How is the price of cryptocurrency defined? [PART TWO]
Few days ago I talked about “How is the price of cryptocurrency defined-part one”
Today I am going to continue from where I stopped. This is the link for the part one: https://steemit.com/cryptocurrency/@philip6/how-is-the-price-of-cryptocurrency-defined-part-one
What aids the price of a cryptocurrency?
5. Public perception: Public perception can be seen as the difference between an absolute truth based on facts and a virtual truth shaped by popular opinion, media coverage and/or reputation. The public perception of a cryptocurrency has big bearing on the value of the currency. In the case of Bitcoin, a driving factor can be people reacting positively to the innovations and the fact it is a thorn in the side of the mostly corrupt banking sector and gives competition which cannot be tampered with in the traditional way, but can also receive negative reactions and associations with criminality. After reading so much online I get the perception that crypto is huge, but when I talk to friends and regular people at work, it is far from that. It just shows how much room for growth there is and how lucky we are to get into it this early. I thought it would be interesting for others to note what the most common responses I have heard from regular people;
• Is bitcoin even still a thing?
• I don't understand how they are currencies but are traded like stocks?
• There is no way I could afford 1 whole bitcoin right now (They didn't know you could buy fractions. I heard this from a financial advisor)
• I have a read a bit up on it but don't know if I should buy any
• I am happy with my profits on the stock market, or general interest from savings accounts.
• It's all digital so it's fine to leave it on an exchange.
6. Price of Bitcoin: The price of bitcoin rose more than twenty-fold in 2017, generating huge amounts of interest in the cryptocurrency. After peaking at close to $20,000 in December, bitcoin's value fell to below $10,000 within a matter of weeks. This precipitated a market-wide crash that saw the price of ethereum, ripple and other leading cryptocurrencies tumble. More recently, bitcoin has shown signs of recovery but its price remains volatile. Its price is expected to continue to fluctuate unpredictably, and this live blog will be regularly updated with the latest news and significant changes. Bitcoin is often seen as the ‘reserve currency’ of the cryptocurrency world. Rises and falls to the price of Bitcoin often has a knock on effect with other cryptocurrencies. Litecoin in particular often has price reactions proportional to the rise and fall of Bitcoin price, but without the difficulty increase that Bitcoin has in respect to the power used to secure both blockchains. As Bitcoin was the first mainstream cryptocurrency and is the most supported, the price of Bitcoin can often influence the other cryptocurrencies.
7. Media: Media includes every broadcasting and narrowcasting medium such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax, and internet. Media is the plural of medium and can take a plural or singular verb, depending on the sense intended. The medias reporting on Bitcoin in either a positive, or negative way can have influence on the public perceptions of Bitcoin, and can influence the price. This can even be used as an avenue to potentially manipulate the price, as many media outlets are owned by a few individuals and it is a major vector for potential price manipulation, as well as reporting on positive and negative aspects of the currency which can cause the price to fluctuate.
This is all I can give for now... Part three will be coming soon... STAY TUNED