It is like any other commodity. Gold, fiat, the price of tomatoes … and the like. Bitcoin price is measured in this way.
In other words, it all depends on the supply and demand paradox. If there is a large supply of a certain commodity, what ever it may be - tomatoes, fiat, gold, Bitcoin … anything - and the demand lower, then the price, in-turn, would be lower.
However, if the supply is small or limited and the demand high, prices are going to be high. The supply of Bitcoin will become limited in another few years as the block reward reaches nil.
Topic: what determine BITCOIN Price ? (Read 1416 times)
Since every product depends on the price of its demand, Therefore, Bitcoin will set price on production and demand.
There are a lot of forces at play when it comes to determining the price of BITCOIN, demand which is a well known determinate is number 1, then we have speculation that can influence panic buying or panic selling will affect the price and of course the fiscal policies coming from bitcoin hubs(countries) will also play a role in determining the price.
Its just Speculative trading .(you can make huge profit huge loss)
Wherein Stock market its intrinsic value +speculative.
Actually, no one can determined what will be the price of bitcoin and there is no such device that can determined the price of bitcoin. However, you can speculate it to know what would be the price of bitcoin. In addition to that, you can speculate the price of bitcoin on its supply and demand on online market. Wherein Stock market its intrinsic value +speculative.
Digital money has a cost, which must be taken into account in calculations.
The greater part of the price is consumer demand, the willingness to give in exchange for bitcoins more traditional material goods.
The greater part of the price is consumer demand, the willingness to give in exchange for bitcoins more traditional material goods.
Supply and demand. Most think this is a fiat currency. I beg to differ.
-Tabe
-Tabe
By simple principle of economics price of any commodity is determined by the flow demand and supply of that commodity. If that commodity is scare in nature then obviously its value increases. Same is happening with Bitcoin, total number of bit coins are restricted to 21millions so they are always in demand. Bitcoins are becoming more and more popular due to its usefulness nature. These are three factors (High demand + Limited supply + high utility or usefulness) determine the price of Bitcoins.
Supply and demand determines the bitcoin price.
Actually, the price of bitcoin was depend on supply and demand on online market. The price of bitcoin is volatile and we all know that it always chane and I guess the main why bitcoin change its price is the fluctuation of supply and demand on online market. But still the no can predict what would be the price of bitcoin.Supply and demand determines the bitcoin price.
Actually, the price of bitcoin was depend on supply and demand on online market. The price of bitcoin is volatile and we all know that it always chane and I guess the main why bitcoin change its price is the fluctuation of supply and demand on online market. But still the no can predict what would be the price of bitcoin.
Let me Elaborate. in a market, Price is determined by calculating how much demand and Supply does a commodity has. And each market which can calculate price according to this method is called a free market that means people have free exits and entry too. Anyone can place a new order(Buy) or Close them(Sell). So it causes in many different exchanges like bitstamp or bther etc and we got bitcoin whales concept too.
The price of bitcoin is determined mainly by the law of the market - the ratio of supply and demand. Also, the rating of the team influences the price of bitcoins, which ensures the functioning of bitcoin and its capitalization, the presence of vulnerabilities.
As practice shows, the price of btc affects:
1) The News flow.
2) Global disasters (the latter is connected with Catalonia).
3) The Credibility (popularity) and capitalization.
1) The News flow.
2) Global disasters (the latter is connected with Catalonia).
3) The Credibility (popularity) and capitalization.
It is determined by the free market: supply vs demand
Dear friends!
I do not understand why many members of the community do not take into account the influence of state regulations on the price.
We just recently saw how it works.
the cost of electricity has absolutly nothing to do with the price of bitcoin.
There is a saying:
If making a deep hole has a big cost does not mean the hole will have a big price.
With bitcoin it is the same.
It's determined by two similar factors that also apply to normal currency, supply and demand.
It depends upon the demand and supply rate, for example you are in an auction and you need to buy something but ! Only 1 of that thing is present and the bidders are 4 , all four of you will try to place higher bid to get that thing .. but if there is 1 thing and person who wants is only 1 then the person can easily negotiate with the price as he please because There is no demand of that product in the market..thus the value of bitcoins depends upon the deman of people who wants to.posses it.
Also it should be accepted by the government that makes people believe more about it.
Also it should be accepted by the government that makes people believe more about it.
It is determined by the free market: supply vs demand
Dear friends!
I do not understand why many members of the community do not take into account the influence of state regulations on the price.
We just recently saw how it works.
the cost of electricity has absolutly nothing to do with the price of bitcoin.
There is a saying:
If making a deep hole has a big cost does not mean the hole will have a big price.
With bitcoin it is the same.
Price of the any product is totally depends on the demand for that product. In the same way, if the demand for the bitcoins is constant then the price of the bitcoins will be stable. If there is any negative news regarding the bitcoins, then people will fall into the panic selling and the demand for the btc ill be decreased so the price will be fallen. On other hand, if there is any positive news then more and more investor, new buyers will buy the btc then automatically price of the bitcoin will be increased due to high demand.
Bitcoin price is mainly driven by the community support.Bitcoin price is what the value people are ready to pay for it just like gold.Its price increases and decreases based on the increase and decrease in demand for bitcoin.Just we saw immediately after bitcoin legalized in japan,there was a huge increase in demand for bitcoin and hence its price also increased.Similarly when china banned ICOs,immediately most people especially newbies started selling their bitcoins which created a decrease in demand for bitcoins and hence its price fell down from $4,000 to almost $3,000.
It is determined by the free market: supply vs demand
Dear friends!
I do not understand why many members of the community do not take into account the influence of state regulations on the price.
We just recently saw how it works.
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.
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