Who determines the value of Bitcoin?

Without a doubt, the value of Bitcoin It has increased considerably since the launch of this virtual currency. In the beginning, people used Bitcoin as electronic money on the margins of the economy. However the Bitcoin it is gradually becoming a common currency. Some people perceive it as digital gold, that is, as a rare virtual asset.

In response to the risk of economic collapse during the COVID-19 pandemic, some governments have flooded their markets with traditional central bank money. The goal is to boost spending, thus helping save their economies. Unfortunately, the increase in the money supply erodes the value. Consequently, many people seek inflation-resistant assets that do not lose economic value when governments make such moves. The Bitcoin it attracts a lot of people as a hedge against inflation. It also promises better returns than other assets in such a climate.

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Who determines the value of Bitcoin?

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