On the long-term basis, the prices depend on the reliability of the currency, its investment and growth potentials. Bitcoin, Ethereum and Litecoin are the frontrunners in this regard. Since Bitcoin remains the most popular and well-tested cryptocurrency, its price will continue to grow in the future. The same applies to Ethereum price. It’s potential of growth is attracting more investments, which adds extra value to the price. Also, there is no novelty in the fact that the amount of bitcoins available for mining is slowly decreasing. This also results in the rise of Bitcoin’s price.


However, the enthusiastic miners are sometimes making high profits by betting not on the long-term perspectives, but by guessing the short-term fluctuations and volatility. What they need to do is to follow and predict the cryptocurrency valuations that slowly increase and decrease in each second. This is a tricky task, as Bitcoin and the other cryptocurrencies do not even have an accepted volatility indexes yet. Nonetheless, it is possible to measure the volatility of the cryptocurrencies versus the changes in the U.S. dollars, but there are many factors behind that are hard to predict.

An example of such a factor is the rapid flow of information on the media. Sometimes, different media sources are disseminating targeted information to cause artificial price fluctuations in the market. Those fluctuations can either work for or against a given cryptocurrency price. For instance, the news on regulating Ethereum mining in China may result in an immediate fall of the global Ethereum price. Another cause of a cryptocurrency volatility fluctuation can be the concerns over its illegal use by trafficking or drug criminals.

The volatility of cryptocurrencies is also caused by the inflation rates in different countries. According to the statistics, the countries with inflating currencies are more inclined towards the transaction with the cryptocurrencies. They would rather take a Bitcoin denominated loan rather than loans denominated by their inflating currencies. Therefore, those inflation rates and fluctuations in the developing countries can cause volatility changes in cryptocurrencies.

Many other factors such as the taxation perspectives for cryptocurrencies or the concerns over the crypto transaction also impact the changes in the cryptocurrency prices. Those factors are very diverse, so it is very hard to elaborate unique computational formulas that can control them. However, the recent development in the artificial intelligence and data science are opening the perspective for making those predictions highly accurate. Since a single person (or a group of persons) can not follow and control all of the data and the information, the special programming and artificial intelligence (AI) tools have been developed to control and outline the data needed for precise predictions. Those tools are easing the job of the cryptocurrency miners and traders, as they are giving them the evidence-based advice developed by sophisticated machinery calculations. Those calculations incorporate all of the necessary data that needs to be controlled and tested to make the right predictions on the cryptocurrency prices.