Ben Hall Blockchain educator explains to us what determines bitcoins price in Australia? Well it's the market that determines this through buying and selling. I'm going to go through my top five reasons that the price is influenced on Bitcoin.
1. Supply and demand
With cryptocurrency Bitcoin only has 21 million bitcoins that will ever be available, it makes it a scarce commodity and with that if the demand increases the price naturally will increase with it. It has increased utility over time also, as we find greater use cases for the technology. Based on that supply and demand once again it increases that price where more utility is found.
2. Market sentiment
News announcements and media, if we see good news coming out of different countries or here in Australia, you can bet the bottom dollar that the price will rise. People love to hear good news, but the flip side of that of course is that if we see bad news such as that a director is left just like in any public company the price can go down because of it.
It has a great network effect as we see more people utilizing cryptocurrency within the country. The more people that use it, the more adoption we get, the greater there is on that supply and demand concept we talked about earlier pushing that price up.
The government, ASIC, Austrack and the different entities which are involved to see where cryptocurrencies are going in the future if of course that the could lay down regulation which stifles the innovation of such awesome technology. With that of blockchain we could see the price rise too ofcourse if they loosen up and they start to offer a more free society, it means that we could see greater price increase.
5. Market manipulation
The whales, the big individuals or rich individuals and companies who can buy a lot and sell a lot at any one time. What that means is if they sell off other people see that the price reduces and they might get scared because of that and start to sell off themselves as well. Ofcourse if they buy up a large amount and the price goes up we get that same network effect.