I'm Sure many followers of Bitcoin well remember how at the end of the year we were promised bullrun worse than last year. The point is that it's already November 2018, and some serious movement in the market is still not observed. The volatility of Bitcoin is decreasing, too. May everyone hold your breath waiting , is scheduled for mid-December. In the meantime, let's see how are the prices of cryptocurrencies and what can influence these processes.
theneither one Nor the other not provided with the product (for example, something like gold or something that has a base price).
The Main difference between the value of cryptocurrency and Fiat money is that Fiat currencies are supported by Central governments and are considered legal tender. In fact their value is based only on the government's assertion that they have value, and the two sides of the transaction trust value.
Today, most countries use a system of Fiat currencies where Central banks and monetary reserves to control the money supply and thus indirectly control inflation. Cryptocurrency is not controlled by a centralized government or authority in most of the regions are not accepted as legal tender. Offer cryptocurrency, usually fixed, which virtually eliminates their devaluation.
The rest of the price of Fiat currencies and cryptocurrencies supported similar characteristics. And those and others can be used as a medium of exchange for buying goods and services as well as conditional means of savings.
theThis market is in its infancy.
The cryptocurrency Market is still considered very young. Most people, except that I heard the term "", but practically are not familiar with this industry.
The Young markets have many qualities that inevitably make them .
Liquidity in this market is limited, if compared with the traditional markets, including the currency market. For perspective: the total value of all money in the world, over 90 trillion dollars, while the total is about 250 billion. The difference in 36 thousand percent.
Daily trading volume of cryptocurrencies in the order of 14 billion, whereas the daily volume on the Forex market closer to $ 5 trillion. Spread – the difference between price of buying and selling on the Forex market is penny, and cryptocurrency transactions can reach several dollars. All of this points to a very narrow market, which naturally moves very quickly, which increases the price volatility of cryptocurrency.
Every day to the market also joins a large number of new users. In the beginning of 2018 cryptocurrency exchanges reported that they every day there is a 100 thousand new users. Many of these participants are interested in the prices of cryptocurrencies or rose, or fell. This contributes to the subversive nature of the market and fuels the volatility.
Finally, in the emerging markets of distributed manipulation. A large part of the flood control major cryptocurrency exchange. They are motivated to increase their income through artificial manipulation of the prices of cryptocurrencies. One of the possible ways – the manipulation of prices displayed on the exchange. Any jumps on the chart stimulate traders to buy or sell.
This effect is compounded when you consider the thousands of new market participants, which you can easily manage. In addition, the unregulated market price manipulation to prove and virtually impossible to monitor.
thePrices of cryptocurrencies depend mostly on supply and demand.
This basic economic principle. If cryptocurrencies offer high token in low demand from traders and users, then its value will fall. Conversely, if the offer cryptocurrency is limited and demand is high, its cost will rise.
This is due to factor deficiency. It drives prices up and is one of the factors by which the price of Bitcoin has reached its highs at the end of 2017. The maximum sentence is 21 million Bitcoins BTC is relatively small in comparison with the other tokens – while demand in recent years have soared.
The price of the cryptocurrency is also substantially influence the media and public sentiment. If the token or platform get negative advertising, the price usually decreases. But if the coin will get a lot of support and good media coverage, the price will almost certainly rise. That is, prices are highly dependent on human emotion and excitement.
The price is also significantly affected by the level of usefulness of a token and corresponding blockchain platform suitable for real-life problems. You also need to consider the complexity of hashing the tokens with proof of performance. Roughly speaking, the higher the complexity of mining, the harder it is to increase the supply of coins that the high demand fuels the price of the coin.
the Price of bitcoins – a good indicator of the behaviour of the crypto market in General.
theSince then, the price of Bitcoin really began to gain momentum. At the end of October 2017, it has exceeded 6 thousand, and at the end of November was slightly below 10 thousand dollars. the
Source: Сointelegraph
theAs in the case of traditional markets, forecasts of future prices of the cryptocurrency market, there are no guarantees.
Among the price projections for 2018 and subsequent years to meet the extremes at both ends of the spectrum.
Some, including (CNBC) and (exchange CEO BTCC), predicted that . Others take a more modest, but still high price forecasts, including the former stock strategist . He predicts a price of 25 thousand at the end of 2018 and 125 thousand by 2022.
At the other end of the spectrum are predictions of complete or partial market crash. Small investment Bank GP Bullhound predicts the collapse of the market on 90 percent within a year, while Harvard Professor and former IMF chief economist has predicted that Bitcoin will fall to one hundred dollars. CEO of GoldMoney Inc. Roy Sebag was generous and appreciated by future coins at zero dollars.
It is Obvious that forecasts of the prices of cryptocurrencies should be treated with skepticism. But there are factors that almost certainly will affect the future price of Bitcoin and the cryptocurrency market as a whole:
theThe usefulness of the tokens and the ability of the underlying technology to solve real problems.
More data to search for .
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