Bitcoin uses a technology called blockchain, which is like a secure, public diary that records every transaction. One important thing about Bitcoin is that there will only ever be 21 million coins. This limited supply makes it rare, much like gold or other precious metals.

The price of Bitcoin can change very quickly. These rapid changes are mainly due to basic market rules. When more people want to buy Bitcoin than there are coins available, the price goes up. When more people want to sell, the price goes down.

Additionally, many outside factors affect Bitcoin’s price. News about government rules, reports in the media, and social media discussions can influence how people feel about Bitcoin. These feelings can cause sudden jumps or drops in its price. In this blog, we will explain all these factors in simple English to help you understand why Bitcoin’s price changes so much.

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