1, short-term factors that determine prices: supply and demand and market sentiment.

The relationship between supply and demand means that there is more money to buy bitcoin than to sell bitcoin, so the price of bitcoin will rise. Many people buy bitcoin, so bitcoin will go up.

Market sentiment is the market and the media's views on the price trend of Bitcoin at that time. When many people are strongly optimistic about Bitcoin, the market sentiment is confident and the price of Bitcoin will rise rapidly. If the media makes pessimistic reports on the price of Bitcoin, it will affect people's confidence and lead people to sell Bitcoin, and the price of Bitcoin will fall.

2. Medium-term factors that determine the price: policy, news and mining cost.

The policy aspect is the policy attitude of governments towards Bitcoin. For example, the South Korean government recently suppressed and supervised Bitcoin, which led to a sharp drop in the price of Bitcoin recently. If more and more countries support and encourage the development of Bitcoin, the price of Bitcoin will be higher and higher. On the contrary, if many countries start to suppress bitcoin, the price of bitcoin will continue to fall.

News is something important in the bitcoin industry. For example, around 65438+February, the two major stock exchanges in the United States launched bitcoin futures, which benefited Bitcoin and directly pushed the price of Bitcoin up to about $20,000.

Mining cost is the cost for bitcoin miners to dig out bitcoin with machines. At present, the cost of digging up a bitcoin is about $65,438 +0.2 million, so it is difficult for the price of bitcoin to fall below $65,438 +0.2 million. Mining cost is the bottom line of bitcoin price. With the increase of mining cost, more competitors enter the mining field, especially many large institutions, companies and countries.

3. Long-term factors that determine the price: dollar trend, global bubble, official digital currency and blockchain technology.

The trend of the dollar, according to personal analysis data, the dollar will weaken in the next few years, which means that the global monetary system that once used the dollar as the world currency will be rebuilt. The rise and future of Bitcoin is to assume the identity and mission of the world currency.

Global bubble. Since the United States abolished the gold-based Bretton Woods system in the 1970s, countries around the world, led by the United States, have started printing money continuously. The bubble of excess money led to the global economic bubble and asset bubble. The global economic crisis triggered by the US subprime mortgage crisis in 2008 is the crisis triggered by the currency bubble. At present, the global economic bubble and asset bubble have reached the critical point of bursting. Bitcoin was born because of the currency bubble, which made people no longer believe in the national credit currency and began to believe and recognize Bitcoin.

Official digital currency, countries all over the world are preparing to issue the official digital currency, which is the state-issued digital currency. Venezuelan has issued a national digital currency-Petrocoin, which is ready to be issued by Israel, Russia and the Japanese government. 20 18 will surely become the first year of the global official digital currency. The accelerated launch of the official digital currency is becoming more and more popular, which shows the price of Bitcoin as an Internet currency.