Bitcoin Forum

Hi guys!
I'm new here and just wanna ask what determines bitcoin value?
I know that everything is about supply and demand, but would like to have a more detailed knowledge with regards to this.
Any help extended will be greatly appreciated guys.

As you already said, supply and demand determine a value.
Currently, a lot of money is flowing away from the BTC, so the price drops.

You already mentioned supply and demand. Currently, its value drop because investors sell their bitcoin for something else. You also need to learn micro economy like if other assets are not profitable atm then investors might choose bitcoin. Did I forget to mention about FUD?

It always is supply and demand.
values of any currencies will drop when investors pull away their investments.
In the case of bitcoin presently, many bitcoin holders exchanged their money for something else. Thus, money flows out from BTC, and in turn, the drop in value

Supply and deman. BTC has some inherent value by virtue of someone having to spend money for mining gear and electricity to produce it, but it's surely not anywhere close to what it goes for right now. But here's the thing...It doesn't have to have an inherent value. Not many things on the market that we trade, have an inherent value.

many factors determine the bitcoin price position, it depends on the sellers and buyers who are influenced by external factors such as the issue isus that support or drop the bitcoin price

Thanks a lot you guys! I know there are a lot that needs to be read with regards to this topic.
But it is very helpful, in a way it fast tracked my understanding with bitcoin value.

the value of bitcoin is governed by the law of supply and demand, which basically states that in a fix supply market, as the demand for a product increases, its price also increase. as  as we all know, bitcoin has a fix number of around 21 million, and the recent price increase led many to venture into bitcoin increasing demand pushing it further upward.

Bitcoin price is currently unknown. Also, a price depends only upon the supply and demand. Since, supply of Bitcoin is limited, we can only discuss about various factors which will increase the demand and hence push the price further up. These factors are generally related to adoption of Bitcoin by a country or any update in Bitcoin network to enhance it.

In some cases, there are negative news which bring sell out of coin, and the price falls. It is still in new stage, and hence the price is so volatile.

it is like commerce, the price of btc is determined by the supply and demand which already mentioned on your question. It depends on the demand of buyer, when there are so many demand surely the rice of btc is increase.

Any bad/good news about crypto currency like change in legal status of Bitcoin can affect the price.

Fud or fake news before any official announcement can trigger panic and dump in the price.

Marketcap is still very low so any whales can manipulate the price to make huge profit.

It's always in supply and demand. If the price hike the traders sell their stocks that why sudden dip happen. When the price dip some try to hold it to avoid loses then the price will hike again. If you plan to trade better to study first the behavior of the market otherwise you will end up losing your money.

Bitcoin is a decentralized entity, in which no one can manipulate its operation and wherein its value only depends on how the market goes. Bitcoin, follows the rule of supply and demand in which its value increases as its demand increases because of bitcoin's limited supply. Price changes in bitcoin is always due to some external factors, like its market as mentioned above, and the infrastructures surrounding the bitcoin community. Just like in some other form of investments, its value loses when investors pull out their assets.

i'm not an expert  but,,
Bitcoin also has its market where it is bought and sold. Therefore, demand & supply or surplus & deficit in the market determines its value.

Supply and demand is the basics but the nitty gritty is the people who are involved in the markets and these people act rational at times and irrationally other times. This back and forth between rational and not gives rise to crazy unpredictable movements which not even the best of traders can pinpoint. Ie nobody knows why there is value all we know is this technology is great and we want to be involved with it.

You should know the latest information about the world of cryptocurrency, especially bitcoin. If it comes bad information, FUD and the decision of a country to ban bitcoin it will make the bitcoin price go down. On the other hand, if many countries accept bitcoin as a means of transaction and a lot of positive news or information about bitcoin then certainly bitcoin price will go up. So, I feel that's affects the supply and demand for bitcoin.

Actually, the decline bitcoin prices can be overcome, if the investors aren't affected by some news that comes against bitcoin. For example, a FUD or a country will ban bitcoin, but investors don't use panic sell, but they just hodl their bitcoin I'm sure bitcoin price not go down.

It's more so of the community being supportive of what is on the market. They don't have to sell the coins that they have but they do.
That is why it's wise to just store your coin since almost everyone that is into Bitcoin wants some.

Yes, I am really a newbie. What I'm most concerned with is the question you are asking. I have heard about the supply and demand but I do not understand because of it.
I need to know more about the problem to have a solid knowledge. In the future, I want to invest in the altcoins to make more profit so I really need to know about the basics. Hope everyone will sincerely help me and give me advice.

Thanks a lot for raising this question!
I'm also a newbie and needs to read more about bitcoin, this topic helped me a great deal!
From what I can gather, just like any other markets out there, it is governed by supply and demand principle.
The more the demand the more the value is. However, if investors will spirit away their assets and exchange it for something else, that would reduce it's value.
So better campaign up for more!

I agree with you here. The reason why the crypto world is extremely volatile in the first place(More volatile than the stock and forex markets) is due to the minds of people which get swayed easily for different reasons like FUD(Example: Recent South Korea Ban on crypto exchanges). People tend to trust bitcoin over other altcoins majority of the time though due to its popularity and value in the modern world today. Supply and demand is indeed the primary indicator of bitcoin value, but there are many reasons like real world events, FUD etc which tend to affect bitcoin in a small or big way!

The value of bitcoin like every other commodity in the market is determined by the demands for it, in any business or investment what determine the value is the demands for such goods and bitcoin is not an exception. The law of demand and supply is apply to bitcoin when the demands is high you see the price will rise and if the demands is low the price goes down that is how it is.

Bitcoin has all the features of Gold: fungible, divisible, acceptable, limited in supply, uniform, portable and durable. Ofcourse, there is demand and supply or surplus and deficit in the market that
determines the value of bitcoin. Also, Bitcoin is useful and has network effect. Bitcoin is by far the most distributed and decentralized project until this moment in the history of humanity. These are just some factors which gives Bitcoin its kingship right now in the world of crypto.

There are many factors that determines the value of Bitcoin. Demand, supply, scarcity, FUD, regulations, and other factors. Don't forget that Bitcoin is a digital asset and a means to store value. That mean that it is prone to market manipulations by the big players who are constantly looking for profits.

Especially demand and supply will effect the value. If many people sell their bitcoin, the price will drop and if many people buy bitcoin, so the price will up. That thing can determines bitcoin value. But bitcoin value will increase, because in the world bitcoin have a limitation to buy.

You said it al. An increase in demand drives an increase in BTC price. This is the major factor that controls the BTC price.

I think there are a lot of factors to determine the value of bitcoin, demand, scarcity, supply ... Especially the demand and supply will force the value and bitcoin value will increase, because in The bitcoin world has a limitation to buy. Do not forget that Bitcoin is a digital asset and a means to store value. That means big players who are constantly looking for profits are likely to be manipulating the market.

I don't think this is as straight forward anymore. Especially with the future markets now. I feel it's highly manipulated for the big boys to earn maximum profit. Best way is to buy and HODL long term.

market cap determine price of bitcoin which mean the value of it.
you can determines bitcoin value when you are ready to pay more to buy more buy.
people who buy are ready to buy is what determines  value
daily supply and demand detect moving stable point up and down this stable point is price.
any exchange site have it’s own stabilize point. so that price changes

If that determine the market price that according to me because the and the amount of demand who want to buy bitcoin, and because sedikitnyapun total supple, we’re already know that bitcoin in this world limited by because it’s the person vying to buy bitcoin and therefore the price bitcoin began to rise.

The most affect the value of bitcoin is media
If the media preach negative things, investors will panic and they will sell their assets on a large scale, to secure their assets, and that will keep interest rates down.
and vice versa, if there is positive news will be a lot of buying and selling transactions, and if there is a large number of bitcoin purchases it will have an impact on drastic price increases.
That's my personal opinion

For me, what determines the BTC value is the demand and supply of it in the market, when high numbers of BTC was traded price go down, same goes when high numbers of BTC was bought value goes up. :)

There are many factors that determine Bitcoin value. The main one is the belief of people in this crypto. Then capitalization affects its price (and very much). The demand for BTC is the third great reason to change the price of Bitcoin.

The main thing which determine the bitcoin value is invest of the people in the bitcoin. If the bitcoin invest is high the value raised and the more people make invest due to raising of the value. The invest rate go high when the value is stable or going up. People does't like the value down step, but in fact the down step is a good time to invest in bitcoin. For the deteminition of the bitcoin value the high invest is important and for the investment of people , they want stable value or raising value.

Simple law of economics Demand and Supply.More the demand,more the price...lesser the demand lesser the price.The same way price of any of the other things is determined.

This is what you have to study for that you are seeing and analyzing how you are able to knwo how it may have value same on the way of researching something that was new to you may better study on that for.

Yes indeed Now is the time to buy Bitcoin is very profitable because it began to cost less so all I recommend to invest and be rich)

Bitcoin is a digital currency that has grown many times already. Previously, it still cost more And it was necessary to buy but still it is quite expensive