Bitcoin and other cryptocurrencies are expected to have a huge potential in the future. However, there are also high risks. Due to the current volatility of Bitcoin, it can be hard to determine where the value of cryptocurrency will be in the future, but one thing is for certain, partnering with reputable companies is more important now than ever before to protect your investment and reduce the risk of becoming a victim to fraud or scams.
What is Mining City?
Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. Hashpower is the computing power needed to generate cryptocurrencies.
Mining City users can buy crypto mining plans that give them access to hash power and mining rewards. Hashpower provided by Mining City is used to mine Bitcoin (BTC) and other cryptocurrencies.
To learn more about Mining City, its products and services visit Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube and Twitter.
Is Mining City Legit?
Absolutely! Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets. A good example of Mining City’s commitment to compliance is its recent implementation of KYC, AML, and other compliance check processes.
Whether you are looking for a platform that provides mining plans or software to secure your Bitcoin, how can you tell if a cryptocurrency player is legit?
Here’re 5 things to look for:
- Does the business provide a real product or service?
- Does the business leave markets when crypto products or services are outlawed?
- Does the business keep up with new regulations and legal compliance?
- Is the business transparent in their communications about what they are doing?
- Is the business making efforts to suppress real scams?
There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams. For example, Mining City has had to delete more than 500 scam profiles on social media. These profiles impersonate the founder of Mining City, Greg Rogowski, or Mining City itself across Facebook, Instagram, and even Skype.
Mining City takes its responsibilities to customers seriously and any brand or company you choose to work within the cryptocurrency industry should do the same.
But what makes Bitcoin so volatile? And what are some of the factors that influence Bitcoin’s value? Keep reading to learn about some of the reasons why Bitcoin’s prices change the way they do.
Low Supply
Bitcoin only has a limited supply and requires a lot of work to mine new coins. Because of this, there is a set low amount that can keep demand high. If there was an unlimited amount of Bitcoins that could be mined, then there would be a lot less value per coin.
In the future, when the last of the cryptocurrency is mined, the demand may increase as the only options to gain cryptocurrency are to buy it from people that already have some. Right now, though there is a low supply, there are a lot of ways to earn Bitcoin, and so the demands are still relatively low, but when the supply reaches its limit, the supply and demand will cause the price to grow rather quickly for a while.
Demand
Demand is one of the heaviest impacts on the value of Bitcoin, and other cryptocurrencies. Since Bitcoin’s value isn’t determined by the government and it is still a fairly new program, demand and supply are the biggest determining factors of its worth. So when something happens to reduce the demand, the prices can drop, and often by a lot.
Some of the factors that determine the demand are media on cryptocurrency, the companies that back the platforms, what countries are doing about the currency, and rumors that may change the price in the future.
News
If there is some negative news about Bitcoin or someone associated with Bitcoin, it can drop the price for a few hours to a few days. If there is a report about the lack of safety, or someone lost money by using bitcoin, the price will drop.
However, positive news can also positively influence the value. When people see stories about the positives, such as a group of children becoming rich off of Bitcoin, there is usually an increase as people try to also make a similar amount of money.
Companies
The companies that back Bitcoin and other cryptocurrencies also influence how high the cryptocurrency value is. If popular companies like Tesla are supportive of Bitcoin and other cryptocurrencies, it makes people want to get more involved, and the demand will increase.
However, if a company backs out of supporting a cryptocurrency, people may be scared to use it, and the value will drop.
Countries
Countries are in the process of trying to figure out what exactly to do with cryptocurrency. Some countries, like China, try to control or block the use of cryptocurrency. When not as many people use the block, the prices will drop as well. So when a whole country is unable to use a blockchain and cryptocurrency, the value can fall.
Rumors
Like with stocks, if there is a rumor that might mean the Bitcoin system will be affected, value can lower if people back out. For example, there have been rumors that the US government is working on regulating Bitcoin, and when those rumors circulated, the price of Bitcoin dropped by half.
Lack of Regulation
A lot of established markets and foreign exchanges are heavily regulated. This prevents market manipulation, where someone or a group of people can place a lot of orders with the idea of canceling later to raise prices.
Cryptocurrency and Bitcoin do not have a lot of regulations. This means that markets can be manipulated and influenced, which severely changes the value of cryptocurrency. As cryptocurrency grows and more regulations are put in place, the volatility due to artificial market influencers should decrease some.
Not Backed by Government
Currency is often backed by the government to increase stability. There are still fluctuations during exchanges of different currencies, but overall, they are generally in a small range. However, Bitcoin isn’t backed by the government.
Since it isn’t backed by the government, there is not anything to help keep the price stable. This increases the amount that rumors, media, and demand affect the value, which is one of the reasons it is so volatile.
Not having support is one of the major disadvantages of cryptocurrency, but it is also the reason that it is so valuable. Bitcoin is a decentralized currency, which means it doesn’t depend on a central factor, the government, to handle the production, monitoring, and storing of money.
So while this makes Bitcoin much more volatile, it also causes a lot more demand for the currency than a similar product that is backed by a government body. This makes this factor a bit of a double-edged sword.
When it comes to products, they are often backed by investors and hedge funds, which give them value. Since there are not a lot of investors involved in the cryptocurrency world yet, some of the intrinsic value that comes with products is missing. Reports say that when cryptocurrency and platforms start bringing in a lot of investors, the price will likely skyrocket.
New
A lot of the forms of currency we use are very old, and therefore their prices have mostly stabilized. With a new form of currency, we are looking at a long period of volatility as Bitcoin grows and becomes more used.
Bitcoin has been used since 2009, which is a long time compared to some other forms of cryptocurrency. However, compared to gold, which has been used for thousands of years, Bitcoin will need a long time to stabilize.
That doesn’t mean that Bitcoin will need thousands of years. The US dollars have only been around for about 300 years, and have been stable for a while, except for major events.
