Topic: How is the bitcoin price determined? - page 7. (Read 1383 times)
We can't determine the exact price of Bitcoin . Bitcoin is an electronic currency which is always fluctuates it's price is called crypto currencies. So no one determine an exact price in case of cryptos only speculations is possible.
Noone knows for sure, many factors influence it. Like 2 days ago news about coinmarketcap crashed all crypto prices.
It determined by using a chart like the chart in the bitcoin wallet like coins.ph or in the blockchain , all of these can determine the price of the bitcoin in this day.
There is no exact theory, technology or any devices that will know what will be the market value or price of bitcoin every time.
But somehow you can consider the external factors that affects the market value; the demands of the investors, economy of scale , season and etc.
But somehow you can consider the external factors that affects the market value; the demands of the investors, economy of scale , season and etc.
a lot of things that can determine the price of bitcoin. such as volume and spreading. if the volume and spreading increase, the bitcoin price will rise. if it weakens, it will down
I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?
The bitcoin price is determined like a normal market on it supply and demand. You can monitor it by simply updating the price on your wallet to see whether it grows or it drops. It is always best to keep an eye on the price to know when to buy and when to sell your bitcoins.
In my opinion Bitcoin price is determined by the behaviour of buyers and sellers. And it may be effected if the economist of the world.
more precisely the bitcoin price will continue to rise if more demand and vice versa, the price will discard if the margin is very low and the sellers start selling the assets (Bitcoin) they have. 
I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?
As you all know that bitcoin is a cryptocurrency with no fair value and its price is determined by the demand and supply of the trader's who are trading at the regular trading exchanges. The buyer's demanding price to buy and the seller's demanding price to sell decide's the bitcoin trading price and by this way the price is calculated and the difference between the bid and ask price is called the spread. And many countries exchanges are having their own prices according to their country's local demand and supply which can be used for arbitrage trading for example like ZEBPAY exchange in INDIA.
I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?
Hey!
I have read a lot of good articles here: cryptodetail.com
Bitcoin price is determined by the buyers and the sellers promptly. But on the long run, the expectations are the real drivers of the price change. If most of the people expect higher price for the future the demand will grow and it will cause less people to sell so it will modify the price upwards. If people expect the bubble to burst it will move the price down. Expectations are driven by the news on the market. News are driven by the media and social media (and I don't know whom the media is driven by...)
I strongly agree on your opinion that, Bitcoin price is determined by the buyers and the sellers promptly. But on the long run, the expectations are the real drivers of the price change. And adding also my opinion that, We could say that there is a starting price since miners consumer a lot of electricity to mine a Bitcoin. That starting price would be the electricity consumed. After that it's basically offer and demand. In addition, There is no limit to the price increase or decrease in Bitcoin, there is no upper and lower limit as in central markets, because it is an anonymous digital currency, decentralized, and Bitcoin's transfer is very easy.
Actually the price for BiTCoin depends on the "Demand and Supply" Factor. The more the demand, the less will be the supply which will increase the price for bitcoins. Actually there are 21 Million of coins total to be mined which means that the supply for bitcoins is the amount that is in circulation currently. If the number of investors start investing/Purchasing bitcoins then the price will certainly go up and vice-versa if the demand is low, the price will decrease. You can study more about the price variation on google/youtube/bitcointalk/etc.
bitcoin prices are determined by its users if many users sell bitcoins simultaneously or in the near future bitcoin prices will go down and vice versa if many bitcoin users simultaneously buy bitcoin then bitcoin prices will rise. So here bitcoin traders must be smart in analyzing the market in order to predict when prices rise and fall.
Bitcoin is priced subjectively, i.e. it depends on how the users value it. If the users value it more then its demand will increase and subsequently its price however if the users value it less then its demand and price would also decrease. It's just the same with the fiat currencies although the latter is controlled by the government.
The answer to this question is rather simple and it lies in basic economics: scarcity, utility, supply and demand.
By definition, if something is both rare (scarce) and useful (utility) it must have value and demand a specific price, with all other things being equal.
Take gold, for example. Why does gold cost as much as it does? Put simply, it is relatively expensive because it is rare, hard to find and limited in supply (scarcity). Gold also has some uses to which consumers derive satisfaction from (utility).
The combination of these two elements creates value by which price is determined based on the market’s supply and demand.
By definition, if something is both rare (scarce) and useful (utility) it must have value and demand a specific price, with all other things being equal.
Take gold, for example. Why does gold cost as much as it does? Put simply, it is relatively expensive because it is rare, hard to find and limited in supply (scarcity). Gold also has some uses to which consumers derive satisfaction from (utility).
The combination of these two elements creates value by which price is determined based on the market’s supply and demand.
Who determines the value of Bitcoins would be the buyer and seller since they have to agree on the price. Trading is an important factor that determines its value.
As an amateur I can tell you what I see from my side and I will try to simplify all the proccess.
First of all, the Bitcoin is so limited and there is a high demand on it so the price will be kind of high.
Second, lot of ICO are openning and they want to be updated to the last changes in the technology so they try to buy Bitcoin and pay salaries from it, in addition they try to keep some extra money away so they can win the difference.
First of all, the Bitcoin is so limited and there is a high demand on it so the price will be kind of high.
Second, lot of ICO are openning and they want to be updated to the last changes in the technology so they try to buy Bitcoin and pay salaries from it, in addition they try to keep some extra money away so they can win the difference.
The price is determined by offer and demand (as anything in any free market). In crypto there is also still a lot of price manipulation, this is why I don't like trading and pump groups because most of the time you can lose money.
/\ This!
For further information read this: https://en.wikipedia.org/wiki/Supply_and_demand
I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?
Basic Economics which you must have studied in your childhood. The people on one side which want to enter the market bid for some bitcoins with the amount of other currency that they have. On the other side are the people who ask something in exchange of the bitcoins that they are willing to sell. So if the sellers don't want to sell their bitcoins the buyer increase the price as they want it desperately. Similarly if the team seller is willing to sell their bitcoin quickly but the buyer refuse to buy the sellers reduce the price. This is how the system works.
The price is determined by offer and demand (as anything in any free market). In crypto there is also still a lot of price manipulation, this is why I don't like trading and pump groups because most of the time you can lose money.
Many people might not realise that all currencies work exactly the same - if you are holding a coin or note of your own local currency in your hand, at any given point in time there are millions of people buying and selling your local currency, so while you might observe it as stable, it’s value actually continuously changes. When you want to exchange it for another currency at a currency desk, let’s say for USD, one day you pay 10 local currency to a dollar, the next day maybe 11 or 9. Bitcoin works exactly the same way - you can just think of it as a currency other than the one you are used to.
Jump to: