Bitcoin is the pioneering cryptocurrency, which led to the new era of digital currencies. Although any bank or government does not support it, there is a huge section supporting this cryptocurrency, leading to the surge in demand for Bitcoin. Despite the initial dip in the value of Bitcoin, it emerged as a winner. At the time of writing, Bitcoin was at $ 53,913.80. This whopping rise in the value of Bitcoin indicates the growing demand for fortis currency. Those who are investing in Bitcoin wonder why the price of Bitcoin is different around the world, and through this blog, we are going to answer this question.
The price difference in Bitcoin:
One of the noticeable features of Bitcoin is that any individual doesn’t set its price; rather, it is set by the market. The demand and supply is an influencing factor. Since the individual decides Bitcoin price, its value changes across the different crypto exchanges. For example, on June 1st 2020, Bitcoin was trading at $9,710.72 on Coindesk.com, while it was $9,402.79 on Winkdex.com.
One of the reasons for this could be that Bitcoin is never traded in one place since there are multiple trading exchanges; each of them set their average pricing. The Bitcoin price will fluctuate based on the type of exchange, so if you are keen on buying or selling Bitcoin, you need to compare the rates of the different crypto exchange platforms.
Another reason for the price difference is because there is no deciding authority. The price of Bitcoin has decided the investors who are buying and selling Bitcoin, which impacts the pricing of Bitcoin.
Also, the different exchange has a different demand and supply of Bitcoin, which eventually impacts the pricing of Bitcoin. The investors must closely watch the price change, and invest in it accordingly.
Other factors that impact Bitcoin’s pricing :
There are several other factors that impact Bitcoin pricing. One of the examples that we would like to quote here is when China banned Bitcoin. It led to a sudden plummeting in the price of Bitcoin.
The mining of Bitcoin is also one of the factors that impact the price of Bitcoin.
When a large Bitcoin holder sells Bitcoin below market value, it can again impact the pricing of Bitcoin. One example of this is BearWhale sole Bitcoin at a very low price, which eventually led to the market’s crashing.
From the above discussion, you can decipher how Bitcoin pricing varies and the factors responsible for the same. If you are looking forward to investing in Bitcoin, you must keep a close eye on the different Bitcoin exchanges.
In the times to come, we will witness a rise in the demand for bitcoin and other cryptocurrencies. Having complete knowledge about it can help you trade with expertise. The Blockchain Council is providing the best online certification course in Bitcoin. If you are willing to become a Bitcoin expert, you must enrol for the Bitcoin certification program today.