What’s the value of Bitcoin?

I have always insisted that labor produces value, so value must be positively correlated with labor.And when it comes to price, price is often a reflection of value, in other words, value is the basis of price, value is the foundation of a building.
But it’s important to be clear that, at certain times, prices can deviate significantly from value.So, the price of bitcoin is determined by value, but sometimes the price is determined by more than value.Therefore, it will be explained in two parts. The first step is the value of bitcoin, and the second part is the factors affecting the price when the price deviates from the value.

  1. Supply-demand relationship

The concept of supply and demand is one of the basic laws of the economy. First of all, the supply of Bitcoin is completely fixed. The higher the price of any physical commodity, the greater the supply.Commodity prices rise, the profit space, lead to more people into production, so there will be a more output, increase the supply will contain the commodity boom, the gold is like this, prices lead to increased supply, there is a noun in economics describes it, was called the price elasticity of supply, refers to the price changes caused by changes in the supply of goods.The price elasticity of the supply of bitcoin is zero, no matter how high the price goes, the supply stays the same, which is very abnormal.Second, the demand for bitcoin is more perverse.For any physical commodity, the higher the price, the smaller the demand.It makes sense, too, that higher commodity prices would force people to look for alternatives.The price elasticity of demand for bitcoin is negative, meaning that the higher the price, the higher the demand, because the bigger the plate, the better it is for storing value.Add that to the halving of production each time, and expectations of a bitcoin explosion are fuelled by a stampede of speculators.
In short, each halving disrupts the balance between supply and demand, and once that equilibrium is broken, supply stays the same and demand increases. And with the influx of speculators, how is it possible not to see an explosion?

  1. Speculation

When a popular investor takes a positive view of Bitcoin or any other virtual currency, news spreads that prices are likely to rise.On the other hand, world-renowned people like Warren Buffett have called Bitcoin a “rat poison” that will negatively impact the price of cryptocurrencies.

  1. Number of market approved persons

The price of Bitcoin has been the biggest concern and confidence of investors. Bitcoin, in fact, is a very special kind of asset.What’s so special about it?Specificity comes from its value, independent of the influence of a particular company or economic entity.But bitcoin is different, as if there is no company or economy behind it, and its price, as if it has nothing to do with any economic entity, is not affected by the rise and fall of its performance.COINS, which the main body of income and profit, and the current currency price, can’t find it greatly depends on how many people recognize the purposes and beliefs, if the future one day, more and more people have recognized it, the world’s 7 billion people divided 21 million gold COINS, at that time if you have a currency, that you may become a family heirloom, so, in the long term, the currency price mainly depends on the number of the approval.

  1. Bitcoin community autonomy

Bitcoin is a new centralized currency, but it will have a significant impact on the price of bitcoin because its workings and future direction need to be regularly discussed by the maintainers of the bitcoin community.The software that verifies bitcoin transactions is made by developers, and certain operational transactions are handled by miners at different nodes around the world.To dig mines and validate transactions, developers must have the support of 50 percent of the world’s miners if they want to change the software, and once they do, they can create forks.

  1. Regulation

As regulators ponder how to deal with the new species of bitcoin, which is blowing hot air around the world, they will have to figure out some of the issues around it.Two incidents, such as how a country’s tax system deals with the new currency, how cryptocurrencies are regulated and how they are regulated, highlight how regulatory measures can have a significant impact on currency prices.At the time, after Japan announced it would be considered legal tender, the price of Bitcoin rose 2 percent in one day, and in the following two months the global price of bitcoin soared to 160 percent.When China announced it was shutting down several of the country’s largest cryptocurrency exchanges and banning domestic ICOs, bitcoin prices plunged 29 percent in a day.What new markets need most is clear, concise and strong regulations that provide potential investors with some security features and a framework they can understand.

So how can novices invest in Bitcoin?

The first task for beginners to buy COINS is not to be fast, but to choose a formal platform to ensure the security of transactions.If you buy Bitcoin, you should identify a relatively formal platform. If you choose the wrong platform, you will run the risk of losing your principal. So, you should choose a formal large exchange.When making platform selection, try to choose the head exchange of the industry, which is relatively more secure, with old experience, strong anti-risk ability and higher reliability coefficient.Current trading all IXX Exchange (https://ixxex.me/user/register/?Invitor=5849348), etc., these exchanges are more formal and reliable, more suitable for beginners to buy.How do I buy Bitcoin at IXX?
IXX has the function of buying COINS quickly, which is suitable for beginners to use.Usually, after the seller receives the payment, he will release the COINS quickly. The whole process will be carried out by IXX platform as a guarantee. So there is no need to worry about security.