what determines the value of BITCOIN?? - page 2.

BTCbengi

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Quote from: eternalgloom on July 19, 2017, 11:46:25 AM

The bigger question to ask is: where does the demand come from?

Part of the demand is pure speculation, people who just buy Bitcoin with the hope that it increases so they can sell it for a higher price later on.
Another part of the demand for Bitcoin are people who actually need Bitcoin for its uses.

I reckon that a pretty big part of the Bitcoin economy is driven by people who use Bitcoin for illicit purposes.
Perhaps it's not something we'd like to acknowledge, but it's certainly part of the demand of Bitcoin and without it, prices would be lower than they are now.

Darknetmarkets might even have jumpstarted the initial demand for Bitcoin, I'm not sure what kind of effect it has now on the price.

Let's not forget the legal uses, people might also buy Bitcoin to send money overseas or just because of ideological reasons.

That's right, part of our need is a bitcoin in the hope that it will grow and sell. But our needs are just a small part of Bitcoin's demand for illegal trading. That is absolutely undeniable, so that the price of Bitcoin can be so high. I fear that, they will gradually give up Bitcoin to seek a better way to trade, a new currency

seleme

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Duelbits.com

All assets are only depend on two factors under real market conditions: Supply and Demand That's why traders always check big guys'orders before entering positions Wink

skorupi17

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The main factors that dictates the price in the demand for bitcoin and the total supply of bitcoin available in the market. So as to what you've said, it depends on the law of supply and demand.

However, there are external factors that drives people to sell and buy bitcoin. The news is one of them, the current price fluctuation is caused by some unofficial news about a possible split on bitcoin's chain. Some people panicked and caused a major dumping on Bitcoin's price. A good news such as a country to accept Bitcoin will lead to the increase in price. This is because of more people will know about Bitcoin and eventually be holding Bitcoin. Thus, increasing demand and not to mention the price.

tiggycomb

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Two words: demand and offer. Bitcoin is purely priced on the demand/offer stability, as long as people need and want bitcoin then it will have a stable or even growing value.
The advantage right now is the increased use of bitcoin in different fields, from the darkweb to companies and online marketplaces, keeping a stable demand.

amacar2

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CryptoTalk.Org - Get Paid for every Post!

Bitcoin price depends on demand and supply except occasional market manipulation by some whales.

There are several factors that can affect price movement and nobody can exactly predict how market will act on certain news related to bitcoin. You should not believe in any HYPE and FUD you might hear everyday.

hajimasan

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Quote from: camsicuya on July 19, 2017, 10:10:05 AM

Hi folks,

As a newbie of this group, i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings! Grin

camsicuya

Actually there is no one factor that are effecting the but the and its price and also even there is nothing for the price in the altcoins , here you should be clear that the value and price of the Bitcoin or altcoin is not restricted to any laws because cryptocurrency is made to make the flow of money without any control under any law .
Here all things depending upon the demand in the market , I means to say that the price is mostly determine by the exchange only because people making buy and sell according to the big at the exchange , so the price will be zero $ if you will sell at 0$ , As no one is stupid so mostly the price remain at high according to demand and supply .
If any bad news will.enter in market then many people starts to make sell , so in that case demand will get down so price will get down because everyone want to sell but less no. of the people want to buy , so this is usual to get the price down .

User365

sr. member

Activity: 434

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physics, mathematics and engineering

As you already said supply and demand.

The supply are the already mined coins.

The demand is defined by the people which buy it or accept it as payment, because many people trade on exchnges, those are a good indicator for the current price (i know you asked about the value, will come to that later). The exchanges currently have quite a piwer because all sellers I ever saw reference their products to a fiat currency, meaning the product cost 20$ and when bought it is converted to BTC.

The trades on the exchnges influenced by the media (on the newspaper, internet news), forums (reddit and btctalk), technological news (f.e. Segwit).

The real value throught is determined by your view. For me the value is much more than just the price, I think it is valuable because of the decentralized network, the low fees compared to international bank transfers (hopefully soon at all tx), the limited supply and the anonymity, I think it is the next gen currency, just like we switched from iron to steel. Of course the price is important, but it's not the only thing that determines it's value.

eternalgloom

legendary

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The bigger question to ask is: where does the demand come from?

Part of the demand is pure speculation, people who just buy Bitcoin with the hope that it increases so they can sell it for a higher price later on.
Another part of the demand for Bitcoin are people who actually need Bitcoin for its uses.

I reckon that a pretty big part of the Bitcoin economy is driven by people who use Bitcoin for illicit purposes.
Perhaps it's not something we'd like to acknowledge, but it's certainly part of the demand of Bitcoin and without it, prices would be lower than they are now.

Darknetmarkets might even have jumpstarted the initial demand for Bitcoin, I'm not sure what kind of effect it has now on the price.

Let's not forget the legal uses, people might also buy Bitcoin to send money overseas or just because of ideological reasons.

mk4

legendary

Activity: 2870

Merit: 3873

Paldo.io 🤖

Here are some of my opinions:

Bitcoin's price increases when:

More people use it
More people investing on it
More publicity from TV news and popular news websites
When we get whatever good news from the devs

Bitcoin's price decreases when:

There is too much fear, uncertainty, and doubt (FUD)
Too much ICOs
Too much people selling to buy other cryptocurrencies
Bitcoin gets "banned" from other countries
There are negative news about bitcoin

cnmgfb

newbie

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https://upload.wikimedia.org/wikipedia/commons/thumb/d/d8/Tulipomania.jpg/220px-Tulipomania.jpg

Kprawn

legendary

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By the looks of it, Bitcoin's value are closely linked to Supply & Demand. The Supply are from people who sell their coins and also from new coins

being mined and sold. The Price is monitored and measured on Bitcoin exchanges, where these coins are traded/sold/bought. Some people also

trade on other platforms, like Localbitcoin and directly between people. Wink

TryNinja

legendary

Activity: 2758

Merit: 6830

Looks like you already know the answer.

Supply and demand + news.

Internal problems or in the "Bitcoin code", worldwide acceptance, prohibition or regulation in key countries... Everything influences the price of Bitcoin.

camsicuya

newbie

Activity: 12

Merit: 0

Hi folks,

As a newbie of this group, i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings! Grin

camsicuya

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