Bitcoin, the digital currency, has been making waves in the economic market with its volatile price changes. Many may wonder: what actually drives Bitcoin’s long-term value?nnBitcoin’s value is primarily driven by supply and demand factors. As more and more businesses accept Bitcoin as a mode of payment, the demand for it rises. Additionally, the finite nature of Bitcoin – there will only ever be 21 million Bitcoins in existence – creates a scarcity which further drives up its price.nnAnother factor influencing Bitcoin’s value is geopolitical events. During times of political instability or economic uncertainty, Bitcoin can act as a ‘safe haven’ asset, much like gold. Furthermore, regulatory news and technological changes can both positively and negatively impact Bitcoin’s price.nnFinally, market manipulation can also play a role in Bitcoin’s price fluctuation. This occurs when large players, known as ‘whales’, buy or sell large amounts of Bitcoin, influencing the price in their favour.nnUnderstanding these factors can help investors navigate the unpredictable world of Bitcoin and other cryptocurrencies. Read More
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