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To start off from the base, one Bitcoin is worth $32077.20 in the current time. One Bitcoin is €29482.89. These rates keep on changing and to get the real-time rates for Bitcoin, head on to the official website.
More precisely, 0.01 Bitcoin is worth $294.83. If you wish to know the real-time rates of other currencies, then head on to this website. You might be wondering where these rates come from and if they are determined or not? Read along to get your answers.
What Factors Determine the Price of Bitcoins?
Before we head towards the answer, it is important to know that Bitcoin transactions are decentralized transactions that are super fast and can be completed within seconds. This in itself is one of the key factors of determination of one Bitcoin price. Here is the list of factors that influence the increase or decrease in the price of one Bitcoin.
1. Internal decision-making procedures
The world of crypto is not a new concept. It has been in action for a decade. Since it is gaining popularity these days due to the involvement of various popular personalities, the world of Bitcoin is evolving every second. New decisions by companies and organizations affect the price of Bitcoin. The withdrawal of Tesla from Bitcoin has made a huge impact on the market rates of Bitcoin.
2. Mining of Bitcoins
Mining of Bitcoins is a process wherein highly powerful supercomputers solve complex mathematical problems and puzzles. In reward, they obtain Bitcoins. The making of Bitcoin requires expensive and important raw materials. The price change in the raw materials affects the rates of Bitcoin too.
3. Government allowance
Although the world of cryptocurrency believes in no government interference, this still stands false in some countries like India. The Indian government hasn’t banned cryptocurrency but has stopped it from engaging in physical transactions.
4. Trading of Bitcoins
Vendors have the freedom to set prices as per their choice. This directly influences the rates at which Bitcoins can be bought. Bulk trading of Bitcoins also affects pricing.
5. Meeting the demand and supply of traders and investors
There are in all twenty-one million Bitcoins available at present. Out of this 21 million, 18 million is now part of the market and is being used, stored, and traded. Sooner or later, the popularity of cryptocurrencies is going to enter the minds of everyone owning a mere bank account. The option that you can even buy 0.01 Bitcoin enables less but consistent buying which results in increased demand. If not adhered to the demands, the rates are going to shoot up crazy high.
Though all these amazing features of cryptocurrency, do not put your life savings in this game as it is highly time-sensitive but can turn you into a millionaire and bring you down within seconds. It is very crucial to study and analyze the world of cryptocurrency before actually being a part of it. If you are planning to get started with trading, you can easily open an account in any reliable platform and start trading.