In recent weeks, the price of Bitcoin has continued to go higher. However, what’s driving its growth? It seems there are various factors that make Bitcoin to rise in its value. Here we will look at top factors that influence the price of Bitcoin and ways to earn bitcoin through fun token.
Increasing Production Cost
One important reason for rise in bitcoin is as size of the mining network grows, the mining difficulty increases its marginal cost to generate a bitcoin. Mining needs a huge amount of energy, and it has the real cost, which should be paid by the miners in local currency. As per Bitcoin’s protocol one block can be found, on an average, each ten minutes, more power directed at bitcoin mining doesn’t increase its rate of supply – it just increases difficulty of bitcoin mining. As per the research, the bitcoin price has tracked the marginal cost of its production.
Competition
Bitcoin without any doubt is a well-known & most accepted cryptocurrency across the world. But, there are many cryptocurrencies that are vying for the consideration, like Tether and Ethereum. Even though bitcoin stays one highly valuable cryptocurrency in the terms of capitalization, altcoins like Ethereum, Binance Coin, Tether, and Cardano are its competitors. Market cap is one important factor that will influence the price of currency in the ever-changing scenario.
Final Words
If the increasing prices in this crypto market make you think it’s very late to make an investment in the cryptocurrencies, then you need to know that it is just the starting and you have to go very far. With many countries trying to regulate this market, cryptocurrencies may become mainstream. Since debate on the Bitcoin’s future continues, time will only tell if this cryptocurrency becomes the highly acceptable asset in near future.
