What are the factors that determine the Bitcoin price?

What are the factors that determine the Bitcoin price? In simple terms, when the demand for Bitcoin increases, the price of Bitcoin rises and when there is less demand, its price falls. Request; It depends on many factors, such as global events such as price declines, advances in stock and bond prices, and global economic developments such as the ongoing trade war between the USA and China. However, unlike monetary policy in countries with fiat currencies, which are subject to change in line with political and economic developments, the Bitcoin ecosystem is a completely decentralized monetary system. Since no central authority regulates the monetary base, the creation of Bitcoins is governed by detailed rules in a very strict protocol that we have detailed for you below. Rules followed by the Bitcoin network Transactions added to the Bitcoin blockchain are encoded and immutable forever. Miners on the Bitcoin network compete to be the first node to solve a complex cryptographic puzzle. The winner is declared as the first node to mine a valid block and receives the corresponding block reward. Once consensus is reached by all network participants on the validity of a block, a new block is added to Bitcoin's blockchain every 10 minutes. Once consensus is reached by all network participants on the validity of a block, a new block is added to Bitcoin's blockchain every 10 minutes. Since Satoshi Nakamoto created the first block called the 'Genesis Block', all transactions on the Bitcoin network follow a precise and unchangeable process. The only provision in the Bitcoin protocol that requires changes from time to time is the amount of block reward miners receive in a process called “Block Reward Halving”. Why is Bitcoin price volatile? Bitcoin has the highest trading volume among other cryptocurrencies, but it is still a small market compared to other global markets. This means that prices make larger movements with less money. If Bitcoin had the same trading volume as gold, for example, then it would be very similar in terms of volatility. Since there are only a limited number of Bitcoins in circulation and the creation of new bitcoins follows strict rules with an ever-decreasing output (due to decreasing rewards for miners), demand; Even theoretically it would have to follow Bitcoin's deflationary behavior to keep prices stable. News that is detrimental or beneficial to Bitcoin's reputation, uncertainty in the future intrinsic value of the cryptocurrency as a store of value, exchange rate risks related to liquidation for holders of large amounts of Bitcoin, and security breaches may also affect the price of Bitcoin. If Bitcoin had the same trading volume as gold, for example, then it would be very similar in terms of volatility. Could Bitcoin price drop to zero? In short, yes it can fall. Fiat currencies that are no longer in use are considered worthless except to collectors, who will probably pay you good money for a 100-year-old note or coin. The value of a currency depends on its perceived value. It is worth noting that currencies that are no longer in circulation often fail as a result of new currencies or events such as hyperinflation. Such developments tend to significantly reduce the value of the affected currencies. In the case of Bitcoin, hyperinflation is not possible because Bitcoin is not created randomly and its production is fixed at a certain amount. FUD: Any news that has the potential to spread “Fear, Uncertainty and Doubt” The real reasons for the decline in Bitcoin's price are; political pressure, technological failures, and potentially “any news coverage that could spread Fear, Uncertainty, and Doubt” under the umbrella of FUD. Until Bitcoin truly reaches the majority of the world, we can continue to expect both significant price increases and significant price declines to occur, with volatility setting the rules at the moment.