Demand for the Bitcoin,
its use apart from just investment to share profit on of its price or nominal
value... to enter the market for exchange of something buy/sell or increase
investment/supply/demand/prices/employment in the economy (or world economy)
and further increase the all the above variables and profits, would decide its
actual value...
Till now it’s used largely for investment
which depends on the demand and supply of the coin itself and not on the actual
demand and supply conditions of the people, the investors or firm including the
coin itself or industry or economy or globe which mainly affect real profits ie
inflation adjusted after consumption and the price level which increases all
kind of risks...
Its value is only
little backed even by inflation, other prices have not increased much which is
a perfect bubble in the short run and long run too...
To much higher prices
could anytime trigger selling... higher price higher supply... at least risk is
there... lack of data on the demand and supply of Bitcoin could make it
difficult to manage its value... but who will manage volatility... s/he or it must
be able to manage demand and supply, both, which could help minimize risk and
make rational decisions...
People would supply
more if they see price fall at higher value to buy at lower prices again to
sell higher... an intelligent investor would do the same... buy low, sell
high...
Bitcoin prices too
might definitely rise and fall with demand and supply of people...
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