Itcoin course

Ludvig
29.04.2022
131 Views
Itcoin

In the case of cryptocurrencies such as Bitcoin, one often hears about the ” exchange rate of the cryptocurrency”. As most people know, the exchange rate of the cryptocurrency is characterized by high volatility. This means that the course swings up and down like a bouncy ball.

Itcoin exchange rates, and cryptocurrency exchange rates in general, are something that can be quite difficult to pinpoint the high volatility. Courses can be good one day, but bad the next, and so good again the day after that again.

But what do we really mean when we talk about “itcoin exchange rates”, and what factors influence it?

Supply and demand

It probably does not come as a bomb when we say that one of the most important factors in connection with itcoin courses, is supply and demand . It is simply what determines whether the price increases or decreases. If there is a high demand for bitcoin, then the price will be high. But with low demand, the price will be then.

One also has to keep in mind that some cryptocurrencies come in a limited edition. Bitcoin is a classic example of that. There are only 21 million coins here, but there are also examples of cryptocurrencies where there is no limit to this.

In practice, one can extract the cryptocurrency Dogecoin . This is one of the cryptocurrencies that comes in an unlimited number. Therefore, it is much easier to get Dogecoin than it is to get Bitcoin, and it will also affect the price of the coin.

The Reputation of Cryptocurrency

“Words are power, and words have a great influence on how we think,” someone once said. And this is absolutely true. The reputation of the current cryptocurrency also plays an important role in connection with the itcoin exchange rate.

An example of words is how the cryptocurrency is mentioned in the media . And it is no secret that many were very skeptical of bitcoin for a very long time. This affected how the cryptocurrency was discussed in the media.

Negative media coverage led to people being divided. Some let the doubt benefit bitcoin, while others were totally disgusted by it. At least they should not have anything to do with this cryptocurrency!

There are also many who are positive about bitcoin, but it is not to be underestimated that the demand and thus the price per coin tends to plummet after a negative media coverage.

Availability

As previously mentioned, there are some developers who chose to set a ceiling on how many coins can exist at a time. The developers of Bitcoin did that, and this ceiling was set at 21 million .

As the ceiling is set, this affects the price per coin. In practice, most people have seen that it will be very, very expensive to get one bitcoin. It costs around 500,000 english kroner at the time of writing – and that is a sum very few people have to spend on speculation.

This works in the same way as with supply and demand. If the demand is high, so will the price. And vice versa!

Author Ludvig

Ludvig har lang erfaring med kjøp og salg av kryptovaluta. De senere årene har han tatt det til et nytt nivå og prøver å leve av kryptovaluta trading. Han følger godt med på markedet og har opparbeidet seg god kompetanse på teknisk analyse mm. Vi er veldig glad for å ha Ludvig med på laget, og er det noe du lurer på angående kryptovaluta er dette mannen du spør!