Bitcoin has witnessed its fair share of ups and downs. The volatility in the price has made people wonder whether it is just a scam or a product of innovation which is set to revolutionize the world. The great crypto haze has currently cooled down after the 1,400 percent rally that occurred during 2017. Bitcoin price right now is US 6,829$. The public interest and internet searches have now plunged.
Parameters to consider
General public has now realized that Bitcoin is not a get rich-quick and risk-free scheme. This cryptocurrency has is affected by crucial factors. One of the factors is the Bitcoin supply and the increase or decrease in its demand. Bitcoin price is determined by the rate at which it is being mined and also on the demand for it. If the supply fails to meet the demand, then it results in a spike in the Bitcoin price. The price of this coin is expected to increase as the number of bitcoins that can be mined is finite.
Government regulations enforced on transactions
As Bitcoin is not bound by any specific regulation, governments all over the world are trying to lay down regulations for controlling activities that involves bitcoins. Countries such as USA, Canada, UK and Japan have already released laws regulating. Bitcoin market price several stores in Japan accept Bitcoins as the government has considered it to be a legal payment. The price of Bitcoin fluctuates whenever an official statement is made by any government in controlling this digital currency. There is a drastic change in the price whenever there is a restriction or ban by any government.
Influence of media
Bitcoin is a volatile digital currency. Any positive or negative news in the media has the potential to impact its prices. News about ban, hacking, eminent celebrities and investors declaring it as fraud can have a negative influence on its price. News about the currency being used for money laundering or use for any illegal activity impacts the price of this cryptocurrency significantly.
The crypto community plays a crucial role in influencing the price of Bitcoin. The trust factor has still made this currency as the most valued. The latest innovative advancements such as integration of PayPal and Bitcoin has renewed the interest people have in this currency. The launch of ICOs and efforts to improve the transparency in the system has also impacted the value of the currency. The Bitcoin price right now is due to various factors that have either resulted in a plunge or surge in the prices.