Bitcoin price on the road of no return: RMB, supply, legality, etc. may be its influencing factors

Yes, you read that right, the depreciating Chinese yuan is also responsible for the rise in Bitcoin prices.
But what about the complementary roles that are all working together to drive the price of cryptocurrencies higher? They are pushing prices to unprecedented heights.
These factors are the backbone that keep the price of Bitcoin stable and unwilling to succumb to any form of reversal.
The price of Bitcoin has risen by $100 in a month, from $605 on September 30 to $705 on October 28 - and the daily trading volume of Bitcoin is also gradually increasing.
It may be too early to say, but the price of Bitcoin has been gradually rising, and it is unlikely to return to the original point. Some factors - such as the depreciation of the RMB - pushed the price of Bitcoin to the bull market stage, and then relaxed their control over the market. It is worth noting that although such factors have weakened, the price of Bitcoin has not returned to its previous origin. There are also some factors that are likely to determine the sustainability of the price of Bitcoin in the future.
According to the concept in textbooks, there are two factors that determine the price: 1. The price fluctuates around the value; 2. The fluctuation of commodity prices is mainly affected by the relationship between supply and demand. But are these really the only factors?
In the eyes of many people, legal tender is valuable, and its value comes from the government's credit guarantee. But in fact, if you study economic history, you will find that there are many cases of failed government guarantees. In the eyes of many people, gold is valuable, and its value comes from decorative purposes and industrial raw materials. But in fact, when humans used gold as currency, even the word "industry" did not come out. Some people believe that Bitcoin is similar to gold and has value. Some people even call it "electronic gold". The value of Bitcoin lies in the stability and security of the system and the limited issuance. In terms of these two points, it has better credit than most current physical currencies. This is also the core value of Bitcoin. Bitcoin has been rising all the way, so what are the factors that affect the price of Bitcoin?

RMB depreciation

First, according to Bloomberg, the impact from China will last for days or weeks. According to the Society for Worldwide Interbank Financial Telecommunication, the share of Chinese currency in global payments reached 2% in September, the highest since January. Official data revealed that China's exports unexpectedly shrank sharply in September. In addition, the People's Bank of China weakened the exchange rate by 4.4% in three days in August 2015.

Reduced supply

As we all know, Bitcoin is limited, which makes it possible for the price of Bitcoin to go higher. People are willing to just hold onto Bitcoin, which seems to further solidify the value and price of Bitcoin. This trend seems to take Bitcoin out of the market, reducing the supply of Bitcoin and causing the price to rise. The lack of supply allows new sellers to prove that they have it, which keeps increasing in value.

Greater legitimacy in the public eye

Institutions are insisting on playing the game. South Korea is working hard to promote digital currencies in Asian countries. The government also plans to develop and implement blockchain technology in the financial sector next year and begin to institutionalize Bitcoin so that it can play a better role in the future financial ecosystem.

Iceland’s Pirate Party may win the country’s election, and if successful, there will be strong support for cryptocurrency in Congress.

Switzerland is the first country in the world to allow public services to be paid for with Bitcoin. It has also opened 24-hour Bitcoin wallets on SSB ticket machines. There are also plans to integrate Bitcoin into Rome's public administration; next year several large US banks will launch a money transfer application built on a bank-owned payment network to compete with PayPal, Venmo and Square Cash; several large banks in London are hoarding Bitcoin to pay ransoms to cyber criminals who threaten to attack their IT systems. All these developments are promoting the widespread use of Bitcoin.

Today we see the exponential rise in Bitcoin prices and the viral spread of Bitcoin acceptance. What will happen next? None of us know. However, I think that based on its limited advantages or limitations, Bitcoin prices are more likely to remain high. I think it is unlikely that Bitcoin will enter the world's wide circulation, but it is worth looking forward to having the same value-preserving function as gold and gaining collection value.