What Dictates Bitcoin Price Increase?

[j.kelvin]

When I joined this group bitcoin price is around $10,000. After a few weeks it steadily increased to $15,000 and now to $18,000+ and speculations of its anticipated increase to $20,000 is all over the internet. I'm really curious who dictates the price increase since Bitcoin is a decentralized currency. Is it really due to the fixed number of Bitcoin to be circulated and a high demand or is it something else. Bitcoin really is beyond logic, Too Fast, Too High and Too Good to be True. I'm in but I can't still get out this feeling of doubt screaming at me saying Get out of there its gonna crash soon. It helps to read a lot of positive articles and threads on Bitcoin. I hope you can share your Idea on this. Thanks.

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[roy.ashton]

Basically I think it's the increased Demand for Bitcoins that makes the price increase. Unless it crashes untimely I think it will increase as high as $50,000 to $100,000 within 6 months time. Although there are a lot of Altcoins that is being initiated or created, Bitcoin being the pioneer only gains so much as more cryptocurrencies are created. Unfortunately we should still be wary of new offers related to cryprocurrencies as there are still person's who uses the hype to scam people. I believe after the drastic increase in price Bitcoin will drop a little and will have a stable price in the future. This is because there is really a fixed  number of Bitcoin to be circulated and I do believe that Big companies will really delve into Blockchain and Cryptocurrencies in general not only Bitcoin. The Prospects of Facebook, Google, Uber, Mcdonalds and other Big companies to use and accept cryptocurrency in the future  is really highly anticipated and some articles are even available on the internet. Imagine buying at alibaba or e-bay and amazon using your preferred cryptocurrency right?

"Bitcoin has value because we put value in it, just like your local money or the fiat. The more people believe in it, the more people accepts it, the more value it has. Only when we open our eyes and realize the things that we should put value into that we will be free. When the prospects of our dreams and aspiration is seemingly achievable thru this medium that we can't help but hope and put everything in it. No one can dictate if it is bad or good as to it being true or false. Be wise and practical." -Roy Ashton

[BitcoinKing101]

Basically I think it's the increased Demand for Bitcoins that makes the price increase. Unless it crashes untimely I think it will increase as high as $50,000 to $100,000 within 6 months time. Although there are a lot of Altcoins that is being initiated or created, Bitcoin being the pioneer only gains so much as more cryptocurrencies are created. Unfortunately we should still be wary of new offers related to cryprocurrencies as there are still person's who uses the hype to scam people. I believe after the drastic increase in price Bitcoin will drop a little and will have a stable price in the future. This is because there is really a fixed  number of Bitcoin to be circulated and I do believe that Big companies will really delve into Blockchain and Cryptocurrencies in general not only Bitcoin. The Prospects of Facebook, Google, Uber, Mcdonalds and other Big companies to use and accept cryptocurrency in the future  is really highly anticipated and some articles are even available on the internet. Imagine buying at alibaba or e-bay and amazon using your preferred cryptocurrency right?

"Bitcoin has value because we put value in it, just like your local money or the fiat. The more people believe in it, the more people accepts it, the more value it has. Only when we open our eyes and realize the things that we should put value into that we will be free. When the prospects of our dreams and aspiration is seemingly achievable thru this medium that we can't help but hope and put everything in it. No one can dictate if it is bad or good as to it being true or false. Be wise and practical." -Roy Ashton

I completely understand what you're saying, however how do you see it possible for a bit going to hit its highs 50 or $100,000 per coin? There are so many coins in existence and if you take that 50 or $100,000 multiplied times the number of Bitcoins available, it would equal to more money than was available in currency in the world put together. Any thoughts on this? Or do you think that this is when they will crash and burn?

[odolvlobo]

I completely understand what you're saying, however how do you see it possible for a bit going to hit its highs 50 or $100,000 per coin? There are so many coins in existence and if you take that 50 or $100,000 multiplied times the number of Bitcoins available, it would equal to more money than was available in currency in the world put together. Any thoughts on this? Or do you think that this is when they will crash and burn?

Do the math. The global base money supply is something like $14 trillion. 21 million bitcoins @ $100,000 is only $2.1 trillion.

[BitcoinKing101]

I completely understand what you're saying, however how do you see it possible for a bit going to hit its highs 50 or $100,000 per coin? There are so many coins in existence and if you take that 50 or $100,000 multiplied times the number of Bitcoins available, it would equal to more money than was available in currency in the world put together. Any thoughts on this? Or do you think that this is when they will crash and burn?

Do the math. The global base money supply is something like $14 trillion. 21 million bitcoins @ $100,000 is only $2.1 trillion.

That does make more sense than my math.  I am not sure how I cam up with over double that amount.  Nevertheless, even at those prices, that is putting a lot of the currency currently in circulation at risk of being obsolete.  I am all for it, but I do not think the world economy wants this to happen.  To many people do not trust the new currency.

[TheAndy500]

More and more people want to invest in it, and bitcoin everyday make himself more and more popular so people are just talking about it which means bitcoin has some ground to just increase its value.

[Coin-Keeper]

Here is some easy to visualize math.  There are almost 8 Billion people (7.6 as of Oct) in the world, but lets keep it simple and stay with 8 Billion.  Bitcoin is all over the news here and frankly across the globe.  With BTC gaining in use and popularity its way beyond reasonable that 2 1/2 percent of the world's population will want to get their hands on BTC.  Really, its tough to imagine only 2 1/2 percent will want to pursue getting BTC.  Again, for simplicity lets stay there and say that percentage of people are going to be "hell bent" on getting BTC.  What would that look like?

Here is the math on that scenario:  8,000,000,000 people X 0.025 (2 1/2percent) = 200,000,000 people hell bent on getting coins.  Now continue the obvious logic.  There are about 17,000,000.00 coins in circulation and over 11 times as many folks that want one (remember "hell bent").  Further; whales are sitting on large wallets anticipating their coins are going up in value way better than fiat investments.  The ONLY thing that will pry some of those coins from such wallets is BIG MONEY per coin.  And let me stress that the assumption of only 2 1/2 percent of the population wanting BTC is going to be absurdly low in a few years.  Should the aforementioned scenario play out (I believe I am being very conservative here) just imagine where the price will go!!

[BitcoinKing101]

Here is some easy to visualize math.  There are almost 8 Billion people (7.6 as of Oct) in the world, but lets keep it simple and stay with 8 Billion.  Bitcoin is all over the news here and frankly across the globe.  With BTC gaining in use and popularity its way beyond reasonable the 2 1/2 percent of the world's population will want to get their hands on BTC.  Really, its tough to imagine only 2 1/2 percent will want to pursue getting BTC.  Again, for simplicity lets stay there and say that percentage of people are going to be "hell bent" on getting BTC.  What would that look like?

Here is the math on that scenario:  8,000,000,000 people X 0.025 (2 1/2percent) = 200,000,000 people hell bent on getting coins.  Now continue the obvious logic.  There are about 17,000,000.00 coins in circulation and over 11 times as many folks that want one (remember "hell bent").  Further; whales are sitting on large wallets anticipating their coins are going up in value way better than fiat investments.  The ONLY thing that will pry some of those coins from such wallets is BIG MONEY per coin.  And let me stress that the assumption of only 2 1/2 percent of the population wanting BTC is going to be absurdly low in a few years.

Ok, based on these calculations, this would put them in a very high demand.  With the transaction fees going up and up to continue the confirmations on the network , we will soon be back to a banking system, where we are paying the same amount as banking.  Why leave one banking system to get into another.

[FinStar34900]

There are a variety of factors which affect bitcoin prices, they depend on buying and selling prices on exchanges, the number of miners, the amount of bitcoin based transactions to name a few. It also depends on the market speculation, and how well bitcoin fares in the news.

[Insanerman]

There are so many factors that affects the Bitcoin Price
1)Buying on exchanging platforms. The more people is willing to pay for a piece of bitcoin, for sure there is greater chance for an increase in the overall value BTC.
2)News or popularity as it dictates when to buy or sell Bitcoin depending on its status or content.
3)Government Regulation. The laws governing the Bitcoin dictates its usability and longevity.

[arisatox]

When I joined this group bitcoin price is around $10,000. After a few weeks it steadily increased to $15,000 and now to $18,000+ and speculations of its anticipated increase to $20,000 is all over the internet. I'm really curious who dictates the price increase since Bitcoin is a decentralized currency. Is it really due to the fixed number of Bitcoin to be circulated and a high demand or is it something else. Bitcoin really is beyond logic, Too Fast, Too High and Too Good to be True. I'm in but I can't still get out this feeling of doubt screaming at me saying Get out of there its gonna crash soon. It helps to read a lot of positive articles and threads on Bitcoin. I hope you can share your Idea on this. Thanks.

It is entirely supply and demand. If there are 100 coins available and 100 people each want one, the price is steady. If one person wants 2, now he's increasing his bid. Someone else wants 5, so he's offering more on top of that. The same goes in the opposite, as well. Everything is dictated by two things: how much is someone willing to pay to obtain one and how much is someone requiring in return for selling? Once the two match, deal is done and price goes up, down, or stays the same.

[Girlsdog]

It depends on many factors, but more often the minority determines the price of bitcoin. Because they own the vast majority of bitcoin and make rules for us toplay.

[Sall-Mo]

I think there are several factors in the following aspects:
1, The number of BTC, the more the number, the lower the price may be
2, BTC's popularity, advertising, news can let people know BTC, so more willing to understand BTC
3, People's confidence in the BTC, BTC think there will be a higher price in the future

[Sutters Mill]

I'm really curious who dictates the price increase since Bitcoin is a decentralized currency. Is it really due to the fixed number of Bitcoin to be circulated and a high demand or is it something else. Bitcoin really is beyond logic,.

Yes, this is literally it. It simply comes down to supply and demand and that's where it derives its value from. It's not really beyond logic and is quite simple really. The more the demand there is for bitcoin the rarer it becomes and therefore more valuable. If half the world wanted to buy bitcoin then it would push the value through the roof because there is only a finite and limited supply of it. That's why if you want bitcoin to succeed and grow in value then you should tell everyone you know or meet about bitcoin because the more people that get on board the more valuable it will become.

[Ninja Sword]

There are many posts with great answers here, but in my opinion, one of the biggest factors of Bitcoin's rise is speculation.

[leitsme]

When I joined this group bitcoin price is around $10,000. After a few weeks it steadily increased to $15,000 and now to $18,000+ and speculations of its anticipated increase to $20,000 is all over the internet. I'm really curious who dictates the price increase since Bitcoin is a decentralized currency. Is it really due to the fixed number of Bitcoin to be circulated and a high demand or is it something else. Bitcoin really is beyond logic, Too Fast, Too High and Too Good to be True. I'm in but I can't still get out this feeling of doubt screaming at me saying Get out of there its gonna crash soon. It helps to read a lot of positive articles and threads on Bitcoin. I hope you can share your Idea on this. Thanks.

Bitcoin is future payment by many big Company. Facebook, Google, alibaba,... will accept it. Now is just dawn for bitcoin. It will increase more and more

[waqarkahloon]

I think when it hitted this high price,  it got more and more attention and hence more people getting into this.  So more money getting in resulting in more price rise

[Nick Rothschild]

Growth bitkoin dictates the fall of the Altcoins and vice versa .. Large investors do not trust their assets bitcoin

[Sutters Mill]

When I joined this group bitcoin price is around $10,000. After a few weeks it steadily increased to $15,000 and now to $18,000+ and speculations of its anticipated increase to $20,000 is all over the internet. I'm really curious who dictates the price increase since Bitcoin is a decentralized currency. Is it really due to the fixed number of Bitcoin to be circulated and a high demand or is it something else. Bitcoin really is beyond logic, Too Fast, Too High and Too Good to be True. I'm in but I can't still get out this feeling of doubt screaming at me saying Get out of there its gonna crash soon. It helps to read a lot of positive articles and threads on Bitcoin. I hope you can share your Idea on this. Thanks.

Bitcoin is future payment by many big Company. Facebook, Google, alibaba,... will accept it. Now is just dawn for bitcoin. It will increase more and more

How do you know and what are you basing this on? As far as I'm aware none of these companies have stated they'll be accepting it. Don't get me wrong, I hope they do but I can't see it any time soon and what you've just said seems to be based on nothing but wishful thinking.

[j.kelvin]

Thanks for your inputs. Well, I now want to know why do bitcoin prices DIP or go down. When you were just speculating it to increase then it suddenly dives.