Bitcoin price increasing technical reason behind price rate

Why Bitcoin price increasing?

bitcoin price increasing why? Here is a solid answer to your Question.

bitcoin price increasing chart

Bitcoin is a Crypto-currency and a digital payment network made from processing power called hash rate in the term of cryptography.Bitcoin is trending now because of its increasing price rate behavior.Bitcoin was invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto.The Network is peer-to-peer, and transactions take place between users directly, without an intermediary.These transactions are verified by network nodes and recorded in a public distributed ledger called a Blockchain.The node owners get transaction verification reward [bitcoins] is called mining fees.Mining fees is responsible for newly created for bitcoins.These all transactions are handled by Node owners.

You can not see and touch your owned bitcoin but you can store them into your E-Wallets[Bitcoin wallet].Wallet stores the digital credentials for your Bitcoin holdings and allows you to send, receive and spend them.Wallet provides a unique address to Recieve bitcoins from any wallet and sender.Bitcoin is most used digital currency all over the world.80% crypto currency is in Bitcoin rest 20% are others like Z-cash, lite-coin, Ethereum, iota, Dash, ripple etc.

Merchants accepting Bitcoin ordinarily use the services of Bitcoin payment service providers such as BitPay or Coinbase. When a customer pays in bitcoin, the payment service provider accepts the bitcoin on behalf of the merchant, converts it to the local currency, and sends the obtained amount to merchant’s bank account, charging a fee for the service

Now come to the question why Bitcoin price increasing?

bitcoin price increasing continues to claim because actually Bitcoin is limited to only 21 million BTC that is set into the protocol. Also, more and more people are looking for his property of store of value.Bitcoin is made with a restriction on how many coins that can exist. It becomes harder to gather coins and thus they become more valuable.The reason why bitcoins are valuable at all is because some people believe it is a currency that is even better than national currencies. And it is also true that it has some advantages even though it also has some disadvantages compared to regular currency.

The strong reason of Bitcoin price increasing

Bitcoin price increasing difficulty
                              Image source:

Bitcoin is limited to only 21 million BTC and total 14 million bitcoins are mined. And now because of 1MB block size on the Blockchain, it is become more difficult to mine more coins on same Hashrate or processing power.14 million bitcoins created in 10 years from mining but now mining difficulty is increasing every month by at an average rate of +20%. which means in one year it would become 891.611% more difficult to mine the same amount of bitcoins.If the pool or node, owners will not get reward greater than electricity bill they will stop approving transactions and Bitcoin network will fail.This is the main reason behind Bitcoin price increasing so that mining process remains profitable. After reaching 21 million BTC network would stop mining process and The price will fluctuate according to geopolitical and economic reasons.




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