Among all the cryptocurrencies we know very well that the
bitcoin is the best known. Information about market conditions must be updated every day to win consciously, however, doubts may arise
Why is bitcoin moving so much? Before being attentive to the behavior of the market, there are important influences that must be known and for this we must go to reliable portals such as
https://bitcoin-buyer.org/
Bitcoin operates without a banking body that regulates the valuation of the currency, to balance its value it chooses its characteristics, relying on external factors and using a system of protocols. Now, the indicators of the market parameters suffer continuous ups and downs. Why does this happen?
What influences the price of bitcoin?, we explain below:
- Forks: That's right, hard forks that may affect and indicate important changes in the protocol that all titrators must follow, immediately create the price volatility.
Although, some miners may disagree with changing the protocol, for various reasons. If this happens, the miners stick to the old protocol and are no longer part of bitcoin. It should be noted that as use cases are created and new digital currencies become more widespread, this creates volatility and risks.
- Availability: Bitcoin is mined by users who maintain the system and, in turn, implement current protocols. Therefore, when adding blocks to the system or approving transactions, an amount of bitcoin is granted, this for each block that is processed.
The cost of mining can be high. Equipment, electricity and maintenance requires
the sale of bitcoinbut obviously worth it. Yes
bitcoin goes too low, the miner will choose to keep their coin until it increases or stop mining. If the value of the currency increases, the demand will also increase.
- Intent: many users can handle bitcoin for different intentions, as well as make purchases or negotiate with her. Users generally keep the currency until its value increases, in this way, exchange for the currency that suits you best, be it dollars (BTCUSD), euros (EURGBP), among others.
The more this currency is traded, the greater its potential for speculation and volatility. There is an alternative where the owner holds the coin, pays the maintenance fees, and finds a buyer when it is necessary to sell. On the other hand, there is an alternative where the negotiations are carried out without commissions, but this option can affect you in the short or long term.
the value of bitcoin.
- Feedback: Last but not least, feedback is crucial for the bitcoin price rise. The markets are made up of sellers and buyers, this creates an important balance to carry out transactions, as well as a person who agrees with the price to give their goods to a buyer.
If there are many users in constant purchases of bitcoin, this can cause the price to increase.
The demand for bitcoin interferes with its price, also, by the number of platforms that allow users to use the currency.