If you are a holder of cryptocurrency or you want to become one, then you will definitely need minimal knowledge that will help you understand the subtleties of Bitcoin’s development. These skills will help you to predict the future of the world’s #1 cryptocurrency and, guided by the best price, beneficially conduct operations with it.
So, have you noticed that Bitcoin’s rate is different on separate platforms or even countries. Let’s try and understand why.
- What is the real course of Bitcoin and what does it depend on?
- Is the Bitcoin rate different between countries?
- What does the cost of real Bitcoin depend on?
Bitcoin’s rate in real time depends on its own owners, who can cause a collapse or a rate jump. The fact is that the change in the state of cryptocurrency depends on the artificially created excitement and panic around the changes, which depends on other factors. We will consider them below.
Rate jumps are of two types: local and global. During a price jump you can make good money or lose a ton, if you do not seriously research all the subtleties and nuances of the cryptocurrency economy.
Many are interested in whether the rate of a cryptocurrency is different depending on the state. The answer will surprise many, since the rate is actually different. For this purpose, a special index of Bitcoin’s free use depending on the country has been developed.
The index directly depends on the index of the country’s economic freedom, that is, on the coordination of the market, not on the political situation. The financial component, that is, the total amount of money, depends on the size of economic freedom, as well as measures of funds control.
In simple words, the one who has more Bitcoins and fiat funds has the right to dictate his/her rules.
See for yourself: the US usually offers Bitcoin for a price $400 less than in South Korea, although the price difference ranges between $1800- $3000.
You ask: “What is the problem with buying Bitcoin from a country that offers it for a cheaper price?”. The fact is that small buyers who are striving to get involved in the cryptocurrency industry simply do not have a choice due to the territorial location and the abovementioned coefficient of Bitcoins’ free use.
Bitcoin has never been stable. First of all, this is due to the lack of centralized regulation, which would control the cost of the cryptocurrency. At the same time, there is a number of other factors that will form the exact exchange rate of Bitcoin.
3.1. Bitcoin’s legislative regulation
The authorities of the country are trying to find all sorts of ways that will help regulate the cryptocurrency. To do this, it is necessary to make Bitcoin legitimate, which experts are terrified of. Everything is explained by the fact that decentralization makes Bitcoin unique. If its regulation becomes centralized, the digital currency will no longer be Bitcoin or another cryptocurrency.
Bitcoin is a universal means of payment for goods and services. This is actually the reason why platforms on blockchain use cryptocurrency as a payment system.
The buyers themselves do not exert any influence on Bitcoin’s cost, however, they influence its spread and demand.
The level of network protection depends on the number of miners. Bitcoin’s mining has a slight decline in value.
3.4. News resources
Publications affect the attractiveness of purchasing any cryptocurrency. The nature of the article, especially coming from an influential source, affects the oscillation of digital coins on the market.
3.5. Large enterprises
Not everybody uses Bitcoins. Not all trading platforms, traditional and online, accept Bitcoin as a payment for products. In general, the world has not yet been completely modified and adjusted to the cryptocurrency industry. Enterprise trading, companies and individuals influence the cost of Bitcoin, but insignificantly.
So, what will the cost of Bitcoin be in the future? A stable Bitcoin rate is hard to imagine. However, it is already known for sure that Bitcoin’s price will grow in the realities of modern industry.