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Bitcoin Price News
Bitcoin price establishing is an interesting phenomenon and widely differs from the way the price of ordinary money is set. First of all, despite popular belief, Bitcoin does have a cost price. It is set as a combination of expenses on electricity, transaction fees and the installation/purchase of software. However, the price of Bitcoin is not determined by its cost price and is mostly estimated by consumer demand. It causes huge fluctuations in the price of Bitcoin, as Bitcoin has no backing, and traders are largely dependent on the news of Bitcoin’s price, multiplying volatility of the asset. As Bitcoin’s market cap is nearly $159 billion, the price of Bitcoin became an important economical factor, gathering attention from financial institutions of various kinds and stimulated the research of behavioral factors that influence the price of Bitcoin and working on ways of predicting its changes.