and increase tax revenue. Knowing and predicting various factors driving cost of Bitcoin ups & downs will help investors to better forecast or understand this market of bitcoin. Here are some important factors that influence price of Bitcoin and how fun token will help you earn bitcoin:
Huge Future Potential
Currently, Bitcoin has more than 5 million users, and many more are joining every day. Because of a fact that it’s the most accepted currency among the people, some experts think that Bitcoin may continue to increase in the coming time.
Some also believe that the time where majority of the population makes use of Bitcoin will be attained. During such times, governments may have lots of pressure from public & they will not have any choice but make it the official payment mode. Early investors can profit a lot from such events.
Higher Liquidity
Earlier when 50% of the price fluctuation happened because of low liquidity rate, there’re a lot of players that are involved these days. An approval of the complex trading instruments generally deepens its liquidity & attracts investors who were discouraged by the price fluctuations of bitcoin.
Functional & decentralised currency
Bitcoin is known as a “decentralised” currency. Basically, it works through the dispersed P2P network, instead through the central authority like central bank. It does through participation of the Bitcoin “miners”. It is any person who selects to run the software to validate the transactions of Bitcoin on blockchain. Generally, these people are engaged actively with the cryptocurrency.
They’re rewarded with bitcoins, and more of them are made in every ten minutes. However, reward paid to the bitcoin miners halves in each four years.