Bitcoin And Its Stability

Bitcoin, blockchain and cryptocurrency has always been an interesting topic for me. I always try to know this topic in great detail because there are many topics to understand in it. There are many elements which become very important to understand and as we understand each element.

Our interest increases towards these topics and this is the reason why I and other people like me start liking it very much because as you understand it, it will become very easy to do business in it and brighten your future.

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In this article I am going to talk about how bitcoin is a asset and its value over years .

Bitcoin is an example of cryptocurrency. Bitcoin is the first currency which was invented in 2009. It does not have any single administrator and the best thing about it is that it does not require any middleman. In this, the user can send money directly to another account using electronic medium.

Because it is a digital currency, the chances of tampering with it are almost nil. One of the things is a digital ledger, in which once something is recorded, you cannot delete it, you cannot tamper with it, in this the transactions are verified by the network nodes through cryptography.This process of transactions is recorded in a digital account called blockchain.

Bitcoin Is Great Asset And Has High "VALUE OR STRENGTH " !!

The major question we think is

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It is very difficult to say that the volatility in its prices has reduced. The biggest reason for this is that it is most affected by the information coming in the market, due to which the investors may get disturbed. If positive news comes in the market, then its prices increase and if negative news comes in the market, then its prices go down because this is a market subject to the influence of information, so there is very little scope for stability in it.

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Stability is more determined by the liquidity of a market (that is how many people are willing to buy and sell at any given price point) than by the price of an asset. But even liquid markets can move quickly if market sentiment about the asset's value suddenly changes. Also, this argument is based on Bitcoin's price getting really high... There is no good reason why Bitcoin's price should ever get 'really high.'

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As discussed earlier, we know that the supply of Bitcoin is elastic. An increase in demand does not affect its production rate and hence does not have any significant impact on the prices but when traders place large amounts of money or buy the digital currency, it can lead to a rise in the prices.

Right now we are looking for stable coins whose prices are relatively more stable. Stable coins are very difficult to find because we are basically trying to link the price of one dynamic thing with another dynamic thing, and as we have seen over and over again in the history of the bitcoin currency, its prices have never been stable.

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Ever since Bitcoin was created, it has been facing development problems. The result of this is that it is repeatedly declared dead. But still, due to its uniqueness, it is still alive. There are still exchanges offering trading. But it seems that people try to fit this currency with other currencies. But Bitcoin is a currency that does not fit with other currencies, so it is considered a successful currency. Its purpose is to design a new currency, not to try to fit it with those currencies.

Bitcoin reacts based on the information coming in the market, even if there is a lot of fluctuation in it, it is not a stable currency, it is facing a lot of problems in its development, but its specialty is that it is a digital currency and due to the government not having control over it, people are getting attracted towards it.

India, 17.04.2024
@moyeon