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Just as the prices of stocks and currencies move up and down due to various reasons, the price of Bitcoin as well fluctuates. As a Bitcoin investor, you must be prepared to let your investments ride the wave of volatility. We have covered the following in this article:
Bitcoin is the most popular crypto or virtual currency in the world. It is a decentralised currency that has no central bank or government as the regulator. It first came into use in 2009 and has gained wide acceptance lately. Since more corporates and individuals are accepting Bitcoin as legal tender each day, its price is soaring to greater heights. Naturally, many individuals get this question in their mind- why does the Bitcoin price fall and rise?
There are several factors that directly or indirectly influence the movement of the Bitcoin price. However, the following are the most prominent ones:
One thing to note before investing in Bitcoins is that there is no regulatory body to oversee the operations of Bitcoins. Also, Bitcoins are still not legal tender in India. It is advisable to not invest heavily in Bitcoin as there is uncertainty on whether the government would impose a total ban on Bitcoins and other cryptocurrencies. If you are to enjoy higher gains over time, you may invest in mutual funds and stocks.