The bitcoin market is one of the largest digital markets, consisting of numerous small concepts like bitcoin trading, mining, investing in BTC, and many more. Furthermost, people around the earth are stirring their investing interest toward digital assets. You can also check whether Bitcoin mining become an enterprise business? is the best option to gain more knowledge about BTC value. Some digital assets like bitcoin, ETH, etc., offer million dollars returns to their investors. The prominent motive for introducing the concept of cryptocurrency is to replace the centralized mechanism of the fiat payment system.
Today, the use of bitcoin is limited to the crypto market, but numerous MNCs are also using it as their payment system. BTC comes first with market capitalization worth millions of dollars in the most demanded crypto tokens. You might know that the concept of BTC was foremostly founded by an anonymous developer named Satoshi Nakamoto in 2009. Since then, bitcoin has constantly been growing in the global market.
Still, the developers are making changes in the mechanism of BTC to enhance its performance. In the financial market, the value of BTC is highly fluctuating, which is the most prominent reason for its high return on investment. There are tons of factors present responsible for the zigzag nature of BTC in terms of value. Out of all these factors, some of them are mentioned below in this article.
The Ratio of Supply and Demand
Above mentioned is the most crucial factor which leads to effects the value of BTC in the international financial market. The ratio of supply and demand of BTC shows to bring significant change in the price of BTC daily. As you might know, the collection of BTC is limited to 21 million bitcoin, which means it is the maximum number of bitcoin which can exist in the market.
According to some experts, the last BTC token will be mined BY MINERS in the year 2140 because of bitcoin halving (a procedure through which the amount through mining cuts by half every four years). However, regardless of the limited supply, demand for bitcoin is continuously increasing in the global market, and most digital investors are willing to own a BTC token.
Like other commodities, limited supply and increasing demand skyrockets BTC prices, and reaching the limit of 21 million BTC can positively and negatively affect the cost. According to bitcoin maximalism, bitcoin will not lose its worth shortly because supply will never meet demand because of limited supply.
How are Investors Affected?
You might be familiar with mining if you know a bit about bitcoin or other blockchain-based cryptocurrencies. Mining is a procedure through which anyone can generate a BTC token simply by creating a new block. As the competition in mining increases, it is getting complex and challenging daily. Nevertheless, it is the most prominent reason existing BTC owners are holding their investment in the hope of making a massive profit shortly.
According to them, they are doing it to profit, but on the other hand, they are blocking the supply of BTC in the financial market, which facilitates the scarcity of BTC. In another case, if most bitcoin investors decide to sell their investment in the open market, it will bring the price of BTC downturn. But most cryptocurrency exchanges had already set up the maximum liquidate value which a person can sell in the market within one day. So, many bitcoin holders will be unable to sell all their coins to convert them into cash.
How is the Media Sector Responsible?
The media or reporters have an extraordinary power to manipulate or influence the reader or viewers because they remain directly in touch with them. However, the information rendered through media is inaccurate because they work based on predictions and data collected from their sources. Sometimes media shows side-effects of using cryptocurrency, which leads to the public bad.
It can also affect the price of BTC in the open market because they show crypto as a threat to fiat currency. So, people start to sell their holdings in the market, which is why the price of a financial asset fall. So, in simple terms, media also plays a vital role in affecting the value of BTC and other cryptocurrencies in the financial market.