In the world of cryptocurrencies, answering these questions is anything but easy.
When the price of a commodity or a stock rises, you can usually point to some sort of reason. When Apple has a good quarter, its stock price generally goes up. When catastrophe strikes, uncertainty in global markets typically increases demand for what are viewed as safer investments such as gold, propelling prices upward.
But in the world of Bitcoin, the digital cryptocurrency that doubles as a decentralised payment system, you’ve got a lot less to go on.
Although what the Cryptocurrency experts are saying is that developments in other countries (like Japan) were the likely cause for Bitcoins latest price surge in 2017.
“The Japanese have given bitcoin the green light as a currency and are looking to increase the rigour that their exchanges are subject to,” said Charles Haytar, CEO of market analysis platform CryptoCompare.
Also most experts agree that cryptocurrencies rely heavily on user adoption. While another factor in what affects the price of Bitcoin is that trading cryptocurrencies has gotten a lot easier in recent years.
Exchanges such as Coinbase, Kraken, and BitStamp now let you turn dollars and euros into BTC and ETH. This has definitely propelled some of the market’s growth; when you see something increase in value tenfold within a month, you want to be a part of the action.
The question is: how far will the price go? Cryptocurrencies are highly volatile. And with any Bitcoin-related community, and you’ll see price predictions ranging all the time. The most recent rise or plummet in price is not permanent. It’s still early days for crypto coins, reported “Mashable.com”.