After developing the main digital currency Bitcoin in the family of cryptocurrencies, it never stops growing in all ways human economic life, there was not much knowledge and awareness about bitcoin, people do not know too much about the product, and investors were afraid to invest in it because of a high risk of fast fluctuation in its value. It was not stable and many threats were threats when someone tries to enter into it but everything has changed now and there are too much awareness and knowledge of the product available on the web with just one click you can learn everything about Bitcoin.
Demand for Bitcoin is skyrocketing, increasing 15-30% against US dollars, and now Bitcoin is above the $ 13,000 line and the BTC halving is forecasted to get more power in the coming days, making it more attractive to investors and traders. due to its high stock-flow and scarcity and so many other reasons.
As it is known that BTC was developed by some developers in 2009 all their transactions are recorded which shows the history of each piece and the property called blockchain, it is very different from other currencies, stocks and bonds because it is not a type of corporation. it is not issued by a bank or by Any central government, so there are no balance sheets available and no inflation rate.
Factors that affect the price of bitcoin are the cost of producing a BTC and the way of processing, the rewards for miners they get from verifying transactions, the platforms they trade on, internal governance, supply, and demand regulations. of Bitcoin sales, and numbers. of other currencies that compete with it.
It is affected by many ways, such as the protocol, which allows BTC to be produced at a fixed price when it is introduced to the market after the processing of blocks slows down over time, the high demand for Bitcoin increases its value faster than the increase in supply that raises the price.
Another factor that affects the price of Bitcoin is the number of coins in the chain that can exist according to the system so far almost 21 million Bitcoins are shit and creating a new Bitcoin is not as easy as before due to the supply of bitcoins reached. 18.1 million in the last month ,to know about Bitcoin Supersplit platform.
The cost of producing Bitcoin
Because BTC is a digital currency, unlike other physical currencies, the actual cost of production also differs from others, the main cost is the cost of supplying electrical power which affects its cost of production, the production process of Bitcoin is called Bitcoin mining which is a complicated crypto math problem that miners have to solve while mining The first miner to find the coin is rewarded with a block and fees for their transactions.
A Bitcoin algorithm only allows to find one bitcoin every ten minutes, unlike the production of other goods, which makes it unique from other products, it means that if the number of miners increases, the difficulty of finding Bitcoin will also increase and will also increase the value of Bitcoin to get a reward for that given time interval that is only 10 minutes.
Future of Bitcoin
The future of Bitcoin is very bright as it has proven to be a safe haven asset and investors from all over the world are now very attracted to it, it has even left behind all the top companies of the digital world like Amazon and Facebook and others. not only it has stabilized its price but also keep a balance with US dollar and gold which were previously considered a safe haven asset due to its very good value storage capacity, it did better than gold and the people who were investing in gold now investing in BTC, it has jumped over $ 1000 in value when PayPal announces it will provide the services for digital currencies alongside Bitcoin.
The price of BTC will be higher than now according to Bobby Lee, CEO of China’s first exchange, it will take more than 20 years for bitcoin to reach the value of one million dollars, its value will continue to increase until 2020 and will cross $ 333,000 in 2021 after its value will return to $ 41,000 in 2023.