Bitcoin is a decentralized peer-to-peer digital currency run by users, without a central body or intermediary. The average price of one bitcoin was recorded as approximately $ 11,118.92 at the end of July 2020. Bitcoin prices may vary as they are traded on many independent exchanges. However, the Bitcoin price index offers an average price on the world’s leading stock exchanges. Bitcoin emerged during the global economic crisis of 2008 when big banks were caught abusing borrowers ’money, manipulating the system and charging exorbitant fees. To secure owners ’money, bitcoin creators wanted to put bitcoin owners at the forefront of transactions, eliminate intermediaries, reduce high interest rates and transaction fees, and make transactions transparent. They created a distributed network system, where people could control their resources in a transparent way. Bitcoin gained popularity and grew rapidly in a relatively short period of time. Many companies, hospitals and large hotel companies around the world deal with bitcoins. Some multibillion-dollar corporations, such as Dell, PayPal, Microsoft, Expedia, etc., also deal in bitcoins. Today, websites also promote bitcoin, magazines publish news about bitcoins, and cryptocurrencies and bitcoin trading are also discussed on forums. However, there are some bitcoin-related issues, such as hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. Bitcoin gained popularity and grew rapidly in a relatively short period of time. Many companies, hospitals and large hotel companies around the world deal with bitcoins. Some multibillion-dollar corporations, such as Dell, PayPal, Microsoft, Expedia, etc., also deal in bitcoins. Today, websites also promote bitcoin, magazines publish news about bitcoins, and cryptocurrencies and bitcoin trading are also discussed on forums. However, there are some bitcoin-related issues, such as hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. Bitcoin gained popularity and grew rapidly in a relatively short period of time. Many companies, hospitals and large hotel companies around the world deal with bitcoins. Some multibillion-dollar corporations, such as Dell, PayPal, Microsoft, Expedia, etc., also deal in bitcoins. Today, websites also promote bitcoin, magazines publish news about bitcoins, and cryptocurrencies and bitcoin trading are also discussed on forums. However, there are some bitcoin-related issues, such as hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. Some multibillion-dollar corporations, such as Dell, PayPal, Microsoft, Expedia, etc., also deal in bitcoins. Today, websites also promote bitcoin, magazines publish news about bitcoins, and cryptocurrencies and bitcoin trading are also discussed on forums. However, there are some bitcoin-related issues, such as hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. Some multibillion-dollar corporations, such as Dell, PayPal, Microsoft, Expedia, etc., also deal in bitcoins. Today, websites also promote bitcoin, magazines publish news about bitcoins, and cryptocurrencies and bitcoin trading are also discussed on forums. However, there are some bitcoin-related issues, such as hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. like hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions. like hackers breaking into accounts, high bitcoin volatility, and long transaction delays. Nevertheless, bitcoin is considered reliable, especially in third world countries, as a channel for monetary transactions.
Coronavirus pandemic:
When the coronavirus crisis disrupted global economic activity after the introduction of locks, traders moved from riskier assets to safer ones like bitcoin. In mid-March, the US Federal Reserve cut its interest rates to almost zero and launched a $ 700 billion QE program to combat the market chaos caused by the coronavirus crisis. That fluctuated in the stock market, as Dow futures fell 1,000 points, and made cryptocurrencies more attractive, pushing bitcoin prices upward.
US dollar prices:
The relationship between bitcoin and the US dollar is negative, which means that whenever the US dollar is strong as a whole, bitcoin prices come under pressure and vice versa. The recent fall in USD prices due to loose monetary policy, interest rate cuts and the US economic crisis has supported BTC / USD prices. US dollar prices were also affected by the delay in the US Congress in announcing the US stimulus package, which has recently kept bitcoin prices under pressure.
User adoption:
The value of bitcoin largely depends on the adoption of the asset by the user. Cryptocurrencies are becoming more popular day by day, and this raises the price of bitcoin, as it is the most popular cryptocurrency. However, when demand for the currency falls, it results in lower prices. Currently, most users are switching to bitcoin as a currency. Otherwise, it is also used as an excellent currency for online trading. The use of bitcoin as a medium for online transactions has increased recently, and the opportunities offered by its ease of use could lead to higher prices in the coming years.
Media influence:
The media is the most important source of information today, and the prices of bitcoin and other cryptocurrencies are also affected by its impact. Greater media coverage means a better understanding of the crypto market and bitcoin by the general public. If the media presents a positive image of bitcoin, this will generally lead to higher prices of the BTC / USD pair, while negative media coverage could have the opposite effect on bitcoin prices.
Political events:
Unlike central bank currencies, cryptocurrencies have the opposite relationship to political events. The lack of confidence in the country’s economy tends to undermine the local currency, while people in such a situation gain more confidence in cryptocurrencies, as a substitute for traditional currencies. Bitcoin is an iconic leader in the cryptocurrency market, so bitcoin prices tend to rise first whenever there is any political disruption, before it affects other currencies in the market. A recent example could be the prevailing trade war between the United States and China, which pushed bitcoin prices.
Government regulatory changes:
Bitcoin and other cryptocurrencies are heavily influenced by government decisions. As these currencies are still considered a new concept in the market, governments are constantly changing the regulations regarding the taxation of investors in cryptocurrencies. On one occasion, the world’s largest crypto market, China, decided in late 2017 to close several trading platforms, and this caused a dramatic drop in bitcoin prices, resulting in a $ 100 billion drop in the cryptocurrency market in one day. Thus, government regulations have a dramatic impact on the prices of bitcoin and other cryptocurrencies.