what determines the value of BITCOIN??

[camsicuya]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

[TryNinja]

Looks like you already know the answer.

Supply and demand + news.

Internal problems or in the "Bitcoin code", worldwide acceptance, prohibition or regulation in key countries... Everything influences the price of Bitcoin.

[Kprawn]

By the looks of it, Bitcoin's value are closely linked to Supply & Demand. The Supply are from people who sell their coins and also from new coins

being mined and sold. The Price is monitored and measured on Bitcoin exchanges, where these coins are traded/sold/bought. Some people also

trade on other platforms, like Localbitcoin and directly between people. 

[cnmgfb]

https://upload.wikimedia.org/wikipedia/commons/thumb/d/d8/Tulipomania.jpg/220px-Tulipomania.jpg

[mk4]

Here are some of my opinions:

Bitcoin's price increases when:

• More people use it
• More people investing on it
• More publicity from TV news and popular news websites
• When we get whatever good news from the devs

Bitcoin's price decreases when:

• There is too much fear, uncertainty, and doubt (FUD)
• Too much ICOs
• Too much people selling to buy other cryptocurrencies
• Bitcoin gets "banned" from other countries
• There are negative news about bitcoin

[eternalgloom]

The bigger question to ask is: where does the demand come from?

Part of the demand is pure speculation, people who just buy Bitcoin with the hope that it increases so they can sell it for a higher price later on.
Another part of the demand for Bitcoin are people who actually need Bitcoin for its uses.

I reckon that a pretty big part of the Bitcoin economy is driven by people who use Bitcoin for illicit purposes.
Perhaps it's not something we'd like to acknowledge, but it's certainly part of the demand of Bitcoin and without it, prices would be lower than they are now.

Darknetmarkets might even have jumpstarted the initial demand for Bitcoin, I'm not sure what kind of effect it has now on the price.

Let's not forget the legal uses, people might also buy Bitcoin to send money overseas or just because of ideological reasons.

[User365]

As you already said supply and demand.

The supply are the already mined coins.

The demand is defined by the people which buy it or accept it as payment, because many people trade on exchnges, those are a good indicator for the current price (i know you asked about the value, will come to that later). The exchanges currently have quite a piwer because all sellers I ever saw reference their products to a fiat currency, meaning the product cost 20$ and when bought it is converted to BTC.

The trades on the exchnges influenced by the media (on the newspaper, internet news), forums (reddit and btctalk), technological news (f.e. Segwit).

The real value throught is determined by your view. For me the value is much more than just the price, I think it is valuable because of the decentralized network, the low fees compared to international bank transfers (hopefully soon at all tx), the limited supply and the anonymity, I think it is the next gen currency, just like we switched from iron to steel. Of course the price is important, but it's not the only thing that determines it's value.

[hajimasan]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

Actually there is no one factor that are effecting the but the and its price and also even there is nothing for the price in the altcoins , here you should be clear that the value and price of the Bitcoin or altcoin is not restricted to any laws because cryptocurrency is made to make the flow of money without any control under any law .
Here all things depending upon the demand in the market ,  I means to say that the price is mostly determine by the exchange only because people making buy and sell according to the big at the exchange , so the price will be zero $ if you will sell at 0$  , As no one is stupid so mostly the price remain at high according to demand and supply .
If any bad news will.enter in market then many people starts to make sell , so in that case demand will get down so price will get down because everyone want to sell but less no. of the people want to buy , so this is usual to get the price down .

[amacar2]

Bitcoin price depends on demand and supply except occasional market manipulation by some whales.

There are several factors that can affect price movement and nobody can exactly predict how market will act on certain news related to bitcoin. You should not believe in any HYPE and FUD you might hear everyday.

[tiggycomb]

Two words: demand and offer. Bitcoin is purely priced on the demand/offer stability, as long as people need and want bitcoin then it will have a stable or even growing value.
The advantage right now is the increased use of bitcoin in different fields, from the darkweb to companies and online marketplaces, keeping a stable demand.

[skorupi17]

The main factors that dictates the price in the demand for bitcoin and the total supply of bitcoin available in the market. So as to what you've said, it depends on the law of supply and demand.

However, there are external factors that drives people to sell and buy bitcoin. The news is one of them, the current price fluctuation is caused by some unofficial news about a possible split on bitcoin's chain. Some people panicked and caused a major dumping on Bitcoin's price. A good news such as a country to accept Bitcoin will lead to the increase in price. This is because of more people will know about Bitcoin and eventually be holding Bitcoin. Thus, increasing demand and not to mention the price.

[seleme]

All assets are only depend on two factors under real market conditions: Supply and Demand  That's why traders always check big guys'orders before entering positions

[BTCbengi]

The bigger question to ask is: where does the demand come from?

Part of the demand is pure speculation, people who just buy Bitcoin with the hope that it increases so they can sell it for a higher price later on.
Another part of the demand for Bitcoin are people who actually need Bitcoin for its uses.

I reckon that a pretty big part of the Bitcoin economy is driven by people who use Bitcoin for illicit purposes.
Perhaps it's not something we'd like to acknowledge, but it's certainly part of the demand of Bitcoin and without it, prices would be lower than they are now.

Darknetmarkets might even have jumpstarted the initial demand for Bitcoin, I'm not sure what kind of effect it has now on the price.

Let's not forget the legal uses, people might also buy Bitcoin to send money overseas or just because of ideological reasons.

That's right, part of our need is a bitcoin in the hope that it will grow and sell. But our needs are just a small part of Bitcoin's demand for illegal trading. That is absolutely undeniable, so that the price of Bitcoin can be so high. I fear that, they will gradually give up Bitcoin to seek a better way to trade, a new currency

[jorneyflair]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

Supply and demand determines the price of a decentralised currency and in this case, Bitcoin.

As the demand for an item goes up and more people want bitcoin, then people will start selling bitcoin for a higher price, when the bitcoin eventually does sell, the price goes up and people will start selling them for an even higher price.

If the demand for an item goes down, and people aren't able to sell their bitcoin at a desired price, they will start selling low, and then the price would keep falling and the snowball effect will keep the price falling

If the supply for a product diminished, say some strange event killed all the blocks, bitcoin would rise in price, since there wouldn't be that much bitcoin available.

If the supply for a product rose, bitcoin would become cheaper since there would be more bitcoins avaliable.

[aTriz]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

You have kinda answered your question by yourself there.

Supply goes up, price goes down. Supply goes down, price goes up. Demand goes up, price goes up. Demand goes down, price goes down. But one thing that has not been mentions was how media attention effectx bitcoin. The more people who know about bitcoin, the more people search for bitcoin on the web and therefore the higher the pice of bitcoin becomes. Also FUD can lower the price of bitcoin.
 

[iram1011]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

Bitcoin price is driven by scarcity, utility, supply and demand. Bitcoin is scarce means its supply is limited. There are currently just over 16.2m Bitcoin in circulation and the maximum that will ever exist is capped at 21 million. This set cap is well known, making its scarcity transparent. However, to have value, Bitcoin must also be useful. Bitcoin creates utility in a number of ways ( very well known). Finally the fluctuation in price is determined by the market in which it trades: by means of supply and demand.

[cafucafucafu]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

Most of every thing that relates to the price of bitcoin has already been said but I'll try add to the conversation. Supply and demand is definitely a big aspect of bitcoin and there is no doubt that it affects the price of bitcoin.

Something else that strongly affects the price of bitcoin is social media. When influential people say something about bitcoin, people will be interested in it. Say your daily news recommended you to invest in bitcoin. The price would obviously rise since demand for bitcoin will grow.

[ethereumhunter]

Hi folks,

As a newbie of this group,  i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demand—if more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya

Most of every thing that relates to the price of bitcoin has already been said but I'll try add to the conversation. Supply and demand is definitely a big aspect of bitcoin and there is no doubt that it affects the price of bitcoin.

Something else that strongly affects the price of bitcoin is social media. When influential people say something about bitcoin, people will be interested in it. Say your daily news recommended you to invest in bitcoin. The price would obviously rise since demand for bitcoin will grow.

of course supply and demand take a part in bitcoin industry. when people want to buy bitcoin, there must be another people want to sell bitcoin. with growing of bitcoin, many people want to buy bitcoin and it cause the price is high, the other time, when some news especially bad news happen in bitcoin, then the price is drop. but this will not stop bitcoin to reach the top price in future, bitcoin will be grow and become famous and now the price is trying to reach new level price.

[senin]

In my opinion, the price of bitcoin, first of all, is determined by the growth of its recognition by the society, by the number of users of this crypto currency. However, the course is influenced by a number of other factors, including technical factors (such as the upcoming resolution of the August 01 scaling issue), organizational factors, the availability of demand and supply for a particular crypto currency and at a specific moment, and other factors.

[stompix]

In my opinion, the price of bitcoin, first of all, is determined by the growth of its recognition by the society, by the number of users of this crypto currency. However, the course is influenced by a number of other factors, including technical factors (such as the upcoming resolution of the August 01 scaling issue), organizational factors, the availability of demand and supply for a particular crypto currency and at a specific moment, and other factors.

You just wrote down for lines of text when you could have said it so easily just like everybody else.
Common, it's one stupid answer no matter how many times and in how many long phrases you wrap it.

But I would also add FUD and news about China (now segwit scare) on the list.
The ingredients to spice up the markets.