Non-fiat currencies are paving the way, and widening the horizon, might we add, in securing a future founded on the independent non-fiat currency. As you learn about BTC trading accounts, here are a few steps you can follow in bitcoin trading.
Bitcoin Trading Reviewed
Bitcoin trading, as the phrase suggests, is the exchange of bitcoins, from one user to the next. Or to a number of users at any given time. To oversimplify it, it is similar to how conventional trading works. Only, there is no commodity nor “hard money” in the mix. Bitcoins are themselves, the article to and for the exchange.
Understanding Bitcoin Trading
Pricing Movements
The first thing traders need to have an understanding of is how the price of bitcoins is set. Where does it come from? Is it fixed?
Since we know that cryptocurrencies do not rely on financial institutions, global currencies, or economic movements, we can conclude that they are not vulnerable to governments and economies. The pricing of bitcoin comes from…
Supply
There are over 21 million bitcoins all over the world today. Out of this 21 million, around 18.5 million have already been mined. This means that new players in the bitcoin scene will be given a limited amount of 2.5 million left to mine for themselves. Keep in mind that this is a global sum. Once all 21 million have been mined, there will none left in the circulation.
Bitcoin mining is basically a process in which said cryptocurrency (as owned by each user) is put into motion and is made available for trading. More about this, and in detail, on a separate post.
Analysts speculate that the entire supply of this cryptocurrency will be used up come the year 2041. What does this have to do with bitcoin pricing? To put this into perspective, think of the law of supply and demand.
When “supply” decreases and “demand” increases, pricing will be hiked up. And the less supply there is, the higher the skyrocketing of the price will go. Something bitcoin users and traders are already witnessing at present.
***You may be inclined to think that 2041 is two decades away. 20 long years to go. Only, take into consideration that the bitcoin was invented in 2009. And now, less than 10% of its total number remains!
Bitcoin Integration
As of current, there are a limited number of channels wherein bitcoins can be utilized for the exchange of commodities and/or services. In the context of integration, we are leaving out “bitcoin exchange” and/or “bitcoin purchasing” out of the picture.
Cryptocurrency is yet to make a stamp in the market as a viable means for supporting daily living. Relying on bitcoins to buy everyday-goods, easily converting them into their actual real-life prices to be stored and or transferred from bank to bank. The list goes on.
All eyes are on non-fiat currencies, especially because worldwide catastrophes have shaken people so that many are scouting for options to secure their financial futures. Bitcoin, being one of the said major options, and the highest of its kind, in-rank.
Remember the year we mentioned earlier? 2041? It is most certainly likely that bitcoin integration will take place any moment, even before that year hits. When the world begins to notice its integration, they will want to buy in.
This, then, ties in with number 2. The more people to buy-in, the higher the price of bitcoins will soar.