What factors affect the bitcoin value?

First and foremost is the surplus money supply of the U.S. dollar. That is, bitcoin grows when there are essentially no dollars to invest. The more dollars are printed and the more of them are in circulation, the more the value of bitcoin rises. Another factor is the generational shift. People under the age of 25-30 are more willing to invest in bitcoin. This way, they transfer money into this currency and increase their capitalization. As a result, the value of bitcoin is also increasing. The third factor is negative or positive events concerning bitcoin market itself.

However, it is impossible to do any fundamental analysis on the rate of cryptocurrencies, and bitcoin in particular. Therefore, one can win very well on bitcoin as well as lose very badly. Accordingly, such currency can be classified as “gaming”, a gaming financial asset, given that it is a very high-risk investment. No more than five percent of one’s capital should be invested in such instruments. If they are lost, it will be a small loss. And if it leads to a gain, then the capital, relatively speaking, can grow threefold. I believe that only this kind of investment strategy is possible in this segment.

There are alternatives in the form of securities – stocks and bonds. Shares also have a “casino” element to them. Shares represent specific companies, and for these specific companies, you can look at the financial condition and forecasts, calculate the dynamics and invest with that in mind. However, the share of investment in shares should not exceed 30 percent of capital. The situation with investments in real estate is not quite clear at the moment. Real estate is strongly decreasing in value. There is a very strong pressure on this asset, so now, I think, it is worth waiting and at the minimum price you can invest later. The main asset to invest in is bonds. Bonds have first, second, and third tiers.