From Bitcoin’s exchange rate of $0.08 in June 2010 to its all-time high near $1,150 in November 2013 and currently in 2017, 1btc is about $1,258, it had grown 1.4million percent in less than three-and-a-half years. No speculative power have achieved this kind of phenomenal growth.
Bitcoin is a digital currency that is priced in $(USD) and is used as a measure of value all over the world.
There are various factors that determines the price of bitcoin per time. Some of this factors are highlighted below:
1. Supply and Demand
Bitcoin available for sale vs US dollar interested in buying play a role in the price index. When there is more demand for bitcoin and less supply, the bitcoin price rises.
It could be as a result of monitored trends about bitcoin, various news about btc, hack news, improved machinery, thieves. To survive speculation, follow the trends and make sure to do this; “Buy on fear, Sell on greed”. Which means when people are rushing to change their btc to normal currency, you will be able to buy at a cheaper rate then keep it, till when people start coming back for it again. You can then sell at a high price.
The price of bitcoin is also as a result of miners. Miners are those responsible for the creation of new bitcoin in the bitcoin network.
Keeping btc by holders if btc affects the price of bitcoin in $(USD).
5. Number of Transaction
When transaction keeps going on smoothly and is increasing, a lot more people will have confidence to buy bitcoin which makes the price keep increasing steadily.
6. Volume of bitcoin available
The more bitcoin available the more the value of bitcoin flunctuates against the $(USD).
For more information, check the following references.
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