Reasons to determine the value of bitcoin

Reasons to determine the value of bitcoin

Bitcoin has become popular in the market .The value of bitcoin is increased due to the increase in the price. There are about six factors which are used in the determination of the Bitcoin.

  1. Bitcoin contains all the features of the gold

From the birth onwards the bitcoin has the properties of the gold such as the portability, durability, acceptability, fungible, divisible and the uniformity. Around the world the fiat currencies are not able to satisfy all these criteria. But only the bitcoin which is better than the gold has this property .Therefore bitcoin is considered to be more valuable. Go through this review of bitcoin Vs gold in the websites of the bitcoin.

  1. Demand and supply

Bitcoin has the market like that of the stock and the commodity market where the bitcoin can be purchased or sold. The market shows the demand, deficit or surplus of the bitcoin and this criterion also determines the value of the bitcoin. But it is found to be the complex method. Based on the moving averages of bitcoin in the trading, it is used in the calculation of the values of bitcoin.

  1. Network effect

The intermediary and the transaction can be by passed easily by the bitcoin and it is very useful for the investors. It is also having the significance in the peer to peer transaction without any delay as you have to wait only for 40 to 60min only. The platform of the bitcoin or the network is considered to be more valuable as the number of the users is joining in this platform.

  1. Bitcoins smart contract

Due to the high value of the bitcoin, more people are using this protocol .Therefore arise of the new possibilities and the inventions are made. The smart contract which is supported by the bitcoins is channeling the contracts, hashed time lock and the multi sig contracts.For this reason the bitcoin is found to be more valuable one

  1. Distributed and the decentralized P2P node network

About 20,000 nodes are found in the duty of securing the network of the transaction.Also the separate documents of block chain of bitcoins are maintained. Therefore the chances for the double spend is less.

Conclusion

Bitcoin has developed highly in the future trading, crypto hedger funds, the transactions with less cost and the smart contract involved in the project of the bitcoin, etc.

 

 

 

 

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