Topic: Bitcoin Price - page 2. (Read 300 times)

Bitcoin price depends on the frequent agreed price between two people transacting at an exchange. Theoretically, it is simply a concept where person agrees to sell a coin at this X price and another person who is willing to buy on that X price

Let's say for example.

Joe received his $30,000 monthly salary and he decided to buy a fraction of bitcoin since he believes that bitcoin is a good asset that will preserve his wealth in the long run. He then goes to an exchange and sees that bitcoin price is ranging from $35,300 to $35,350 and since he is buying, he wanted it at a cheaper price possible. So, he placed a limit order at a price of $ 35,290.

Alice has made $40,000 by selling books though a popular online marketplace. However, he needed to pay her debt, tax and other basic necessities. After doing so, her remaining balance is $20,000. Similarly, she decided to buy bitcoin using her remaining balance. She then goes to an exchange and placed a limit order of $35,315.

Bob holds 4 BTC that he previously bought at $35,300 each. Unfortunately, he's tired of seeing volatile price action that leads him to decide in selling his holdings. And since he belongs to a group of people who are weakhands and is willing to exchange his BTC for an inflationary fiat. Similarly, he goes to an exchange and place a limit order at $35,310 to avoid selling at a losing rate.

Billy also have 15 BTC in his pocket. However, he wants to have an early retirement which urged him to sell his BTC at an exchange with with selling order at $35,320 each.

Due to the increased price of bitcoin these past few days, Mark suffers from FOMO and deliberately used his $25,600 savings account to buy BTC. Since he wanted to buy BTC as soon as possible, he goes to an exchange and used a market order to instantly exchange his savings into BTC. As we all know, Market order chooses the lowest possible rate that is present on the order book which in this case is from Bob where he agrees to sell his bitcoin at $35,310.

Mark will now receive 0.729 BTC while Bob receives Mark's $25,600 plus his remaining bitcoin is now at 3.271BTC

At this particular moment, the current price of bitcoin will now change to $35,310 since it is the frequent agreed price between 2 people. Take note that the change in price happens every second at different exchange that is why price variation exists im every trading platform.

Ok right. So the exchanges get the price by calculating the supply/demand thing. And then CoinMarketCap averages all of the prices across all exchanges.

Ok wait I heard about this thing too. The bitcoin halving... Is that the same thing as a fork or something? And in the bitcoin halving, basically the number of coins that people who mine the blockchain receive becomes half right? And i've read that halvings correlate with intense boom and bust cycles that end with bigger prices. Why is that? And what effect does a bitcoin halving have on its price inflation?

Bitcoin's price is decided the latest executed buy/sell offer on exchanges. Let's say 5 seconds ago someone bought 1 BTC for a price of $36,000 on Binance. Bitcoin's price on Binance would then be $36,000 (temporarily, until the next order executes, which should only take mere seconds).

Now, on a bigger scale(e.g. CoinMarketCap), Bitcoin's price listed there would be the average price of all the exchanges listed on CoinMarketCap.

Also, supply and demand. Let's say you live in a country where people totally love apples so so much where people are frequently buying them any time of the month. And since farmers are totally aware of the people love for apples, a lot of farmers plant them. Now, a huge ass storm came, destroying like 90% of the apple plantations in your country. Since the demand of apples stayed high while the supply dropped significantly because of the storm, the price would then rise a good chunk. Though not exactly the same, that's somewhat how Bitcoin's halvings work.

OP is asking about bitcoin price not market capitalization. The website you linked is not useful at all, unless you want to find what different altcoins exist and where you can trade them.

I think the OP is asking how the price actually moves, rather than a current snapshot.

This is a simple answer how its price being calculated. The calculation was posted above and this is how it goes.
As per coinmarketcap.com
Total market cap = $681,180,607,574
Circulating supply = 18,601,468

Here's the other calculation.
Which leads to the current price of $36,619 but it changes all of the time because it is volatile.

Bitcoin is constantly being traded on a number of exchanges, on these platforms there is;
• Demand - how much people are willing to pay for it, and
• Supply - how much traders are willing to sell it for
Basically, the price is calculated based on these factors, the higher the damand against supply, the higher the price. These market factors are in turn affected by secondary factors, positive news would grow demand as investors try to buy in, while negative news would reduce it and grow supply as people try to sell off

There are different order books on the different exchanges, reason why there is no fixed price. The value on binanace would be different to that on coinbase.
Cointrackers like coingecko and CMC calculate the average price on various exchanges and give an aggregate value.

*I think* it's done like shares, on the exchanges where it's simply a matter of supply and demand, like haggling at the market.

I'm a bit new to Bitcoin. I've been following its growth over the past few years and am really interested in trying it out. But I have some questions which I can ask here right?

Something I've never understood is how is Bitcoin price calculated?