Bitcoin is a digital currency, and as a digital currency it’s unique since it’s not regulated by any bank or government, or any official organization for that matter. So in that case, a question arises: Who supervises the value of bitcoin? On this highly important question we shall answer in this week’s Coinish post.
Since we’ve established that there’s no one sitting on his throne and directing the course of bitcoin and whether it’ll rise or fall. Yes, not even it’s founder “Satoshi Nakamoto”. We need to understand how bitcoin is being valued and by whom.
For some specific answers you can check out this Quara question, but here we’ll give you the quick answer which is pure and simple – Supply and demand.
That is number rule 1 of economy and it is not different here with the digital currency of bitcoin.
The more people are interested in buying it and the less of supply of bitcoin transactions and mining leads to a rise in price.
On the other hand, the less people are interested in buying it and the more the supply of bitcoin transactions and mining leads to a decrease in price.
An example for this rule is what happened back in November 2013 that lead to the expediential increase in the value of bitcoin.
You can also read more about this in the CCN article.
If you want to earn some bitcoin and grab a piece of the increase in value lately make sure to check out our great bitcoin mining hardware that will help you earn a lot of money!
See you next week!