I know im probably missing something but im wondering if bitcoin price should even increase, or any price really, because when someone buys bitcoin it creates demand so price increases if im correct but when the person is buying isnt someone else selling? shouldnt this decrease the price so now the price is back to its base? This has me really confused and i have thought about it for a few days and couldnt come up with an answer, someone please tell me the answer.
It falls on this 3 categories:
1. More buyers means more demand = the price goes up
2. More sellers, less buyers = the price goes down
3. Less buyers, means less demand = the price goes down
So basically that's how the market works, so its law of supply and demand. Go and look for basic law of economics and try to understand it. I'm in the same boat with you man, I didn't quite understand at the beginning. But through constant reading and going around the forum, I was pointed to the right direction.
This is the easiest answer to understand for you, I will just add a few more details to answer your question
It falls on this 3 categories:
1. More buyers means more demand = the price goes up
You are probably asking why it will go up because sellers are pricing the coin HIGHER,
Simple example here is if you have 2 candies and you have 3 buyers. if one buyer offer you a dollar and the other one offer you $2 then most likely you would sell it on $2 and the remaining candy will be price $2 or even more expensive if the other two customers will have a bid war.
Making the candy $2.
2. More sellers, less buyers = the price goes down
In this case it is the other way around since there are a few buyers sellers are selling their coin cheaper.
Lets go back to my candy example. 2 candies and 3 buyers. Now no one would like to buy your candy for $2 and you price it down for a dollar butt hen someone bought it for a dollar you sell your other candy for a dollar but the two remaining buyers is convinced that it will still go down. You sell your candy for $0.50.
Making the candy $.50 in the market.
3. Less buyers, means less demand = the price goes down
It is almost the same for number 2 regardless of how many sellers or item you have if no one would like to buy your stuff then people will sell it cheaper.
I think it will grow again in the future. The market is going down with many bad news !
This post is just a SPAM, it has nothing to do about the topic.