What's the reason behind increasing or decreasing price of bitcoin daily? - page 2.

CraigWrightBTC

hero member

Activity: 518

Merit: 500

Quote from: swastik384 on December 15, 2016, 03:57:06 AM

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Increasing and decreasing price of bitcoin daily it is because of speculation the traders for making money from trading,
But for factors increasing and decreasing price bitcoin for long time everything depend on the developers who make updating, comunity and investors who put the money in bitcoins. (Fundamental of bitcoins)
Not all of same with real money but there are impact on price of bitcoin, bitcoin is like stock without dividen and be gained is like gold by mining.

calkob

hero member

Activity: 1092

Merit: 520

Quote from: swastik384 on December 15, 2016, 03:57:06 AM

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Its exactly the same, all currencies fluctuate up and down daily based on perceived strength or weakness of each. Most western currencies move very slightly each day, but some other world currencies are more volatile than bitcoin.

maydna

hero member

Activity: 2912

Merit: 556

Enterapp Pre-Sale Live - bit.ly/3UrMCWI

Quote from: swastik384 on December 15, 2016, 03:57:06 AM

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

i think the factor is people want to buy and sell bitcoin and make a movement of the market then they can make money with easy. its the same as real money and other, for small examples for this, we can see in money changer in every city. people need to buy and sell the currency to buy something.

Pursuer

legendary

Activity: 1638

Merit: 1163

Where is my ring of blades...

it is all about supply and demand, when demand goes up (more people want to buy bitcoin) price goes up and when supply goes up (more people wanting to sell bitcoin) price go down. and this happens every day and every minute as traders on the market want to buy and sell bitcoin (and generally anything else like stocks) and make profit every day from doing so.

I suggest reading some articles on investopedia. you can understand so many good basic information and it doesn't matter what they are about (it can be stocks, gold or forex) in the end they are all similar markets in many aspects.

an example: Stocks Basics: What Causes Stock Prices To Change?

mobnepal

legendary

Activity: 1218

Merit: 1006

Simple answer is like other trading assets bitcoin price also fluctuates according to demand and supply.

For example take a look at bitcoin price trend for last few years you will see uptrend which is because bitcoin that generate/mined per 10 minutes has been decreased from 50 bitcoin per block to 12.5 bitcoin per block which shows supply of bitcoin is getting limited where as you can see marketcap of bitcoin have grown exponentially which shows huge demand for bitcoin.

So when some big traders or group of traders sell large amount of bitcoin for fiat = Decrease marketcap and also there will be price dump
When old/new traders buy back bitcoin with fiat = marketcap will increase so that price will be pumped.

Price swing is normal for any trading assets including bitcoin but price of bitcoin is more volatile due to comparatively low marketcap it have.

swastik384

newbie

Activity: 14

Merit: 0

I am newbie at bitcoin and always i saw a change in bitcoin value. What are the factors that affects the change in bitcoin value? Is it also same like real money? Like if value of Gold decreases then value of US dollar increases and vice versa. Huh

Topic: What's the reason behind increasing or decreasing price of bitcoin daily? - page 2. (Read 950 times)