I know im probably missing something but im wondering if bitcoin price should even increase, or any price really, because when someone buys bitcoin it creates demand so price increases if im correct but when the person is buying isnt someone else selling? shouldnt this decrease the price so now the price is back to its base? This has me really confused and i have thought about it for a few days and couldnt come up with an answer, someone please tell me the answer.
The price is dictated heavily by supply and demand, and you are not missing something out but just a little confused on how it works.
If supply outweighs demand, the scenario usually is that the price will be a little low, as there is no one buying the available supply in the market.
If demand outweighs supply, the price is up because there is a huge number of people wanting to buy a limited supply of goods, and practically everyone would buy the cheapest good first up until the price builds up well.
There aren't any hocus pocus on how the price works. There are other factors that affect bitcoin's price but when you look at it closely, it still leads to supply and demand.
