Bitcoin is a decentralized cryptocurrency which means as opposed to fiat currencies; there is not a institution like a central bank that affects the supply of BTC or controls it in any way. Actually, the inventor of Bitcoin made sure Bitcoin’s supply is not impacted by any external party. Hence, its price is formed thanks to the relationship between supply and demand.
However, there are certain events and factors that shift this relationship, and by doing so, they impact the price of Bitcoin. In this article, we explore the factors that impact the supply and demand for BTC.
Bitcoin mining
The process of bitcoin mining has a great influence on the supply of Bitcoin supply. In fact, it was created as a way to regulate the available number of BTC. Essentially, through Bitcoin mining, new blocks of transactions are added to the network, and when a block of transactions is validated, new BTC enter into circulation.
For this purpose, Satoshi Nakamoto created Bitcoin protocols to impact th

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