The value of BTC to USD is quite a variable parameter. In just about two decades, starting somewhere as low as a few cents per BTC, the value has now soared to many thousands of USD per BTC. Probably no other trading instrument has seen such a rapid rise in value, in such a short duration of time! And that is the reason behind the ever rising Bitcoin fever, and why everyone is always so interested to know as to what is the value of BTC to USD.
Top 5 Factors Behind: What is the Value of BTC to USD
There are innumerable factors that affect the value of BTC to USD, but let us consider a few important ones here, the ones that are the most dominant. However, please note that this is an interlinked chain, where one factor affects not only the price directly, but also the price indirectly by having some impact on the other factors playing this game of value of BTC to USD.
1. Demand and Supply: Bitcoin is not something that is unlimited, so as such the demand and supply play a major role against the price variation that happens with respect to the US dollar.
2. Trading Exchange: Bitcoin is traded globally, and as such it falls under various state laws, coming via various exchanges. These also tend to shift the value of BTC to USD, depending upon an individual country’s economy, currency rate with respect to USD and many other factors alike.
3. Competition: Competition affects everything unlimited as well, and Bitcoin is a cryptocurrency that is limited. So the role of competition in governing what is the value of BTC to USD is even bigger. The competition at a given time, not only for demand and supply, but with respect to other cryptocurrencies, also determines what is the value of BTC to USD.
4. USD Value Fluctuations: Not only does the Bitcoin token fluctuate in value, but the value of the USD does so also, if we analyze it with respect to a more global economy. Consequently, it seems that the value of BTC to USD has again shifted, although there is a reverse shift this time.
5. Other Commodities: Bitcoin is considered to be an instrument for long term investment by many traders, given such a huge ROI it has shown over just the last two decades. So it has to compete with commodities like gold and silver as well, and there demand and supply tends to cause a shift in the value of BTC to USD, very easily.
What to do for a BTC to USD Value Shift
Although it is not possible to stop the changes that happen in what is value of BTC to USD, one can always optimize their own trading strategies, keeping in mind these shifts: present, past and future, that keep on happening in real time almost. Companies like executium.com have come up in the recent past, that help the traders in this regard, considering the economy from a global point of view, and then comparing the prices of Bitcoin tokens with respect to the US dollar.