The recent skyrocket in Bitcoin’s market value has caused there to be a great deal of speculation about how long lasting this success will be and whether it is just a matter of time before it sees a significant crash (as was the case on previous occasions). As Bitcoin is decentralised by nature, it is possible that it will perform differently than other currencies as it is not controlled by any company, government or a particular organisation. Bitcoin, the very first most popular cryptocurrency, sees its price be dictated by a range of factors and these are not always the same as those we see with fiat currencies and are typically shown as the exchange of the cryptocurrency in relation to other currencies.
The question on everyone’s minds at the moment is how long until the Bitcoin bubble is going to burst and what situation or scenario will be responsible for its price drop. Some people feared that the outcome of the UK election results and the ongoing Brexit negotiations would have some part to play in the value of the Bitcoin in the same way as we have seen our own Great British Pound suffer as a result of these situations in the past.
Getting to grips with what factors could have the potential to influence its rise and fall will go a long way in establishing its longevity on the market and how investors will react to it in the future. With the snap election causing the value of the pound to plunge shortly after the exit poll results were published on the 9th June, the value of Bitcoin remain vastly unchanged. This is not to say that other major political factors will not have their say on the value of the Bitcoin in the future however. We also cannot rule out that other influences will play a part in determining its future value either? Let’s explore…
http://www.thelondoneconomic.com/news/economics/uk-election-results-impact-price-bitcoin/22/06/
