Let’s take a closer look at how the price of bitcoin, whose
total supply is limited to 21 million, will rise. The price of bitcoin rises
under the influence of various factors. These factors include increased demand,
limited supply, macroeconomic factors, technological developments and
regulations.
As demand for Bitcoin, or any crypto, increases, so does its
price. This demand is driven by individual investors, institutional firms and
large investment funds. In particular, the interest of large investors in
bitcoin can drive the price up quickly.
Another detail that makes bitcoin valuable is that its total
supply is limited to 21 million and block rewards are halved during halving
periods.
In addition, innovations in bitcoin technology or related
infrastructures can increase confidence in bitcoin. In particular, scaling
solutions such as the Lightning Network make Bitcoin more widely available and
increase demand.
There are regulations on Bitcoin and cryptocurrencies in
different parts of the world. These regulations can have a direct impact on the
price. The legal acceptance of Bitcoin and cryptocurrencies and the existence
of crypto-friendly politicians who can take these steps may make
cryptocurrencies more valuable in the future than they are today.
Television news about cryptocurrencies and social media
platforms can directly direct investors towards or away from cryptocurrencies.
Any positive news and positive comments from celebrities about bitcoin and
cryptocurrencies can affect investors and the price through them.
The perspective of financial institutions and large
corporations on cryptocurrencies is also important. Any Bitcoin and
cryptocurrency-friendly organization increases the legitimacy of
cryptocurrencies. It contributes positively in financial and business circles
as well as in large communities.
Let’s not forget that bitcoin and cryptocurrency markets are
volatile. It can be affected positively or negatively by all developments. The
risk is higher than many investment instruments. I suggest that these are
estimates and that you do your own research.
This article is not investment advice!