Bitcoin is a decentralized digital currency that has recently exploded in popularity. According to most Bitcoin news outlets, the market capitalization of this relatively new asset grew over 26x during 2017. Because of this, many investors worldwide are suddenly taking interest and wondering how they too can get involved with cryptocurrency markets. If you want to be on board for the next big thing but aren’t sure where to start, read on!
Factors that affect Bitcoin Price
1. Government regulations
Bitcoin prices are affected by government regulations. Due to the decentralized nature of digital currencies like Bitcoin, they can’t be controlled by governments or traditional financial institutions.
However, some countries have banned this type of currency altogether, which means that investors in those regions may not use them until things change again with new legislation.
Other areas (like Japan) will allow Cryptocurrencies like Bitcoin but impose stringent restrictions on how people trade with them and who can buy into these exchanges.
Another critical factor that affects the price of Bitcoin is technology. As a relatively new currency, some investors choose to hold off until it’s more developed. There are many additional online features such as wallets or apps being created by developers for this purpose.
If you’re patient enough to wait before getting involved with digital currencies like these, you’ll have less competition out there when things take off!
However, if patience isn’t one of your virtues, don’t worry (and maybe try something else instead) because great ideas always start from humble beginnings. Cryptocurrency will continue growing no matter what happens in the meantime.
3. Media and Bitcoin price
The media plays a significant role in the fluctuations of Bitcoin prices. This happens for two reasons: first, when media outlets publish negative stories about cryptocurrency exchanges or digital currencies themselves. As you might have read in most breaking Bitcoin news, it can often cause panic to ripple throughout the industry, which means that many people sell off their investments as soon as possible to try and limit potential losses.
When this occurs en masse, it causes severe damage to exchange platforms online who may not have been at fault whatsoever – so be wary! Second, positive news spreads like wildfire on social networks due to how accessible information is nowadays, thanks to Twitter and Facebook.
Many factors affect the price of Bitcoin and other digital currencies. The most important ones to pay attention to getting involved with this new industry include government regulations, technology, and media coverage – but there’s more than just these issues at play when trying to predict where prices will go next.