A historical asset
Bitcoin was created in 2008. The basic concept was to propose electronic money without authority control. This innovative concept makes it the reference crypto 14 years later, especially since the block chain has been integrated into the project since the beginning of the project.
bitcoin is a historical assetthis necessarily gives it value.
See: Bitcoin price history
supply and demand
The value of Bitcoin (BTC) is mainly determined by supply and demand (buyers/sellers). Operators are present in this asset. They make the price of Bitcoin by making investments (accumulation of Bitcoins) but also by trading.
The course orientation is based on multiple criteria what are we gonna see.
The fashion effect
with Bitcoin is over 14 years old and it is talked about more and more and, in general, it is the cryptocurrency industry that attracts and intrigues geeks, investors but also Mr. and Mrs. of all.
Accessibility
Exchanges (purchases, sales) in Bitcoin have become more democratic. It has become easy to buy Bitcoin. Trading platforms and major markets offer access to this asset to any user.
utility
Bitcoin gives the possibility of pay someone on a secure network
from a dedicated platform. This is done without requesting validation from an authority. it’s a network independent with low transaction costs.
The more Bitcoin users there are, the stronger the price will be theoretically high. Useful technology gives greater value to the asset that represents it. Bitcoin is the new benchmark digital currency which should continue to spread as it is fully digital and decentralized.
the rarity
currently there 18 million Bitcoins in circulation. The limit, published in the source code of the Bitcoin protocol, was set at 21 million tokens by 2140. Circulation will be decreasing until this date.
The distribution of new Bitcoins dedicated to mining limited every 4 years (reduction of the mining bonus).
These limitations will certainly allowlimit the inflation of this digital currency which makes it even more interesting.
economic dependence
The price does not depend on the fundamentals as can be seen in the stock market or the institutions that can regulate a currency (euro, dollar).
However, Bitcoin is becoming increasingly dependent on:
- financial markets as a whole that is, you can follow the trend of the market, whether it is rising or falling sharply.
- technical analysis. Certain levels determined by technical analysis (support, resistance) are respected.
- financial news. Good and bad news about crypto stocks can create moves in Bitcoin.