Bitcoin is a form of digital currency that can be spent, saved, invested, and stolen. Trading with bitcoins has been thought of unsafe; however, the present tendency demonstrates that it’s has become a major hit in the financial market. This decentralized currency isn’t regulated by any Government or any third party. For more information related to cryptocurrency trading, you can have a peek at https://bestexchange.ai/.
What decides the price of Bitcoins?
Bitcoin’s price is set based on the supply and demand ratio. Price goes up when the demand increases, the rates go downwards when the demand decreases. Bitcoins in circulation are all limited, and new ones are generated at a very slow speed. Since it doesn’t have enough cash to move the market price, its price can be extremely explosive.
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Bitcoin trading is popular due to so many reasons:
Low-inflation risk – The major subject for traders is inflation because most of the currencies lose a part of the buying ability when the reserve banks continue printing more money. With Bitcoin minting system being restricted to limited currency, it hardly gets influenced by inflation.
Low collapse risk – Currencies variations depend on government policies, which sometimes cause hyperinflation, and even lead to deflation. Bitcoin is a virtual currency that is not governed by any government or central authority.
Easy, safe and cheap – The Bitcoin payments occur between person to person without any intermediary, which explains why it is simple and inexpensive.
Easy to carry – Bitcoins of a huge amount can be carried in your pocket, in a memory stick. This cannot be done with gold or cash.