All kinds of fiat currencies have reinforcements by some economic indicators of different countries. Before the Great Depression began in the United States, the gold standard was used there. Political and economic factors have a significant impact on such processes as devaluation, inflation and deflation. However, the eco-system of bitcoins does not depend on this, since the Cryptocurrency is decentralized, and this is its special advantage. It has nothing to do with the economy of a particular country or several, and the definition of its value is due to simple market mechanisms - supply and demand. It is difficult to make a bitcoin price prediction in 2018, but many try to evaluate its prospects.
The gold and foreign exchange standard, shares or some other instruments, economic capacities, do not stand behind the cryptocurrency, but its value does not fall due to this. What factors determine the value of bitcoin?
The production of cryptocurrency requires the use of powerful high-value installations.
Constant complication of the process of bitcoin mining leads to the fact that the miners spend huge sums of money and equipment to close the block and receive another reward.
Protection against fraud is provided by built-in mechanisms. The transaction will end after receiving 6 confirmations or more.
Bitcoin is traded for a currency. Bitcoin prediction 1 year and further says that its value will be increased. Economies of countries or large corporations do not stand behind crypto-currencies, so the cryptocurrency is completely transparent.
The value of bitcoin grows not only for these reasons. The most important factor is the complexity of the extraction of each new block. Cryptocurrency is a very valuable payment method and means, and an asset for investment. Legal entities and individuals acquire bitcoins to preserve their funds and multiply in the process. This is a convenient tool for ensuring the security of funds and the anonymity of transactions. Purses with crypto-currencies are not damaged, they do not go bankrupt, they are difficult to rob.
Its popularity is growing as a payment method. Now many large manufacturers have begun to cooperate with the cryptocurrency, and users have received many opportunities for acquiring or paying for services, the unit's value is formed through market trading on exchanges. However, the work of traders and investors on them is carried out in order to make the profit, so exchange rate fluctuations are on their hands.
The formation of the rate is based on demand. The more users will invest their capital in a coin, the higher will be its value. The release of the news, promising technology and significant opportunities are factors that testify to the long-term prospects of the cryptocurrency.
The activity of exchange participants is a factor that has a short-term impact on the exchange rate. Investor groups or large-scale players can influence prices in a speculative format. Drops or sharp jumps are also in bitcoins. Avalanche processes are launched by speculators. Then the rest of the players act. From this, the course fluctuates greatly. It is simply unrealistic sometimes to make a bitcoin cash prediction 2018, like bitcoin or other cryptocurrencies. The market always behaves in a way that all participants put in it, so the result of manipulation will be a rapid change in the rate.