Steve Jobs and Steve Wozniak at Apple

Steve Jobs and Steve Wozniak at Apple

The two Steve’s working on the Apple I in 1976.

The Bitcoin is not under any government regulation and thus it is not enforced anyway by the government. This is the reason why the government is unable to regulate it. There are some countries though that has released some regulation laws on transacting in cryptocurrencies.

The Japan government has accepted Bitcoin and thus it is used in many stores. This also led to the rise in the price of Bitcoin.

The regulations and the rise in price of this cryptocurrency have forced many countries to follow the same. You would observe that the price of Bitcoin would move a lot when there is any news regarding its regulation. This could happen even if the news may not be directly impacting cryptocurrencies. In Cyprus when the funds got seized then there was a huge rumour about using cryptocurrencies instead.

If on the other hand the government states that there will be a ban on the use of cryptocurrencies then the price of it changes drastically. Most governments are not in favour of the cryptocurrency because it is totally anonymous. There have been discussions about having a third party to supervise it. This could impact the price of the cryptocurrencies like Bitcoin significantly.

Media also plays a very key role in influencing the price of cryptocurrency. Bitcoin is very volatile and if there is even a slight change in its price then this could affect the price majorly. The price is also very easy to be manipulated thanks to the media. The traders react immediately to any positive or negative news published by the media. Also remember that the market capitalisation of cryptocurrency is not very huge and thus it is just the game of some players.

There could be some news about hacking the exchange or that the currency was used to trade drugs. All these will impact the price negatively.

It is not surprising to know that it is the Bitcoin developers and its users who decide on how the price of the cryptocurrency will move. They are very influential to cause the major price fluctuations. Also it is based on trust and since traders have lots of trust in this currency it has survived for so long.

One should know the sentiments that affect the Bitcoin prices. The discussion forums and chats would let you know what traders are thinking. This could give you a hint on how the market will move in the future.