In this era of digitalization, it is a rewarding move to invest in cryptocurrency such as bitcoin and it is important to know the bitcoin price and how the price varies.
What is bitcoin
A Cryptocurrency used to make online payments through digital wallets and transaction is recorded in blockchains. It can be mined using a personal computer that has the required specifications.
Future of bitcoin
Bitcoin is mined in which a powerful computer has to solve tough algorithms and crunch numbers. Currently, with the power of the computer, we are only able to mine twenty-five bitcoins in ten minutes that value will rise to a whooping number of 21 million in a century.
How the price of bitcoin varies
The price of bitcoin changes every day because it is still developing and is at an early stage.
- Bitcoin just like any other commodity is traded for assets, services and content produced so its price is highly dependant on its demand. So, if the demand is high prices go up and the demand is low then the prices go down. Countries when ban bitcoin it is very likely that their prices will affect negatively as the demand will be low.
- It also depends on the number of people willing to actively take part in its economy, the more people are mining it, trading it, selling it, using it as a monetary means to make purchases then this will have a positive impact on the bitcoin price.
- Publicity and press also affects the value of a commodity so if the bad press or bad publicity can likely to damage the value of bitcoin and hence its price.
The bitcoin price is suspected to rise in the coming years and those who are mining bitcoin can profit from it to a large degree.