The Four Factors Affecting the Value of Cryptocurrency
The Bitcoin, like many other cryptocurrencies close in rating, has leveled its positions and is rapidly gaining value, approaching $10,000 per coin, according to CoinMarketCap.  The Coin Shark decided to analyze which factors affect the price growth of tokens and which ones force them to fall down inevitably. Factor # 1. The opinion of business leaders and the ban in a number of world countries The opinions of the state leaders and the corresponding legislation norms significantly affect the situation in the cryptocurrency world. Only this year bans of cryptocurrency at the state level in South Korea influenced the correction of the course several times. In September of 2017 the decision of China, which declared operations related to ICO illegal, affected Bitcoin's collapse. An analogy can be drawn with the opinions of leaders in this field, for example, Warren Buffett. The businessman, the world's largest investor, has warned that Bitcoin holders may face future consequences with the hype of cryptocurrencies, and suggested that the collapse of the digital currency is just around the corner. Let’s recall the recent Mark Zuckerberg’s ban of using such social networks as Facebook and Instagram as a platform for advertising any products based on cryptocurrencies, ICO and binary options. Factor # 2. Oil and precious metals Perhaps the connection between natural resources and cryptocurrencies can not be traced immediately, but the pattern goes like this: if the price of oil rises, the Bitcoin goes up. Accordingly, if the price of oil falls, then Bitcoin is losing value. However, the volatility of the cryptocurrency course is much more expressed than that of the oil price. Factor # 3. Investment All digital currencies, especially little-known, are susceptible to the influence of investors, who can deliberately or intentionally influence the price. If the volume of a depositor’s capital is large enough, he/she can buy a considerable percentage of this or that token, and then try to promote the reputation of this cryptocurrency in order to "pump" the price. Depositors who notice the support of investors are more confident in choosing cryptocurrency. The more demand for currency is, the higher its value gets. By investing large amounts in a little-known token, the depositor can cause a deliberate increase in the value of the coin, and this can correspondingly cause the drop of the other ones. Factor # 4. Information noise The volatility of the course is largely based on the hype, which constantly keeps up attention to it. The drastic drop in the token rate can be affected both by an accidental post in the social network, and by a deliberate utterance of a well-known personality of the cryptocurrency world, which is rapidly spread by the world's media. News really has a significant impact on investors' opinions and the situation on the market in the cryptocurrency world. Subscribe to The Coin Shark news in Telegram: