Supply and demand principle makes sense but it is not enough. Bitcoin market is finite and it can be easily manipulated with volume shocks. When market has big forced liquidation, price will move up or down a lot. That is a time when Supply and demand principle does not correct.
About circulating supply, you can not know it exactly and you can not calculate and know how many bitcoins were lost forever to subtract the amount from circulating supply. It is a challenging math and can not be solved exactly.
In long term, Supply and Demand principle is important for this market as with only 21M bitcoins in total supply plus its increasing adoption then bigger demand, price must move up. New capital pours into Bitcoin market will naturally lift Bitcoin up.
Topic: Some Factors That Determine Prices of bitcoin - page 2. (Read 263 times)
You missed some of the important factors that determine the price of Bitcoin. Aside from the given factors, the following also affect the price of Bitcoin.
This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.
- The supply of Bitcoin and the market’s demand for it
- The cost of producing a bitcoin through the mining process
- The number of competing cryptocurrencies
- Regulations governing its sale and use
- Media and news
This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.
This is actually summarized the list, but among the list I think the cost in producing Bitcoin using mining method is most useful for Bitcoin to pump. As people compete on getting hands on a few supply Bitcoin in blockchain technology, which it increases the network and have a huge impact to the value of Bitcoin. In demand and supply its still depends on the situation of the market, even a few number of Bitcoin could still low the chance for it to pump due to the volatile situation of Bitcoin. Of course as Bitcoin got acknowledged by the media and news new people would invest their money for it and more competitors to come.
You missed some of the important factors that determine the price of Bitcoin. Aside from the given factors, the following also affect the price of Bitcoin.
This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.
- The supply of Bitcoin and the market’s demand for it
- The cost of producing a bitcoin through the mining process
- The number of competing cryptocurrencies
- Regulations governing its sale and use
- Media and news
This factor is stated in Investopedia which I think gives more weight in affecting the price of Bitcoin.
Quote
source: Crypto Update
It would be more appreciable if you share the source link directly here.Quote
1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price
Then lastly, For bitcoin price it doesn't work that way if you think of the demand currently the bitcoin total supply is extremely low yet the price dropped to $18k from it previous of $68k. Now tell me was it the low demands or higher supply that causes it?
No, because if i may get it correctly is a season that remains constant that can not be changed in the cryptocurrency market at large that effectualized the trading circle.
Any of you may correct me if i am wrong, although what you said only works in some cases but not with bitcoin entirely
There are many reasons why bitcoin and other coins price is where it is. When the price either directly or indirectly influence the marketcap the price either rises or fall like the current situation. These are factors that influence the price; source: Crypto Update
1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..
2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.
3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..
4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.
NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.
1. Demand for the coin:
Where there is a well tilted balance between the supply of a coin to its demand, the price becomes Bearish. The higher the demand, the bigger the price..
2. Total Supply of the coin:
When the supply of a coin is way higher than how much people want it, the price falls. Shit coins fall into this category.
3. Market Capitalization:
This refers to the worth of a coin or token; the total value of all coins mined. E.g. Bitcoin's Market Cap was 729billion the last time I checked..
The market cap moves with the price of the coin..
4. Circulating Supply:
This refers to the amount/part of coins out of the total supply. These number of coins are available for sale and the rest are locked or stored away in the blockchain.
NOTE: Total supply of coins ÷ the coin Market Cap =Price of the coin.
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