There has been a meteoric rise in the price of bitcoin from almost worthless piece of tech in 2009 to something valued well over 19,000USD in 2017 (READ ALSO: Bitcoin value history; dates and notes). Some of the reasons for this exponential rise in Bitcoin simply boils down to the law of demand and supply which states that when the demand for a commodity supersedes its supply, then its price will appreciate. The demand for Bitcoin had been increasing steadily however, its supply is pegged.The following features are some of the main driver of Bitcoin price.

• Limited Supply
• Energy put in the form of electricity to secure the blockchain.
• Blockchain difficulty level
• The utility of the currency, and how easy it is to use and store.
• Perceptions on its value by the public.
• Price of Bitcoin.
• Media hype
• Investors confidence
• Market dilution.
• Innovation
• Confidence in traditional systems.
• Legal/Governmental issues.

READ ALSO: 10 reasons why bitcoin is better than fiat currencie

Categories: Basics

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