How is the bitcoin price determined?

[topty11]

I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?

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[Theb]

For starters their is no fair value for Bitcoin. The price of Bitcoin is determined by the demand of the people and how the buying and selling forces agree and settle with a price. We the people who are into trading Bitcoin are the ones who determine the price of Bitcoin that is why it is so volatile because many people are actively trading it to take profit and also the big players are the ones who are controlling it mostly.

[Dreamchaser21]

The price really depend on the bahavior of the buyer and the seller, this is how we detemined demand and supply affects also the price of bitclin. In the future the price of bitcoin will surely go even higher since the demand for this are continue to increase.

[fabioganga]

Just like every other financial asset, it is the ratio between demand and supply available that affects the price.

[Mi5h0]

I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?

The answer is rather simple and it lies in basic economics:scarcity, utility, supply and demand. The combination of two elements: scarcity and utility, creates value by which price is determined based on the market’s supply and demand.
Bitcoins supply is limited. There are currently just over 16.6 million Bitcoin in circulation and the maximum is capped at 21 million. This set cap is well known, making its scarcity transparent. Bitcoin also has undeniable utility even when compared to other, more recent crypto currencies. There is no other digital currency that is more widely used and integrated at this moment. However, Bitcoin's value can not be reduced to just one element or feature. Many aspects of cryptocurrency contribute to its usefulness and offer advantages over traditional paper money and its accompanying systems.

"Everything is worth what its purchaser will pay for it" - Publilius Syrus, (fl. 85–43 BC)

[jerrison]

I think the bitcoin price is determined by the traders that trade bitcoin against the USD in the various digital markets. Correct me if am wrong

[Sanugarid]

I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?

I don't know actually the right thing why is that bitcoinvalue determined. But all I have to know is that because of the user or the number of persons who are using it. The value of bitcoin depend on the demand of the usage or the number of transactions by the users eavh time. The more users I think the high the value.

[Kousei23]

I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?

The price of the bitcoin determined based on the transactions of trading made by the person whobare using it. And based on the news I heard last time. The number of person who are using and started using bitcoin affect the productions of it making the vakue of it more higher than before and when dumping it is because they want to manage the value.

[ugr_erkn92]

Certain things that affect the price of Bitcoin are of course, for example Bitcoin will be produced in a limited number, the maximum number of Bitcoins that can be produced in the world is limited to 21 million. There is no limit to the price increase or decrease in Bitcoin, there is no upper and lower limit as in central markets, because it is an anonymous digital currency, decentralized, and Bitcoin's transfer is very easy. I think all of this determines the price of Bitcoin.

[Abdul Wasay]

In my opinion Bitcoin price is determined by the behaviour of buyers and sellers. And it may be effected if the economist of the world.

[peterbom]

I think it's very simple.The answer to this question is rather simple and it lies in basic economics: scarcity, utility, supply and demand.
By definition, if something is both rare (scarce) and useful (utility) it must have value and demand a specific price, with all other things being equal.
Take gold, for example. Why does gold cost as much as it does? Put simply, it is relatively expensive because it is rare, hard to find and limited in supply (scarcity). Gold also has some uses to which consumers derive satisfaction from (utility).
The combination of these two elements creates value by which price is determined based on the market’s supply and demand.

[jackhdt]

At present, bitcoin is regarded as commodities. The rate of the Bitcoin is not anchored in any other currency that totally depends on the supply and demand of the market. Bitcoin is one of a kind property has free-market nature pure. It cannot be controlled by other factors

[OSISzig]

It revolves around the basic economic rule of Demand. If more people want Bitcoin, then the price will likely to go up. If comes a time that no one wants to use Bitoin anymore(which I doubt will ever happen) then It will have no value.

There was a famous story that in the past 2 pizzas cost about 10 000 BTC. Now a single BTC can buy you thousands of pizzas.

[bitart]

Bitcoin price is determined by the buyers and the sellers promptly. But on the long run, the expectations are the real drivers of the price change. If most of the people expect higher price for the future the demand will grow and it will cause less people to sell so it will modify the price upwards. If people expect the bubble to burst it will move the price down. Expectations are driven by the news on the market. News are driven by the media and social media (and I don't know whom the media is driven by...)

[howtobuy]

The price is always combinations between supply and demand. I think the reason for the current spike in Bitcoin price is the increasing interest from institutional players (banks, funds, high net worth individuals). Since there is so much money out there - the price still can go up once the big guys will get more confident.

[tora]

Buy and sell offers are placed on exchanges. If there is no volume ie no buys or sells then price will be adjusted until trade occurs. Most exchanges have similar prices as any large difference is soon acted upon by arbitrageurs exploiting such a difference.

[bear100]

As Bitcoin is "young" investment assets, the price of it is strongly affected by news, especially about banning the crypto in some countries (as it was with ICOs in China) and so called "whales", who can manipulate large amounts of bitcoins. And of course, by number of miners, users and hash rate.

[BY_ATOM]

As Bitcoin is "young" investment assets, the price of it is strongly affected by news, especially about banning the crypto in some countries (as it was with ICOs in China) and so called "whales", who can manipulate large amounts of bitcoins. And of course, by number of miners, users and hash rate.

I think a little bit differently) affect the price not the news, and how people who have assets have bitkoyntov will react to this news!

[TrueAnon]

You could say there is a starting price since miners consumer a lot of electricity to mine a Bitcoin. That starting price would be the electricity consumed. After that it's basically offer and demand.

[stompix]

I have just been recently trying to know how our legend crypto (Bitcoin) price determined. I really need to know more about this. Pls how is the price determined from time to time?

Lots of answers but a lot missing the most important point.

There is no such thing as a global bitcoin price.
Just check bitfinex and bitstamp. One it's at '72 and one at '67.
What is the real price? Both and none at the same time.

The price fluctuates not form second to second but from exchange to exchange, from website to website from trader to trader.
Probably the best example of a truly free market where demand and offer reign supreme and you can have situations where in your country nobody on localbitcoins wants to sell you coins for 6k let's say but in Germany they sell it 100$ cheaper.