Oh My God, how long is this bitcoin rally? Right now I'm cleaning altcoins, so I don't have any cryptocurrencies in my account. Seriously, as a new player in this business, sometimes I still think
"How is the fundamental analysis of bitcoin?"
In contrast to analyzing companies, you can see how profit is being made and other ratios, Bitcoin is not. You could say, evaluating bitcoin is quite complicated to do.
Over the last few months making profits from bitcoin, ethereum, and others, I did decide to take a break from crypto currency. It's nothing, but I really want to explore further before plunging into a bigger nominal.
Therefore, after tinkering with various sources, there are several fundamental indicators that can be used as "reasons" why bitcoin is worthy of collection. Eits, if there is a bitcoin expert who reads it, you can join in and give me ideas and corrections!
1. 21 Million Protocol
There is an assumption that is circulating among miners and bitcoin users, that the number of bitcoins worldwide is limited to the point of 21 million and is not expected to increase when reached.
Did you know that at this time approximately 13.25 million Bitcoins were already on the market. And according to expert estimates, by 2022 that number will touch 19 million Bitcoin.
In my imagination, the limit on the amount and the level of difficulty faced by miners can be considered as one of the fundamental ornaments of Bitcoin.
2. Demand and Supply
When it comes to stocks, the law of supply and demand is a technical measurement tool embodied in the form of a chart. Of course that also applies when we trade bitcoin, but let's look at it from a different perspective.
Talking about demand, it turns out that the number is increasing every year. Even when Bitcoin was born, eBay and Paypal agreed to use Bitcoin in 2009. From my point of view, it means that the two giant companies saw the potential for Bitcoin growth.
A fundamental assumption!
Another story about the offer, let's imagine as an individual who is holding bitcoin. I want to ask,
"Are you in a rush to use bitcoin to make financial transactions?"
"Are you reluctant to hold on to bitcoin for too long?"
In the end, people will tend to think of this bitcoin like gold. I prefer to keep it than to be transacted, but some still do transactions because a number of merchants only accept bitcoin.
Again in my view, this individual attitude will keep the bitcoin exchange rate from collapsing in an instant. Although there are times when it drops drastically, and it really depends on the rumors circulating in the market such as when the news of the closure of the Bitcoin Exchange in China a few years ago.
