Essentially, how will bicoin price develop?

Essentially, the price fluctuation of any commodity or investment reflects the change in the market supply and demand. Bitcoin price is no exception. The main factor affecting its price is the buyers and sellers in the market. As bitcoin is a new concept and has not become a legal and recognized currency yet, as well as the function of the currency has not been showed fully, bitcoin value is controversial, and its development in future also is doubted. All the reasons above will become the important factors that affect the price fluctuations of Bitcoin.

1. The attitudes of national governments to Bitcoins

Bitcoin price may decline when a country announces to prohibit or guard against Bitcoin and its related business activities. On the contrary, if a country, especially an influential country, enacts some policies to support bitcoin, its price may rise. The examples that Germany regarded Bitcoin as a legitimate financial banking tool and the US Federal Court judged bitcoin as a legal tender reinforced people’s confidence in Bitcoin value, which promoted the rise of btc price.

2. The operating environment of Bitcoin industry

Because the scope of Bitcoin trading is small, some negative information of a trading platform may affect bitcoin price. At the beginning of 2014, the largest Bitcoin exchange platform in the world, Mt.Gox collapsed due to hacking and poor platform management, which caused the huge losses of bitcoin users, as well as caused a direct decline of Bitcoin price globally.