Crypto currencies are new kind of a digital asset. its called crypto as its built on cryptography. it came in existence with the invention of blockchain a decentralised ledger. now a new start up is bulit on blockchain and they raise funds through issuing crypto tokens.

The price of Bitcoin is not the same as its value. Price is determined by the market in which it trades: by means of supply and demand. This is the same way the price of your secondhand car, a bag of apples in the supermarket, an ounce of gold and just about everything else is determined.

Traders with bank accounts in our supported countries can trade Bitcoin on the Luno Exchange, which sets the specific price at a specific time for a specific market. Luno doesn’t set the price: the traders (buying and selling on Luno) do.

Put simply, it is the ongoing interaction between buyers and sellers trading with each other that determines the specific price of Bitcoin (and everything else).   

However, when determining price, one must also consider the amount that buyers are currently willing to pay for the future value of a specific item. In other words, if the market believes the price of something --like property, a certain stock or Bitcoin-- will increase in the future, they are more likely to pay more for it now.
Some of the instances where Bitcoin currently has utility was mentioned above, but since Bitcoin is an evolving and improving technology, many are optimistic that there are many other use cases to come. Some, perhaps, that we haven’t even thought of yet.

I knew bitcoin since long time ago. When the price was $200 each.

But at that time I had no idea that it would be this high.

Noooooooooooooooooooooo!

Back in 2012 is when I first heard about bitcoin from a buddy who was mining it at the time.

I passed it up as nothing...

Now look at it. Gosh

What are risks and benefits of starting a Coinbase account?

I used to think Bitcoin was a bubble, but I no longer hold this view.  If nothing else, put all the more complicated factors aside and think of Bitcoin as competing for some of the asset space held by gold and also to some extent art.  Gold, too, in its hedging functions is a “bubble,” though not a bubble.  It is hard to ship, but has some extra value because it is perceived as a focal asset and one that does not covary positively in a simple way with the market portfolio.  The same is true of Bitcoin, yet that kind of focality-based “bubbliness” can persist for centuries.  Note by the way that gold has become less of a hedge, partly because inflation has been low and partly because China and India dominate the gold market more than a few decades ago.  So new and better hedges are needed.  And what a backstory Bitcoin has, making it a strong competitor in this regard.

I am not saying that is the Bitcoin story, it is simply a Bitcoin story, a minimalist account that can appeal to skeptics.  And you can buy this story and still think the current price is either too high or too low.

digital tokens or bitcoin will never and can never replace gold as your financial hedge.