What influences the price of Bitcoins?

cryptocurrency
bitcoin

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Even though Bitcoin is not a physical coin, its value is influenced by a wide range of factors. Understanding what these factors are can help investors decide when to buy or when to sell. In Pakistan, Bitcoin is not accepted as a currency by State Bank of Pakistan and there is yet no regulation. However a number of developed countries have started accepting the trades in Bitcoin currency being regulated by the central regulators.

Government regulation can influence the price particularly when they release official statements, however, the media can play just as big a part as any hype can push the price up whereas negative news can result in the price dropping.

We must not forget supply and demand because if there is a high demand and a low supply, it can increase the price whereas a large supply can result in a price drop. There can only be a maximum of 21 million bitcoins in circulation and so, this makes people believe that the more interest there is, the more it will continue to rise. Finally, more businesses are beginning to accept Bitcoin as a currency and so, the more widespread this becomes the higher the value becomes. Mawazna.com aims to help you with making well informed decisions when it comes to personal finance and investments.