Mining City Reviews What Factors Affect the Value of Bitcoin – Why Is Bitcoin So Volatile?
Bitcoin and other cryptocurrencies are expected to have great potential in the future. But there is also a high risk. Due to the current volatility of Bitcoin, it can be difficult to determine where the value of cryptocurrency will be in the future, but one thing is for sure, working with reputable companies is more important now than ever before to protect your investment and reduce the risk of to become a victim of fraud or deception.
What is Mining City?
Mining City is a platform that provides mining plans, and gives users access to hash power and mining rewards. Hashpower is the computing power needed to generate cryptocurrencies.
Mining City users can purchase crypto mining plans that give them access to hash power and mining rewards. Hashpower provided by Mining City is used to extract Bitcoin (BTC) and other cryptocurrencies.
To learn more about Mining City, their products and services, visit Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter.
Is Mining City legitimate?
Absolutely! Mining City provides real hash power to users. Mining City is also leaving banned markets and taking a compatible approach to new laws and regulations, adapting to global markets. A good example of Mining City’s commitment to compliance is the recent implementation of KYC, AML and other compliance control processes.
Whether you are looking for a platform that offers mining plans or software to secure your Bitcoin, how can you find out if a cryptocurrency player is legitimate?
Here are 5 things to look for:
- Does the business deliver a real product or service?
- Does the business leave markets when cryptocurrencies or services are banned?
- Does the business keep up with new rules and compliance?
- Is the company transparent in its communication about what they do?
- Is the business making an effort to suppress real fraud?
There have been many widespread fraud attempts and attempts to defraud cryptocurrency customers in recent years, which has led to increased regulation and efforts by responsible companies to deter fraudulent activities and fraud. For example, Mining City has had to delete more than 500 social media scam profiles. These profiles pretend to be the founders of Mining City, Greg Rogowski or the Mining City itself on Facebook, Instagram and even Skype.
Mining City takes its responsibility to customers seriously, and any brand or company you choose to work in the cryptocurrency industry should do the same.
But what makes Bitcoin so volatile? And what are some of the factors that affect Bitcoin’s value? Keep reading to learn about some of the reasons why Bitcoin prices change the way they do.
Low offer
Bitcoin has only a limited offer and requires a lot of work to extract new coins. Due to this, there is a set low amount that can keep the demand high. If there was an unlimited amount of Bitcoins that could be extracted, there would be much less value per coin.
In the future, when the last of the cryptocurrency is recovered, demand may increase as the only options for getting cryptocurrency are to buy it from people who already have some. Right now, even though there is low supply, there are many ways to earn Bitcoin, and therefore demand is still relatively low, but when supply reaches its limit, supply and demand will cause the price to grow quite rapidly for a while.
Demand
Demand is one of the biggest impacts on the value of Bitcoin and other cryptocurrencies. Since the value of Bitcoin is not determined by the government, and it is still a fairly new program, demand and supply are the biggest determining factors for the value. So when something happens to reduce demand, prices can drop, and often a lot.
Some of the factors that determine demand are media about cryptocurrency, the companies that support the platforms, what countries do with the currency and rumors that may change the price in the future.
News
If there is any negative news about Bitcoin or someone associated with Bitcoin, it may lower the price for a few hours to a few days. If there is a report of the lack of security, or any lost money using bitcoin, the price will fall.
But positive news can also have a positive effect on value. When people see stories about the positive, such as a group of children getting rich on Bitcoin, there is usually an increase as people try to make the same amount of money.
Businesses
The companies that support Bitcoin and other cryptocurrencies also affect how high the cryptocurrency value is. If popular companies like Tesla support Bitcoin and other cryptocurrencies, it will make people want to get more involved, and demand will increase.
However, if a company withdraws from supporting a cryptocurrency, people may be afraid to use it and the value will fall.
Country
Countries are trying to figure out what to do with cryptocurrencies. Some countries, such as China, are trying to control or block the use of cryptocurrency. When not many people use the block, prices will also fall. So when an entire country fails to use blockchain and cryptocurrency, the value can fall.
Rumours
As with stocks, if there is a rumor that could mean that the Bitcoin system will be affected, the value may decrease if people retire. For example, there have been rumors that the US government is working to regulate Bitcoin, and as these rumors circulated, the price of Bitcoin fell by half.
Lack of regulation
Many established markets and foreign stock exchanges are heavily regulated. This prevents market manipulation, where some or a group of people may place many orders with the idea of canceling later to raise prices.
Cryptocurrency and Bitcoin do not have many rules. This means that markets can be manipulated and affected, which greatly changes the value of cryptocurrency. As cryptocurrency grows and more regulations are put in place, volatility due to artificial market influences should decrease somewhat.
Not supported by the government
Currency is often supported by the government to increase stability. There are still fluctuations during the exchange of different currencies, but overall they are generally in a small area. However, Bitcoin is not supported by the authorities.
Since it is not supported by the government, there is nothing to help keep the price stable. This increases the amount of rumors, media and demand affect the value, which is one of the reasons why it is so volatile.
Not having support is one of the major disadvantages of cryptocurrency, but it is also the reason why it is so valuable. Bitcoin is a decentralized currency, which means that it does not depend on a key factor, the government, to handle the production, monitoring and storage of money.
So while this makes Bitcoin much more volatile, it also causes much more demand for the currency than a similar product backed by a government agency. This makes this factor a bit of a double-edged sword.
When it comes to products, they are often backed by investors and hedge funds, which give them value. Since there are not many investors involved in the cryptocurrency world yet, some of the inherent value that comes with the products is missing. Reports say that when cryptocurrencies and platforms begin to bring in many investors, the price is likely to skyrocket.
New
Many of the currency forms we use are very old, and therefore prices have largely stabilized. With a new form of currency, we are looking at a long period of volatility as Bitcoin grows and becomes more widely used.
Bitcoin has been used since 2009, which is a long time compared to some other forms of cryptocurrency. But compared to gold, which has been used for thousands of years, Bitcoin will need a long time to stabilize.
This does not mean that Bitcoin will need thousands of years. The US dollar has only been around for about 300 years, and has been stable for a while, except for major events.
