Today we will touch on the topic of the cryptocurrency rate because, for many, this topic is not entirely clear. Many people cannot understand why at one time, Bitcoin cost up to $996, and now its price does not exceed $60,000.
Is it possible to make at least some forecasts regarding the exchange rate?
- News. One of the main factors in the growth or fall of cryptocurrency is the news background. The method of buying news is often in demand among speculators with cryptocurrency and shares on stock exchanges. This method is suitable for short-term investments because when people realise that the information is unreliable, the rate will quickly return to its previous value or rise even more.
- The progress of society. Today, more and more people use the Internet. Children teach their parents, and parents teach their parents. The Internet works according to the decentralisation scheme when any of your data first comes to the provider (he can do whatever he wants with them), and then it sends it to your interlocutor. In the end, people got fed up with control and wanted to get rid of it. Since the use of cryptocurrencies is a great way to keep your payments anonymous, the demand for it grows, and if the demand grows, so does the price.
- Internal influence. If we look at the rates of various currencies, we can determine that some of them are interconnected: if one currency falls, the other falls, and vice versa. A similar situation occurs in the crypto market.
- Acceptance by people. As we wrote above, Blockchain technology, along with its anonymity system, is attracting an increasing number of entrepreneurs, who, in turn, are introducing the possibility of paying for their services using cryptocurrency. The faster the business implements this technology, the stronger the public interest will grow, increasing the value of the digital currency.
These are the most important factors that determine the fluctuations in the cryptocurrency market.
