Digital Currency Pricing is Affected by Mood and EmotionMay 29, 2018
The price of bitcoin and other cryptocurrencies depends on the mood or the emotions of investors and not by the economic factors, says a recent study. According to Daniele Bianchi, an assistant professor at Warwick Business School, a bitcoin’s or ethereum’s or even TIO’s price in the market has a connection with the returns of the investors. It’s also related to their moods when they see the value of cryptocurrency rise or fall.
Recent research shows there are similarities in the amount of gold and bitcoin. There is a chance that due to the high volatility they have on the market, a payment process in the short and long term is expected to rise from business owners and investors. It also pertains that there is a doubt that the digital currency could be an effective savings instrument due to the influence of people in determining its value.
The situation suggests that bitcoin falls outside the walls of government organizations and banks, so it is similar to purchasing from a high equity company. People rarely buy money using the common procedure due to the evolution of the digital currency age. It offers a high possibility bitcoin price is not easy to determine in the following years.
Bianchi adds that there are risks regarding using digital currency due to the speculations of the internet companies on the investor’s part. It might result in the downfall of the business enterprise together with the transactions of payments and other banking concerns. So, a close look at an investor’s return is a big help to avoid such scenarios. Also, a close examination of the percentage of the digital currency of most users gives a turning solution to solve the issue.
Other factors might take place, but it only falls to the right handling of cryptocurrency to ensure there would be no more risks investors would face. Here, plans for determining the emotions of world investors is a sure way to have a consistent price range of bitcoin and other types of cryptocurrencies.
So far, the matter is under close study by some bitcoin experts to ensure there would be no problem in the price range of the coins people are using. Users can’t afford to let their savings and businesses down due to the change in a digital currency price. There is still a chance the right price is open for the benefit of the public.