BITCOIN Price Prediction: WARNING!!! some of the factors that affect the price of bitcoin

What's up CryptoPeeps? It's your girl Maria here to deliver your
daily dose of Bitcoin news. Have you ever wondered what determines the
value of bitcoin? Well, wonder no more! I'm going to explain to you some of the factors
that affect the price of bitcoin and why the price changes. The supply and demand of Bitcoin plays a big
factor in the prices. Currently, there is supposedly a cap of 21
million bitcoins. When that cap is reached, Bitcoin mining will
no longer create new bitcoins. The supply of Bitcoin has reached 16.8 million
in January of 2017. Meaning that around 80 percent of the total
amount of Bitcoin have already been mined and made available to the public.

As we all know in general economics, the price
goes up when the demand cannot keep up with the supply. Number two: availability on exchanges. Platforms such as Paxful allow investors to
buy and sell Bitcoin through connecting buyers and sellers in their in-house marketplace. Networks are created through these kinds of
marketplaces as the exchanges become more popular. This is because it becomes easier to gain
more participants. The price is affected by this, as it has a
direct effect on the popularity of bitcoin as more people buy and sell. By general rule, the more popular Bitcoin
becomes, the higher the demand. And as we said earlier, there is a finite
amount of bitcoin. So the supply stays the same, while the demand
grows higher. Number three: competition Although it is believed
that bitcoin is the most popular cryptocurrency, there are over 1,000 cryptocurrencies in circulation. Examples of other cryptocurrencies are Litecoin
and Ethereum.

The presence of competition keeps the value
of an investment in check. For example, the value of the US dollar would
have been different if stronger currencies didn't exist such as the Euro, the Yen, or
the Pound. Number four: its own internal governance Since
bitcoin is not regulated by a single authority, miners are put on the spot the process transactions
and secure the blockchain. If they wanted to tweak or change the software,
then it has to be the decision of the consensus. Because of this, members of the Bitcoin community
feel that solving fundamental issues can sometimes take too long, particularly the issue of scalability. At this moment, the Bitcoin software is only
able to process about 3 transactions per second, which is incredibly slow for how popular it
is.

As of now, the community is trying to figure
out ways to speed up the number of transactions. Sometimes, when these changes are applied,
they turn into a whole other cryptocurrency. Examples of this are Bitcoin Cash and Bitcoin
Gold Investors then sometimes decide that the new currency isn't as valuable, resulting
in the new currencies not having enough value as bitcoin. And that's all we have for today! I hope you all learned something new! Tune in to the next episode, where we'll dive
deeper into the world of bitcoin..

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