Same concept as other currencies if there is ton of buy orders and not enough sell orders bitcoin price will skyrocket
but if there is a lot of sell orders bitcoin price will drop
Topic: Where does bitcoin get its price? - page 2. (Read 1237 times)
You could say the inflation in bitcoin will be driven by abandoned funds, it seems natural the the supply of bitcoins will go down over time. People will lose access to wallets, forget the funds altogether or even abandonment of small amounts across distributed wallets. This means that a portion of those 21 million will be lost forever, so small denominations will be required to trade the remaining amounts.
Simple answer. From supply and demand. Bitcoin is exchanged on a lot of centralized and decentralized exchanges and the more demanded the coin is the higher is its value. Meanwhile Bitcoin has become a tool to pay nearly for everything you can imagine, especially for digital services and goods. But also for gambling for instance where it is very hard - at least in some countries - to get fiat money into online casinos. Bitcoin is perfect to pass such bans. That is another reason why its value it increasing besides speculation of course.
its like you buy kebab for example, on Monday the kebab seller only sells as many as 30 kebabs with a price per kebab 5 dollars, it turns out buyers who buy kebab feel that kebab is delicious and cheap then he recommend it to his relatives so on Tuesday, seller kebab selling as many as 50 kebabs (sold out) from this seller kebab felt that he should raise the price because of the many needs but on Wednesday he sold all his kebabs for 6 dollars since Wednesday he always raises the price kebab because the stock of limited material until the price of one kebab rewarded 50 $ for too much demand.
It depends to the people who buys frequently for example if only a few btc sold it will go low and if many it will go high.
It took me a while to figure it out but I finally got it. A lot of people want to sell and a lot of people want to buy. They agree on the price and makes the trade. Currently, everyone wants to buy and too little people wanting to sell, so the price is high right now. Most coins are lost in bitcoin, so there are less than 16 million available now.
It's the law of supply and demand...the more people want it the price will go up, and the more people sell it the price will go down.
Do some research on stock exchanges and you'll see what I'm talking about.
this reply is perfect Do some research on stock exchanges and you'll see what I'm talking about.
that is the basic concept when I am on high school days...
YEs, i do agree that bitcoin applies the law of supply and demand ,
thats why when people hold their coins,the supply decreases ,and the demands increases,that makes the price so high in the market
thats why when people hold their coins,the supply decreases ,and the demands increases,that makes the price so high in the market
interesting to see where it goes
Bitcoin has a varying price from time to time. The questions that come to my mind when I learned about bitcoin is why does bitcoin price varies. Where does bitcoin depends its price? Why bitcoin does not have a fixed price?
The price is driven by supply and demand and their play against each other. More supply, lower price. Less demand, lower price. And the opposite is true too. This supply vs. demand relationship is behind all pricing of any thing in the world, it's just that most goods and services have more control over their existing price and how quickly they are updated to meet the market. Bitcoin (like stocks and currencies) is different because there is so much trading and it's done publicly the influence of supply and demand can be known and communicated immediately.
Price is determined by its use. How much the buyers and sellers are willing to pay and sell.
First you have to understand how market works. There's a certain number of coins available to buy and sell on all the markets in the world. When new people, like you, come into the market and decide they want to own a coin, because they heard about this technology, the price starts going up. The more you buy the less coins there are for sale and the higher their price becomes.
In short, price depends on the market attitude. If more fiat is coming to the market the price goes up and if people sell to put their money elsewhere it goes down.
In short, price depends on the market attitude. If more fiat is coming to the market the price goes up and if people sell to put their money elsewhere it goes down.
It's the law of supply and demand...the more people want it the price will go up, and the more people sell it the price will go down.
Do some research on stock exchanges and you'll see what I'm talking about.
Do some research on stock exchanges and you'll see what I'm talking about.
Very short but exact information. Thanks !
It's the law of supply and demand...the more people want it the price will go up, and the more people sell it the price will go down.
Do some research on stock exchanges and you'll see what I'm talking about.
Do some research on stock exchanges and you'll see what I'm talking about.
Bitcoin has a varying price from time to time. The questions that come to my mind when I learned about bitcoin is why does bitcoin price varies. Where does bitcoin depends its price? Why bitcoin does not have a fixed price?
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