Bitcoin Forum

increasing or decreasing rate of btc is normal but why its happend...?

Do you mean the price of bitcoin? Just like any other currencies or stocks, the price is determined by the demand and supply.

just like anything that can be bought, really. as people who needs it increases and the supply decreases, the price increases.

Sometimes there is nothing to do with the real demand/supply. Rumors or news may also affect the price significantly.

OP might point to the rate at which coins are mined or released as a reward via the protocol.  ??? If that is what you meant, you should know that only

roughly 21 000 000 coins will be released over a specific period. {Simulates gold supply, where gold resources decline over time, and increase in value}

He might also be talking about the difficulty going up and down .... {The more powerful equipment to mine becomes, the higher the difficulty will go,

to balance things out, and to stop specific technology dominating the mining industry}  

It moves due to market demand and supply like other forex assets. If demand high price high, if supply high price will decrease but this is only true if there are not some whales manipulating price with their big bankroll.

Now the way you look at bitcoin,its an digital asset which has a market price.Like every other commodity in the market even physical goods the prices of the bitcoins are set by the demand and the supply factors.To explain in simple words,its somewhat like stocks considering their digital properties but the operating factors are not same.When you see the demand of bitcoins is high,there will be substantial increase in the value of coins.

Do not forget that the one place where Bitcoin is different from a stock is the lack of market capital.  Bitcoin price is nearly 100% driven by supply, demand and rumor mill power.  A small company that has stock can bring their stock price up with the introduction of market capital through sales or assets, Bitcoin cannot do this.

you mean price of it? if yes then alot of things changes price, like china now, when started to buy bitcoins, also when people panics, price drops very low too, halving will change it too

you could ask the same question about the price of gold or the EUR/USD rate.

there are some fundamental reasons - in case of EUR/USD the stuff like the interest rates, inflation, public borrowing, etc and in case of bitcoin mainly the cost of mining a bitcoin and then there are psychological reasons - how optimistic / pessimistic people feel about the particular assets.

Every currency in the world increase and decrease its part the market where whales manipulate the price.
Its now just bitcoin but all known currency in the world.

Indeed, you are right every currency has this its pretty normal and its also that its depending on selling and buying of bitcoins because that is making the price.
This will always be so because every currency and stock has this.

i guess yes that's very true This is a normal thing for bitcoin prices because every currency in this world will be increasing and decreasing include bitcoin also don't be forget that some people can takes advantages from these situations and will earn profit from that

Not only currency value whole national finance is handled by rich whales being more richer and richer. In this manipulation political leaders also play significant role. this is like rule how this current world economy works.

Bitcoin is not a real currency as we use regularly. Every currency has its own fixed value, but Bitcoin has a varying price. This price increase and decrease is due to the accumulation of Bitcoin and the running technology.

No. BTC and (most) other currencies are no different in terms of price discovery - they float against other currencies. BTC/USD varies with every trade, just as USD/EUR (http://www.xe.com/currencycharts/?from=USD&to=EUR) does, just as CHF/JPY (http://www.xe.com/currencycharts/?from=CHF&to=JPY) does.

The price of BTC varies for the same reason the price of any currency varies - because demand is not equal to supply. Right now GBP is varying against USD (GBP/USD) - some people want to buy British Pounds with their US Dollars, some people want to buy Dollars with their Pounds. If there are more people wanting to sell more Pounds for Dollars than people wanting to sell Dollars for Pounds - then the (Dollar) price of Pounds goes down (supply of Pounds is greater than demand), and the (Pound) price of Dollars goes up.

There are very few fixed price currencies, the Hong Kong Dollar is a current example, and the Chinese Yuan was too until 2005 (and is still "managed" or "pegged", rather than being allowed to float freely like USD, EUR, and BTC.

I believe so that bitcoin rate increase and also decrease this is due to its demand. Bitcoin usually change from time to time just like the negotiation part of stock market. When this happen its become low then people starts buying its stock when limited became high on demand..

As my experience about bitcoin why bitcoin is decreasing and increase i think the less supply the bitcoin value will rise or increase but if the seller is more than buyer the price will decrease. this is just my experience about trading in bitcoin.. If you sell your bitcoin in the trading site the price should decrease.. i also expereince it in altcoin and i think they are the same..

no kidding, sherlock. all markets in the world have one main rule, and that's supply and demand. not that difficult to figure out.

It increases mainly due to exchange websites where buyers decide their price and sellers set their own rates. The price is not the same on all sites and sites like preev.com, coinbase and bitstamp have a different bitcoin rate mentioned as per the trades on their site.

Couldnt agree more about it,supply and demand is one thing that make the bitcoin change its price.
The other thing that change its price are whales and chinese miners.

Supply and demand are the only things that make BTC (and other currencies, commodities and stocks) change in price. There are numerous factors that can influence traders, increasing demand or increasing supply, but neither "whales" nor miners are particularly special when it comes to trading BTC (or any thing else, for that matter) - they don't get a free pass on supply and demand, they're subject to the same restrictions as any other trader.

"Whales" are market participants, same as any one else buying or selling BTC. They simply have more resources than the smaller traders who refer to them as "whales".

Miners are market participants, same as any one else selling BTC. They can choose to sell - or not sell - their BTC, same as any one else.

Exactly, the halving is not a sure way that will double the price. It's up to the participants (traders) to control the price so the halving can double the price or near it if the people feel it because there will be less increase in supply up to what price will it increase is not a sure thing.

yes but the resources they have is what regulate how the market will behave, they can theoretically drive the price in one direction or another

by deploying fake walls, there is an easy trick that is done with bot on trading that can determine an increase in value without actually selling or buying any coin

They can influence other traders, for a limited time. They can't create demand (or supply) out of nothing. A large trader, wanting to buy cheap BTC, could sell a fairly large amount of BTC, wait for naive traders to panic, and then attempt to buy BTC at a cheaper price. But this isn't a one-way operation - it relies on two parties, the "whale" and naive traders. The same applies if the "whale" creates an ask wall (or bid) wall - if it works, it works because some traders have been influenced, for a limited time (as long as the large trader can keep the wall intact, if that).

The market regulates itself - it finds an equilibrium through trade. If a big trader successfully pushes the price down, the price either rises again - or the lower price is the correct price. The panic from a sudden dump only lasts so long: sooner or later an increasing number of panic-struck traders realise that, apart from that one dump, nothing much has changed, and they switch from bearish to bullish, or at least neutral.

Incidentally, all traders have influence on other traders - every time we complete a trade it feeds into the overall feeling of the market. It's simply that larger traders tend to have a larger influence. But that's all they have - they can't force people to sell them cheap coins.