Topic: What Causes Demand For Bitcoin (Read 204 times)

You can be scammed trying to obtain bitcoins, you can be deceived into believing that obtaining bitcoin is difficult and something that someone will always have to assist you with. Obtaining bitcoin is not hard, but can be tricky.
When there is a good news about bitcoin, e go definitely wan make people buy bitcoin, people go dey interested because everybody like better thing. When demand dey for bitcoin and supply nor fit match am, value of bitcoins wey dey go increase.

The total 21M coin is the total amount of coin that can be mined, how does new coins comes into circulation, it’s simple… miners gets reward for successfully mining a block of transactions (I.e the process of adding the block of transaction into the blockchain,it’s complicated than the way it sounds ). Once they successfully mined a block, they get a block reward which get halved every 4 years to reduce the bitcoin supply… currently we are having 3.125 as the block reward
Here is a picture from one of my post

Image is from one of my previous post: https://bitcointalksearch.org/topic/m.62871782  you can check it out, it more like what I’m discussing ….
Above is the list of each halving block rewards with the 4 years difference(ignored the circled, it’s just the previous successive ATH block reward 2020]. However, the difficulty increase along which makes it harder for miners to mine a single block along which new hardwares were introduced to increase the computational power so as to hasten the mining process..
So as the supply reduces the demand increases (although some other factors influence the price as well )

I guess you are misunderstanding what O.P meant, because question he/she asked was that "What causes demand for Bitcoin" and not "Who not who are the demanders", because the short explanation you just gave above explains who are the people that demands and supplies.
So back to what O.P was asking, there are different factors that causes the demand for Bitcoin.

1. Market Bull: Because this can also be known as steady rise in the price value of Bitcoin, because we all know that whenever the market is bullish, there is always a high demand for Bitcoin by investors.

2. Favourable policy/New adoption of Bitcoin: Because taking El Salvador as an example, we could all noticed that when El Salvador accepted Bitcoin as legal tender in that country, there was an increase in demand for It, as many people needed it as a means to execute transactions.

Demands are users in request to buy bitcoins while supplies are users available to sell.
There's no definite cause of demands if not of individuals possing to buy bitcoin for hold as assets of funds for exchange of payments and services.

The causes of demand and supply for most commodities in the open market is also what causes the demand and supply of Bitcoin, and it is basically the availability of a product (Bitcoin) and the need for it ( holders). So if the supply of Bitcoin at any particular time is greater than the demands of the holders, the price will fall because of excess supply, likewise when the demand for Bitcoin is greater than supply, the price will increase because of scarcity, it is simple economics. Factors like global news, whether good or bad affects the demand and supply of Bitcoin, negatively or positively.

Bitcoin finite supply of 21 million makes it possible for it's price to continue to increase in the future because it will become a scarce commodity in the future when the 21 million Bitcoin are mined. So it is a hedge against inflation, unlike fiat that have infinite supply.

"....... what causes Demand for Bitcoin?..."

I think this is one question that most of us provide answers without thorough reflection.

= CUROSITY - this is one thing that lead us to this forum

= There was demand for bitcoin before the Invention/Creation of bitcoin! funny right but, it's the truth

Now, the demand for such currency is high because most people seems to be trapped (limited) by the traditional banking system.
So there high desire for total financial control or freedom


Let me conclude with this, a few days back. a colleague told me his bank called him to their branch office to ask why he always prefer cash to cheque whenever he comes to the bank.

In response, he said his biz involve buying and selling of cars, automobile spare parts to both litrate and non-litrate people in rome. And, that nobody will be willing to sell used car to him if, he decide to pay with a cheque.

At the end of our conversation, i told him that i have a plan B for him. About a virtual currency were he will be 100% in control.
He seems to be interested because he's into container business.


Note: for the other questions, i think you have multiple answers from other members which are correct.



Regards
Bitcseo

The answer to your first question is that the latest amount of bitcoins mined is 21 million and maybe around 20 million have already been mined which are in someone's wallet around the world and due to its limited supply the value is constantly increasing and is very close to hitting $100k. That means there is a potential supply of 21 million bitcoins combined with the total supply and remaining balance.

The answer to your second question is that getting bitcoins is not difficult at all. If you have a wallet, you can easily own bitcoins using your local fiat. It is really optimistic that the holders of bitcoins are going to be very profitable and if you can strategize your investments to try to accumulate bitcoins, you can become a holder of decent size and the price of bitcoins is likely to skyrocket due to the short supply in the future.

The answer to your third question is that I think the reason for the increase in demand for Bitcoin is because of the decrease in supply with demand. With Bitcoin's limited supply and about 98% mined, it may be more difficult in the future to meet the demands of countless holders, which is why most investors favor holding Bitcoin.

21 million bitcoin is the total bitcoin in supply but apparently the amount in circulation is about 19million plus. Meaning most has been trapped in some wallet while some send to a wrong address and it lost forever. That is what made bitcoin not to complete 21million. And also bitcoin is not distributed annualy but when ever you bought bitcoin you have taken part or take. A shear from the 19 million distributed amount. The bitcoin in circulation is the total amount of bitcoin in peoples possession around the world.

It's not hard to obtain bitcoin, you don't necessarily need to afford a whole bitcoin but can buy in fraction because bitcoin is too expensive to buy a whole. Some people thinks owning bitcoin mean have upton1 which is not true.

What causes demand is when people sees the tremendous growth of bitcoin and sees it as an important asset to have and they decide to buy some portion, then they have demanded it. And a person selling to them is the one supplying it to you because you have demanded.

Just as bitcoin has increased in recent time due to Trumps wining and many people where triggered to also invest in bitcoin, that is called demand. Each time people see a need or why it is necessary to own a bitcoin it creat the impression to buy.

Nice to see you've been cleared on the informations you needed to know, and I want to add that the Bitcoin blockchain won't just supply Bitcoin to everyone with a wallet, it can only be mined, bought or sent from a close friend or loved one to you as gift. However I don't know your financial strength, if you could be able to buy a mining machine and steady power supply to keep it going but the easiest form of having Bitcoin is by buying and holding for long-term. Well, according to Marvelockg's statement, people use Bitcoin for different use cases he mentioned, even gambling as well but I won't advise you to use it for either trading nor gambling, you can buy and hold then use some portion of your holding to carry out transactions (good and services) cause those other two are very risky and you could lose all your bitcoins. However Bitcoin is volatile ìn nature and that's what causes the demand for it.

Thanks,you have analyzed everything to the best my understanding,which I also see people who have being into investment of bitcoin are now happy because their values keep increasing as unexpected profits and that's the reward for labour.

If I may get it clearly,you said the effects of the increase in Demand for bitcoin causes or leads bitcoin price to be increases at ATH level.

people are always in demand of bitcoin as they make use of it for several reasons of either trading, holding or using it as a payment option for a service rendered or offered. the question would have been better phrased as What causes increase in the demand for bitcoin? the simple answer to this question is same with what causes normal demand of the regular commodity you're used to. as x mass is approaching, chicken, rice, cloths and most household things are always in high demand because of the season and the knowledge that during that season, things are always expensive. when there was news that the old note was no longer going to be in use, the demand for new note increased and people were finding ways of getting rid of the old note. the same is what's the cause of an increase in the demand for bitcoin.

fear of potential increase in the price of bitcoin which will prevent one from buying at a price that's lower that the current price is what will cause the demand of bitcoin to increase. event that tends to be bullish on bitcoin like the outcome of the united state presidential election and the bitcoin halving can also trigger the demand of bitcoin. the effect of the increase in the demand of bitcoin causes bitcoin price to increase remarkably like what we've seen that led us to this current bitcoin all time high.

Like the word finite literally mean, e Dey try tel you say, Bitcoin get a standard supply and that na the BTC21m way them Dey talk about. E no get anything to do with annual distribution. Bitcoin isn’t distributed by any network or protocol. Na through mining people Dey take get Bitcoin and just like that, others go buy and it continues circulation.

Bitcoin no Dey run you o, if you get your money, you just buy the volume way you want and relax. Na so e just be. You go Dey mindful where you Dey buy from and where you Dey put am shah, make you no go carry your money give scammer way no go give you nothing and make sure say, you Dey put your Bitcoin for wallet, none custodian wallet if you succeed buy am. That na wallet way get private key or seed phrase.

What Dey cause demand na when people feel say, Bitcoin wan rise and increased publicity on Bitcoin. E Dey be like entry signals and na so e go attract people to come invest.

In an easy way for you to understand, it means that the 21 million bitcoins is the total number of bitcoin that's going to be in existence. And when investors eventually buys them all (after miners must have finished with their job); bitcoin is going to be a scarce asset with unimaginable value that's why we're all encouraged to buy and hodl any amount of bitcoin you can afford to buy  against the future. Because some of us now may not be capable of affording it when the 21 million bitcoin must have been mined.

And NO, the network doesn't distribute any bitcoin to anyone but it's done through a process called bitcoin mining through which miners are rewarded for each block of bitcoin mined.  If you love reading then take a look at this work: LEARN ME A BITCOIN: https://learnmeabitcoin.com/

  What causes Demand for Bitcoin

Hello everyone, i must ask as a newbie because I want to learn,I'm interested in getting some more helpful knowledge on these.
I understood that bitcoin is the first digital currency which is not controlled by any institution and also, that each individual connected on a peer to peer (P2P) bitcoin network acts as a verification body for transactions through cryptographic means. In the past I remember reading about a finite supply of 21 million bitcoins, in this case what does it mean in practice please, does it mean that the network would be distributing 21 million bitcoin annually?
  Is it hard to obtain bitcoin?
Also what causes Demand for Bitcoin?