Topic: Main factors influencing the price of Bitcoin? (Read 1413 times)

We had news today that a temporary resolution to the USA debt ceiling issue is going to be passed and we see a sell off to The $144 area ,maybe this affected bitcoin price .
Earlier this week  was news that a substansial $53 billion dollar Chinese company has started  accepting bitcoin may be this also helped fuel bitcoin price .
It seems any large companies coming on board affect price .
Any doubts over various sovereign currency stability all push up price .

I totally agree ,currently to obtain bitcoin through the various exchanges you need to use iban /swift /bics which is an international banking system ,you have to verify your bank account .
The average person in the street just will not bother unless this is overcome .
The atm machines could bridge this gap bu they would need to be implemented on mass .
One thing that would entice people to want bitcoins is if merchant offer goods cheaper through bitcoin than fiat .

If we had say an amazon type site with comparison items showing them being cheaper in bitcoin than fiat then people will be given an  incentive to purchase bitcoin.

It seems to me that increasing numbers of people are learning about bitcoin and giving it a try.  As barriers to entry fall (it is still relatively difficult to obtain a bitcoin) demand will continue to outstrip supply.

We have humans overseeing and maintaining the cryptocurrency system .
They have no control on bitcoin price

Human do not regulate bitcoin price .
Humans cannot print more bitcoin at will .
Humans therefore cannot weaken the value of bitcoin by printing infinite amounts and putting them into circulation .

Gold used to regulate fiat price .
The people using bitcoin and the limited amount to be introduced into circulation regulate bitcoin price .
Bitcoin takes out the human corruption seen in the highly manipulated fiat currencies.

Humans regulate bitcoin too.
Or maybe we already reached singularity (Skynet posting messages to internet forums  )

Bitcoins only fixed factors currently are the amount of coins being created to the amount of people feeling the need to own them .

Bitcoin only has less than 1% of the current financial market , fiat forex markets are basically governed by commodities and political policies none of which apply to bitcoin.

Think of bitcoin as a protection mechanism .
Fiat has been devalued by governments a lot since 1971 ,when the dollar and gbp got detached from the commodity Gold ,this allowed the current state of print you way out of debt .

Gold was the only thing that stopped governments printing there way out of debt and burdening the citizens will weaker currency.
Humans have proven to be untrustworthy to self regulate sovereign currency .

Crypto currency brings back control of financial instruments by having limited supply the same roll gold used to play and taking control from governments who have proven historically to burden their citizens with the un-necessary debts for wars .

Fiat has always ended badly historically ,the reason you should be in crypto is that at some point your fiat will be de-valued typically by 30% ish ,instantly making the crypto you own 30%ish more valuable ,while making anyone holding fiat 30% worse off.

Cyprus took bitcoin to $270 and that is a very small economy image what would happen if a reasonable size economy was to default .

The Uk de-valued it's currency against the dollar by 100% to pay debts ,governments just stick that burden on their citizens they never actuallly pay anything off .

Cost of mining is important factor - electricity costs and current network speed; currently new miners with massive hashing power only increase cost of mining for old miners, but new miners hold their bitcoins, thus enabling old miners to increase the prices. No significant change in supply/demand. Market prices do not just depend exclusevly on demand and supply.

In short: Supply and demand..

Depends if there is much use for Bitcoin and government acceptance

if more enterprises will accept bitcoins, the price will grow.

if there are rich countries having currency's troubles or default risk, the price will grow.

if there are problem on bitcoin's software, the price will go down.

if there are huge and repeated hacker's attack on trading platform's, the price will go down.  

and what overunity say, is true also for Europe.

People feeling more secure keeping Bitcoin then currency due to the printing and inflation.

Your comments are very interesting.
I wonder if you guys have an insight on the "fixed" factors that influence price, apart from what is making it change right now? I am more interested in those...

The US potential to default in 3 days would be a good explanation for the current push .

We are seeing resistance at $150 but that level is also an psycological level ,$145 has been tested more than 3 times previously and it was breached without much resistance this time ,a clear break through $150 will very likely see $170 come very quickly so that the £140's could become our buy areas .

Keep an eye on The USA I think a lot of powerful people could become attracted to bitcoin since russia and china's currency have issues replacing the dollar ,bitcoin could be seen as a safe haven for now .

China ,Russia and australia are all seeking to trade oil in an alternative currency .

Oil is the blood of the financial world ,it is currently traded in dollar and affects the global economy ,the major financial players are getting scared ,but all believe a solution will be found ,it was a few years ago when the debt ceiling was an issue but who can be certain this time ?

Traders do not wait for things to happen they normally get info and react before the rest of us know whats happening ..

If the dirt hits the fan Bitcoin could very quickly escalate to make $150 a distant memory .

In light of $150, what would you say that are all the most important factors influencing the price of Bitcoin? Not only relevant to this price increase, but in general...?