Bitcoin's price swings wildly because of supply limits, adoption growth, and human behavior. A month of $10,000 gains can flip to $10,000 losses. Media panic and regulation in places like Korea move global prices, but volatility matters less than Bitcoin's role as a response to 2008 and hyperinflation.
21 million
>17 million
Bitcoin rose over $10,000 in one month and fell more than $10,000 the following month.
Have you ever rode the Kingda Ka at Six Flags Great Adventure? If you have, you might understand how it feels to HODL Bitcoin just recently. In one month, Bitcoin's price rose over $10,000, only to fall more than $10,000 the following month. A Twitterverse full of financial advisors all have their theories, but we here at Cointelegraph felt it was time for a more clinical approach. So what exactly are the factors influencing Bitcoin's price supp? This factor is major. Nowadays, bitcoin does not have any physical equivalent in the real world, so BTC are sold on exchanges. The main principle of economics says that if people buy a currency, its price rises. And if people sell the currency, its price falls. Bitcoin is no exception. That is how we found ourselves in a world of bulls and bears and whales. Oh my. The total amount of bitcoin holders. The total amount of bitcoins is 21 million. But they are produced with time. Currently there are more than 17 million bitcoins and more than $14 million. People have bitcoin wallets. This number is growing rapidly. And since the number of bitcoins is fixed, the price will continue to rise. News and mass media, there's always a human factor involved. That is the way people can react to the news. This type of news has been dubbed FUD by the cryptocurrency community, which means fear, uncertainty and doubt. When FUD hits, the price of bitcoin inevitably takes a hit as well, as was seen this past January when news of Korean regulation hit the papers. Regulation in the age of globalization, decisions in just one country can have an influence on the entire world that is accepting Bitcoin as a means of payment. In Japan, the greatest problem with predicting Bitcoin's price is that the factors which influence it are hard to predict. Because of this, we recommend that instead of trying to predict the whims of the world in the future, look backwards. Look at the financial crisis of 2008. Look at governments who keep a stranglehold on the poor and the hyperinflation that impacts countries all over the world. Look at the way money has been handled, manipulated and abused over the past hundred. If you do that, you'll stop worrying about Bitcoin's price and start being hopeful for how it will change the world. Cointelegraph, like subscribe and Hodl.
