How the rate of bitcoin is controled?

[HashBTC]

It isn't controlled.

Is 100% due to supply and demand.

[Text]

The rate of bitcoin depends on the supply and demand, no one controlled its rate as you think. The value goes higher because the demand goes higher. It is also because of the wide adaptation and popularity. Once it gets more popular, many people will use it; the community will get bigger and the development will rise.

[mombay]

Then the rate depend from a website to another.

BTC-E, BITSTAMP, BLOCKCHAIN ... all have different rates.

[mombay]

Can you give example on how to calculate marketcap? And how supply is counted?

if you're asking about supply in regards to the price of a single bitcoin.
you have to check the supply of bitcoins on the order line of the exchange you are look at the price of...
each exchange has its own supply of coins in reserve and each exchange has its own bitcoin price

if you are asking about the market cap $ statistic.
this is an ESTIMATE statistic based on whatever site your looking at getting an average bitcoin price from multiple exchanges. and then multiplying that average by the total coins ever created.

the $$ market cap is a statistic.. it is not a true value. there is no billions of dollars attached to all the coins in existence.

the $ market cap and the exchange price are two separate things.
the $ market cap statistic is an after thought and not important

Many thank's for this clear answer.

[Monnt]

It isn't controlled.

That is absolutely true because in a free market if you are able to invest then we will be able to control bitcoin's price levels. At the same time our control will not sustain for long as anyone else will be having more investment than us to take control from us.

It is a free market and we all control it.

[franky1]

It isn't controlled.

That is absolutely true because in a free market if you are able to invest then we will be able to control bitcoin's price levels. At the same time our control will not sustain for long as anyone else will be having more investment than us to take control from us.

It is a free market and we all control it.

actually it is controlled. to a certain amount.. and done so by people. rich people with all the trading tools

it is impossible to arbitrage from one exchange to another near instantly for regular folk.
there are bitcoin confirmation delays
there are fiat bank wire delays

so knowing this. ask yourself
how come the different exchanges sheep follow each other up and down so fast.

the answer is that the exchanges themselves have mixed reserve they work with.
this is using probably the blockstream 'elements' system where only the exchanges get to arbitrage behind closed doors, instantly

5 years ago mtgox and btc-e had something similar where bitinstant was the arbitrator tool.

so while usual traders are depositing funds to make orders minutes later. the exchanges have already put their large orders in to play the markets and basically sheep follow each other near instantly and get to be first place inline for the best prices

[njcarlos]

I feel like a retard after reading this thread. This can't be life.

[szpalata]

Demand and supply influence the price fluctuation. most of the market cap pricing are involved in bitcoin exchange. Sometimes there are pumps in the coin but is temporal.

I couldn't agree more, I'd also like to add that the demand and supply can also be artificially created by the powers that be to scare off traders in one direction or the other.