It is of general knowledge that the price of bitcoins follows the law of supply and demand. The higher the demand and the lower the supply of bitcoins, its price will surely soar. Bitcoins has controlled supply wherein the number of bitcoins in existence must never exceed 21 million. This explains the reason why the difficulty of bitcoin mining increases for every block mined as the amount of bitcoin mined decreases. Since it has limited supply, there have been speculations that its price will surely rise over time.
The Bitcoin price is highly volatile, may not be related to the underlying Bitcoin value and the highly promising blockchain technology that for the first time in history enables distributed consensus, triple-entry bookkeeping and programmable trust by being able to transfer value over a communications channel is still being proven.
With increased usage and wider adoption of Bitcoin, the demand for bitcoins is always increasing. With a constant supply and increasing demand, the only factor in the equation that can budge is the price of bitcoin – by going up. Hence, assuming increased demand, the Bitcoin price gradually increases over the long-term.
We’ve seen how Bitcoin’s value cannot be reduced to one single element or feature. Many aspects of the cryptocurrency contribute to its usefulness and offer benefits that outweigh traditional paper money and its encumbent systems as such in Bitcoin games. As a decentralized network with a consensus-based ledger, the Bitcoin blockchain has features that are innovative and encourage further innovation. Bitcoin’s Open Source Software model facilitates additions and improvements.
Yes, Bitcoin price is indeed unpredictable because there are several factors that can affect its value whether it will soar or fall. However, if you see this perspective in a broader sense, you will take note that the change in price of bitcoins is solely in the hands of bitcoin users. As if you get the better grasp of it, the main point is that the Bitcoin price merely depends upon the demand of people for this digital currency.