Most people are well aware of how Bitcoin is subject to a free market principle, where the supply and demand are provided by miners, investors, and digital currency owners. However, there is also no denying the Bitcoin price seems relatively suppressed most of the time, giving how few coins there are in existence at any given time. It is hard to prove some parties are actively suppressing the price, but it is certainly within the realm of possibilities.
Also read: Checking The Bitcoin Price On Your Apple Watch
Various factors should influence the Bitcoin price in a positive manner at this time. First of all, the number of coins in circulation is rather limited, with less than 16 million BTC to go around for the entire world’s population. That in its own right should be enough to give the Bitcoin price a higher valuation.
But there is more, as there are a lot of people who are not looking to part ways with their bitcoins just yet. Some people see this digital currency as an investment vehicle, whereas others make their entire living based on Bitcoin. Converting as little funds to fiat currency at any given time is in everybody’s best interest, as it could lead to bigger financial gains and reduce the limited supply on the markets even more.
Moreover, Bitcoin has become a payment method for a wide variety of things, both in the online and offline world. Unlike most other digital currencies, Bitcoin has use cases in the reality, although the number is still on the small side. For a financial ecosystem that has only been around for just over seven years, significant progress has been made, though.
While all of that is fine and dandy, the Bitcoin price is not going up all that much in recent months. Although a sudden volatility eruption such as the one in 2013 should be avoided at all costs, a slow and steady Bitcoin price increase would be something everybody can agree with in the long run.
One of the possible reasons why this is not happening right now is due to potential Bitcoin price suppression by wealthy individuals or groups of traders. Pushing the Bitcoin price down is in their best interest, as it allows them to accumulate more coins. Unfortunately, it is impossible to prove whether or not this is the case, nor can we completely ignore this possibility either.
Source: Reddit
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