HOW MANY USERS CONTROL THE PRICE OF BITCOIN?

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Written By Paul

 

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The digital market has become one of the new financial tools that merge technology and money, two aspects that are essential for development at this point in history, bitcoin-motion.cloud is one the reliable platforms for this.

Technology has taken over the most unexpected fields, where no one could imagine there could be computer systems that could contribute to the development of even a nation.

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When Bitcoin originated, it gave way to a new perspective of seeing finance from a technology perspective, with concepts such as blockchain and mining. Still, the most exciting thing is that it is a decentralized financial system.

Governments and banking entities are behind the regulation of digital currencies, implying that they would cease to be decentralized to become one more element of the traditional economy, controlling its valuation and economic impact.

Who controls cryptocurrencies?

The idea of a digital market made up of currencies that are not controlled by any entity or third party but by the free play of supply and demand is quite interesting.

Such is the case of Bitcoin, where the only ones responsible for the value of this crypto active are the users; that is where the importance of these digital assets lies.

Anyone can acquire digital currencies, but who can control the price at which they are accepted.

There are cryptocurrency networks, which are made up of various investors who are in charge of manipulating, in some way, the value of a particular digital asset.

There are different types of investors, from those with a few units and those whose capital investments are so high that any decision they make regarding purchasing or selling digital currencies impacts the market.

That is when it is inferred that these actors are capable of manipulating the cryptocurrency market and its valuations.

Could the end of Bitcoin be near?

Given the critical situation that Bitcoin and the various digital currencies are going through, there is no doubt that all market analysts and finance specialists are beginning to evaluate the multiple scenarios in which the digital market can be involved.

There are many opinions that Bitcoin and its technology are about to end. Still, suppose we are sure of one thing. In that case, digital currencies have changed the way of perceiving the economic environment.

The aspects that are considered when issuing an opinion regarding the trajectory of Bitcoin and its future are the number of available units that can be given, which are limited, and the effect of the carbon footprint produced by the issuance of a unit of this digital currency.

In this regard, the opinions are usually quite interesting since Bitcoin gave way to a new digital financial era, where banks are evaluating the option of being able to issue their digital currencies that, in a certain way, would offer an exciting proposal to many users.

That Bitcoin comes to an end is somewhat challenging to predict; the difficult stages are characteristics of the financial markets more in the cycles of supply and demand that Bitcoin goes through, which according to many experts, are usually repetitive every two years, which means that it is already approaching a change in trend.

Shrimp, Octopus, and Whale marine animals used in the finance

As the days go by, more people join this decentralized finance proposal, from financial entities with credit products to famous personalities from the entertainment world and large investors.

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CONTINUE READING BELOW

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The only objective is to diversify investments at the highest level, to the point that different terms are used to identify the types of investors in the cryptocurrency network.

Names that may not seem related to the financial market make the perspective of digital finance more enjoyable; there, the terms shrimp, octopus, and whale arise to identify the different types of investors.

Shrimp are usually considered investors with less than one Bitcoin among their assets, which generally indicates that this impact on the market is quite negligible.

In the case of the octopus, they are all those investors who have invested around 10 to 50 units of Bitcoin; however, they are exciting amounts, yet they have not yet managed to impact the trends that the market may develop.

And the whales are all the large corporations or financial weight companies worldwide that have allocated part of their resources or current assets for acquiring digital currencies between 1,000 and 5,000 units, which causes a fairly significant impact in terms of valuation cryptocurrencies.

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Conclusion

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Third parties do not control the digital financial market; the valuation of its units is because many users at certain times make decisions that affect the normal development of the market.


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