Why is Bitcoin going up? possible
Let’s remember that cryptocurrencies, like other products are an asset, which is currently highly valued because it revalues over time.
So, as is the case with most goods and services, cost is equipo by supply and demand.
Which means that the higher the demand, the higher its value and vice versa.
There it is possible to notice that the cost depends on the value that users or consumers are willing to pay.
Of course there are other possible explanations that we will gladly point out for you to consider.
Investor confidence in Bitcoin
At first, investors did not feel very confident in Bitcoins, because they were new to the market, but as they evolved, they gained users.
Although, confidence in the market is safe There are situations where investors are confident that the cost will increase and are engaged in buying.
On the other hand, there are investors who express mistrust and choose to sell the cryptocurrencies they currently own.
Currently, market participants demonstrate their confidence by holding long-term positions.
Sales have been low for a long time, which means that long-term investors are confident that saving their coins is the best thing to do.
growing popularity
The increase in popularity is another possible explanation for the rise in the cost of Bitcoin, perhaps because it is one of the first cryptocurrencies many prefer it. certain investors No they find it easy to ignore Bitcoinso raise your price, they trust that in the long term it will rise and the profitability will be substantial.
Action of central banks
We know that the greatest attraction of users for cryptocurrencies is that there is no regulation of any kind as a central bank, issuer, or intermediaries.
These components, responsible for printing banknotes, sometimes genere an increase in inflation.
At the beginning it was like that, however, these components have gradually entered cryptocurrencies.
On the one hand, the well-known platforms function like banks, becoming intermediaries who want to control everything, including the cost and negotiations between users.
These situations do not please the creator of cryptocurrencies, since they could be losing their essence by giving continuity to intermediaries and banks.
Speculation and bubble effect
Regarding the issue of speculation and the bubble effect that surrounds Bitcoin, there are different opinions according to individual perspectives.
What is certain is that the consequences of a financial bubble They are serious for the economy, affecting whoever has invested or not.
Speculation is noticeable when investors take advantage of the low price of cryptocurrencies to acquire them, waiting a long time to start offering them.
When the cryptocurrencies are in demand, they begin to offer them at much higher prices to obtain their exaggerated profits on occasions, originating the financial bubble.
the last halving
the halving is the decrease in the number of new Bitcoins formed per block, which means that the supply of new Bitcoin will be less.
Generally, this phenomenon occurs every four years, estimating that the next one will occur in 2024, minimizing the mining reward per block.
This behavior in the chain of blocks would genere an increase in the price in habitual markets with a stable demand.
Excessive creation of alt-coins like Tether
Tether is a stablecoin cryptocurrency based on the US dollar, which is not supposed to fluctuate like other cryptocurrencies.
In some countries there is a restriction on certain cryptocurrencies for their acquisition, so users choose to acquire other digital currencies and then exchange them for the ones they really want to have.
This situation is considered a possible ocasione of the increase in the value of Bitcoin, as well as the excessive creation of altcoins to satisfy demand.
Forecast of new increases
There are many experts who are in charge of analyzing the movements at certain moments of the cryptocurrencies, based on this they launch their forecasts.
Faced with a market marked by volatility, investors take advantage of the information from the experts to acquire at bajo coste.
This is considered another possible ocasione that generates an increase in the value of Bitcoins in the market.
What do you think about the possible explanations described that generate the rises of Bitcoins?
We hope you liked our article Why is Bitcoin going up? possible
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