The price of bitcoin is primarily determined by three groups;
miners who sell newly minted coins, merchants who accept
bitcoin but convert them back to fiat, and investors who hoard
bitcoins. Those who have accumulated bitcoins tend not to sell
much, but their potential selling pressure should be kept in mind.
If the general opinion remains optimistic it is likely that many
more will invest as more convenient ways of buying bitcoins,
such as cash ATMs and financial ETFs, become available. Let's
have a closer look at the various groups determining the bitcoin
price.
