The value of Bitcoin has been falling with each passing day but investors insist that it is still the best form of investment.
With the current free fall of the cryptocurrency, should those in the business start thinking of folding up?
On 12th December 2017, the price of Bitcoin was at 17,180 US Dollars before dropping to 14,188 US Dollars in January 2018.
On the 12th of February 2018, Bitcoin was going at 8,070 US Dollars from 14,188 US Dollars in January before spiking marginally to 9,532 US Dollars in March.
April 12th saw a Bitcoin going for 7,916 US Dollars, a slight drop from 9,532 US Dollars in March. In May, it improved a bit to 8,467 US Dollars but slumped in June to 6,548 US Dollars.
In July and June 12th, a Bitcoin was going for 6,381 and 6,312 US Dollars respectively. Currently, the currency is trading at 6,240 US Dollars.
The image below shows how Bitcoins have been trading for the last 10 months:
Analysts have said that the Bitcoin for this month should trade high but investors should not expect to trade above 8,000 US Dollars.
What drives the price of Bitcoins?
Bitcoin is just like any other commodity that is bought and sold. Its fundamental price is determined by demand and supply. Demand for Bitcoins is determined by:
What many investors don’t know is that on the supplied edge, the Bitcoins are capped according to their number. Currently, about 80 percent of the available Bitcoins have already been mined with only 20 percent remaining.
However, the price of Bitcoin has never been stable and you just never know when it will dip and by how much. In the past, the price often thrived through speculations with negative ones hitting it hard.