If you are interested in Bitcoin or have are interested in investing in Bitcoin, you need to stay up to date with the latest up to date pricing.
Unlike stocks and mutual funds, Bitcoin is not subject to earnings, profits, shareholders, boards of directors. Bitcoin is a currency and is traded as such and the price is based on exchange rate. While governments print new money every day, Bitcoin has a finite supply of 21 million so it is not subject to inflation.
Factors that affect the price of Bitcoin
Because there is a limited supply of Bitcoin (21 million total) and increasing demand, the price of Bitcoin is expected to rise over time. More and more governments and companies are accepting cryptocurrency as a valid payment option every day.
Bitcoin is becoming more and more widely accepted and used across a growing number of online merchants as well as adoption as a payment method across a growing number of governments.
In 2014, The IRS announced its stance on Cryptocurrency and its legal status. While virtual currencies do not have legal tender status in any jurisdiction, they operate like “real” currency in that they are accepted as a medium of exchange. Cryptocurrency is treated as property for US tax purposes and any transactions are treated as property transactions. Because more and more governments are adopting cryptocurrency as a legal payment method, the price of Bitcoin is steadily increasing.
A growing number of online merchants are accepting Bitcoin; In April 2017 Japan announced that Bitcoin would become an official payment method. Soon after, 260,000 stores announced that they would be accepting Bitcoin by Summer 2017. With the limited supply of Bitcoin and increasing widespread adoption, the price of Bitcoin will continue to rise. A growing number of companies are now allowing you to add Bitcoin to your retirement account.
The rise of Bitcoin did not come without bumps in the road. Any uncertainty in the holders of Bitcoin can lead to volatility in the prices. In 2016, the price of Bitcoin dropped 20% following news that an exchange had been hacked. While any financial institution is subject to cybersecurity issues, any news of hacking can lead to drops in the price of Bitcoin. Despite this, Bitcoin is a stable currency because it is decentralized so there is not any central repository of information, no central management, so no central point of failure. This is what makes Bitcoin and other cryptocurrencies so attractive to investors.