The Factors of Demand and supply - page 8.

jrrsparkles

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Its the fact,the prices were only determined by the demand and supply of bitcoin and it is also same for any crypto currencies or any products which is having prices in this planet.

Honestly it is embarassing that people didn't even know this basic level of knowledge. Lips sealed

davis196

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Every price is determined by the demand and supply PLUS production costs,transaction costs,government regulation,taxes and lots of other factors that might push supply and demand at sertain directions.

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Definitely, but the good thing here is that the supply never grow because it's a fixed supply and with some coins that are lost
in circulation, it will make the supply lower and that will result to a better price as the adoption continues.

That's only a basic explanation but the process to adoption will certainly take time.

Tervelatuk

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Quote from: @prashant on February 06, 2019, 11:10:41 PM

demand and supply is applicable to every commodity with price,crypto is not different here also coin price rise when supply get decreased or burned,in case of btc bcz of its low supply and high demand price increase but majority of btc is holded by few guys or group so they control the price ,even if demand is increasing and they are not ready to increase the price then btc will dump so its upto to them to control the market scenario.

in each trading place no matter that in futures trades or traditional trades , supply and demand give huge influence into price.for example when long holiday, the demand for hotels will rise alot and it will effected to hotels price.as long as there are supply and demand price will move with its volatility.

@prashant

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demand and supply is applicable to every commodity with price,crypto is not different here also coin price rise when supply get decreased or burned,in case of btc bcz of its low supply and high demand price increase but majority of btc is holded by few guys or group so they control the price ,even if demand is increasing and they are not ready to increase the price then btc will dump so its upto to them to control the market scenario.

nur rochid

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indeed the price of bitcoin is fully influenced by the number of requests or offers. so this is what makes bitcoin vulnerable to whales that have large funds, there is no central bank here

livingfree

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Yes that's how the price of bitcoin being determined. The law of supply and demand has always been applied for it. But with some other things do affect bitcoin's price like manipulation but we don't have any lead on who's the cause of it.

You may want to compute the total circulating supply of bitcoin and it's total market cap currently. And you'll get the exact details on how much is the price of bitcoin has up to date.

mu_enrico

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The answer lies on the Dogecoin price. LoL

But you might also consider market inefficiency as a part in the variables that affect price movement.

audaciousbeing

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

The factors of demand and supply is a fundamental principle that is applicable to virtually everything that have price. However, these are just for basic understanding in other for the teachers not to confuse us at the time. As we go on in knowledge acquisition we then realize the more important one which is Elasticity which to a large extent gives explanation to certain areas that curiosities never stops.

For bitcoin, while it still respects the fundamental law of demand and supply but the forces that would drive that goes beyond those things we were thought in elementary school. For one reason, bitcoin was not envisaged when the text were written or re-written and for another reason that bitcoin is not confined to space and number of people that a model can be applied or envisaged the importance of whales or sharks as the case may be.

Naida_BR

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Demand and supply is one variable that can make an impact on the price of Bitcoin and cryptocurrencies in general. However, the blockchain ecosystem is a special one and it is differentiated from the ordinary commodities. There are some other variables that can move the price of Bitcoin up and down, such as the difficulty of mining, the volume of transactions etc.

biskitop

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of course, when buyers automatically increase the number of bitcoins increases and supply decreases, prices will rise. if the demands decrease, the price will also decrease. and in my opinion the factors that influence bitcoin are the function of bitcoin which cannot be used as a payment tool so that buyers are still hesitant, even for investment. that's what causes the decline in the price of bitcoin and the difficulty to rise.

moynul2050

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so far I only know that the fluctuations in the price of bitcoin are indeed only affected by demand and supply factors.
but this supply and demand can change rapidly due to other factors, such as negative news, crime of theft in the wallet or even on exchaners and so on

Reid

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It aint just commodities but almost everything in this world.
Once the supply is low but people want it, the value of it grows.
Paintings, rare items from sunken ships and as technology grows it is now smartphones which are being valued and other computerized items.

That is how the world will go until the end of the days. Everything is for sale and once they want it more then I can make the price go even higher.

Shenzou

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Quote from: Ezenwanyi1 on February 05, 2019, 02:35:58 PM

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

The demand and supply has been an essential part not of bitcoin and cryptocurrency, but the whole economy and for the last couple of years, we saw the demand on bitcoin rise and due to its limited supply its price rose quickly, this high demand brought new people and new investors who started getting into the mining to cover this demand, and as we can see now with the problems that the cryptocurrency market is facing the demand has gone down while the supply is still not changed and that is why i believe its price went down.

Sarastiche

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BITCOIN IS THE CURRENCY OF THE GLOBE

The law of demand and suppyl, is basic and relate to all areas of life, one of the factor that enhance the bull run is when the demand for BTC increase, this ultimately increase price, reason why we must be commited to the community to ensure BTC become accepted globally, especially for online exchange, this is the future. As this will help to stabise BTC price.

serjent05

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We all know that it always go like that. What caused bitcoin to be down I believe is not just the demand and supply theory. There must be a reason as to why the demand is less which cause it to be down, can be too much regulations, slow transactions and high transaction fees. I also believe that at the because holders are not letting go of their holdings, there is no traffic, no transactions, no uses, no demands, in short stagnancy can also be another factor.

Ezenwanyi1

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When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Topic: The Factors of Demand and supply - page 8. (Read 927 times)