Is there formula for bitcoin price ? - page 2.

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Quote from: Maslate on January 19, 2020, 06:39:41 PM

Quote from: HarmonyA on January 19, 2020, 06:23:28 PM

Quote from: maplelake on December 25, 2019, 06:25:11 PM

I am wondering analysis of bitcoin price/value.
I see some simplified econmics model in Princeton course about bitcoin.
That is Supply = T/P
Demand = S/D
For price P = TD/S.

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

The model/formula for bitcoin price is not viable as it is simply the principle of financial supply.

There is no specific formula for bitcoin as it is greatly affected only by its law of supply and demand. The market is driven by how the people manage the market and any negative or positive news that will come will definitely make bitcoin price pump or dump.

This is the basic factor that defines the value of anything that is in the market. When oil got accumulated, the availability decreases and further the market price of the oil will be upon the price mentioned by the one accumulating the large volume. Same is here with the whales of the bitcoin who at times manipulate the market and define the price. There will be some formula, but to find the same isn't possible as the market won't travel over the same forever.

princesspoppy

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I don't think any formula will give us the exact price of bitcoin everytime it changes. It is known that bitcoin is volatile, changing prices everytime - after a second, minute or hour. It is because there are many factors that affect bitcoin's price. Knowing these factors can be a key to know the formula, but it is very hard or can be said as impossible.

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Quote from: HarmonyA on January 19, 2020, 06:23:28 PM

Quote from: maplelake on December 25, 2019, 06:25:11 PM

I am wondering analysis of bitcoin price/value.
I see some simplified econmics model in Princeton course about bitcoin.
That is Supply = T/P
Demand = S/D
For price P = TD/S.

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

The model/formula for bitcoin price is not viable as it is simply the principle of financial supply.

There is no specific formula for bitcoin as it is greatly affected only by its law of supply and demand. The market is driven by how the people manage the market and any negative or positive news that will come will definitely make bitcoin price pump or dump.

HarmonyA

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Quote from: maplelake on December 25, 2019, 06:25:11 PM

I am wondering analysis of bitcoin price/value.
I see some simplified econmics model in Princeton course about bitcoin.
That is Supply = T/P
Demand = S/D
For price P = TD/S.

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

The model/formula for bitcoin price is not viable as it is simply the principle of financial supply.

Let's check this logarithm form:
Log10 (BTC) ~ 2.4 In (t) - 15.7

The formula symbolizes a similar bend and simply composed in an unexpected way. The main structure clarifies the logarithmic state of the pattern line bend.
This is a extremely ground-breaking equation undoubtedly! You may now demonstrate the value pattern for a considerable length of time ahead.

TrevorS

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Perhaps a similar formula would make sense if the price of Bitcoin was formed solely by natural processes, supply and demand.
But if this were so, then we would now see the price of bitcoin below $ 3000 due to a number of panic sales that were artificially stopped, which more than once led to the restoration and stabilization of the price of bitcoin.

Inkdatar

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Quote from: iamsheikhadil on January 19, 2020, 10:01:53 AM

Apart from the influence of just demand and supply, Bitcoin price heavily depends upon electricity price and hardware prices as well. And never forget, the price of data or internet packs because without internet, Bitcoin can't me mined.

It is base from demand and supply and if there is formula people should know what price it were heading. But, as we all know there is volatility in bitcoin as it may low and high price. Indeed without the internet, it cannot be mined. So from the start, I have known bitcoin there is none formula exists.

tippytoes

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Quote from: alexsandria on January 19, 2020, 10:49:24 AM

Quote from: Dart18 on December 26, 2019, 12:26:36 PM

None. All are just prediction.
Coinmarketcap is just a basis.
Even with mining, bills,electricity, tax or whatever financial issue. They are all just putting a number there without accuracy.

Mostly I see calculation with miners but who knows who can really move the market.
You will just be shocked at the price dumps and pumps which is out of this world.

Agree, besides if you have a formula you would have just a poor lead as price changing from time to time. And there are too many factors that must be considered upon formulating such calculations like the major events that sometimes temporarily influences the price changes, and such whales who are behind from sudden pumps.

I hope by now, if you are a crypto user, don't seek for the bitcoin's price formula. Because there's nothing of such equation. Few hours or minutes, the price can change drastically, few hundred dollars or thousands more. So if someone is telling you that he has the magic formula, it is a bogus one. Even if you are following bitcoin for so many years, you still can't devise a formula because, it is combination of so many factors that you can't even integrate those factors into one equation. And every time, those factors change.

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Quote from: Dart18 on December 26, 2019, 12:26:36 PM

None. All are just prediction.
Coinmarketcap is just a basis.
Even with mining, bills,electricity, tax or whatever financial issue. They are all just putting a number there without accuracy.

Mostly I see calculation with miners but who knows who can really move the market.
You will just be shocked at the price dumps and pumps which is out of this world.

Agree, besides if you have a formula you would have just a poor lead as price changing from time to time. And there are too many factors that must be considered upon formulating such calculations like the major events that sometimes temporarily influences the price changes, and such whales who are behind from sudden pumps.

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Quote from: maplelake on December 25, 2019, 06:25:11 PM

~snip~

The market is undoubtedly due to the Law of Supply and Demand, but there are other aspects to consider, such as the study of the volume, the shape of the chart, varies according to the criteria of each analyst.

In my particular case, I analyze the market with Wyckoff's theory, and following some of Jesse Livermore's teachings and model, the Bitcoin market is applicable to all types of models, but to simplify, there is a lot of intrinsic information in volume

@prashant

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I wish there would but there is isn't. Many think that technical analysis always work but it is upto big holder/ whales only if they decide to play technical game then prediction will work through chart reading but if they look for big profit they will start rally then no trading analysis work. As btc demand increase will see rise in price thats obvious but how much will it increase we can only relate using range.

iamsheikhadil

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Apart from the influence of just demand and supply, Bitcoin price heavily depends upon electricity price and hardware prices as well. And never forget, the price of data or internet packs because without internet, Bitcoin can't me mined.

Latviand

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Quote from: tippytoes on December 25, 2019, 06:46:40 PM

Quote from: Quidat on December 25, 2019, 06:41:51 PM

Quote from: maplelake on December 25, 2019, 06:25:11 PM

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

I dont think there would be a model/formula about it yet here on cryptospace where people do only refer on whats being written on coinmarketcap.com when it comes to
its total market capitalization which would signify its demand and this isnt the accurate one since OTC trades arent really being tallied nor being included.
BTC price is the average total on where bitcoin is being traded.

There is really no accurate formula for the bitcoin price. Spare yourself in knowing one as there is nothing that you will find. The formulas the OP presented are just basic equations to get the approximate price. But looking for an accurate one, nope. There are a lot of factors in play here, aside from countless exchanges involved, the happenings or situations surrounding the use of bitcoin or crypto are immeasurable.

It could go just like the normal stocks in the market, demand will In determine the price of a particular thing. If the demand is high, the market value would be expensive. But the problem is that, demand and supply do not ALWAYS accurately predict or determine the price of Bitcoin given that its market value is changing from time to time. Market volume on the other hand determines the rate of exchanges in every transaction which do somewhat reflects into the market price. But to sum it up, there is indeed no formula to exactly explain the price of crypto.

Eclipse26

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There is no formula in calculating the price of bitcoin. It's different from the basic formula we know in the economics. Though it can be applied such as when demand increases, so does the price. But not literally you can compute the exact future price of Bitcoin in the market. That is why everything here in crypto is a risk because we don't know and we have no idea what will be Bitcoin's future value. It can't be computed and every computation made by others are just merely speculations. There's no assurance.

RealMalatesta

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Unfortunately there is not. Normally when you are buying a stock you can check the details of the company by looking at their accounting and their finances will tell you how much it worths, you can figure out what a company is worth in marketcap and you can divide that to number of stocks and find out how much one stock worths, with that method you could either see it being undervalued or overvalued and make your investments in that regard.

However in crypto world nothing like that happens, one of the legit criticisms of bitcoin is that, the value is made up and is not backed by anything and normally is worthless but people give it a value. That might be true but same goes for basically everything, so bitcoin has no formulation, theoretically it could become 1 dollars or 1 million dollars and both are mathematically possible things.

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Quote from: maplelake on December 25, 2019, 06:25:11 PM

I am wondering analysis of bitcoin price/value.
I see some simplified econmics model in Princeton course about bitcoin.
That is Supply = T/P
Demand = S/D
For price P = TD/S.

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

That formula says nothing about bitcoin's supply and demand. because that formula takes detailed numbers and calculates the supply or demand for any given commodity. but for bitcoin it is only expressed through the volume and series of manipulation of the shark. then those figures will never be accurate. therefore, we cannot predict anything, we can only follow the flow created by the sharks and if we go upside down we will be exhausted and die. that's it.

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Quote from: Ailmand on December 25, 2019, 08:33:25 PM

No, there is none. The market is driven by the market and it is also affected by current event and price movement. Just a single dump can cause a massive panic. Also, there are big whales driving the market price, they can cause a massice pump or dump anytime they want. There is no specific formula, even TAs don't work sometimes.

The market price depends on the volume of the coin in a specific exchange and the demand of the consumer into it. That is why bitcoin is volatile because the price of it depends on the rule of supply and demand. It keeps on changing day by day and sometimes being controlled by the whales so that the price will not go down so much and maintain its stability as long as they can.

thottum

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There is no formula all the price actions are based on the simple theory that we heard before which is the Law of Supply and Demand. The supply is fixed and it is going to get halve in a few months. The other factor is global events and regulatory policies which will also have an impact on the price through increasing or decreasing demand. The final thing is just the technical analysis which traders are using always there will be selling pressure near the resistance level and buying around the support level

Images21

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Quote from: ashmodeus on January 03, 2020, 05:19:42 PM

the simple formula for bitcoin price just "price will go up when hashrate going up too" , of course this is in a large scale sense. remember when major bitcoin mining farm in china get fire october last year ?
no block for 2 hours, since hashrate contributed by that mining farm is so high.
and what OP says is by economic formula, of course no wrong with it.

There is no formula about the price of Bitcoin. In general, there is that basic economic formula of increasing value if the demand is increasing and yet the supply is fixed, or even decreasing with respect to Bitcoin because there are always lost or forgotten Bitcoins. But apart from that there is none. It is not even a fixed pattern that increasing hash rate is equal to increasing Bitcoin price.

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Quote from: maplelake on December 25, 2019, 06:25:11 PM

I am wondering analysis of bitcoin price/value.
I see some simplified econmics model in Princeton course about bitcoin.
That is Supply = T/P
Demand = S/D
For price P = TD/S.

Although it is simplied model, while it provides basic thinking about it.

My question is is there other popular model/formula about it ?

I think the question is why do you want to know a formula to calculate the price of bitcoin? Do you want to predict the movements of the price during the next days so you can profit from them? That is impossible, you can use technical analysis to make some inferences about the direction of the price but even those inferences are nothing but a safe guess about what it may happen since there are many examples you can find in the way bitcoin moves that defy those analyses.

ashmodeus

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the simple formula for bitcoin price just "price will go up when hashrate going up too" , of course this is in a large scale sense. remember when major bitcoin mining farm in china get fire october last year ?
no block for 2 hours, since hashrate contributed by that mining farm is so high.
and what OP says is by economic formula, of course no wrong with it.

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