- Dec 13, 2021
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Bitcoin is a decentralized payment system that relies on its peers to process transactions. Its price often fluctuates erratically, but there are many other aspects that affect this variance. For example, the value of Bitcoin is heavily influenced by a wide range of cryptocurrencies.
Understanding the different factors that affect the price of Bitcoin will help you better assess potential trends in the market. Some key factors to keep an eye on are:
Attractive investment sources:
- Based on Ladislav Kristoufek's analytical research paper, he said what is the main factor of Bitcoin price- Attractiveness is one of the variables that are more dominant than supply and demand in predicting price. of Bitcoin. Based on Ladislav Kristoufek’s analytical research paper, he revealed what is the main factor of the Bitcoin price.
- Based on political and media-related adjustments, attractiveness becomes more visible and more investment-worthy.
- Media Influence: the more positive the media reports Bitcoin to be, the more influential it will become. It's likely that as a result of this, potential investors and Bitcoin users increases. Due to this, new growth especially in altcoins would be possible.
- Political Changes: Political problems and financial crises often lead to more people adopting cryptocurrencies in the community.
- It's only natural that people rely on this type of currency for transactions in the future. It is already being used today to increase knowledge in transactions and offers greater diversity in business forms.
- Countries like: Afghanistan, Nigeria, Kenya, Vietnam, Argentina where there is a boom in the use of virtual currencies to reduce the cost of remittances and economic distress.
- Political uncertainties such as policy changes, hyperinflation, high poverty rates, unemployment, and lack of financial consolidation in many countries have spurred people to accept Bitcoin and altcoins.