Understand what cause the change in price of bitcoin and other cryptocurrency
in short term:
The reason the price of a certain cryptocurrency change is because of human emotion. when everyone see that other are buying, they afraid to miss the opportunity so they jump in.
The opposite also true, when people saw the trend went down, they afraid if they don't sell now, they will lose even more.
These are all based on human emotion that create the change in supply and demand, result the price of cryptocurrency go up and down more often than stock market.
The big problem is that there are no real facts or any huge threats that really cause the price to actually drop. All based on speculation.
In long term:
The reason the price of a certain cryptocurrency change in a long term is mainly the developer of that cryptocurrency .
If the developer does not have clear vision and new technology to create trusts for inverstors and business owners then sooner or latter, their cryptocurrency will drop down and eventually push out of the market and become a dead cryptocurrency .
The reason bitcoin keep rising is because investors and business owners trusted it. If people no longer trust bitcoin then it will disappear before you even know it happen.
another reason the price of a certain cryptocurrency change in a long tearm is the pressure of the bank and the country government as they both don't like this new currency. But this most likely not going to happen anytime soon.
My prediction for bitcoin:
I expect at the end of this year, the price for bitcoin would be over $4000 at the minimum.
reason:
- more and more big businesses are using payment with bitcoin
- more and more products to educate people about bitcoin in the market, this lead to more awareness of people about bitcoin.
- there is no big threat that will change the trend of bitcoin yet
- the Bitcoin current market value is very small but the potential is very big
These based in my opinion only.
