Author

Topic: What is supply and demand in Crypto? (Read 113 times)

sr. member
Activity: 686
Merit: 264
"STAY IN THE DARK"
February 08, 2018, 05:36:33 AM
#12
Can someone explain to me more clearly how Supply and Demand affect the price of all the crypto currencies?
The supply is how much the amount of the coin is in circulation and the demand is how much people willing to buy it,if the demand increases mean more people are buying bitcoin so the price will get increase or if the more people selling the bitcoin the demand will get deceases and the supply will increases and the price will decreases.
full member
Activity: 406
Merit: 100
February 08, 2018, 04:13:47 AM
#11
When more and more people starts using crypto then the demand of the coins increases, so mining should be increased to match the requirements. When the demand increases supply may affect nothing but supply decreases. So supply and demand are interrelated to each other.
sr. member
Activity: 1778
Merit: 305
February 08, 2018, 03:29:06 AM
#10
The crypto currency is affected only by artificially created news!
All the rest is fiction!
All these glasses with orders, everything is designed to deceive people.
And who is higher, then it makes a profit.

As for example, the hacking of the mailbox of the Bank of China, which allegedly banned the crypto currency .... that's what bitcoin fell.
member
Activity: 378
Merit: 10
February 08, 2018, 02:58:02 AM
#9
Here you simply think that, if the number of people who buy bitcoin is greater than the bitcoin seller, it will push the bitcoin price up; Conversely, if the number of bitcoins exceeds the number of buyers, the bitcoin price will decrease. At present, the impact of some countries has led to a decrease in the number of bitcoin buyers, and some investors have massively sold bitcoin. The price of bitcoin has dropped sharply.
sr. member
Activity: 560
Merit: 286
February 08, 2018, 02:42:53 AM
#8
Crypto demand and supply are always like thesame in the real world. If you have a lot of expirience in vending some products in the market it was like thesame.
Ex. Your vending a banana and its having a lack of supply from the source the demand would rise up. When the demand will rise also the value will rise also buyers are in a hurry to buy . But when the supply is too much the demand is getting low and the that is the time you have lack of buyers and the price will drop more.
Just like here in crypto the coins or tokens are always base on their demand that could calculate their value.
To some extent, the greater the demand and the Limited the supply of a particular asset is in the market, the more it would get expensive. These are the two factors behind the success of Bitcoin mainly but then there are some others which are equally important and play significant role in deciding the future of any asset. For instance, big whales are the game changers. Business world very complex one.
full member
Activity: 238
Merit: 106
February 05, 2018, 04:24:25 AM
#7
Crypto demand and supply are always like thesame in the real world. If you have a lot of expirience in vending some products in the market it was like thesame.
Ex. Your vending a banana and its having a lack of supply from the source the demand would rise up. When the demand will rise also the value will rise also buyers are in a hurry to buy . But when the supply is too much the demand is getting low and the that is the time you have lack of buyers and the price will drop more.
Just like here in crypto the coins or tokens are always base on their demand that could calculate their value.
member
Activity: 392
Merit: 24
February 05, 2018, 04:18:43 AM
#6
Supply is crypto and also demand is crypto so supply is demand : )

Actually the question can be revised like that and can have much more good answers than :

Why supply increases ? FUD news, etc.. how clear answers..
Why demand increases ? FUD news, etc.. how clear answers..
full member
Activity: 490
Merit: 106
February 05, 2018, 04:05:04 AM
#5
Can someone explain to me more clearly how Supply and Demand affect the price of all the crypto currencies?
Well supply and demand is the basic factor that affects the price of any cryptocurrency (or any products/market), if there is a cryptocurrency that have huge supply in circulation but only have small demand, you won't see any huge movement on its price while a cryptocurrency that have small supply in circulation but a lot of people have interest in buying or investing to it (demand), you can expect that the price will be highly volatile, the best example for this is Bitcoin with currently over 16 million supply in circulation and a lot of people are demanding to it that makes the price not stable because people are cashing out when the price go up and buy when the price goes down.
full member
Activity: 453
Merit: 104
February 05, 2018, 02:49:48 AM
#4
Can someone explain to me more clearly how Supply and Demand affect the price of all the crypto currencies?
You can see it in exchanges site, there are many people who place buy and sell order. There is where the price of cryptocurrency determined. There is ask and bid. Usually the price from the last transactions is the actual price. The price is always moving because many people set different price in sell and buy order. For example if the lowest sell order price is 1$ and the highest buy order price is 0.5$ then if there is a sell order in 0.5$ then the transactions is completed. The last price will be 0.5$, but if there are other people who want to buy it immediately then they set buy order price is 1$ then the actual price is 1$. I hope I explain it clearly for you.
legendary
Activity: 1946
Merit: 1137
February 05, 2018, 02:23:59 AM
#3
if the there is a huge number of supply the demand is decreasing,

demand doesn't drop because of supply. demand is demand. think of demand as the number of people willing to buy the coin, this number depends on a lot of factors and change based on them. for  example the main reason is usually speculation reason, simply expecting price to rise or fall due to news, pumps,... then there is also usability for example using bitcoin as store of value, use it to buy stuff,...

the way supply relates to this and then determines the price is that when there is more coins than there is buyers the price continues going down. imagine there are 100 people wanting to buy a coin that has 10 coin supply versus a coin that has 10,000,000,000 coins.
and supply in this case is not just the circulating supply of a coin, it is the coins that hit the market. for example a lot of coins (like XRP and ETH) have "unaccounted for supply" which is a lot bigger than their circulating supply. for example ripple has 100 billion total with 39 billion released but a small amount actually in the market. ETh has 97.4 million coins while having 70 million premined and lots of it locked/burned in smart contracts.
member
Activity: 98
Merit: 14
February 05, 2018, 02:03:58 AM
#2
Well I don't think I understand it very well, this is my idea. Feel free to correct me if I am wrong,  if the there is a huge number of supply the demand is decreasing, and so as the price. If ever the supply is just 20 and the demand is at 30, or the people who are really eager to buy it at any price is 30 people, the price will increase as it becomes rare.
full member
Activity: 504
Merit: 101
February 05, 2018, 12:59:12 AM
#1
Can someone explain to me more clearly how Supply and Demand affect the price of all the crypto currencies?
Jump to: