Last Updated on June 21, 2022 by Larious
Bitcoin is the first digital currency that has been going strong since its inception in 2009. Its mysterious inventor Satoshi Nakamoto stopped all the communication in late 2010. However, his disappearance did not significantly affect the value of Bitcoin payments. The reason is that as people do not know who the real person is, they cannot identify whether he is dead or alive. This is the very reason Satoshi intentionally never disclosed his identity.
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Everything has a production cost, and so is bitcoin. Here the cost of hardware and software along with electricity is high, which eventually increases the mining cost. Bitcoin mining is a highly energy-consuming process. Moreover, you need a strong internet connection for efficient mining. Apart from that, the computer needed for bitcoin mining is of vest qualities. Therefore, one can easily assume how much is spent on the entire mining process.
Media has always played a great impact on everything and especially on bitcoin. Whenever there is good news all over the media, the prices go high because many people start investing in it. Similarly, whenever there is negative news circulation going on, the price falls because most people want to sell their bitcoin then.
For example, in 2021, Elon Musk announced the news of Tesla Inc. accepting bitcoin payments, and people went crazy over it.
Suddenly it reached 65,000 USD which is the highest price of Bitcoin in the history of cryptocurrency. However, Elon Musk again announced that Tesla is not accepting bitcoin payments anymore. The reason is nothing but the environmental issues happening because of bitcoin mining. Bitcoin mining uses an extensive amount of internet and electricity. Therefore, the environment is getting harmed on a great level, and some people started quitting their investments. Eventually, the price of bitcoin started falling again.
Therefore, the power of media is extraordinary in case of influencing the price.
Supply always influences a product’s value. For example, when there is an unlimited supply, the value cannot be on the higher side because it is extremely easy for people to have it anytime and in amount also. However, when there is a limit on the supply, the value is bound to go on the higher side because the rarer something is, the more valuable it gets. This is exactly the case with bitcoin because the supply is limited.
Satoshi Nakamoto predefined the total number of bitcoins that will be ever mined which is only 21 million. 17 million from that 21 million is mined, and there is only 4 million remainings. In fact, 980,000 bitcoins owned by Satoshi Nakamoto are already lost because there has been no trace of Satoshi ever since late 2010. Also, we all know that losing a private key means losing one’s bitcoin. So, the report says there are sixty per cent of the bitcoins have ghost addresses which mean 60% of that 17 million is already lost. So, the scarcity is more than gold. And the value is also more than gold for obvious reasons. Bitcoins are becoming rarest of rare. The high demand and low supply will always influence the price of the first crypto.
Businesses accepting bitcoin
Businesses define many things in the world, and bitcoin is no exception. When you have bitcoin, you need to use it somewhere, right? Otherwise, why it is so valuable? So, the more business will accept bitcoin, the more value it gets. The good news is many small to medium and large businesses are embracing crypto payments.
You can use it now in many hotels, restaurants, products and many more. Many services can be availed with bitcoin or other cryptocurrencies. so it will only increase the price.
Since its inception, many competitive cryptos have come in the way of bitcoin. However, whenever people thought that it would replace them, they were proved wrong. Nothing could really replace it. But there is a constant surge in the number of cryptocurrencies. Some of them are posing to be equally profitable.
To invest and gain from this number one and first-of-its-kind cryptocurrency, check The Crypto Genius, a crypto exchange platform that lets you trade hassle-free. This platform was created to transform the crypto trading experience. With a simple registration, you can start trading on this platform. Moreover, you can explore other crypto exchanges that suit your requirement and then start making an investment.