The price of bitcoin is regulated by the consensus of sellers and buyers. At present, demand far exceeds the supply.
Therefore, such a rapid price movement is happening upwards. When demand for bitcoin decreases, then its price stabilizes and will not be as volatile as it is now.
Topic: Who is guaranteeing the value of bitcoin? (Read 146 times)
Not a single entity but everyone! Bitcoin is a decentralized currency and hence the value is not guaranteed by any single entity unlike government currencies. Instead the price is decided by the market following open market trading practice. It follows a simple demand supply rule. Since bitcoin has a limited supply in the market, if demand goes up, the price will be higher. But if the the demand goes down, the price will be lower. Even though the demand depends on various factors, but that's the basic reason for bitcoin's price fluctuation and deciding factor.
Yup! I agree that bitcoin is not controlled by a single person and you can not see any stable price because it is fluctuating and unpredictable, And because bitcoin had a limited supply that is what guaranteeing the value of bitcoin and that is a guarantee that bitcoin's demand will surely increase, And right now bitcoin price had a resistance and dip to the $13,700 value.
Exactly, nothing at all, bitcoin belongs to no antity, it is to the people if I could say it like that, so it has the value that the people are ready to grant it
It depends on the whole bitcoin community. We determine the ups and downs of these cryptocurrencies. If we were all to invest in bitcoin, a surge in bitcoin's value would surely mean a good performance from the whole time.
Fiat is created out of thin air so It doesn't really matter If the government is backed it up or not. Bitcoin price is based on supply and demand and since there is a limited supply, there is no inflation and in addition, there is proof of work.
Not a single entity but everyone! Bitcoin is a decentralized currency and hence the value is not guaranteed by any single entity unlike government currencies. Instead the price is decided by the market following open market trading practice. It follows a simple demand supply rule. Since bitcoin has a limited supply in the market, if demand goes up, the price will be higher. But if the the demand goes down, the price will be lower. Even though the demand depends on various factors, but that's the basic reason for bitcoin's price fluctuation and deciding factor.
The government's currency is guaranteed by the government. What about Bitcoin?
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