Topic: Who updates bitcoin value? - page 2. (Read 932 times)

though you can (and should) hold bitcoin on your own private key using bitcoin software. people deposit funds into third party services(exchanges) and then trade on exchanges.*

---

doing trades using bitcoin software where the funds are on your own private key are peer-to-peer and do not contribute to the price 'value'

by doing trades using exchanges the funds are on the exchanges private keys, meaning you have to trust the exchange is ethical/moral/legit to not disappear with your funds. but the advantage is your trades do contribute to the price 'value'

---

the price "value" is measured by the buy/sells done on these exchanges.
this value is not a real value of all coins. but the value of the current prices certain amount of coins are bought/sold at, at the time.
some exchanges only handle buy/sell between people of 0.00xx coins at any time, some buy/sell xx.xx coins at any time. but exchanges do not show the 'trades' of all coins in circulation, just the trades done between people in that exchange

there are multiple exchanges. and also multiple sites which may vary in 'value' because they are separate from each other (have their own orders) generally though exchanges respond like sheep if they see one exchange move in a certain direction or another exchange move in another direction thus the prices do end up being quite similar

some sites get the data from each exchange and then averages the trades of the exchanges these are usually just value estimator sites which dont do any trading and only purpose is to display an average value.

but remember when you see a price of $XXXX it does not mean there are $xxxx stored in bank accounts to back every single bitcoin in circulation.
it is just a display of the latest price a bitcoin has been bought/sold on an exchange. or just a display of the average of multiple exchanges.

do not take much notice of the "market cap" as that is just a multiplication of the average buy/sell of a current order.. and not to be thought of as the amount of real $$$ that is invested.

So to my understanding, bitcoin value goes up when the demand is high, and goes down when people sell bitcoin or dump as they usually call. (Do correct me if I'm wrong)
So the question is, who measures this? And who updates the bitcoin value, I mean as bitcoin is peer to peer, how can 3rd body be updating the value of bitcoin? By 3rd party I means the places where we go to see the value of bitcoin, whether its an exchange or preev.com whatever.
I don't understand, please do elaborate considering me a novice at this.