Topic: what makes the value of bitcoins go up and down (Read 816 times)
Thanks for the clarification
Bitcoin value follows this formula
Silkroad * crack / days till weekend = BTC price
Silkroad * crack / days till weekend = BTC price
Simply put: there are people selling bitcoins and there are people buying bitcoins. People buying want low prices. People selling want high prices. The current price is the point where these two meet.
Just look at the markets
Just look at the markets
I'll guess this has been asked and answered more than a few times, but I'll give it a quick go:
Bitcoins go up and down in price in response to changes in Supply and Demand.
That is it. Since production of Bitcoins happens at a fixed rate (over the long term), the Supply side of that equation is always worked into the price. So essentially Bitcoins respond to changes in Demand.
There is no "man behind the curtain", just simple economics 101. Think of anything that could increase or decrease demand for Bitcoins and you will have one of the many drivers of bitcoin pricing.
Bitcoins go up and down in price in response to changes in Supply and Demand.
That is it. Since production of Bitcoins happens at a fixed rate (over the long term), the Supply side of that equation is always worked into the price. So essentially Bitcoins respond to changes in Demand.
There is no "man behind the curtain", just simple economics 101. Think of anything that could increase or decrease demand for Bitcoins and you will have one of the many drivers of bitcoin pricing.
Volatility is really somehow connected with Satoshis bathroom light switch
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