Bitcoin Forum

1) Who determines its value? Markets? What kind of markets? Big companies like blockchain.com ?

2) How is it getting embed on websites? If you google "bitcoin" you will see its price. This number must be set by a person, right?

1- his value is determinated by his market capitalization. This means that if more poeple buy than sell, price goes up, and if people sell more than buy, it goes down. Basicly this moves the price, then u can see also that if everybothy wants to sell but no one whant to buy at the same price, btc goes down till where people buy it.

2- this number is an aproximation by how much is worth in the diferent places and diferent values that diferent markets gives. But usualy theris not too much difference.

like the price of everything else from a toothbrush to a lambo and gold, stocks,... price of bitcoin is determined in the market by the market participants based on the supply and demand.
this "market" are usually a bunch of centralized websites called exchanges where people meet and trade bitcoin and that determines the price which will then be reported as a number and everyone else including google fetches it and publishes that value on their platform.

1. It's called the law of supply and demand. More bitcoin are being bought? Price goes up. More bitcoin are being sold? Price goes down. Remember the news about the price of oil crashing down? Yea, one of the reasons is that most of the world is in a lockdown, hence not much vehicles are being used.

2. In Google's case, it's already indicated below:

https://i.imgur.com/Xv40uO1.png

In cases of sites like Coinmarketcap, the prices listed are pretty much averages of what bitcoin's price are on various exchanges.

Take a look here, it may help you get a clearer idea https://tradeblock.com/markets/bfnx/xbt-usd/30m/ (https://tradeblock.com/markets/bfnx/xbt-usd/30m/)
For example, I remember some (local) exchanges had a Bitcoin price very different from the average showed in most of the others, it is due mainly to people from countries with shitty economy buying bitcoin >>> selling it, it was like +$3k difference?

1. I think value and price is different isn't it? Bitcoin value determine by speculation of investor, limited supply, useful as form of money (currency), low fees, and many other sector. Bitcoin price determine by both demand and supply traded in a market. If there is big demand of bitcoin, then the price will increase or vice versa. It also followed by limited supply of bitcoin ( 21 million only )

2. The bitcoin price displayed on google is provided from Morningstar for Currency and Coinbase for Cryptocurrency (https://www.google.com/intl/en/googlefinance/disclaimer/)

Oh thank you. Yes I just saw the text below price in google. So, in 2017 there were many people that got rid of their bitcoins? That's why cryptocurrency crashed in 2018.

In 2017 bitcoin went from $800 to $20,000... and in 2018 went down to $3500. If the price goes down that means people is selling their BTC, if the price goes up then it means people are spending cash in the cryptomarkets, so, yeah, that could explain the crash, for people who buy at $800 sell them even at $2000 represents more than 100% of the profit.

It was either a panic sell, whales cashing in millions or both. Whales usually have the ability to change the market trend within a click of the mouse.

When lots of people buy, the price goes up like at the end of 2017. In jan 2018, lots of people sold - making the price fall.

But putting these aside, if you take a look at the 2017 charts, you'd see that prices higher than $15-16k were only hit for short periods of time. While you take a look at the chart and say "wow the price used to be $20k in 2017", remember it was only a matter of minutes, hours or maximum a few days. Only few lucky ones were able to sell at the highest price - while other inexperienced traders probably bought. :)

Let me explain how the price falls/rises:

Take a look at the following order book (order books contain price listings of sellers, sorted by price) from an exchange:
https://i.ibb.co/4241QWP/dd.png

Say you have 10 BTC and decide to sell them instantly on the market, and you meet exactly this order book. What choices do you have?

 - The price is currently $8,686.0843. As you see, the first trader on the buy orders list (the blue list) offers $8,684.6957 per Bitcoin but only wants to buy 1.1612 BTC. Because you have 10 BTC, you cannot sell instantly to this trader. Therefore, to sell 10 BTC instantly, you have to sell at the following prices:
          -> 1.1612 BTC @ $8,684.6957 (completing the first blue buy order)
          -> 1.0137 BTC @ $8,684.6757 (completing the second blue buy order)
          -> 0.8663 BTC @ $8,684.5957 (completing the third blue buy order)
          -> 0.7926 BTC @ $8,681.5958 (completing the fourth blue buy order)
          -> ... and so on, until you get to a total of 10 BTC sold.

 - Because you sold to the first buy offer every time, you had to sell at lower & lower prices - hence, influencing the market negatively. Now imagine you had 10k BTC. If you wanted to create massive panic, you could sell instantly to all the available offers and create an enormous price dump.

If you decide to buy, you'd have to do the same thing: buy from the first trader on the red (sell) orders list. The more you buy, the more expensive you'll have to buy at. With a large enough purchase, you'd influence the price positively - creating a price rise. :)

In other words, if you decided to sell BTC at a minimum of $8,600.00 and had enough Bitcoins to fulfill all buy orders until you hit that price, you could and you'd drop the price to $8,600.00 for some time. The opposite effect is met when purchasing.

1. The value of cryptocurrencies is given by their market capitalization, including BTC. The price is influenced by the ratio between the purchase demand and the supply. If the purchase demand is high compared to the supply, then the price will increase, but if the supply is higher, then the price will decrease. That's the beauty of BTC. No one can influence the price of Bitcoin except investors, through their actions.
2. The price of a Bitcoin that you see updated on sites like coinmarketcap is calculated as an average between the prices of the most important exchanges.

Many early investors miners of btc sell their bitcoin that time that's the reasons its crash. They are already in profit so why need to wait more longer and because of panic of many newbie and being affraid  of losing more in USD value.

Yes, that's when the great dump starts and followed by the bear market. As you know, there's one popular crypto personality that has reminded the whole community that it's likely a bear market was about to start. And that guy was Charlie Lee.
His tweet - https://twitter.com/SatoshiLite/status/940353265585160192
He pointed out to his Litecoin but that's a hint that the market was about to suffer.

Well I guess talking about bitcoin on its value and price is just the same in the market. What you are trying to say is its value when adopted outside the market like being accepted as payment means, that's what it looks like, on the other hand, the price is is determined by the speculation which is given by the decentralization, basically the law of demand and supply applies. The limited supply is what guarantees the effectivity of bitcoin in the long run.

Precisely. Check out Reddit and social media posts back in 2018. People were in full on panic-mode hence why bitcoin's price crashed so hard so fast. On the other hand, also check the market sentiment back in 2017 where everyone was pretty much bullish on bitcoin, even people who don't know crap about Bitcoin.

the severity of the 2018 crash was not because people were panicking, instead it was simply because the bitcoin price was unrealistic or in other words was in a big bubble at $19900 and that needed to be corrected by the bubble bursting which means a big crash. in many ways you can call it a natural market behavior rather than a panic.

1)The value/price is determined directly by the supply&demand and indirectly by the costs of mining Bitcoins.

2)The number you see if you google "bitcoin" is an aggregated average price that was extracted from a big quantity of cryptocurrency exchange platforms,where Bitcoin is actively traded.

What you mean by "getting embed on websites"?Are you a kid?Your questions seems pretty childish to me.
You should read more and watch more videos about cryptocurrencies and how the market economy works.

One question to OP though. Why would you ask something like this about Bitcoin only? Do you wonder who or which companies set the price for oil,,, or gold? Or stock markets? Or a rare baseball card maybe? The market is free. You can go and open a Bitcoin order to sell for whatever price you want. IF someone actually buys it, then your sell is taken into average and spit out as the price.

Sure, but it's really a mix of both and a few other factors. The markets was totally overly bullish hence the spectacular price rise, and so when the prices were correcting(as per expected), some people who bought lower took profits, and some of the people who bought somewhere near the top panicked.

That's not how it works

Of course, the price of bitcoin determines the market. Like the value of any other commodity and stock exchange. But the latter always have a useful function, for example, oil is a source of energy.
What is the source of bitcoin? In this sense, bitcoin is like gold.?
Gold is used in microelectronics, but these are not as large volumes as its extraction.

If your question about bitcoin value then its depends on us, I mean depend on the bitcoin community. If your concern about the price then its depend on the trading. So trading happen on the exchange, and prices determine from the trading prices. If any websites want to show bitcoin they have to use API from any exchange, some use coinbase or Bitmex. Or may be they could use API from CMC (IMO).

Prices will continue to move because price movements occur because of demand and supply as you can find in previous posts and after all, things like this are not important because the most important thing is about how we can reap as much profit as possible from trading or investing or anything from this crypto market, right.

Essentially the buyer and the seller. If I wish to buy bitcoin at 1$ price and someone sells me 1BTC for 1$ then the price is 1$/BTC even if others will not sell/buy at this price.

Average price at the exchanges is determined to the price listed on various aggregator sites.

Since bitcoin trading is not through any single centralized organisation its price will vary slightly among various exchanges. Unlike the price of a stock on the stock market which will not vary between exchanges.

Blockchain.com is a service provider, they provide services like a wallet, a block explorer and exchange called GDAX and some more services which you can locate on their site.

From different sites like other users have said.

No.

The community determines the value of bitcoin, the more we have a larger community who daily use bitcoin for various purposes, the more valuable it becomes. We don't need people who only buy and hoard and wait for priced to spike and sell. We need daily active users.

Price determines by the traders on the exchanges. Other sites just parse the price from one or several exchanges

Here you have the answer to both questions ... The law of supply and demand is one of the main factors affecting the cryptocurrency exchange rate. The higher the demand and the smaller the supply, the higher the price and vice versa. If the demand is relatively small and the supply is high, the value of a given coin will decrease.

In contrast to fiduciary (traditional) currencies, the supply of cryptocurrencies is limited. In addition, it gradually slows down over time. For this reason, it is very likely that the demand for assets will exceed their available quantity

The exchange price is not something you should follow to the letter because it doesn't representthe real value of Bitcoin. It's not based on all exchanges just a few with the highest volume.

Some exchanges may be faking volume or doing wash trading which is essentially the same thing.

The value is calculated from the traded coins but at least half of the coins in circulation is traded OTC or held and never goes through the exchanges that are connected to price tickers.

Just like every commodity and assets, i believe the price bitcoin is also being driven by the force of demand and supply because when the buy wall seems bigger (demand) it always result in price increment but when the sell wall is bigger (supply) we do see a price downfall. And to your second question, i think the site from which Google Search optain bitcoin price from depends on the most relevant site offering such services

When talking about price specifically, usage doesn't account THAT much in terms of price discovery. What the market mostly needs is liquidity, which pretty much mostly consists of market buyers and sellers.

Also, depending on what you specifically meant by "community", it's mostly not. If you're referring to the community specifically who either hodl or use bitcoin, they don't have that significant of an impact as compared to traders. Hodlers only help bitcoin rise in price by somewhat "decreasing" the supply, whereas while spenders also provide liquidity(which is good, mind you), it's still not as big compared to traders.

In as much as certain people such as whales and high profile investors have influence on the market condition to certain extent, the price of bitcoin is largely determine by law of supply and like how other member suggested, the law of the demand and supply is the force behind the price of virtually every commodity and asset

The first thing to know is what gives the Bitcoin value? There is no one controlling this and it is decentralized? Well, it is related to supply and demand. The supply of Bitcoin is limited, only 21M. It is also not all that is in the circulating supply, only some of them. Moreover, some of them are not mined yet, so, the supply right now is so limited. While on the other hand, the demand for BTC is exactly high. Moreover, in this technology era, many people are willing to put their money in BTC because of its interesting and promising characteristics. In fact, many more people want BTC. The supply and demand will always be there, more demand, the price or value will be higher.

However, as we know that the price of the BTC is very volatile. It depends on the market, yeah. The price depends on the market, and it is stated that there is no one can control the price of the market. Probably true that somebody may not be able to control the price in the market. But, what about some people who have a big amount of BTC that play the market? It is possible to influence and control the market of BTC.

If you are talking about the display of the Bitcoin price on google search, there are some parties that provide the data. The price on google search for USD rate is by "Morningstar for Currency & Coinbase for Cryptocurrency".
You can also find such kind of Bitcoin price and market tracker on some tracker websites. They are such as Coin Market Cap, CoinGecko, and others.

This is accurate answer.
2. always estimation but its accurate enough
1. this is best in the world method to know price, supply and demand, thats it

You have to know that prices depend on the market. No one alone can value something. Bitcoin too, the price depends on supply - demand. When more people believe in Bitcoin, believe in its value, its price will increase and vice versa.

You see the price on Google but do you check the source it's coming from? It's clearly written below by Google – ‘Data provided by Morningstar for Currency and Coinbase for Cryptocurrency'. So, you already know who is providing those data you see on Google.

Although I have not really taken my time check out how the price of Bitcoin is determined, but if you have taken the time to check cryptocurrency exchanges you will notice that there is usually a slight difference between them; the same price you see on Coinbase is not the same you might see on Binance, Luno, and other exchanges. As for what determines the value, it's the rate of demand and supply and the trust we have in it.