CryptpcurrencyGuide

3 Reasons For Bitcoin’s Volatile Value

Since it’s launch in 2007 bitcoin has been a lucrative investment opportunity for all the investors. With no or minimum government taxes it makes it really easier for people to start their investment carrier in Bitcoins. With the potential of reaping high profits bitcoins can be considered as digital form of Gold. There are various online platforms that people can use to trade in between bitcoins and other digital currencies. You can click here to find out the best bitcoin crypto exchanges that you can find throughout the world.  

The value of bitcoin is highly volatile which might be a big concern for new investors, there is a high potential for people to lose money as they trade in bitcoins if they are not experienced enough. Although, we can say that the value of bitcoins is going to rise in the future no matter what! Here are the 3 big reasons why this is possible: 

  1. As bitcoins are decentralized and there is no government institution that has control over them, they are becoming more and more popular among the consumers. This is where bitcoins essentially eliminates the need for any third party exchange as any transaction is done through their network. There are banks that offers you the same thing but they charge you for every transaction. Moreover, for any overseas transaction, you need to wait for a few days at least. With the introduction of bitcoins, people can easily do their transactions in minutes without going to any banking facility. [Text Wrapping Break]There is a dramatic rise in the demand for bitcoins over the years. Almost every company and institution wants to get their hands on bitcoins which is why you can see a dramatic rise in the value of bitcoins in the next few years.  
  2. Another aspect that makes bitcoins more valuable is its security. Over the year with the rise and advancement of technology we can say that the security features of bitcoins have also increased exponentially. We see how there are many secure ways and online software that you can use in order to make your payment more secure and much faster than before. This success can be credited to the blockchain technology that bitcoins use. Blockchain technology is something that these bitcoins use in order to perform any transaction. Since you can only add more data to the blockchain of the network the security of the network increases. There is no possible way for any of the network members to edit any of the data or to remove anything from the blockchain. All the members that are there on the network have an exact copy of all the transaction that has been made through the network.  

3.Since the reduction of the bitcoin reward process occurs every 4 years, there are still a few months before that happens in May 2020. The mining rewards that were 12.5 BTC previously would be halved to 6.25 BTC in May. This is going to reduce the amount and number of bitcoins that were given to the miner when they provided their computational powers during any bitcoin transaction. This might give a big boost to the profits that investors reap as they trade in bitcoins. With this process going every 4 years we can surely expect a rise in bitcoin value and demand over the years. Moreover, this also means that all the miners are going to facilitate more bitcoin transactions in order to get more bitcoins. This will improve the functioning of the overall network and is going to add more to its value as well.  

Paola

Paola Garcia lives in Jakarta Indonesia. She is an associate professor in University of Indonesia and also managing Scoopinion at the same time. She is also fond of watching theatrical plays.

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