price is defined by buyer and sellers.
sellers wants to sell at 10000 usd per btc.
so if buyer agress to pay that much then the price of btc for that time is 10000 /-
there are lots of bitcoin exchanges where buyers and sellers meet and exchanges bitcoins with either fait currentcy or other crypto currency and this way avg. price of bitcoin is calculated.
there is also one more factor called volume.,
but i hope you get the basic idea, its like our fruit market, sellers specify price and if buyer pays that much then thats the price., if buyer does not agress to pay that much then seller lowers the price., then the btc price is reduced.
good luck
Topic: Where is the price of bitcoin calculated? (Read 221 times)
Sites just calculate the average price from several market places. There is no official price.
If you want to know the price of a bitcoin, you check in one of those sites that display this. Where do the sites go to get their price?
I wonder because somewhere it is first calculated and from what I have seen from the system, it is not being calculated by miners.
So somewhere there is a central computer determining price but if bitcoin is descentralized, How then?
I wonder because somewhere it is first calculated and from what I have seen from the system, it is not being calculated by miners.
So somewhere there is a central computer determining price but if bitcoin is descentralized, How then?
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