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Cloud Mining Prices - What are the factors that affect the cloud mining prices of cryptocurrency?

Cloud Mining Prices - What are the factors that affect the cloud mining prices of cryptocurrency?

​This year, the cryptocurrency market has developed wildly, even surpassing the 2017 ICO boom. Today, the highest position of Bitcoin in history is three times as much as the highest position of the last time, and the development of cloud mining altcoins is also very crazy.

The myth of Bitcoin's rich wealth has caused a large number of investors to buy cloud mining cryptocurrencies in an attempt to make a fortune in this wave of a bull market. However, many investors just follow the trend and enter the crypto market, and they are not very clear about the factors that affect the rise and fall of cryptocurrencies. They also want to understand the factors that affect the rise and fall of cryptocurrency cloud mining prices.

Before studying the factors that affect the cloud mining prices of cryptocurrency, we must first understand the leading cryptocurrency Bitcoin (BTC mining), because the rise and fall from the "big pie" will greatly affect the trend of the entire market, so the first major factor is from the impact of Bitcoin.

Bitcoin - BTC mining

Bitcoin was issued in 2008 and was the first to be created as a global decentralized currency concept. Its development and popularization have greatly promoted the development of the entire decentralized economy.

Thanks to the blockchain technology behind it, thousands of other cryptocurrencies with various applications and characteristics have emerged over the years. Among them, blockchain technology is also known as a new type of Internet revolution technology.

Now in terms of market value, Bitcoin is still the number one, that is, the most valuable cryptocurrency. This is due to some inherent characteristics of Bitcoin that make it such a high value:

1. The limit of quantity

The final number of bitcoins in circulation is limited to 21 million. In addition, every four years, the number of bitcoins mined and rewarded will be halved. The currency circle now also widely believes that the greatest value of Bitcoin lies in its quantity limit, so every time Bitcoin halves the market, people generally believe that Bitcoin mining will at least create a record high. Under this consensus, Bitcoin has become more and more scarce as time goes by, so its value is constantly increasing.

2. A secure network

As the leader of the cryptocurrency, Bitcoin is the most secure blockchain in all markets due to its leading position and a large number of miners. Because of the huge market value of Bitcoin, 51% of cyber attacks have increased the difficulty of large numbers. Of miners work in the Bitcoin network to maintain the security of the Bitcoin network, which reduces the harm caused by malicious Bitcoin miners.

3. As the base currency

Although most investors use USD tokens as the base currency when buying or trading cryptocurrencies, the vast majority of cryptocurrency investors are more willing to consider increasing their positions in BTC, so the market has always been a saying, “Bitcoin holdings account for half of the investors’ holdings.” At the same time, when a major event occurs, a large number of investors will still convert their positions into Bitcoin. If the leading Bitcoins are all If you can't hold on to this wave of market conditions, what qualifications do other cryptocurrencies have to outperform the market?

Therefore, the cloud mining prices of Bitcoin have a great influence on the rest of the cryptocurrency market, and many people use its performance as a market benchmark.

The scarcity of cryptocurrencies

The second major factor that affects the cloud mining prices of cryptocurrency is the scarcity of its quantity, just like Bitcoin's quantity limit.

Like other financial markets, the crypto market is mainly driven by the relationship between supply and demand. In the case of Bitcoin, due to the reward halving mechanism and the limited maximum number, the output of Bitcoin will continue to decrease. Therefore, most of the cryptocurrencies in the world will limit their total number, and then the circulation in the world will continue to decrease through various methods, reaching a situation where supply is less than demand. Under this mechanism, cryptocurrencies will generally be given a certain value.

Recently, animal coins and dividend coins have played new tricks in the mechanism of cryptocurrency. First, set a large enough total, and then destroy it after each transaction. Only if there is a transaction, then the total number of these coins is in continuous decline, this is to maximize the scarcity of cryptocurrencies, but first of all, we must ensure that these animal coins and dividend coins are valuable. If they are just a bunch of numbers, a bunch of air coins, no matter what you are, it was lonely in the end. In just a few days, have you seen fewer animal coins and dividend coins in the market?

On the other hand, due to the increasing popularity of cryptocurrencies and their slow and steady adoption, demand continues to increase. Some experts even predict that Bitcoin will surpass the $100,000 mark along with this bull market.


Usage and adoption of cryptocurrency

The third most important factor affecting the cloud mining prices of cryptocurrency is its use as a store of value and whether it can be used as a currency on a large scale.

Among them, Bitcoin's leading role as a store of value is highly appreciated by retail and institutional investors. Unlike traditional commodities such as gold, Bitcoin is easy to store and transfer. In this regard, Bitcoin has greatly surpassed precious metals.

Dogecoin, as a hot spot in the cryptocurrency market in recent days, can be said to be in the limelight. The total number of its own is unlimited, the transfer speed is extremely fast, and the meme feature is its huge hot spot effect. The most important thing is the dog. The consensus number of Dogecoin itself is second only to the consensus number of Bitcoin. Together with the operation of the world's richest man Musk, Dogecoin is widely known and accepted by various companies.

Because the source code of Dogecoin is copied from Bitcoin, Dogecoin has also become the second Bitcoin. This alternative cryptocurrency proposes a series of effective and cost-effective solutions for remittance and payment networks. Therefore, users and merchants are becoming more and more interested in using cryptocurrency as a payment method.


Hype under FOMO

The fourth important factor affecting the cloud mining prices of cryptocurrency is FOMO. Although this phenomenon exists in all supply markets, FOMO in the crypto market is more common.

Note: FOMO is the acronym for fear of missing out, which refers to the sentiment that people buy after they are afraid of missing cryptocurrency or stocks. It is a commonly used term in cryptocurrency and the stock market. It refers to people who are blindly bullish about the future of a cryptocurrency or stock that is already at a high level (it is likely to be the top), to chase high and buy, the result is generally a quilt.

Therefore, we can often see incredible cloud mining prices surges in the crypto market. For example, the previous surge of Dogecoin caused a large number of investors to go empty, and finally, a large number of funds were invested in SHIB due to the sentiment of FOMO. The myth is that SHIB's cloud mining prices doubled at that time.

On the other hand, emotions such as fear, uncertainty, and doubt will also affect the cloud mining prices of the currency, and the spread of this emotion will quickly depress the prices. Most of this sentiment comes from market rumors and bad news. Once fear occurs, it will cause the market to plummet. The recent collapse of the crypto market is also due to this. Once the fear is formed, the market will be in for a long time. Is in a downturn.

Cryptocurrency Regulations

Finally, the factor that affects the cloud mining prices of cryptocurrency is cryptocurrency regulations. They may be good news or bad news, which will eventually lead to FOMO or fear. This kind of national-level influence has a far greater influence on the new generation of products such as the crypto market than other factors.

For example, if a country decides to use cryptocurrency or legalizes cryptocurrency, the cloud mining prices of most cryptocurrencies in the market may rise. If a country with a significant international status decides to ban cryptocurrency, this will cause the cloud mining prices of cryptocurrency to fall.