Home » Eyal Avramovich – 4 Factors Driving the Price of Bitcoin

Eyal Avramovich – 4 Factors Driving the Price of Bitcoin

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Eyal Abramovich As a serial entrepreneur, he has over 20 years of experience building innovative fintechs. blockchain business around the world.

He has a degree in electronic engineering and holds several patents. Most notable are the world’s thinnest weight scale, the world’s thinnest mobile phone charger, and the world’s first massage and relaxation robot. These became bestsellers in some chain stores, online retailer his Amazon, and US shopping channel QVC respectively.

Over the past twenty years, he has successfully introduced five inventions. That included successfully marketing his Gigabit his Ethernet his camera technology to a Japanese multinational corporation.

But perhaps Eyal’s greatest achievement is in the crypto space. He first discovered Bitcoin in his 2016 and was blown away by the solutions it offers in terms of independence, flexibility and technological opportunity. He discovered that Bitcoin and its mining blended all of his lifelong passions: technology, entrepreneurship, and finance.

Eyal Abramovich is Founder of Minebestan award-winning cryptocurrency mining business he started in 2017, and co-creator of the cryptocurrencies Bitcoin Vault (BTCV) and Electric Cash (ELCASH).

MineBest is a group of collaborators and local business partners that help companies enter the mining industry without the need for technical know-how. By democratizing the space, Eyal realized that more people could enjoy the long-term benefits of cryptocurrency mining.

MineBest operates multiple mining farms around the world and is continuously exploring new locations. They offer state-of-the-art facilities and infrastructure that are professionally maintained around the clock.

In addition to his work at MineBest, Eyal co-created two cryptocurrencies, Bitcoin Vault (BTCV) and Electric Cash (ELCASH). Both coins are highly regarded for their state-of-the-art security features.

Electric Cash is a proof-of-work SHA-256 based cryptocurrency. It offers fast and extremely cheap transactions, rewarding all staking users while allowing them to control the future of the project through voting.

Bitcoin Vault, on the other hand, is the world’s first cryptocurrency that allows users to cancel transactions after they have been posted to the blockchain. This innovative approach is made possible by a customized blockchain protocol that confirms payments within 144 blocks (or roughly 24 hours). This feature protects users from losing funds in the event of common key theft, user mistakes and errors, and bugs.

After starting 2022 at $47,299.69, Bitcoin’s price recently dropped to around $20,000 as it neared the end of the third quarter. All of this shows how volatile cryptocurrencies can be.

There are many factors that affect the price of Bitcoin. These include media hype, adoption by a wider audience, political uncertainty and risk, moves by governments and regulators, and internal governance of Bitcoin itself.

We recently had the opportunity to connect with Eyal Abramovich And get his take on the factors driving Bitcoin’s price and a glimpse into the future of cryptocurrency from one of the industry’s leading entrepreneurs.

1) Media hype

Economists have long observed that psychological factors can greatly influence investor decisions. Investors often make decisions based on the behavior of other market participants or their own gut feeling rather than technical analysis. Fear of missing out (FOMO) is a strong motivator when prices are rising, and loss aversion plays a strong role when prices are falling. Economists have observed that they tend to act more irrationally when trying to avoid investment losses than when pursuing investment gains. .

An analysis of the Bitcoin price shows that positive media coverage is one of the main factors driving the price upwards.

Positive media coverage of new technology sets off the well-known hype cycle. The peak of the hype is followed by the Valley of Disillusionment.

This was most evident in Bitcoin’s early days when the mainstream press began covering the new currency, which caused many short-term price spikes and crashes. When factors are brought in, the influence of media alone tends to be balanced out by other factors.

The stock market sees a similar phenomenon during initial public offerings (IPOs) as investors “dive in”. collectand the value rises rapidly from the opening price.

2) Political risk

Political risks related to fiat currency also affect the price of Bitcoin as people need to use digital currency to hedge against price fluctuations in a particular currency or to move large amounts of value out of a country or currency quickly. can affect.

Following the 2015 Greek economic crisis, there were reports of an increase in Bitcoin purchases by Greek citizens who wanted to protect their wealth.

However, fears over the UK’s referendum on leaving the EU (Brexit) have pushed the price of Bitcoin higher and the value of the British Pound down.

In the first 18 months after COVID-19 was declared a pandemic, Bitcoin’s price rose by about 525%.

After Biden’s election, economic uncertainty caused Bitcoin’s price to surge again.

3) Regulatory measures

Global regulators are struggling to keep up with the rise of Bitcoin. Some jurisdictions, like China, have decided to ban cryptocurrencies outright, while others, like El Salvador, are warmly embracing digital currencies. As the adoption of cryptocurrencies grows, regulators will soon have to decide, for example, how they will be treated in the tax system and what regulations will apply to their use.

These decisions will have a dramatic impact on Bitcoin’s price. When China decided to shut down some Bitcoin exchanges and ban early coin offerings (often a form of crowdfunding paid for in cryptocurrencies), the decision led to Bitcoin’s The price plunged 29% in 24 hours.

4) Bitcoin Governance

Bitcoin is a decentralized currency, but decisions have to be made from time to time about how Bitcoin works or evolves. These also affect the price.

The software used to validate Bitcoin transactions is written by developers and run by miners.

To change the software used for mining and authenticating transactions, developers must have at least 50% of the global network of miners agree to the proposed change. Once they have that support, they can create a “fork”.

In August 2017, Bitcoin experienced a “hard fork”. New cryptocurrency – bitcoin cash – was created and gave this new cryptocurrency to everyone who owned Bitcoin. Bitcoin Cash software can process 30 transactions per second, four times more than Bitcoin.

Prices then rose rapidly, but forks create uncertainty, and uncertainty can cause price volatility.


All four of these factors have had a significant impact on Bitcoin’s price over a short period of time. This is an unstable and experimental technology and is still under development.

In the long run, Bitcoin could gain acceptance among investors for many reasons. Bitcoin, for example, is deflationary. This is because the supply is limited both in terms of the total number of Bitcoins that can be created and the speed of creation, and Bitcoin’s purchasing power is expected to increase over time.

This is very different from fiat currencies such as the US dollar. Inflation causes the dollar to depreciate significantly over time.

For investors, Bitcoin’s volatility can create an opportunistic trading environment (e.g., many price movements present opportunities to buy and sell money).

Bitcoin can be a long-term investment as its supply is unregulated and it has several advantages over some national currencies. Bitcoin is global, not tied to a central bank’s supply of money, can be easily transferred across borders, and does not involve large volumes of transactions. Administrative fees paid to banks, currency markets and financial traders.

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