The trend of cryptocurrency is getting famous among online among investors who want to double their money. There are plenty of online investing platforms that let people to invest their money to the safe site. Out of which Bitcoin is the oldest and most popular in every investing market, which allows to record its transactions to blockchain, the safest security every. Bitcoin tends to be private investing platform that’s why it is different from purchasing stock or bond. Its operating pattern is centralized that means it is not governed by any higher authority or bank. Like all other platforms, it also has several value fluctuating factors like:
Demand and supply
There are several countries without fixed currency exchange rate that can control currency circulation by changing the requirements of reserve, adjusting the discount rate, or by engagement in an open-market. Supply of Bitcoin can be affected in two ways either by allowing it to create new protocol, new one is introduced in the market through this block. The miner’s process the transactions and the previous rate gets slow down. This process increases the demand of Bitcoins in a greater ratio and supply gets increased automatically, to raise the price.
Supply can also be affected by number of existing Bitcoin which is set at the limit of 21 million. Once it reaches the limit, the mining activities are stopped and the supply gets down automatically.
There are plenty of Bitcoin competitors and also initial coin offering agencies that tend to give tough competition. These competitors guarantee a great return to their investors at minimal amount investment. They attract their customers with various techniques and marketing tactics, plus market is getting introduced to several investing platforms every day that makes the field a little crowded. This crowded field works as competitor and tends to keep the prices down.