Hello, Indodax member. This time, we will learn about bitcoin by knowing how bitcoin prices go up and down. What are the factors?
Then, why did the price of bitcoin go up, and why did the price of bitcoin go down? For those of you who want to learn more about bitcoin, here is an explanation.
History of Bitcoin
Bitcoin was first discovered by Satoshi Nakamoto in 2008. He created bitcoin to become a medium of exchange that is not centralized or decentralized. The point is, bitcoin is not like most currencies that are regulated by the government and are affected by each country’s policies and global policies.
So, currencies like Rupiah, Dollar and others will have an impact if there are economic policies both from domestic and abroad. While bitcoin is not affected.
Why? Because the price of bitcoin depends only on supply (demand) and demand (demand). Initially, the price of bitcoin was only Rp1,300 or US $ 0.1 in 2008. However, in 2020, the price of bitcoin has reached around Rp130 ?? million. Because of the high demand for bitcoin around the world.
Next, we will learn about how to supply and demand bitcoin.
Bitcoin supply
Bitcoin also adopts the way gold works. If gold is mined at the bottom of the earth, bitcoin is also mined. However, bitcoin mining or bitcoin mining exists in the digital world. Bitcoin supply is only 21 million copies and is expected to run out in decades. So, the longer, bitcoin will be increasingly rare. The scarcity of bitcoin will also potentially dramatically increase the price of bitcoin.
In the world of bitcoin, there are moments of halving day or limitation of bitcoin supply in the mining zone. The halving day happens every 4 years. The halving day factor will increase the price of bitcoin soaring.
Bitcoin Demand
Many factors affect the high demand for bitcoin. Plus its supply is only 21 million pieces. From year to year, bitcoin is increasingly in demand by people. People’s trust in bitcoin continues to increase.
In 2018, many countries rejected bitcoin. At that time, bitcoin became a frightening spectre for the country’s economy. However, lately, some developed countries such as several countries in Europe have realized that bitcoin is able to save the economy because it is not affected by financial policies in each country and foreign policy.
After the policy to loosen the use of bitcoin and other crypto assets, various bitcoin companies emerged. Including in Indonesia which makes bitcoin and other crypto assets an investment commodity. Not a few conglomerates or companies that secure their money by investing in bitcoin.
Beginning in 2020, almost all countries were affected by the COVID-19 outbreak. Almost all countries experienced weakening stock prices. While bitcoin actually increased dramatically instead. Had dropped Rp65 million in March 2020 which only lasted for one day, the price of bitcoin again increased at around Rp130 ?? million.
This is because bitcoin is not affected by the coronavirus. Instead, it increased dramatically when other investment products experienced a price decline.
Then Why Bitcoin Down
Many people are of the opinion that the price of bitcoin is declining in price is a natural thing. If the price is falling, it means that the demand for bitcoin is decreasing.
Many traders still do speculators. So, one factor in the decline in the price of bitcoin is the number of traders who sell. Just like the performance of gold, the bitcoin market is also sometimes saturated. Precisely when the price drops, is the right time to buy bitcoin.
