Showing posts with label Bitcoin Factors. Show all posts
Showing posts with label Bitcoin Factors. Show all posts

November 23, 2021

Basic Cryptoterms What does Blockchain, Bitcoin, NFT, Tokens, Crypto Mining mean

Ten years ago, cryptocurrencies were just an unknown concept of decentralized finance. Rare enthusiasts participated in crypto trading and ICOs.

Later we saw several BTC price jumps, altcoin season, Defi boom, and probably NFT hype.

Cryptocurrencies are now a famous investment trend available for anyone who has a device with a good internet connection.

Basic Cryptoterms What does Blockchain, Bitcoin, NFT, Tokens, Crypto Mining mean: eAskme
Basic Cryptoterms What does Blockchain, Bitcoin, NFT, Tokens, Crypto Mining mean: eAskme

Still, cryptocurrency is an investment option and a world completely different from traditional stocks and bonds.

As with any other investment asset, you need to understand what you are investing in before starting.

Here are a few basic terms to help newbies better understand the world of crypto.

Crypto terms you everyone should know:

Blockchain:

Blockchain is a network of recording data in a highly secure way.

Thanks to cryptographic algorithms used by blockchain, it's difficult and technically impossible to change, hack or deceive recorded information.

You may have heard that blockchain is also called a distributed ledger. That means that records are duplicated and distributed across a complete network of computers around the globe.

Every network participant has a copy of all the records.

The information is stored online; no single server nor a single authority is controlling the blockchain.

Each block in the chain contains several transactions. Once a new transaction appears, a new record is added to the ledger.

Blockchain is a DLT where every record goes with an unchangeable cryptographic signature. This signature is called a hash.

What's more, transactions are recorded in s strict chronological order.

If one block in the chain differs somehow, it would immediately become evident that it has tampered.

The system checks and compares copies from all the connected computers to quickly find the mistake.

If hackers want to damage the blockchain system, they will have to change every block in the chain across all distributed versions, which means all computers are connected.

Blockchains are constantly growing as blocks are added to the chain. This way, they greatly enhance the security of the ledger.

Bitcoin:

Bitcoin (BTC) is a cryptocurrency, meaning this is virtual cash.

You can send and receive BTC for far distances and in a short time without intermediaries like a bank.

Generally, it's like the online version of cash.

Cryptocurrencies are recognized as a middle of the exchange, meaning you can exchange them for traditional fiat funds or even use them to buy products and services.

Still, they're only a few shops accepting Bitcoin.

Also, some countries haven't recognized BTC as a currency or asset, and governments and banks prohibit it.

Each bitcoin is a computer file that you can store in your digital wallet — it can be applied on a smartphone or computer.

People can send bitcoins and another crypto to your digital wallet, and you can send them to other people.

But remember that you can share your public wallet key, your address, but you should always keep your private key a secret, which is your digital signature.

Crypto mining:

Crypto mining is a process of extracting digital coins by solving cryptographic equations. You need a powerful computer for that.

The solution involves validating blocks of transactions and adding new records to a ledger.

Mining supports peer-to-peer cryptocurrencies by verifying and sequencing the transactions.

Noteworthy, blockchain wallets are anonymous, so a miner never knows who the initiator and recipient of the transaction are.

Miners, who are usual network participants, use special computer hardware that generates new blocks of transactions.

This requires much electricity and computer power, so, in turn, miners get the extracted coins.

If a miner solves a block first, he gets the block reward, more significant than the reward for confirming a transaction.

Altcoins:

After Bitcoin's success, many digital projects try their strength in building blockchains and creating their cryptocurrencies.

That's how we get altcoins.

They took their name as an alternative coin to BTC.

Most altcoins aim to solve Bitcoin's perceived weaknesses, and some of them offer competitive advantages, like better scalability.

The first altcoins built on Bitcoin were Bitcoin Cash (BCH) and Litecoin (LTC).

Tokens:

Technically, the name token is just another word for cryptocurrency. It takes on slightly more specific meanings when used in different contexts.

For example, any cryptocurrency other than Bitcoin and Ethereum is usually called a token.

Another common meaning of crypto token is a crypto asset that runs on top of another cryptocurrency's blockchain.

Most of the DeFi projects are built on Ethereum, so their native currencies are called tokens.

Stablecoins:

Stablecoins were created as a simplified and stabilized means of crypto transactions. Their price is much more fixed compared to other cryptos.

This is because their value is pegged to other assets, mostly fiat currencies like the US dollar.

Thus, owners of stable coins enjoy the benefits of crypto assets without excessive volatility.

After all, most companies are not willing to accept highly volatile crypto assets since it's hard to predict their value changes.

Non-Fungible Tokens (NFT):

Non-fungible tokens are also virtual assets. However, unlike Bitcoins or Ethers, every NFT is unique.

It contains the identifiers of the physical or virtual item and the ownership rights on it.

NFTs are unique properties and, therefore, cannot be divided into parts.

You can buy, sell and exchange NFT, but as an item, not digital cash.

When someone creates or mints a non-fungible token, no one can then copy, edit, delete, or in any way alter it.

Yet, someone can create an NFT with the same characteristics.

As a rule, the NFT history can be traced back to the creator. This makes them more reliable and allows the owner to generate residual income.

There are many crypto platforms to buy these tokens, sell those you already own, or even create a new one.

You can check the most expensive NFT to compare their potential to grow in price.

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September 15, 2021

Why is Bitcoin an Investment Method for Different Investment Purposes?

As you all know, cryptocurrency is booming these days. It is a platform that helps traders to earn a considerable amount of benefits.

As a result, more and more people are investing in this currency.

The total market cap of the entire cryptocurrency industry is a trillion.

Why is Bitcoin an Investment Method for Different Investment Purposes?: eAskme
Why is Bitcoin an Investment Method for Different Investment Purposes?: eAskme

Not just revenue, it has also offered employment to a lot of unemployed people.

As a layman, we can say that cryptocurrency has made its importance in today's time.

The reason behind it is that many people are getting employed with it.

Moreover, cryptocurrencies are giving huge returns on their investments.

Even these aspects have helped make international transactions very easy as there is no intermediate in between.

What are the benefits offered by Bitcoin?

Bitcoin is the most used cryptocurrency nowadays as it provides its users with several benefits and profits.

The prominent reason behind this fact, it has been liked by most of the users.

Even users are getting attracted towards it because of this reason.

So further, we will discuss all the benefits which are offered by cryptocurrencies.

Volatile Market:

One of the significant benefits of investing in cryptocurrencies is that the cryptocurrency market is very volatile.

Therefore, it allows its users to earn profits by holding the money in the market for less time.

Even if the user wants to hold the money longer,  that explicit user will earn much higher profits.

Secure Transaction:

Another reason behind investing in cryptocurrency is that all the transactions alongside the user's account are entirely secured by cryptography.

Moreover, cryptography is considered to be one of the most secure platforms in today's time.

Due to these reasons, it has now been adopted by various other sectors of society like the healthcare sector.

Transaction Privacy:

The bitcoin platform allows its users' transaction privacy.

Transaction privacy is a significant advantage because many users are engaged on this platform due to this advantage.

Even new users who are getting engaged on this platform are because of the transaction privacy.

International Transaction:

Bitcoin can be used as the source of the transaction on an international basis.

Many people use this platform to make international transactions.

Suppose a person goes to any third person for an international transaction.

The transaction charges and the transaction time are shallow. It will take a long time, along with the transaction charges.

What are the investment purposes of people in cryptocurrencies?

When people are investing in cryptocurrency, they have specific reasons.

But, of course, there are many reasons like investing your money for the future.

All the more investing the money to use the money after retirement and even for children's future and many other reasons.

As if you see the price according to the time, the price of the Bitcoin a few years ago was just 2.5 lacs.

However, with time the number of users has increased.

Even awareness among the people increasing the number of users.

It has led to an increase in the price to 40 lacs.

It is a considerable increment in the price of Bitcoin as this price has been reached very few times.

Due to this reason, bitcoin has been preferred by lots of users.

Bitcoin is a cryptocurrency that offers its users transaction security and provides security to the user's account.

Users demand such features in a payment method nowadays.

There are very few investment methods that allow security to its users.

Along with transaction security, it gives transaction privacy to its users.

This transaction privacy is because of the security system of Bitcoin that is cryptography.

Conclusion

Here we have discussed the benefits Bitcoin offers to its users.

Some benefits are required by many users in today's time, like transaction security and transaction privacy.

So the users are adopting it, and they can easily earn money from this platform even if they want to make the savings for the future.

To sum up, you can also try this platform for once as this platform helps its users to earn money by investing in it for shorter periods.

The person can also work as a bitcoin miner on this platform and can be self-employed.
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May 06, 2021

Evaluating the Next Decades of Bitcoins

Bitcoin was meant to be a revolution in the financial ecosystem when it was first introduced to the world a decade ago.

But the revolution is still a long way off. The turbulent first decade of cryptocurrencies has been characterized by controversies, missteps, and vigorous price swings.

Evaluating the Next Decades of Bitcoins: eAskme
Evaluating the Next Decades of Bitcoins: eAskme

Other people are at: Advantages and Disadvantages of Bitcoin and Crypto

The price drop in Bitcoin this year has been met with a barrage of criticism.

Investors and cryptocurrency enthusiasts, on the other hand, have increased their trust in the currency's future.

As a result, the next ten years will be critical to its survival.

A Compromised Vision

Bitcoin was meant to be a borderless and decentralized alternative to government- and central bank-controlled fiat currencies, according to Satoshi Nakamoto's seminal paper published on Oct. 31, 2008.

The Bitcoin network does not rely on third-party mediators to reach a consensus on a transaction.

Instead, blockchain is used to validate and authenticate a transaction.

Blockchain is a peer-to-peer network of networks of electronic ledgers.

According to Nakamoto, the expense of mediation raises transaction costs, reducing the minimum realistic transaction size and effectively eliminating the likelihood of small and informal transactions.

However, at the end of Bitcoin's first decade, the initial vision seems to have been lost. Centralization has supplanted decentralization.

Bitcoin whales, or investors with large holdings of the cryptocurrency, are said to exert market influence on its price.

The democratization of mining as a means of printing money has been sacrificed in favor of the productivity of large-scale mining farms.

Bitmain, a Chinese semiconductor firm, for example, controls 75 percent of the market for mining-related application-specific integrated circuits.

Also, Bitcoin's infrastructure has deteriorated and is plagued by scaling issues.

However, those disadvantages are outweighed by the creation of a thriving and vibrant crypto ecosystem.

The cryptocurrency industry is now worth $1.56 trillion, despite the fact that it did not exist less than a decade ago.

Since Bitcoin's launch, more than 1500 cryptocurrencies have been developed and are exchanged on exchanges.

The term "blockchain" is already popular, and it claims to be a solution to complex problems.

Institutional investors are now rushing to crypto-assets as a means of investment despite their initial reservations.

Evaluating The Next Decade

The next ten years will be crucial in Bitcoin's evolution.

Apart from financial ecosystem revolutions, there are a few aspects of the ecosystem of Bitcoins that investors must be aware of.

The cryptocurrency is currently torn between being a store of value and a conduit for everyday transactions.

Even though governments around the world, such as Japan, have declared it a legitimate form of payment for products, institutional investors are eager to get in on the action and benefit from the volatility in its costs.

The mainstreaming of Bitcoin as a payment method will not happen without technical advancements in its ecosystem.

Bitcoin's blockchain must be able to process millions of transactions in a limited period of time to be considered a viable investment asset or method of payment.

Several new innovations, such as Lightning Network, promise to increase the size of the company's operations.

In 2018, Ripple's CTO David Schwartz compared Bitcoin to Ford's Model T, citing changes in Bitcoin's blockchain.

The maker of the car heralded a revolution in transportation, and an entire ecosystem grew up around it, from highways to gas stations, to support the automobile.

The beginnings of an ecosystem that is popular in recent years, thanks to widespread media coverage.

Bitcoin has topped $50,000 and traded close to $60,000 so far in 2021, as of March 2021.

Large banks are also paying attention to cryptocurrencies, with Goldman Sachs coming up with its trading crypto desk again and BNY Mellon launching digital currency custody services.

Are You Future-Ready?

The future of finance seems to be digital currencies and the blockchain.

Cryptocurrencies seem destined to become more widely used for online payments, despite their current uncertainty and lack of universal acceptance as a payment tool.

They may thus be an interesting long-term investment, especially if you have a high-risk tolerance.

Nobody knows where we'll be in 20 years, but cryptocurrencies and blockchain technology are gaining traction as financial forces to be dealt with.

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March 06, 2021

Bitcoin: Learn the working of digital wallets!

Are you planning to enter into the world of cryptocurrencies and learn about different cryptocurrencies and their technology?

Before you enter into the cryptocurrency world and learn about storing cryptocurrencies, you need to learn about cryptocurrency wallets.

We are introducing a guide that will help you gain digital wallets, their working, and different types of digital wallets.

Bitcoin: Learn the working of digital wallets!: eAskme
Bitcoin: Learn the working of digital wallets!: eAskme

Other people are at: Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!

You are familiar with storing your real cash.

Either you use a purse or a wallet or a piggy bank to store your real or physical cash to make your money secure.

Similarly, the cryptocurrencies like bitcoin and others are stored in a cryptocurrency wallet.

By getting a cryptocurrency wallet, you can easily store, send and receive bitcoins.

But before you store your cryptocurrencies in your wallets, you must have a complete understanding of their working.

Bitcoin is the most famous cryptocurrency, and all the cryptocurrencies are stored, send and receive similarly.

Choose Crypto trading app to trade your bitcoins and gain the maximum profits.

Let us learn about the working of cryptocurrency wallets that are also known as digital wallets.

How do digital wallets work?

Bitcoins are digital coins that aren't stored in physical form because these exist digitally.

Blockchain is a shared public ledger that contains all the transactional records that provide public and private keys that control over user's funds.

To have a complete understanding of the role of wallet and wallet address and the digital keys, you must read the forthcoming paragraphs.

A bitcoin wallet address is similar to the bank account number that can be shared with other users to receive the funds.

To get bitcoins payments as a salary or payment of selling goods and services, users can share their wallet addresses with all other users.

Like no two bank account numbers are the same, all the wallet addresses are unique, and there is no limitation on creating the wallet addresses. A user can create multiple wallet addresses for different purposes.

A bitcoin address is a long string that is an amalgamation of letters and numbers of both lowercase and uppercase. For example, a bitcoin address is in format: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa.

Because the blockchain ledger is completely transparent, all the users can find out the amount of money that a particular cryptocurrency wallet has but can never know the bitcoin owner's cash flow.

Simultaneously, a bitcoin wallet address does never reveal the real identity of the bitcoin owner because bitcoin's blockchain also maintains pseudonymity.

How are digital keys – public and private keys are related to bitcoin wallet address?

Now, we have understood that wallet address is the same as bank account number, now we will learn how the users are given control over funds.

Most people think of the wallet address is the same as the public key, but this doesn't seem right.

Each crypto wallet address has its unique public and a private key that allow it to send and receive funds.

For instance, you want to send funds to some other user from your bank account. You will be required to enter the password or PIN to send the funds.

As for your password, no other person has access to it which only allows you to send money, a private key acts in the same way.

A private key is more like a secret key that must never be shared and is used to safeguard your bitcoins and send funds from your wallet to someone's else wallet.

Both public and private keys are mathematically linked to a wallet address.

In reality, Bitcoins aren't stored in digital wallets but are stored on the blockchain ledger.

Blockchain is a shared distributed ledger that records all the bitcoin transactions that have ever been initiated and completed. Even it records the total account balances of all the wallet's public addresses.

The software on which the cryptocurrency wallet is made is directly connected to the blockchain, which requires the wallet to submit all the transactions to the shared ledger.

Using your private keys, users can easily verify their crypto tokens and easily transfer them to another user.

There are various types of bitcoin wallets available online that you can choose to send and receive funds.

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Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!

Are you a trader? Do you want to trade bitcoin but have less knowledge about bitcoin trading strategies?

Well, there are some popular bitcoin trading strategies that you can choose to apply while trading bitcoin depending on your available capital, risk enthusiasm, and your goals.

Trading bitcoin is a bit daunting as it requires a complete understanding of the bitcoin market.

Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!: eAskme
Gain in-depth Knowledge about the Most Popular Bitcoin Trading Strategies!: eAskme

Other people are at: Features that Make Bitcoins a Top-Notch Cryptocurrency

Because its market is highly volatile, some traders find it quite risky to trade bitcoin.

You can learn to trade bitcoin through the very famous platform.

We are introducing to you some very popular bitcoin trading strategies that are described in detail.

These strategies will help you to make profits in the bitcoin market if done with proper planning and implementation.

Let us move forward and gain knowledge about bitcoin trading strategies.

Breakout trading

Bitcoin breakout trading strategy is one of the best strategies that many people adopt as it requires traders to enter the bitcoin market at the earliest and be ready for the value of bitcoin to breakout from the previous value.

Breakout trading strategy means when the bitcoin market will break because of the resistance level of key support; after that, volatility in price will start and will increase.

Bitcoin traders must learn when it is the right time to enter the market when using a breakout trading strategy.

Key support and level of resistance are required to be identified by bitcoin traders, and in order to understand these, traders can make use of volume levels as technical indicators or signals of confirmation like MACD (Moving Average Convergence Divergence). After identifying resistance levels, traders can open a position according to the market.

Trend Trading

Trend trading bitcoin market is a strategy where the market reaches either lower lows or higher highs consistently.

Trend trading strategy is only suitable for traders of different timeframes as they can hold their position open in the market as long as the trend continues, and it can either be for hours, days or months.

The bitcoin market is a trend in itself because there are high fluctuations in the price of bitcoin.

Its popularity increased in 2017, and its price skyrocketed, and people who didn't trade or invest in bitcoin at that time missed the thrilling experience.

People who didn't miss out on that huge surge in price and popularity of bitcoin and experienced are referred to as Fear Of Missing Out (FOMO). Bitcoin is highly popular, and even a news headline or event can influence its price.

Traders who use trend trading strategies often learn technical analysis to learn about the bitcoin market's direction.

Traders must open a position when they feel or believe that bitcoin will move from its current price or direction to a new trend.

HODLing

One of the most popular bitcoin strategies is referred to as HODLing, which means 'holding on for dear life.'

HODLing tern was introduced in 2013 when bitcoin's price was falling, and one of the bitcoin users used the term hodling instead of holding.

Later, it becomes a strategy that people used to maintain quite a long position in bitcoin, expecting the price to rise in the long-term.

However, the bitcoin market is highly volatile, and sometimes HODLing bitcoin results in huge losses.

It is recommended to only use the HODLing strategy when you have a risk management plan and only trade a limited amount of funds using this strategy.

Hedging

Hedging bitcoin is the strategy where traders open strategic trades to reduce or eradicate the risk of positions that already exist.

Most individuals often consider hedging a risky strategy because they believe that digital currency prices will decline in the short-term.

For instance, a trader hedge by open a position that includes selling bitcoin at the current market price, expecting that price will decline.

If the market price of bitcoin falls, as a trader, you can easily buy bitcoin back at less rate and make a profit.

It is imperative to know that hedging involves risks as you will use it as a short-term selling strategy.

You must have a proper risk management plan if you plan to hedge your bitcoin.

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Features that Make Bitcoins a Top-Notch Cryptocurrency

Bitcoin is the virtual form of currency that has led to a big boom in the market.

It is all because of the features that have made this currency a widely accessed source.

There are some of the high-end features which have supported this currency to take this support.

Features that can give you clarity that bitcoins a top-notch cryptocurrency: eAskme
Features that can give you clarity that bitcoins a top-notch cryptocurrency: eAskme

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You are suggested to give some attention to the features, which will make you clear about the site's potential.

People who have gone through them instantly changed their mindset and got ready to start using the bitcoins.

Digital Currency:

Bitcoin is a form of digital currency.

There is no physical presence of the bitcoin available in the market. If you are not having even a little idea about cryptocurrency, you should be aware of it.

Whenever you make your mind to buy bitcoins, the digital form of coins will be transferred to your wallet.

Even the wallet used for storing and managing the bitcoins is in digital form, which makes it entirely intangible.

The people have found it a unique invention because now they have to not take fiat currency weight along with them.

Even you should adopt it, and you will feel the difference.

AI Based System:

The special powers and artificial intelligence-based monitoring system are used for regulation the transaction of bitcoins.

It means that activities like phishing and laundering are impossible in the case of bitcoins.

Without getting worried about any risk factor, you can have any number of transactions using the bitcoins.

As compared to the ordinary money transaction, there is not even a little risk or chance of uncertainty if you are using the bitcoins.

This is what differentiates the nature of bitcoin transactions from the other type of transactions.

Anonymous:

If you are a businessperson who conducts an endless number of transactions using fiat money, you would know that each transaction is in the trace of the financial body or government authority.

Yes, they have a full-fledged idea about even a transaction of a penny are traced by them.

Bitcoin is a kind of cryptocurrency that is totally different in this case. It will be only you and the receiver who will be aware of the transaction.

There is not even a minimal interface of any middlemen, which is an exemplary aspect of it.

Diversified Acceptance:

Among all the cryptocurrencies, bitcoins are the most popular type of currency due to their diversified acceptance.

There is rarely any online platform that does not accept payments through bitcoins.

It has mainly happened because people have adopted the use of bitcoins in their life.

The impressive part is that these sites offer a couple of discounts and offers to those individuals who will transact using the bitcoins.

If you want to avail of all these offers, then there is no better alternative than having use of the bitcoin.

Different than Commodity:

Bitcoin is totally different from a commodity that is highly valuable in the world economy.

No one is having even a little idea about when the value of bitcoin will touch the sky and fall on the ground.

It is because bitcoin is not regulated by any of the central authorities.

So, you should clear thing perception from your mind that the bitcoins are also known as a highly valued commodity.

It is true that at the present time, the value of the bitcoin has reached to points that were totally unexpected, but there is no idea about the future.

Legitimacy:

You should be fully aware of the fact that bitcoins are not a legal cryptocurrency.

The only factor which makes it a popular type of currency is its high-end value.

As compared to all the cryptocurrencies available in the market, bitcoin has the highest market capitalization.

This is why new and new people are interested in starting investing in bitcoins.

Every currency has some kind of risk, and the higher the risk you will take, the abundant amount of revenues can be generated at that very moment.

So do not believe if anyone claims that bitcoins are fully legalized cryptocurrency.

After going through the features mentioned over Yuan Pay Group software, you would surely have got high admired to adopt the use of the bitcoins from this very moment.

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February 03, 2021

The Journey of Bitcoin and Factors that Influence the Price of it!

In 2008, a mysterious entity released a white paper describing a new digital currency that follows a peer-to-peer network and is decentralized. The white paper described Bitcoin as an electronic cash system, and this news hit the headlines.

At the time of the financial crisis, this revolutionary idea was developed, and this shook the financial world as a new decentralized currency was developed.

Bitcoin became the first digital currency independent of the government and provided the integrity of transactions and promised security of users' data.

The Journey of Bitcoin and Factors that Influence the Price of it!: eAskme

Other people are atSome Popular Cryptocurrencies other than Bitcoin!

You can read more info here and keep yourself updated with bitcoin trends and news.

Bitcoin became the currency with no involvement of central authorities, including central banks or government, and it promises the general public to provide vast possibilities in the financial world.

This genius idea was developed when people distrusted central authorities, and also, this digital currency promises to help users make transactions within minutes, unlike traditional currencies.

The founder of Bitcoin is a mysterious entity, and the only name that came behind the bitcoin network is Satoshi Nakamoto. He introduced bitcoin at the right timing and promised to solve all the issues of users.

Bitcoin is the only digital currency that was expected to be the future of currency but suddenly, in mid-2010, the founder of bitcoin, Satoshi, disappeared.

Until then, the bitcoin network is in the hands of its community, and people understood the potential of bitcoin and considered it a store of value worth investing in.

In 2009, the value of a bitcoin was negligible, but in a period of very few years, bitcoin's value raised to $10,000 from $1. Here you can see the "Bitcoin Price Predictions" for the upcoming years.

Throughout 2017, the graphs of the financial world changed due to bitcoin because its value reached skyrocketing.

No one can deny that many investors also lost their funds when the bitcoin market was down, but in 2017, many young investors entered the bitcoin market and invested their money.

When the bitcoin market fluctuated, it became a nightmare for investors who invested all their funds in bitcoin.

Despite their volatile market, cryptocurrencies like bitcoin and others entered into mainstream and helped businesses and companies to grow.

In 2020, at the time of the covid-19 pandemic, when the world was stuck and the businesses were shut down due to lockdown restrictions and curfew, it was time when cryptocurrencies got life.

All investors invested in bitcoin, and it provided the term of being digital gold.

A lot of traders and investors traded bitcoin and made huge profits.

Key factors that affect the price of Bitcoin

Unlike traditional currencies governed and controlled by the government, bitcoin is a valuable asset whose price is affected by its demand and supply.

Since bitcoin's invention, the public compared it to gold, and the main thing about the bitcoin network is that its supply is limited because bitcoin is a computer code.

There are plenty of market participants that determine bitcoin's value, and the main factor includes user adoption and usage.

Another main factor that influences the price of bitcoin is media coverage. In the early stage of bitcoin, its price was positively affected by media because media considered bitcoin for the dark web.

Undoubtedly, when people heard about the dark web, they scared potential investors and started moving back.

But fortunately, the media also covered bitcoin and blockchain technology and explained to people about features of blockchain that can help potential investors and traders.

The main feature that attracted users is the decentralized nature of both bitcoin and blockchain.

However, some people hesitated because the banning of bitcoin and other cryptocurrencies was still in the government's hands. No one can ignore or deny the power of government.

One another factor also includes cryptocurrency regulations, and it is a negative factor.

No doubt bitcoin has entered the mainstream, but there are various regulations that bitcoin networks must follow.

When businesses and retailers started accepting bitcoin as a financial asset, it increased the price and demand of bitcoin.

Covid-19 pandemic also affected bitcoin's price a lot, and during the pandemic, when everything was shut down due to restrictions, bitcoin's value raised, and its value reached heights.

Bitcoin reward halving is also a factor that affects the price of bitcoin. Miners are benefited from mining rewards as they are provided an incentive for their hard work to mine bitcoins.

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