Does Inflation Determine The Price Of Bitcoins: What You Need To Know

07 October 2021

2021 has seen a spike in Bitcoin trading. Unlike investing in traditional currencies, Bitcoin is not issued by the central bank or backed by any governmental organizations.

Therefore, the monetary policies and economic growth measurement that typically affect the price evaluation of the fiat currencies don’t affect Bitcoin.

So, if the price of Bitcoin is not affected by the traditional elements, what affects the price of Bitcoin? This is what we will discuss in this article.

Does Inflation Determine The Price Of Bitcoins?

Crypto investors often discuss Bitcoin being a hedge against inflation; why?

The argument starts with the fact that the process of central bank money printing will eventually lead to the decrease of the value of money over time. But, on the other hand, Bitcoin has no connection with limitless printing.

There are a total of almost 21 million Bitcoin that will end up in the market when the reward for Bitcoin Mining reaches Zero. This limited supply allows Bitcoin to resist inflation.

Initially, the concept was only in the papers, but it became a proven fact after the pandemic. When the pandemic hit the global finance market, the government hoped for an expansionary monetary policy, whereby central banks started printing money to make the market stable.

The crazy amount of money printed during the first twelve months of the pandemic increased the inflation rate. Despite the value of the currency depreciating, the price of Bitcoin keeps on rising, reaching an all-time high of more than $63,000.

This further solidifies the argument that inflation does not affect Bitcoin’s Prices.

What Affects Bitcoin’s Prices?

After our conclusion to the argument, one thing is certain: inflation plays no role in influencing Bitcoin’s prices. So then, what factors stimulate Bitcoin’s prices?

The answer may surprise the investors because of what’s not included: Bitcoin Mining.

1. Demand & Supply

Demand and Supply are one of the main factors that affect Bitcoin’s price. The higher the demand and the lower the supply, the higher the price.

As we have talked about earlier, unlike the unlimited supply of fiat currencies, Bitcoin is limited. Moreover, over time it gradually slows down. For this reason, there is a possibility that the demand for Bitcoin will increase in the future.

Of course, the demand of every Cryptocurrency will vary, but that will depend on several other macro factors.

If you are an investor and looking for an opportunity to invest in Bitcoin, the bitcoin equaliser platform might be a better choice. They have experts sitting on the other side of the platform helping new investors understand the new roads of investment.

2. Power Of Media

Information regulation also affects Bitcoin’s price. The way the media writes about Cryptocurrencies largely affects the demand curve. If the media talks about the good aspects of Bitcoin, the demand rises, while bad news can cause panic, reducing Bitcoin’s price.

3. Financial Crisis

The economic situation of the countries also determines the price in that country. If the traditional financial system starts to collapse, people start looking for other assets to safeguard their money’s monetary value. Therefore, the crisis has a close relationship with the economic status of the nations.

4. Rules & Regulation

Another important factor that can be considered equivalent to the demand and supply is the rule and regulation of Bitcoin. Every nation has different rules and regulations that you need to fulfill while trading in Bitcoin or other Cryptocurrencies.

When the rules become quite restrictive to take the repression, the price of Bitcoin falls. But, on the other hand, if the rules are friendly to the industry, it acts as a catalyst for a strong price increase.

The Bottom Line

The factors we have talked about are just the most important ones. There are other factors as well which support the price fluctuation. Therefore, all the investors who are looking to invest in Cryptocurrencies must analyze all the factors. Knowing the factors will help you avoid unwanted risks and increase the chances of profit.

Read Also:

Mashum Mollah

View all posts

Top Three Investment Platforms For 2023

The ever-increasing interest rates have many people wondering about a potential recession that could be just around the corner. While some might think that there is no good place left to invest your money, we are here to tell you that you can potentially expand your investment horizon and set up this year for better returns later on. Here are three great investment platforms to invest your money and generate profit in the long run. Read on to learn more! What Is Meant By Investment Platforms? An investment platform refers to a digital tool or service that helps investors access as well as manage different financial instruments. It can either be a stock, a mutual fund, a bond, or an exchange-traded fund. Such platforms offer a user-friendly and convenient way for investors to purchase, sell, and monitor their portfolios. Investment platforms can be found in multiple forms, such as online brokerage, peer-to-peer lending platforms, and robo-advisors. Each platform type caters to multiple investment strategies as well as requirements, thereby providing a ton of fees, support services, and features. But as for now, it is significant to opt for the right platform for making investments. Investment Platform Types You Should Know Investments are mostly categorized under closed-end funds, unit investment trusts, and mutual funds. All such investments have their own set of challenges, risks, and benefits. Well, it’s pretty much the same case for investment platforms. Before setting foot, it is significant that you discover its primary types: Robo-Advisors These tend to be the automated investment management platforms that make use of algorithms for creating as well as managing portfolios. Typically, the portfolios are customized according to the investor’s financial goals and risk tolerance. Some popular robo-advisors are Wealthfront, Digital Advisor by Vanguard and Betterment. Platforms For Online Brokerage Digital brokerage platforms refer to online services that let investors buy and sell different financial instruments like bonds, mutual funds, and stocks. Instances of popular brokerage platforms are Charles Schwab, Fidelity, and E-Trade. Cryptocurrency Exchanges Thirdly, there are cryptocurrency exchanges are those platforms that let users trade, buy, and sell online currencies. These can be Ripple, Ethereum, and Bitcoin. To name a few famous Cryptocurrency exchanges, Kraken, Binance, and Coinbase deserve mention. Platforms For Peer-to-Peer Lending These platforms are designed to facilitate loans between businesses and individuals, cross-sectioning conventional financial entities. Such platforms establish connections between lenders and borrowers, leading to potentially higher ROI for investors. Investment Platforms That Are Becoming Popular In 2023 Hold your breath as you are going to discover some smart investment platforms that have been doing the talk in 2023. Due to their ease of use, these platforms are most likely to get popular in the coming years, too. So, check them out here and make a smart investment: Cryptocurrency Suppose you are looking for ways to improve your financial situation. In that case, you might want to look into cryptocurrency, which is essentially digital money that relies on blockchain technology and is secured through cryptography. In case you are new to cryptocurrency, you will want to know how it works, which is what we are about to tell you. Regarding blockchain, the ledger keeps track of transactions, including intellectual and physical assets. The access is distributed amongst the “authorized” users, and all shared information is transparent and instant. Also, the information cannot be tampered with, even by the administrator. If this sounds good, you might want to check out CoinCulture: Your Source for a Detailed CoinSpot Review and find interesting news and reviews about the competitive and profitable industry. Security is a basic part of blockchain, which ensures that your money and profit are completely yours. Invest In Gold Another way to improve your financial situation is by investing in Gold. In fact, investing in Gold and Silver is considered a smart strategy against inflation. Over the long run, Gild doesn’t only maintain its value but also maintains its purchasing cost despite the potential fluctuations in the dollar. Moreover, the high inflation periods serve as an excellent time to boost your allocations to Gold. You might already have an idea about how the stock markets work. When an economy goes into recession, the stock market slumps, too, which means that real estate can lose its value, too. This is where the importance of Gold comes in. During the recession, Gold can establish a diverse portfolio, which further reduces your exposure to riskier assets. High-Yield Savings Accounts In case you haven’t heard about a high-yield savings account before, you should know that it pays the investors interest on their cash balance. Like any other savings account at any physical bank, a high-yield account is instantly accessible for cash. A savings account is a brilliant option for those looking forward to a contingency plan. Also, if you want to avoid the risk of losing your money while investing, then a high-yield savings account might be just the right option for you. However, before you start investing in a high-yield savings account, you will want to assess your finances and create a budget. The key to having a budget is that you will have a clear overview of your incoming and outgoing money. And you will know where you are overspending and how you can cut your expenses. Once you have a better overview of your incoming and outgoing money, you will find it easier to stick to a budget. The Bottom Line Investment platforms have a pivotal role to play in the current financial landscape. Not only does it provide investors with the resources and tools needed to manage their portfolios, but it also builds an opportunity for having a passive source of income. By comprehending the most popular investment platforms, it’s your chance to boost your investments. So, what are you waiting for? 2023, 2024, and the subsequent years have proven lucrative for the investment industry. Make hay while the sun shines, or you can lose great opportunities to circulate your money. Read Also: What Will A Financial Retirement Plan Including Gold Look Like Investors Agree: Gold And Silver Is The Way To Go 5 Fun Facts About The American Eagle Gold Coin

6 Ways to Stay Sales Tax Compliant

The United States is a country made up of many states, and each state has its own sales tax policies. It can be difficult to keep track of the various rules and regulations that apply to your business. This article will show you six ways to make sure you follow sales tax compliance so that you don't end up owing money to the government or getting into legal trouble. 1. Keep Track of Sales Tax Rates and Changes The first step to staying sales tax compliant is to keep track of the sales tax rates in your state and any changes that may occur. You can find this information on your state's department of revenue website. If you have a sales tax permit from your state, they will send out quarterly reports with the latest changes to sales taxes. It's important to be aware of any rate changes, especially if you have a business with multiple locations in different states. 2. Collect Sales Tax from Customers In most cases, you are required to collect sales tax from your customers and turn it over to the government. If you don't, this is a form of tax evasion and can result in legal penalties. However, it's important to note that not all states require sales tax to be collected. The rules for this vary by state, so it's important to check with your state revenue department. There are a few exceptions, such as for certain items like food and clothing, but in general, you should be collecting sales tax on all taxable goods and services. 3. File Sales Tax Returns on Time One of the most important aspects of staying compliant with sales taxes is to file your returns on time. Most states require sales tax returns to be filed monthly, quarterly, or annually, depending on the size of your business. You can face significant penalties if you miss the deadline, including fines and interest charges. Failing to file a return on time can result in penalties and interest charges, so adhering to systematic guide on making tax digital for your retail business, for instance, is essential. This way, you'd skip the hassles of paperwork, and you won't miss the due date for filing your sales tax. 4. Maintain Accurate Records It's important to keep accurate records of all your sales transactions so that you can accurately report them on your sales tax return. It's not enough to report your total sales. You will need to list the amount of taxable and non-taxable transactions separately to figure out your sales tax liability accurately. You may also need to keep records of certain transactions that are exempt from sales taxes, including purchases made for resale and items that are traded in. This includes recording the date of sale, the amount of tax collected, and the type of good or service sold. Taking help from experts like an accountant, and a Tax Law expert in Edmond, OK. Since they will be able to get the records much more efficiently. 5. Pay Sales Taxes on Time One of the biggest problems businesses have with sales taxes is paying them late. Not only can this lead to penalties and interest charges from the government, but it can also damage your credit score. It's important to set up a system to pay your sales taxes on time automatically. This will help ensure that you don't miss the deadline and don't have to worry about paying late fees. Make sure you have a plan in place to pay your sales taxes on time every month. 6. Educate Yourself and Your Employees about Sales Tax Compliance The final step to staying sales tax compliant is educating yourself and your employees about the rules and regulations. This includes knowing which items are taxable and understanding how to collect and report sales taxes. It's also important to understand the consequences of not complying with sales tax laws. You can find a lot of this information on your state department of revenue's website, but it's also a good idea to attend seminars and webinars offered by your state. This will help ensure that everyone in your business is aware of the latest changes to sales tax laws and that they are acting in compliance with the law. Your business must understand and follows the sales tax laws. If you feel like this blog post has been too long, we can summarize it for you in one sentence: be aware of how to stay compliant with sales tax law by following these six steps. Read Also: Benefits of a Sales Tax Consultant Things to Know Before Applying for a Vermont Mortgage Loan 2 Reasons to Invest in GoldBullion Even If You’ve Never Invested in an Asset Before What You Need to Know Before Buying Property with a Tax Lien

7 Reasons Why Crypto Is The Best New Side Hustle For You

Cryptocurrencies have been on the rise since 2015. Although Crypto coins have had their ups and downs, they have maintained an upward trend over all these years. If you are interested in making some passive income, just open an account on thebitqtapp.com/de, and get step-by-step guidance on Crypto trading. Today, we will talk about why we think Crypto trading can be one of the best side hustles of 2022. So, without further ado, let’s get started. Why Cryptocurrency Is The Best Side Hustle For You? Before telling you the benefits of Crypto trading, let us inform you that these perks may not always be applicable depending on how the market functions. But, most of the time, they will be present, so let’s have a look: 1: It Has Low Selling Fees If you plan to sell Cryptocurrency on an online platform, you will have to pay a nominal fee. However, if you work with a Crypto mining expert, that professional will guide you when to sell the virtual coin. You can even share your resources while selling the coin, and the selling fees are almost rounded up to zero if done correctly. If you think the Crypto market is too volatile for you to handle, that’s an invalid consideration. Because when you see the price of Crypto coins is dropping, you can sell them right away without spending too much money. 2: It Has A Strong Firmware Before mining Crypto coins, make sure you collect the right equipment. During the initial years, we know you could use any computer for mining these virtual currencies, but that’s a no-go now. Your computer may become slow because the hardware in the Crypto world is too secure and too intensive for your old PC to handle. It means you need to invest in some advanced computer hardware if you intend to choose Crypto as the best side hustle for you. But, instead of thinking of it as an investment, you can focus on the return. The robust firmware of the Crypto world is what makes it so safe for you to trade in it. 3: It Does Not Consume Much Electricity If Crypto trading had consumed too much electricity, we would not have recommended it because that would have been wrong from a sustainable point of view. However, that’s not the case here. If your country has an affordable electricity price, trading Cryptocurrencies should not be that challenging. Some countries stand in contrast to this philosophy, such as Germany, Denmark, or South Korea, because the price of electricity is much higher there. On the other hand, the price is significantly low in countries like Serbia, Venezuela, Paraguay, etc. So, if you can carry your equipment there, trading Cryptocurrencies will be much more profitable to you. 4: You Get The Assistance Of Mining Experts Since Cryptocurrency is a new field, you should never take the risk of mining alone. However, this field gives you the collaboration of mining experts so that you don’t take the risk alone. It can make the mining process far more manageable, especially if you don’t know the rules of the Crypto industry. Once you have a team of mining experts, your Crypto mining task will be done much faster and more efficiently. You can easily mine $10 every day. Now, imagine how much you can mine in a week, in a month, and a year. 5: Cloud Mining Is Possible Do you know what cloud mining is? It means you get to purchase the Cryptocurrencies on someone else’s rig. If you pay more, you will get more coins. However, there are other benefits when you sign up for cloud mining. However, if you are already familiar with how the industry works, it may not be an excellent benefit for you. On the other hand, if you need guidance on securely trading Cryptocurrencies, cloud mining is one of the best options. They will guide you through every step, but they might want a certain percentage of your earnings. 6: The Value Of Digital Currency Is Going Up If you are afraid of the volatility of the Crypto market, you can be sure that the value of these virtual coins will go up in the coming future. Of course, it may fluctuate a little, but that is true for any stock market. The market is still in its infancy, and it has already managed to stay up in terms of market valuation, so imagine what the value will be in the coming years. 7: Huge Profit Margin If you join the right Cryptocurrency pool, you will profit beyond your imagination. You can add your electricity bills, graphic cards, and even your spare time as an investment and count the profit accordingly. Just do the maths beforehand, and we are sure you will end up making a good return on your investment deals. Closing Thoughts Are you still here? It means you have grasped the concept of Crypto trading well and figured out how it can be a profitable side business. If you are convinced, make sure you start trading Cryptocurrencies right away. For further queries, ping us in the comment box below. Read Also: 5 Pros And Cons Of Investing In Cryptocurrencies HybridBlock: Why Binance Is Investing In Crypto-Fiat Trading 7 Things You Must Know About Dow Jones Stock Market Chart Is there a Place for Bitcoin in the Fashion World?

Does Inflation Determine The Price Of Bitcoins: What You Need To Know

Does Inflation Determine The Price Of Bitcoins?