The price of Bitcoin has been widely volatile. From November to December 2017, it increased by 223 percent.
It fell by 59 percent between January and February 2018, increased by 64 percent from February to March and then dropped again during March by 40 percent. While this isn’t necessarily a reason to give up on Bitcoin, it does serve as a stark warning to those who plan to invest in it.
Here are five of the primary factors influencing the price of Bitcoin. This one will be obvious to anyone who has taken an introductory economics course.
Bitcoin, like other currencies, is subject to the impacts of supply and demand. The supply of Bitcoin is analogous to that of gold.
Just as there is a pre-determined amount of gold in the earth, the Bitcoin protocol has a predetermined number of Bitcoins within it. People need to mine gold to bring it into the marketplace. Read more from hackernoon.com…
thumbnail courtesy of hackernoon.com