soucer of image: https://admiralmarkets.es/education/articles/cryptocurrencies/que-es-un-bitcoin
What is happening with Bitcoin? What is behind the price? These are two questions that are currently in the mouth of many economists, investors, bankers and politicians worldwide. Since 2010 we have seen how this small technology has been climbing positions to become a digital asset with one of the largest market capitalizations in the world and in the history of digital assets. In addition to this we have also seen how this intangible idea that began costing cents, at the time of writing this article has a value of $ 10062. Bitcoin (BTC) since its arrival today, has created a depreciation of more than 19,000,000,000% to the US dollar.
Only with these small market data and everything behind the history of BTC and Blockchain technology, we can create many hypotheses, ideas and theories about what is even behind the invention itself. But without a doubt to date, BTC has been introduced in the economies of the whole world, as it has also begun to be part of the portfolio of large and small investors.
We can say that behind the price of the BTC are almost the same actors that are behind the other markets, with the exception that as a result of its creation, new actors were born, nowadays heavy weights, which directly influence prices. This is something that we can highlight with a very recent event at the end of June and the month of July when President Donald Trump commented that commercial activities with China were at risk. From that moment we saw how Bitcoin began to rise practically without a brake, where the participation of professional market players was confirmed, that is, strong hands or so-called whales were raising prices. A movement that also confirms that these large participants are taking BTC into account as an asset to protect their capital against possible failures and depreciations of the traditional monetary system.
Another interesting fact was also that during these months the BTC was perfectly coupled with the movements of the GOLD, which also reached the historical level of $ 1500. Which also confirms that bitcoin is fulfilling its role as the digital GOLD. You can find articles related to this topic in CoinTelegraph
Currently, the hesitation between the United States government and China on their commercial relations continues, which has kept the BTC between the $ 9,500 and $ 8,800 levels. The crypto world is facing regulations by certain governments, as it also prepares for the arrival of the giant Bakkt; who this September 23 opens its Bitcoin Futures Contracts, which also generates uncertainty on the part of many users and how they are received by investors.
There is a lot of pressure on the asset, many political, geographical factors such as Venezuela, India, Turkey, countries where the crypto economy has benefited from the monetary deficit that exists in these territories. There is also the division between the BTC mining network between Chinese and American miners. All these pressures and factors affect in one way or another the price and volume of the market, such as the dominance of the currency.
One cannot directly conclude that it is really what exists behind the price of Bitcoin, you cannot create an isolated theory or a paranoid conspiracy thinking where you don't really evaluate all the factors, including the world economy itself, which currently It is going through a process of uncertainty before a possible economic recession. In addition, for this next year we look forward to the arrival of the new Halving in May 2020, that is, the mining block reward will be even lower, which is expected to bring an exponential increase to the price of Bitcoin approaching 55,000 $ according to experts.
What is true is that Bitcoin is here to stay, establishing solid bases within the market. Whether or not there is manipulation in its price (and of course there is). Be it the refuge of terrorists, big investors or a source to launder money. Today it has not only shown that it has incredible potential and that it has also been the door to innovate in technologies that are changing the world as we know it.
Personally I am a consumer and holder of Bitcoin, Ethereum and other Altcoins. I believe that one should protect oneself from market corrections, but also hold ETH and BTC for the future.