Bitcoin Forum

The price of bitcoins is determined by supply and demand. When demand for bitcoins increases, so does price, and when demand falls, prices fall. In circulation there is a limited number of bitcoins, and new bitkoy are created with a predictable and constantly decreasing rate, which means that demand must follow this inflation rate so that the price is stable. Since Bitcoin is still a relatively small market, compared to what it can become, it does not take large sums of money to move the price in the market up or down, and therefore the price of bitcoins is still very volatile.

Yes, supply and demand. Basic economics.

The most significant determinent of Bitcoin value is the ability to use them - whether online, or in real life. The more business that accept it, the more awareness, therefore demand, and the price rises. Since 2013, Bitcoin has spread worldwide... albeit to a small amount relative the the population, but significant nonetheless. This is why the current price is $2,700. As it grows, more people learn about it and want to buy, the price will continue to rise.

The issue of demand and supply is the generally accepted phenomenon but for me I don't think that is the only deciding factor because sometimes price increases without any reason to support the case for increase in price no event, no break of a news, no intending legislation etc. or even why there is a decrease in the price of bitcoin due to the increase in supply without corresponding demand increase. These unknown factors are the real determinant of the price of bitcoin.

Yes I  agree with you that the major determinant of Bitcoin increase and decrease in market value is the forces of demand and supply. And at same time there is something important that courses the demand for Bitcoin, which is the decentralized nature of bitcoin and easy for business transactions. This has made the value of Bitcoin to get to the level it is today.

Supply and demand, but there is heavy price manipulation by big players in the field, for example, miners have demonstrated their power by crashing the price on numerous occasions by juggling around with the BIP's that they may or not support. Big miners have way too much power concentrated on their hands, and since the market is not regulated, they are free to keep doing it as much as they want for as long as people fall for their traps and sell when they want to.

Most of those statements were all correct and at a specific thoughts, it only made me confused about a certain words about manipulations from big players; was that the bigger whales that's mentioned by most forum posters? I think those miners could not fall us into their trap as long as we don't do partnership with them, unless we 've been a ponzi victim or an investor of a minings sites. Price cannot be manipulized and it's determined due to movemetn of price changes because of supply and demand effect.

Sorry, I'm skeptical. Do you have any evidence to support this claim?

Its just an old and basic concept of economics who dictates and determine what is the cost of bitcoin or how it would go up or down,its just supply and demand just like the physical markets

Because so, the demand is greatly increased and the high business world has been using bitcoins! It was he who raised the cost and the high price. There is a drastic increase from 2013-2017! If we can choose intelligently who can cause us to have a bitcoin investment fortune! Of our own

For every investments in the stock market or any trading sites, the factor that determines the price is the Law of Supply and Demand. If there are less supply, of course it will be extinct in the market therefore, the price will increase. The same goes for Bitcoin.

I disagree with the final part of your post. The market cap of bitcoin at the moment is close to 45 billion dollars while that may be a low amount in the world, the truth is that is a lot of money to duplicate the price of bitcoin we will need to have 90 billion in bitcoin.

Supply and demand, fundamentals include adoption and usage, marketplace demand and interest in the ecosystem.
In the end a greater utility does increase growth and the limited amount of coins increases the value of the units.

In these days the supply of bitcoin is too low and the demand is very high. If we go to past the then supply of bitcoin was very high and the demand was not that much and many of people was not familiar with bitcoin.So bitcoin have planed in a market to short the supply of bitcoin to increase the demand and many people will come familiar and the market of bitcoin will come high and high

On the side of item/service sellers exist a wide use multi electronic money adoption.
In that way no one is forced to buy BTC for fund trasfering.
Actual rate of new bitcoins is 4% at Year.

It kinda looks that now it is the other way about

Other than that, you just can't say that supply is too low and demand is too high without specifying the price at which the volumes of both are to be measured. If the price has firmly established itself, supply is equal to demand by definition, so we can't say that the former is higher (lower) than the latter. It is only at prices above or below the equilibrium price when one starts to surpass the other

This is just one question I have been asking myself and even try as much as possible to find answer to by reading several threads on the forum and I have come to understand that bitcoin price determined by the forces of demand and supply is just say 10% of the causes while the remaining 90% is determined by factors other than demand and supply because I studying the price, I can't just understand why the price will fall at this time when there are several news on the web that should prove otherwise.

Well you answered your question already, Wonder why you asked it in the first place. Increase in demand increases  the price of Bitcoin while decrease in demand decrease it..as simple as that.

yeah This is how bitkoy, I mean bitcoins, work right now. Since the prices does not really depend upon anything but itself, it does not depend on a central government or backed up by a commodity such as gold.  The result is that the prices just moves with the supply and demand of it. If more people want to buy then the prices just go up, because in truth anyway the supply will never change.

Bitcoin price is driven by the huge support given by the bitcoin community.Interesting thing is that bitcoin community is growing larger and larger day by day.So more the support,more increase in demand for bitcoins.Hence,the price would grow more in proportion to more demand.

There's no evidence, however if they have the opportunity, why wouldn't they?

Yes you are right that high number of community support bitcoin and due to which its price is more high and I am sure it's community will be more increased in future as in present and a day will come that bitcoin price will be more increase because the price of bitcoin is depend upon the demand if the demand of bitcoin increase it's price will be shift to automatically high .

Without currency, it's difficult to compare companies which sell various goods. Based on the form of money, there are a number of distinct techniques, value is assigned and handled.

It's a way to put bitcoins into some scale to determine how much buying capacity it is having at one point of time .

Increase and decrease in demand for bitcoins determine the price of bitcoin.The trust kept by investors in bitcoin determines the increase and decrease of demand for bitcoins.Bitcoin price is driven by the bitcoin community support.There is no authority to control the bitcoin price.Also,since bitcoin has users all over the world nowadays,big whales are unable to manipulate bitcoin price.

The fact is that the price still depends on how much Bitcoin will be in demand and popular. It is not used as a means of payment, but it is a very good way to earn. Therefore, the more people will be interested in Bitcoin, the more its price will be.

This is true but bitcoin marketcap can easily grow 10 times within few years because bitcoin is still not being used by large corporations. When even a small local merchant in third world countries will start to accept bitcoins than price of bitcoin can rise exponentially.

Actually i have noticed a thing for the price change in bitcoin. For now the supply doesn't matter much and only demand matters. If the price increases that means more investors are buying bitcoin which slowly increases the price as more people start demanding people will sell at higher prices. For supply currently it has no connection with the price.

The Bitcoin CEO and board of trustees have a meeting every Sunday morning in Nevada at 2:30AM to fix a range of prices. Currently they use a formula derived from the amount of articles on CoinDesk featuring the word "blockchain". Each exchange can then mark this price up to 15% higher of which 50% of the profit is kept by the exchange and the other 50% is paid as royalties to Satoshi.

I agree with you . The more interesting bitcoin makes the bitcoin price increased a lot, now has begun many investors and entrepreneurs who apply bitcoin on the system company. E-commerce companies in the world are now starting to include bitcoin to list their payment media. This is interesting for more people to use bitcoin and this makes the price of bitcoin increased.

The bitcoin community's support mainly determines bitcoin price.In other words,we could say that increase and decrease in bitcoin price would make bitcoin price to rise and fall.Since its a decentralized currency,no central authority is available to control it.

Basically, Supply and demand determines the cost of Bitcoin, there are some other things that affect to Bitcoin price but that's not so important.

Yes, when Bitcoin HardFolk successfully and can fixed all issue about time confirm transaction, fee and block size, Bitcoin will become the perfect and most used in cryptocurrency for bussiness. Not have other altcoin can compete with Bitcoin ::)

Well if that is what's gonna happen in the impending August 1 then it will be a good news, but there are pretty much on the worried side than on the much calmer side on the impending Hardfork, and why is that? I think it is because there is this risk that core developers are talking about and we are not really sure on what will really happen to our hold coins on whether it is gonna split, or diminish in value, I think that is why there are many that are not know what to do.

yes that is right, the interest of the people to buy more bitcoin or even to hold the bitcoin they already have. the increase in demand and decrease in supply is the main reason which determine the price of  bitcoin.