Cryptocurrencies Analysis

Cryptocurrencies, Bitcoin's price developments seem to be influenced by several factors.

Stock market sentiment, especially in technology, Nasdaq mainly is one of the main drivers of crypto.

Cryptocurrencies are essentially financial technology, fin-tech leveraged investment play on information technology, which for its part is a leveraged play on the general economy, due to the low capital and operational requirements to start an information technology firm.

On the other hand, the public's psyche and especially its inclination to accept cutting edge financial technology like crypto and Bitcoin is also a decisive factor in the long-run, especially. If  people decide that Bitcoin is useful, that is its advantages prevail over its disadvantages, Bitcoin and cryptocurrencies will not only survive, but also thrive in the future.

Government regulation is a third set of factors, which determines the prices and ultimately the value of cryptocurrencies. If the government leaders of the world's major economies decide in concert to ban, outlaw Bitcoin and other cryptos, cryptocurrencies will face huge, potentially insurmountable difficulties to survive.

Another, fourth set of factors is the state of information technology. A case in point was the latest halving of Bitcoin, which decreased  by 50 % the energy needed to produce a Bitcoin. Bitcoin production consumes huge amounts of energy. That is why, the Securities and Exchange Commission has stated, determined that Bitcoin is a commodity. 

What is more, only 20 years ago the state and resources of computing power were not enough to create Bitcoin. So the power, efficiency and quantum leaps potential of information technology and computer chips hardware is extremely important for Bitcoin and cryptocurrencies to penetrate and ultimately change profoundly our lives.