What Affects the Bitcoin Price?
Before we go into the details as to what affects the BitCoin price, we need to clarify some definitions first. The BitCoin Price and the BitCoin value are not related to each other. The Bitcoin price only refers to the direct monetary costs of acquiring BitCoins – it is an objective factor. The value of BitCoins however refers to its perceived usefulness and benefits to the individual who is acquiring BitCoins – this is a subjective factor. At this present time, the BitCoin price is mainly expressed at an exchange rate against the U.S dollar. But as time moves on and fiat currencies become more and more unstable, this "exchange rate" will become less relevant. The BitCoin protocol is designed to create a total of 21 million Bitcoins over a 100 year period. This limit on the total amount of BitCoins that can ever be created is very important in keeping the price at a relatively stable rate. There will be times (and it has happened before) where there will be sharp price flu