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💎Coin vibes.nft✨©☀️ 2 minutes reading from Bitcoin

Crypto Price: It’s Important Not to Ignite the Bitcoin Price

Hello Crypto Twitter What time is it ?⏰

This thread is for everybody. One less discussed topic on CT is

How are

Cryptocurrency Values Determined .(btc as a use case) 🧵

The value of cryptocurrencies depends on the

market ; where the prices of various crypto varies. ⤵️

They are one of the most fluctuating and volatile markets to trade.

The price of Cryptos like any other market

depends on demand and supply. If more people

demands a particular currency and it is short in supply,

then the value increases. ⏳

This leads to more units getting mined by miners

to balance the flow (in a case of proof of work). However, most Developers limit the

supply of their tokens.

For instance the total amount of Bitcoin issued is only 21million.

Yes , I meant 21 million units.

Therefore BTC ’s supply will decrease in time and will reach its final number by 2140 ; lemme guess 118 years from now, yes . It also explains

why Bitcoin’s value is higher as compared to other cryptocurrencies .

The secret behind the value is that , the total supply are not in circulation ; that is , not all the 21 millions where fully released for public transaction .Also , the Bitcoin halving process have also been playing a vital role in the regulation of Bitcoin value.

Another secret is that the early adopters who bought because of peer pressure no longer have access to their wallets - which makes it a lockup technique in value with time.

This post is based on this twitter thread.


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