Bitcoin Forum

Bitcoin has a varying price from time to time. The questions that come to my mind when I learned about bitcoin is why does bitcoin price varies. Where does bitcoin depends its price? Why bitcoin does not have a fixed price?

It's the law of supply and demand...the more people want it the price will go up, and the more people sell it the price will go down.

Do some research on stock exchanges and you'll see what I'm talking about.

Very short but exact information. Thanks ! :)

First you have to understand how market works. There's a certain number of coins available to buy and sell on all the markets in the world. When new people, like you, come into the market and decide they want to own a coin, because they heard about this technology, the price starts going up. The more you buy the less coins there are for sale and the higher their price becomes.
In short, price depends on the market attitude. If more fiat is coming to the market the price goes up and if people sell to put their money elsewhere it goes down.

Price is determined by its use. How much the buyers and sellers are willing to pay and sell.

The price is driven by supply and demand and their play against each other. More supply, lower price. Less demand, lower price. And the opposite is true too. This supply vs. demand relationship is behind all pricing of any thing in the world, it's just that most goods and services have more control over their existing price and how quickly they are updated to meet the market. Bitcoin (like stocks and currencies) is different because there is so much trading and it's done publicly the influence of supply and demand can be known and communicated immediately.

interesting to see where it goes

YEs, i do agree that bitcoin applies the law of supply and demand  ,
thats why when people hold their coins,the supply decreases ,and the demands increases,that makes the price so high in the market

this reply is perfect
that is the basic concept when I am on high school days...

It took me a while to figure it out but I finally got it. A lot of people want to sell and a lot of people want to buy. They agree on the price and makes the trade. Currently, everyone wants to buy and too little people wanting to sell, so the price is high right now. Most coins are lost in bitcoin, so there are less than 16 million available now.

It depends to the people who buys frequently for example if only a few btc sold it will go low and if many it will go high.

its like you buy kebab for example, on Monday the kebab seller only sells as many as 30 kebabs with a price per kebab 5 dollars, it turns out buyers who buy kebab feel that kebab is delicious and cheap then he recommend it to his relatives so on Tuesday, seller kebab selling as many as 50 kebabs (sold out) from this seller kebab felt that he should raise the price because of the many needs but on Wednesday he sold all his kebabs for 6 dollars since Wednesday he always raises the price kebab because the stock of limited material until the price of one kebab rewarded 50 $ for too much demand.

Simple answer. From supply and demand. Bitcoin is exchanged on a lot of centralized and decentralized exchanges and the more demanded the coin is the higher is its value. Meanwhile Bitcoin has become a tool to pay nearly for everything you can imagine, especially for digital services and goods. But also for gambling for instance where it is very hard - at least in some countries - to get fiat money into online casinos. Bitcoin is perfect to pass such bans. That is another reason why its value it increasing besides speculation of course.

You could say the inflation in bitcoin will be driven by abandoned funds, it seems natural the the supply of bitcoins will go down over time. People will lose access to wallets, forget the funds altogether or even abandonment of small amounts across distributed wallets. This means that a portion of those 21 million will be lost forever, so small denominations will be required to trade the remaining amounts.

Same concept as  other currencies   if there is ton of buy orders  and not enough sell orders bitcoin price will skyrocket
but if there is a lot of sell orders bitcoin price will drop

Bitcoin price comes from supply and demand.

The bicoin is based on the blockchain technology, which is de-centralized and unregulated. The price variation of the bitcoin, and of any other altcoins complies with the law of supply and demand.
For instance the price of the bitcoin doubled from July to August due to an increasing transactions from Asian countries such as South Korea and Japan.

Correct,  its all about demand and supply.

i think we can't fixed price
because bitcoin 's price is community or investors decide it
 when we need it , price will high
 we have not want , it is low ,
 it is market normal .
 and china is country  always most want have bitcoin .

get from high security and many people believe with it

it's "perceived" value, which means people have given it a value, even thought there is nothing physical to back it up

Bitcoin gets its price from people demand to buy bitcoin. More people buying btc more the price increases.

Bitcoin gets its price by the basic laws of Supply & Demand. Its as simple as that. Previously there were more bitcoins mined in a day then there were users so bitcoin price stayed

quite low, but now its the opposite way. Bitcoin creates 1800 new coins a day, but tens of thousands of users are added a day. There isnt even one for everybody who now wants

it. Whats that going to do to price? Naturally it will drive it up over time (with market irrationality acting out on the day to day ie China Ban, etc)

There is a difference in supply/demand of the speculative market and supply/demand for currency. Right now it's supply/demand of the forex community.

Keep in mind that even currency does not have an inherent value. It's only that we agree to accept it as a carrier of value...otherwise it's just really fancy paper.

i thinks its because of supply vs demand circulation, so the price of bitcoin will raise because the supply of it in the market is limited and the demand is totally rapidly higher that what its expected before. like our fiat money there a supply vs demand circulation too in the market so the value of it can be its either high or low..

bitcoin is free coin so that simple supply and demand rule is really effect but now we see how china effect with this coin

simple supply and demand. basic economics. supply is fixed and demand is increasing over time, which leads to a higher price.

If you can remember the law of supply and demand, the higher the the demand, the higher the price, so,  the more people get to know about bitcoin, so the price keeps going up.

I just wonder what happen when the supply of bitcoin will close to exhaustion. It's quite unfair for those who invested late,Or it does not work like that?What do you think?

The growth depends on its usage. The more its circulated around, the value is driven more high. The more its is kept stagnant, the value does not grow positively. The more the values increases, the more bitcoins are circulated into market. This is how the growth comes in.

The price is based on supply and demand just like stocks in the stock market. If a company has great potential or good earnings, the stock has more demand, more people want to buy so the price goes up as a result.

The same thing happens with Bitcoins. More people want it so the price starts going up because people are willing to pay higher prices for it. Bitcoin is also designed to be deflationary. Fewer Bitcoins are mined each year and will end at 21 million Bitcoins. Because of this design, the price should increase as fewer Bitcoins are available over time.

The combination of fewer Bitcoins available and Bitcoin becoming more well known and more mainstream should make the price increase over time even with some volatility.

law of supply and demand

trust people

security

I do not really know but I think it is in trading site. Because IRS said that we can determine the bitcoin price in trading site or exchange site to calculating the taxation. I do not really sure,  correct me if I am false. Bitcoin price is only depend on supply and demand.

bitcoin gets its price from buyers and enthusiasts bitcoin, the more bitcoin in interest and hard to get bitcoin then the more expensive