Bitcoin (BTC) works like any other security traded in the financial markets, based on supply and demand, determined by the operations executed by buyers and sellers. That is why it is a volatile security, whose price can vary with an upward trend, downward or maintain its price, all within the same 24-hour day.
Likewise, the value of BTC may also have slight price variations between one Exchange system and another, since the users of each system are the ones who assign the value they are willing to pay. To know all the variations of the BTC and know the benefit of Bitcoin the Spanish site Bitcoin Profit it is an excellent alternative.
So, when many people on the same day are selling their BTC, the price tends to go down, otherwise than what happens when demand exceeds supply. From this fluctuation between supply, demand and price difference in operations, it is possible to generate profits as an intermediary, which is known as cryptocurrency trading.
There is no official and unique price
The main characteristic of this cryptocurrency is that it is decentralized, that is, there is no financial institution, central bank or State that can set its value. It is the same users who determine the value they are willing to pay for the currency, without the intervention of regulatory entities.
Of course, this does not indicate that it is a currency foreign to the circumstances or the global economic situation. In fact, political, economic, social and other events have the ability to positively or negatively influence its value. Let us remember that after the start of global confinement due to the pandemic, the price of BTC had an unprecedented fall.
Something that does happen frequently is that Exchange platforms carry out analysis of average prices and establish parameters or limits on the prices of transactions, a kind of arbitrage that allows a certain level of consistency in the price throughout a day but that normally occurs naturally among the same users.
The Future Price of Bitcoin: What Can We Expect?
It is difficult to make an accurate prediction of the price of BTC in the following years, but if we look at the price history of this digital currency from the moment of its launch, we can see that despite the bumps in the road, its value has maintained a Upward trend.
One point in favor for BTC, is the fact that the production or mining of coins will reach its limit. Today, 3 out of 4 Bitcoins that will exist in the future already circulate. The limitation of the existence of a mass-use good increases its price by the simple law of supply and demand, so we could foresee a rather considerable price increase in the following years.