To put things better into perspective, economical analysts have determined that at this moment in time, the Chinese Yuan is facing its six-year low.
Bitcoin Price - Mobile Friendly Price of BTCBitcoin prices today climbed to record highs, thanks to a perfect storm of catalysts.During the last couple of months, China has been dealing with various economic issues, which begun right after its stock market fell a couple of months ago.
Such examples of bitcoin volatility being influenced by the changes in value of fiat have been observed in the past, and the Chinese Yuan may just be one of the most relevant examples.The recent ransomware incident involving WannaCry has got companies buying Bitcoin to deal with similar emergencies in the future. Read more.
Ever wondered what are the factors which led bitcoin price to such heights.Truly understanding the influence that the Chinese Yuan plays can only be done by interpreting charts.In my last article I discussed how an objective value for bitcoin could be estimated by computing its cost of production, i.e. the cost of mining bitcoins.Factors Affecting the Price of Bitcoin as an Investment and Store of Value. the price, or what other factors might. to Bitcoin value is that of.News from China was the main driver of cryptocurrency price movement.
Bitcoin Price is on Route to Reach $3,000, Potential Factors
This is also particularly true considering the fact that bitcoin also saw an increase once the Brexit vote was finalized, and the value of the British pound dropped considerably.There is also evidence of a significant negative correlation between Yuan and Bitcoin prices.Savers and investors frequently use the cryptocurrency as an alternative holding asset against a weakening Yuan.We provide you with the latest breaking news and videos straight from the entertainment industry.One of the most prominent examples is the infamous collapse and bankruptcy of Mt.Gox.Since Bitcoin was released and started gaining popularity, the market was filled with reports referring to how the price of traditional currencies could actually have an impact on the value of bitcoin.Among the factors that might influence the Bitcoin price in 2015 is the halving of the block reward.This includes the participation of the Chinese market and other occurrences.
Also important is the fact that Bitcoin is used as a vehicle for capital flight out of China.The answer is that despite being idealized as a revolutionary and independent invention, Bitcoin has to operate in a real-world environment.The short answer to that question is China. On Feb. 9, 2017, Bitcoin price has plunged by more than 9%.Schultz 1 Richard Schultz Professor Naples ECO 495: Senior Thesis in Economics May 10 2016 What influences the price of Bitcoin: 2011-2015 Senior Thesis.A simple and extremely accurate Bitcoin mining calculator with. fiat price of Bitcoin doubles.
And in our case, the reality is that the majority of Bitcoin trading, estimated from 50 percent to 98 percent, and mining, allegedly between 50 percent and 70 percent, takes place in China.Photo courtesy of PixaBay Everyone knows by now that Bitcoin is highly volatile, even with a fairly stable price currently.