Why Is Bitcoin Rising
Since the past week, there is a continuous hike in the price of the bitcoin. Even now when I am writing this, it is around $8,000, which is highest in the year 2019.
Why is Bitcoin rising- so you have heard the term Bitcoin and you wish to invest into this? Before we look into this, why is Bitcoin rising, we need to understand some terms of Bitcoin?
Assuming that, you are new to the term crypto-currency. There are some basic terms of crypto-Currency, blockchain technology, along with Bitcoin rising. The crypto-currencies are a digital form of
currencies which provide security through cryptographic principles.
The technology used in Blockchain technology that fuels the crypto-currencies. Bitcoin rising is nothing but a peer to peer electronic cash system, and there is no other physical currency available. It could be used to pay for any service or product just like any other currency.
Unlike conventional fiat currencies, it gives a fixed market supply of approximately 21 million coins, which is available through a complex and brute force computation process that is referred to as Mining. Adding a block into the blockchain network means, solving the block. This process results in a reward in the form of Bitcoins.
Is Bitcoin a Bubble?
The whole crypto-currency sector is appraised to be a bubble or a Ponzi scheme by some prominent investors in the market. The reason being the price of the bitcoin fluctuates in the market. The market is solely driven by some of the market forces like demand and supply. One this needs to understand crypto-currencies are not backed by any other form of a financial asset.
The value of Bitcoin is due to its widespread acceptance and the belief among its users. Hence very high fluctuation is observed in the crypto market. The traditional stock market did not use to fluctuate more than 5% in a single day. Now a day, it is prevalent that 10-20% price fluctuation is seen.
How Does Bitcoin Operate?
Before predicting the Bitcoin price, there is one more thing to discuss. Every bitcoin transaction takes place on the blockchain. Blockchain technology protects the bitcoins and its users by keeping them safe from hacking. It is powered by the number of computer systems which is called nodes. These nodes help to verify every transaction in the Blockchain.
When a Bitcoin transaction takes place, one node of the blockchain network verifies the transaction by using a mathematical equation. This is placed on the blockchain network. The nodes help operate the
blockchain network. Every node verifies the transaction, and the user gets the bitcoin for their efforts. This process is called Mining.
Bitcoin is decentralised, and nodes operate the network. The network is controlled by a group of servers, not by the central server. This is good for the bitcoin’s security, and it makes it harder for hackers to get
access to the network.
Why Bitcoin’s Price Fluctuate
Why is Bitcoin rising? And Is bitcoin going to crash? These are the question we hear a lot. Before predicting the Bitcoin price, we need to understand how Bitcoin fluctuates.
The price of Bitcoin changes every day, just like any other currency. The difference is only the scale of price change. Why Is Bitcoin Rising value depends on how the market value changes. For instance, the price of gold depends on its demand and supply. When new gold mines are extracted, its rate slows down. This is due to that more Gold is available for trade. So rarer the Bitcoin is, the higher the price prediction in the market.
Similarly, Bitcoin prices because of Bitcoin Rising changes. However, the value of Bitcoin generally changes because of the
news in the market that is published. Here how it works:
- When there is not good news about the Bitcoin, a lot more people were selling Bitcoin than buying Bitcoin. These people obliged to sell their Bitcoin at lower prices than that of their buying value.
This causes a price drop in the market.
- When the good news comes in the market about the Bitcoin, there are more people to buy Bitcoin than selling it. These people purchase the Bitcoins at a high price than the current value. This
causes the price rise in the market.
The Demand and Supply of Bitcoin
When the Bitcoin was brought in the market, the value or a limit set by Satoshi Nakamoto that how many numbers of Bitcoins is to be available in the market- 21 million. He decided this because as long as the market remains, there should not be any more coins in the market. When the popularity of the Bitcoin increases, then the value should also be increased.
The Surprising reasons for Bitcoin’s Price Rise
The price of the Bitcoin went up by 210% in the past year trading from about $450 in mid-2016 to record-breaking levels of May 2017 up to $1400. Since its inception and from the last eight years, Bitcoin has braved a lot of scepticism, experience, and rejection. To the present day, it is slowly being recognised by the governments, and it is dubbed as an emerging asset class.
For example, Japan has recognised the Bitcoin as a legal mode of payment, and it continues to be treated as an asset, not as a currency. In India also the Department of Economic Affairs and the Ministry of Finance constituted a committee to understand and examine the standard and framework of the virtual currency. At the same time, Russia also supported the crypto-currency in the recent past who was the staunch opponent of the crypto-currency. In addition to it, the Republic of the Philippines has also issued guidelines to recognise the Bitcoin as a legal mode of payment.
In addition to it, Bitcoin start-ups have attracted huge investment in digital Bitcoin market and Blockchain companies with a total investment of $550 million in 2016, as per a report. Additionally, many prominent investors are raising direct stakes in the Bitcoin. This suggests the optimistic future of the crypto-currencies. Many of the businessmen hold their money in the form of cryptocurrencies like Bitcoin and Ethereum.
Bitcoin Price Prediction: The Bitcoin’s Future
We wonder where Bitcoin is going to be standing in the next one year, two years, five years or even in the next 10n years. It is really to predict, but everyone wants to make the prediction.
If more countries create regulations or laws for crypto-currency, the more bad news could be published in the market. This means the Bitcoin could crash in the future. Countries such as Japan, China, France, South Korea, and the United States want to create new regulations.
In creating the new regulations, there are some points:
- This law creation could take a long time.
- It should not affect the Bitcoin value.
It needs to be considered that Bitcoin projection will continue to rise.
What is the Bitcoin value Prediction in 2019
This question mostly arose at the time of the dinner parties. Why is Bitcoin rising? And Will Bitcoin rise this year? Will it fall this year? What is the bitcoin price prediction? You know the Bitcoin and its technology used is very useful, and this is changing the world. Anybody who claims to know whether the Bitcoin price will rise or fall short is a liar. Sorry, this is the truth.
I want to inform you and firmly believe that blockchain technology and cryptocurrencies are the future and going to rise. This is the reason; I think that the price of the Bitcoin will increase soon. But I also cannot know even. All that I can do is the guess and could only make predictions. Some people say that Bitcoin is a bubble-like a dot-com bubble. In the dot-com bubble, stocks prices got too high. But the time bubble burst, the stocks back down to low prices. And the person who bought the shares at high prices lost their money. So it is recommended that invest the money after a lot of consideration.
Kay Van-Petersen is a well known crypto-currency market predictor. He most precisely predicted the value of the Bitcoin and its rise and fall throughout the year 2017. He also predicted the Bitcoin rise in 2018 as well. There was optimism that Bitcoin rise in 2018 will be similar to the increase in 2017. However, there were some ups and downs in the market, but Bitcoin did well in the year 2018. And shortly, it is also going to rise if there will not be hard regulation and laws implemented by the government quickly.
Practical Reason which could support the Bitcoin rise in 2018-19
The initiation by two of the most prominent stock exchanges of Chicago Mercantile Exchange and Chicago Board Options Exchange in the field of Bitcoin futures is being pointed this rise of Bitcoin value and by some of the industry professionals that work well for the increase of the Bitcoin price in 2018-19. They actively support the Bitcoin rise in 2018 and also in 2019. They have opened up a lot of opportunities for the masses of people who were scared of the unregulated state of the cryptocurrency. The Commodity Futures and Trading Commission also gave the proposal a green signal; It is completely regulated in nature. The enthusiasts who have missed the wave last year could join the bandwagon now soon to make vast amounts of profits.
It is wise and should be understood that Why Is Bitcoin Rising? And why it is declining? If it is done correctly, the buying and selling of the Bitcoin can mean big profits. It has provided a lot of money to the investors. And it is also clear that you can also lose money in this digital currency.
Before investing you should know that how and why the bitcoin price is changing and the terms on which it is dependent like demand and supply, regulations, and news etc. so that you can know how people make their prediction about Bitcoin price. In addition to it, the technology used is very advanced, the blockchain technology, and it is going to be more advantageous soon.
Now you have read a lot about the predictions of Bitcoin experts and also have a price prediction of your own. So enjoy investing in the Bitcoin.