You first must learn the basic principles of how Bitcoin is formed to ensure that you completely understand the Bitcoin rate and what influences it. A conventional currency is physical and controlled by the country’s (or even currency unions) in central bank. Their responsibility is to maintain the exchange rate and stable inflation. This is how it has occurred for a long time. Nevertheless, the way Bitcoin is generated is completely different, mainly as it is unregulated but also as Bitcoin doesn’t really exist in a physical form.
Factors having effect on the Bitcoin price
The undeniable major factor is popularity (Demand and supply). Let’s read some factors that influence the bitcoin price: