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Topic: where does the price of bitcoin come from? (Read 511 times)

hero member
Activity: 3220
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No asset that is freely traded works like that, there is a process that is called price discovery that is what determines the price of an asset.

Basically it is based on perception, a transaction between a buyer and a seller does not happen unless the buyer and the seller both think they are getting a fair price for an asset, this process happens over and over again all over the world and this helps determine the price of an asset at any given time, however due to different circumstances that perception changes which changes the demand and the supply and it is what causes the price to go up or down, as the perception of what the buyers and sellers think it is a fair price is always changing.
We all decide it basically, that's the short story. When we are talking about "the market" that is us, the buyers and the sellers. As long as we say it should go up, we all buy more bitcoin because we believe that it should be going up, and since we buy it, it does go up, and when we say it should go down then we sell it and it does go down because we sold it. That's how the decision is made.

Certainly there will be some who say it should go up when majority say it should go down or vice versa, but the point here is that majority should say something and agree to it all together, if that happens then the market will decide on the price of bitcoin.
legendary
Activity: 2744
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-snip-and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.
be careful with the statements of other investors or whales, because maybe it's just manipulation, FOMO made to raise the market price and then slam it. The most correct and preferable is to look at the market with technical analysis, it will describe how the market is and what is likely to happen next.

-snip- Actually there's nothing to follow someone TA especially if the analyst has an impressive portfolio and high accuracy prediction in the past because they are spending time to analyze chart compared to us that casually checking chart with just common knowledge only in TA. I think we just need to become diligent on choosing who to follow if we have no talent on this particular area.
Following someone's TA is not wrong, but we as followers must know and understand what they share. At least we also have to know the basic science of TA so that we can choose whether TA is accurate or not. and lastly, as you said, choosing someone who really has fuel and is professional in the field of trading, it is very necessary. Never follow someone who is only good at manipulating, good at making FOMO news but doesn't have good TA and FA knowledge.
legendary
Activity: 2814
Merit: 1192
The global price tickers for bitcoin are imperfect because they depend on the data sent by exchanges and only by a handful of the biggest exchanges. Also, big exchanges react automatically through bots. You cannot expect an exchange in Japan to react to a big selloff in Europe that happens in 3 am of Japanese time, yet exchanges react pretty fast when you look at the tickers.
The imperfection of this system could be seen in 2014 when Chinese exchanges were faking volume and falsifying data they were sending out. It can be seen during flash crashes when there's not enough liquidity.

Market forces determine the price of Bitcoin. The market forces are the BUY and SELL that takes places in various exchanges and trading platforms.

The invisible hand is a metaphor for how, in a free market economy, self-interested individuals operate through a system of mutual interdependence.
https://www.investopedia.com/terms/i/invisiblehand.asp


hero member
Activity: 1918
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who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

Because it is decentralized and as long as it is not manipulated, the price of Bitcoin come from the demand of the people who are buying Bitcoin and willing to part with their hard earned fiat currency.  News, upgrades and updates also help to boost the trust of people thus creating more demand on BTC.
jr. member
Activity: 1358
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Market forces determine the price of Bitcoin. The market forces are the BUY and SELL that takes places in various exchanges and trading platforms. Bitcoin is decentralized - not controlled by anybody. Bitcoin is very volatile, that is, the value goes up and down very rapidly. In a day, the price can change up to 3 or more times. Buy or Sell transactions affect the price of Bitcoin. It is highly sensitive to market forces. It is not like fiat currencies that government of some countries manipulate leading to inflation.
hero member
Activity: 2786
Merit: 657
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The value of every currency (fiat or BTC)lies in its level of supply and increasing demand. This is what Satoshi understand when he introduced block halving in other to control the inflation in the price of the Bitcoin market, the government ought to have learned through the Bitcoin concept but they still choose to follow their printing of my cash.

It's no one but at the same time everyone I guess? No single person could possibly predict the price.
Anyone can predict the price of the Bitcoin market though the result may not be correct.

but at the same time, the price adjusts to whatever the general sentiment of the market (which is based on the demand of owners/users).
I agree with this.
hero member
Activity: 2702
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It's no one but at the same time everyone I guess? No single person could possibly predict the price but at the same time, the price adjusts to whatever the general sentiment of the market (which is based on the demand of owners/users). It's decentralized meaning no one can actually affect what it is, the transactions, the wallets (decentralized ones, not centralized). Basically, it just takes the processes away from a centralized group. If you were going to start predicting, then leave it to predicting only and do it yourself. Don't trust any so called predictions.
legendary
Activity: 3248
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People can make all sorts of assumptions and predictions, but there are only a handful of ways to affect the price, and they are not in our hands. One is being an extremely rich and influential person like Elon Musk, and make a big announcement and possibly pour a billion or two into or out of Bitcoin. Then there are governmental decisions of countries that have a lot of crypto traders or miners. If there's a bill to ban some crypto activities in a country like that or if a country like that surprisingly decides to adopt a very favorable crypto policy, that can affect the price as well. Also, if you're WHO or something like this, very influential, and you make an announcement that can have a major effect on the economy, that will affect the price as well. But in all these cases we're talking about a short-term effect, and I'd say a normally no more than 20% price change. Whether this trend persists or the price quickly gets back to its previous range basically depends on the community of traders and investors and their behavior. We're all a small part of that community, too small to cause serious change on our own or even if many people unite.
legendary
Activity: 1064
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Like other commodities or assets the price of Bitcoin is determined by the force of demand and supply. The higher the quantity demanded the higher the price, while the lesser the quantity demanded the lesser the price. When people sell their Bitcoin because of certain prediction or uncertainties the quantity of Bitcoin in the market would increase which would make the price to drop. While when people save or keep their Bitcoin asset and are not willing to sell, the price would go up because it is now scarce in the market. Don't also forget that the price of Bitcoin like any other investment commodities can be manipulated. But the impact of manipulations on Bitcoin is minimal because it is decentralized.
full member
Activity: 1176
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I think the price of bitcoin comes from the hands of bitcoin holders in large quantities if bitcoin holders in large quantities sell all of their assets then the bitcoin price will also drop drastically even if bitcoin holders sell all bitcoins then bitcoin will have no value anymore. so I conclude that the price of bitcoin is because investor confidence is still very close to bitcoin.
hero member
Activity: 2758
Merit: 705
Dimon69
Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.
will feel dizzy if we listen to predictions from various sources. it is most reassuring if we can analyze ourselves technically and fundamentally, so that we have decisions based on personal thoughts. and I think when we talk about bitcoin, it's just a matter of time, because the most important holder in crypto is bitcoin. and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.
Yeah listening to someone price prediction is really annoying so the personal knowledge on TA is a must to verify all predictions you can see on social media post if valid or not. Actually there's nothing to follow someone TA especially if the analyst has an impressive portfolio and high accuracy prediction in the past because they are spending time to analyze chart compared to us that casually checking chart with just common knowledge only in TA. I think we just need to become diligent on choosing who to follow if we have no talent on this particular area.
member
Activity: 602
Merit: 11
Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.
will feel dizzy if we listen to predictions from various sources. it is most reassuring if we can analyze ourselves technically and fundamentally, so that we have decisions based on personal thoughts. and I think when we talk about bitcoin, it's just a matter of time, because the most important holder in crypto is bitcoin. and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.
legendary
Activity: 3542
Merit: 1965
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It is determined by "Supply" and "Demand" on public Bitcoin Exchanges and other platforms where bitcoins are traded. Then you get websites that will consolidate the prices from different Exchanges ...and they will combine that data to reflect the Bitcoin price at any given time.

An example of that is ==> preev.com ....where they use data from Bitfinex / Bitstamp / Kraken / Localbitcoins to get an average price.  Wink

So there are not one single entity deciding the Bitcoin price... they look at the trading data to determine the price. You can determine your own price, but there has to be someone willing to buy it at your price to make the trade.  Wink
legendary
Activity: 2534
Merit: 1397
I think that's pretty much obvious not just bitcoin but the price of everything comes from supply and demand in some markets,
(.....)
This is always possible, supply and demand and that is what we expect of Bitcoin right now as we all know there will be only limited Bitcoin that will circulate in the future.
But you should also consider some market manipulation in the market right now, especially in Bitcoin which still has still low market cap compared to other assets. So there can be some group of people/entities that can manipulate somehow the price of Bitcoin by just a small percentage and make money through it.
legendary
Activity: 2744
Merit: 1878
Rollbit.com | #1 Solana Casino
Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.
full member
Activity: 322
Merit: 110
elysian.finance
who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?


Nobody can predict what will be the price of Bitcoin tomorrow or the following day. Bitcoin price can go down or increase at the same time.
copper member
Activity: 2394
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who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

The price that you see when google is basically determined by the rates in exchanges through which the Bitcoins have been bought.
And if you wonder how does the price fluctuates or goes up and down?
Then my friend, you might have heard the policy of supply and demand. Same happens with Bitcoins.
A fixed supply or amount of Bitcoins already been developed, so when the demand of the coin is high, the price of the coin increases. Reverse happens when the demand is less and people starts selling, so the price also comes down.
Hope I have cleared some of your doubts OP.
legendary
Activity: 2282
Merit: 3014
who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

I don't know what you're exactly saying here, your post really doesn't make any sense.  Yes bitcoin is decentralized but that doesn't mean that it's value can't move up or down. It works the same way as anything that is bought and sold on an exchange.  If more people are buying bitcoin versus selling bitcoin that it's value will go up, if more people are selling bitcoin versus buying it, the value will go down.  This is how all exchanges work, decentralized or not.
hero member
Activity: 1806
Merit: 722
Leading Crypto Sports Betting & Casino Platform
I think that's pretty much obvious not just bitcoin but the price of everything comes from supply and demand in some markets, because of being centralized and being under control by the governments and some organizations they can set a price by a single order to market so they can get control over it or they can maybe they will get a price range and the price can move on that price range, while because of being decentralized, none can control the price of bitcoin and it's changing because of supply and demand.
legendary
Activity: 2576
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who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?
It works just like anything else in the world: supply and demand. If more people want to buy the price goes up, if more people want to sell the price goes down. No one "says bitcoin's value", people decide that.
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