Bitcoin prices rose from $32,983 on January 22, 2021 to $35,811 the same morning the following year. However, in the meantime, prices fell below $30K in July, and most recently above $69K on November 10th.
In five years, the situation looks much better for bitcoin investors as the shares have fallen from just over $1,000 in 2017 to the current price of around $35,000. Looking at Amazon for the same five years, that’s an incredible bonus. ((((AMZN) – Amazon.com, Inc. Get the report Inventories while Tesla changed from $835.77 to $2852.86 ((((TSLA-Get a Tesla report The share price jumped from $50.59 to $943.90.
So for long-term investors, Bitcoin is a better investment than Amazon or Tesla, and to be honest, it’s not even close. Of course, the difference is that Amazon and Tesla sell their products and provide investors with a basis for valuation (which may not appear to be rooted in practice).
Bitcoin is a product, so there is no product. Its value is tracked more as a collectible group than as a company’s stock.
Why does the price of bitcoin go up or down?
Bitcoin is traded based on how people feel about cryptocurrencies. It has nothing to do with indicators like sales. Instead, it’s a combination of fear of being ignored and how investors have always viewed currencies.
Prices also tend to go down or up depending on the behavior of the regulators. Prices will drop if the authorities indicate that Bitcoin can be banned or strictly regulated. But when it’s warmer or less hardy, the prices go up.
“The rally is mainly dependent on the positive perception in the media. Some news is telling a lot of people that ‘Bitcoin is really the future! I’ll get some or buy more! “It makes me think,” wrote Rhys Thomas of The Face.
Drops happen for exactly the same reason. Although the supply of bitcoin such as diamonds and gold is limited, cryptocurrencies have physical limits, but precious metals and gemstones exist in unknown quantities.
Nearly 19 million bitcoins have been mined from a total of 21 million devices. That is, you can buy and sell.
“It took 12 years for the world’s largest cryptocurrency by market cap to reach its target since the first coin was mined on January 9, 2009,” The Street’s Tony Uso wrote in December. “But due to the bitcoin halving schedule, mining the remaining supply takes twice as long. The halving schedule is an inflation control device that halves the reward for bitcoin mining. It is.”
Mining is discouraged (especially if the price of cryptocurrencies drops) because it raises the cost of bitcoin mining and discourages people from doing so.
So how do you predict the price of bitcoin?
Bitcoin prices are not tracked based on predictable data. It moves up and down based on how people have always felt about cryptocurrencies. When the buyer outnumbers the seller, the price rises.
And of course, influencers and celebrities can move the prices of different cryptocurrencies. It could be for no reason at all (or because a celebrity wants to raise or lower the price), or it could be semi-meaningful because the company accepts it as payment in the form of cryptocurrency.
Bitcoin can be played like any cryptocurrency, collectibles and many more rare items. However, it works in many ways like big and jet stocks. Penny stocks are difficult to operate because they trade less than stocks of large corporations.
As a kind of crypto king, Bitcoin is not as easy to treat as a small cryptocurrency simply because it is being traded in much larger quantities.