The bitcoins of today are worth more than twice what they were just a few months ago. This is the reason that the demand for them is very high. But as is so often the case, there are speculations about what will happen to the price after it has reached this level. The following will analyze the factors that may affect the price rise.
First of all, we must look at why the price has been increasing. There are many different theories about this. Some people say that it is because the Silk Road was opening up and foreign investors are pouring into the country. Others believe that the government of the Philippines ordered a large number of bitcoins at https://www.webull.com/cryptocurrency and then stopped them from being traded in the local market. No matter what the reason is, the rise in price is very likely due to increased demand.
When we look at the demand side of things, we can see that there is actually a limit on how much the value of each unit can increase. When it reaches a certain high, the value of each unit of currency decreases. At the moment, the bitcoins are valued at over eight hundred thousand dollars per coin. This is a record for the coins that are in circulation.
Another factor that may affect the rise is the government. The US government is known to be very suspicious about the trading done on the Internet. The government believes that the transactions may be illicit. They are worried that people are using the Internet to make transactions for transactions to non-regulated areas. If the government were to react in a drastic way, it could really hurt the economy.
If the government starts to interfere with the trades, the prices of the bitcoins are likely to fall. For instance, if they taxed all currency exchanges, the demand for the coins would drop. This is similar to what happened to the gold price when the US government taxed the buying and selling of gold. In this case, the buyers of the coins will shift to another currency that is less affected by the government move.
There is no hard and fast rule about how the Bitcoin Price should be assessed. If you are a beginner who wants to buy some, you should understand that the price rise does not happen overnight. It takes time for the market to settle down and stabilize. When you first enter the market and start using the currency, you should understand that there are risks involved and you should proceed with care.