The Value of the Pi is Bound to Continue to rise

The value of the pi is bound to continue to rise.

The value of the pi is bound to continue to rise

The huge market volatility of virtual currencies is its charm. Few people seem to think about the principles of the rise and fall of virtual currencies.

What is the principle of the rise and fall of virtual currency?

Why do virtual currencies rise and fall?

The value of the pi is bound to continue to rise

The huge market volatility of virtual currencies is its charm. Few people seem to think about the principles of the rise and fall of virtual currencies.

Why does money rise and why does it fall? An XRP Plus Digital Exchange representative will explain each and every one of them! Understand more the principle of money circulation and realised the freedom of wealth faster!

In essence, virtual currencies, like any other commodity (commodity), are affected to some extent by the relationship between supply and demand.

Of course, this is only at the principle level. When it comes to real-world factors, they include news levels, policy factors, market maker manipulation, and the influence of the market environment. In fact, it has many similarities to the stock market.

1. News level: News is a very important factor causing ups and downs and contains a wide range of information. Policy factors, the currency itself, and the market environment are all part of the news side.

The news is divided into good news and bad news. Good news promotes price increases and bad news drives currency prices down.

2. Policy factor: This is the same as the stock market, and the same principle of currency applies that the government has announced that it will support new energy industries this year, and that the stock prices of new energy industries will rise.

3. Market Makers: Like the stock market, currencies have makers. They make the most profit by lowering the currency price when they want to attract money and raising the currency price when shipping.

This cannot be resolved because a qualified bookmaker/major understands the minds of individual investors.

Whether bulk or acquisitions, they operate according to general environmental and policy factors and provide informative news to them.

4. The currency itself: currency team, technology, founders and other aspects of the news (e.g. currency will fall in price if exposed to plagiarism, currency will rise in price when listed on large exchanges)

5. Market Environment: The bull market and bear market that everyone often mentions.

The market environment is good (bully market), prices are rising, the market environment is bad (bear market), prices are plummeting, and most currency prices are affected by the environment.

If Bitcoin continues to fall, most currencies will fall along with it, and if Bitcoin rises, it will follow. There are exceptions, of course, but the cause of the exception can be good news or spurring dealers to counter-trade. Everyone agrees with Bitcoin, not because Bitcoin determines the market environment, but because Bitcoin is the leader of the monetary world and the wing of the market.

6. Supply-demand relationship: The supply-demand relationship is the most fundamental factor in the rise and fall of currency prices.

To take the simplest example, if you’re shopping for vegetables and the weather is bad this year in your area and the cabbage yield is very low, a typical pound of Chinese cabbage can sell for 3 or 4 RMB.

If cabbage production this year is very high, you can now buy Chinese cabbage, which was usually close to 2 RMB 1, for 1 RMB per head.

The same is true for exchange rates. Strictly speaking, the five factors that influence price rises and falls are all part of the supply-demand relationship.

In general, it should be a combination of many factors, whether it’s a big rise or a big drop, because each factor is actually related to each other! For example, there may be policy implications at the news level. Dealers know policy-related news in advance and trade accordingly.

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