Topic: Factors affecting bitcoin business (Read 721 times)

Yes, for a stable business, cryptocurrency is not yet the most reliable option, as for me.

There are some factors affecting the bitcoin business. These are:
*Good news about legal acceptance in some countries. Similarly the bad news about its ban in some countries.
*Too much purchasing or selling of bitcoin also affects its value.
*Too much mining of bitcoin also affects its value and business.
*Some pandemic spread also devalues it as it happened in the past due to coronavirus.
*Political conditions of the world like war, stock markets crash also affect on its value.

You have a point; I also see the vulnerability of it cause not everyone is willing to adopt it. I think it's normal for every business to be affected by the government; one of the major problems is how you can keep the business operations smooth and clean; it is operating online, which makes it easily exposed to cyber threats. Entrepreneurs could implement many bitcoin business ideas, but being the prime would be a challenge.

Not really. Even before any major government accepted it,,, Bitcoin was already deemed by people like you and me as currency. This is what is most important. Unless you are a business that must be regulated, you can use BTC even if your country bans it. That is the beauty of a decentralized network under no control of any single person or power.

actually for now there are still very many factors that affect the bitcoin business, such as government policies that still prohibit the use of bitcoin, and world banks that do not accept bitcoin, and large companies that do not accept payments in bitcoin, and there are also millionaires and greedy whales who post things. negative about bitcoin, so it affects the market..

the factors that affect the bitcoin business, many policies affect the bitcoin business, maybe some of them can be said that government policies may be one of the factors that affect the bitcoin business, such as state legal issues that tend to change, sometimes there are also negative posts made by irresponsible party.

What affects Bitcoin can be seen through Bitcoin's price fluctuations.
But there are many factors that affect the price of Bitcoin.
Media reports will also affect the price of Bitcoin.
The demand and supply of the market will also have an impact on Bitcoin's business.
Everyone is not firm. Will follow the market trend and choose investment methods based on media reports.
Some people are not firm on Bitcoin.

But in time mate , all these things will come to an end and the government will completely accept this coin once they realized how helpful this coin and this market is the answer to speed transactions worldwide.
i remember when i was new here in crypto , i always ask what is this and why people likes this until i have come to understand and helps me with many matters, this even answers my financial problem in the past.

The major thing that has a strong effect on the price of Bitcoin and even the stock market is the government. The government is a strong hindrance and threat to the survival of assets and commodity which they think might cause threat to their government. That is why the government/politics has it's effect on the price of crypto assets and on Bitcoin in particular.
Most countries which accept Bitcoin found it favorable to their economy while others who reject and ban the use of Bitcoin or crypto thinks it's a threat to their economy.
Though the political and governmental effect towards Bitcoin, the acceptance of known wealthy people, companies and financial institutions joining the system, will reduce the negative effect of the government on the price of Bitcoin and crypto at large.

One major factor I feel is affecting bitcoin is global acceptance, not as general currency. But as a legal platform. Having world power countries settle with this would really make a difference for Bitcoin.
The factor of supply and demand of the coin in the market really can't be overlooked as it determines scarcity or abundance in the market.

You have almost listed major factors that can affect the bitcoin business. I would like to add more three factors missing in your list :
1. Regulation and governmental laws towards the cryptocurrencies in general or when a government decides to lunch its own cryptocurrencies and force its citizens to use it only .
2. Huge volatility with an unstable price interval during a determined period. People can't run a secure business with this level of volatility .
3. The next Halving sheduled to happen for the next years which will surely impact the mining business and other related services in addition to more volatility in price .

Factors would be;

1. Regulation/ Government decisions towards bitcoin or crypto as a whole.
2. Personal problem by owners with volatility

I dont see anything or other than that when it comes on affecting bitcoin business because volatility and regulation would be the main thing
but its impossible that business owners arent really aware with that.

That is totally right. Many countries live under total political instability nowadays. It happens because we have a very splitted population inside a same country. Half of the population doesn't agree and wants the opposite of the another half of the population. It leads to a hostile climate, which affects the society negatively in all aspects: social, economical, professional, ethical...
One of the main consequences is the lack of interest from investors for those countries, because they don't know how it is going to be the next day, as they be affected by sudden abusive regulations. Since it's a risky deal to invest in such countries, they just prefer to move their money to places where they can find stability, a pacific society that literally speaks the same language.

Just like investors, bitcoin can be also negatively affected by those same regulations. I believe a solution would be if unstable countries were finally splitted in half or more, like the old kingdoms of Europe, so each citizen could live on the territory he agrees with the political spectrum.

You can learn about some factors which hold an impact over Bitcoin price. Often, investors get to trade online over places such as bitcoin union. If you’re an online investor, you might be willing to know all about the factors affecting Bitcoin’s price. For this purpose, you need to read ahead and learn about all the factors.

Adoption of users: One such factor affecting the price of Bitcoin value is the adoption of users upon the assets. With the rising currency popularity, it can lead to striking the prices above the prevailing price. On the contrary, when currency demand goes down, it can result in lowering the price. In the present time, many users are switching to Bitcoin currency, which works as an excellent online trading currency. Many individuals, MNCs, investors have started using Bitcoin as a medium of making online transactions. Seeing the wide usage of Bitcoin, it can be stated that Bitcoin prices might fluctuate higher shortly.

Future analysis: No doubt, it can be easily stated that cryptocurrency future prevails to be uncertain in the market. Even after seeing the uncertain nature of cryptocurrency, there are chances of Bitcoin trading to extend more among investors. The industry of Bitcoin is growing with the wide usage of such currency. It is not possible to make any predictions about the cryptocurrency prices. Though, the strength indicator which works on Bitcoin depicts that the market for Bitcoin is not going to stop in the further few years. This is something that holds wide importance in the Bitcoin market. With the changing trend of Bitcoin, several possibilities have been emerged related to it. So, it can also be a factor that influences the Bitcoin price.

Regulations related to cryptocurrency: In the price affecting the list of factors related to Bitcoin, one such factor is regulations. In the online trading world, a wide experience of accelerations is seen. With this record, it has made a necessary thing for regulatory bodies to pay attention to the Bitcoin industry. Governments have become active in keeping an eye over the activities involving money laundering and other things that might hold a reference with Bitcoin. In several countries, Bitcoin’s development is not holding any restrictions. As a result, some of the users consider it as legal and other neutral.

Reward Halving of Bitcoin: Another factor that holds a contribution to the ever-changing Bitcoin price is reward halving. In the Bitcoin world, there is a limit for the amount fixed to 21 million. It is not similar to the fiat money that holds an inflating nature. With the reward halving, the mining industry faces some major impact. If you ignore this factor, it can result in affecting your earnings from online trading. Being a wise investor is not sufficient to make profits in the cryptocurrency market.
Bitcoin market cap: In the ever-changing scenario, the market cap is also a factor that can affect the currency price. If you’re unfamiliar with the term “market cap,” then you can learn about it here. In simple words, the market cap is referred to as the Bitcoin market value. If there is a higher trend for the market cap, it is a good chance for online traders to get hands over higher profits. On the contrary, when there is a downward trend in the market cap, it may result in lowering the profits for online investors.

I agree government regulations greatly affect Bitcoin-related businesses, many countries whose governments prohibit the use of Bitcoin as payment,
this does not hinder the development of Bitcoin. However, slightly hindered the adoption process, because some merchants who want to accept
Bitcoin payments, become unable to adopt Bitcoin due to government regulations. Especially for a country that completely bans the use of Bitcoin,
this is very bad for the Bitcoin adoption process. I really wish the government was more open in looking at Bitcoin, because Bitcoin is not a threat,
but Bitcoin can provide benefits for the economy of many people.

That is more a choice on what people want to use. Most people in the world want to be able to use something or look for uses that is not already found in the existing system. Does bitcoin have any? yes and that is why it has made its place in the economy. Tech things are not that important to people are not involved in it. Looking from a perspective of a common non-techsaavy user you will also comprehend this.

That is also the reason why some people get fooled into buying shitcoins. I do agree that most people using bitcoin should have a basic understanding of the tech behind it but that is not necessary for everyone to be able to "use" it.

Definitely a bitcoin based business should take into account to train its employees to understand how to run the PoS machines if in future Bitcoin PoS machines come into existence. But all these "training" and all take the backseat once the flow starts, which you would also agree on.

Government regulations is very affecting bitcoin related business, fortunately my country didn't ban Bitcoin although government also don't accept bitcoin as currency. This condition still give chance for bitcoin related business such as exchange site, payment service and etc. In my point of view, the trend is still good. There are many cryptocurrency related business that emerged, the number of cryptocurrency users also growing. I think as long as government don't ban Bitcoin then bitcoin adoption progress can be faster.

That's not all, why not talk about technical analysis which bitcoin builds are doing better, such as segwjt or taproot.  Technical factors are much better than peripheral factors due to the extremely wide influence of bitcoin, economy, life, payments, etc.  it will also affect the value of bitcoin similar to the news it is accepted or favors favor

In Bitcoin trading, many factors are responsible for affecting the Bitcoin business:-

Supply of bitcoin and the market's demand.
Cost of producing a bitcoin through the mining proces.
Supply and demand
Communication
The rewards issued to bitcoin miners for verifying transactions to the blockchain.
Scammers.
Competing cryptocurrencies🙏🙏
Many other factors are there which affecting bitcoin business.

Different people believe on different features as the factor affecting bitcoin businesses. Some state the liquidity as the issue, because people don't have a mind to think it same as gold. Some find volatility as a factor affecting the bitcoin business, but for the one who understands the reality of market volatility will find it beneficial. Above all, the transaction delay and limited acceptance is a major factor. This will slowly change.