Bitcoin, how does it work and what affects its price?

[Raggie]

Few technologies have the ability to stir passionate online debate and baffle the vast majority of the population as bitcoin. The virtual currency rocketed in value last year before crashing during the first quarter of 2018, and possibly proving the naysayers right.

But in recent weeks the price has begun rising again. Although it remains well below its peak of $20,000, it has shown steady gains to reach more than $8000 sparking a fresh surge in interest.

i think the most factor that affecting bitcoin price is the issue of regulations and news. I heard that bitcoin increasing price lately because SEC announce that BTC and ETH are not a security coin.
So, it is important for the community of bitcoin that a fud should not spreading in the community.

[raahi]

To understand that you must first know that it is a cryptocurrency and secondly that it is decentralized, unlike many other cryptocurrencies, bitcoin price is decided on the basis of democracy which means that demand and supply regulate its price value so look at the transaction volume per day for a good estimate.

[Zentor]

Sadly bitcoin price is often manipulated by whales and depends on their plans, in my opinion. A lot of articles were written already about his algorithms and principles of work, you need just to google it

[pyosar]

People are not predictable and we can not say exactly what is the reason for increasing interest in bitcoin. Most likely, people analyze schedules for technical analysis and, based on this, make the same decisions, so the price is growing.

[bungutko]

In my opinion, it is purely economics on the law of supply and demand. If supply is low and demand will be high,  price will increase.  However,  due to volatility in nature of bitcoin usually has been affe ted by any negativity and FUD that could result to dip in price.  Another scenario, whale investors manipulation  also has an involvement in every bear market wher it could also impact the growth of btc.

[Markettoken]

bitcoin can not be said clearly and known certainty so in my opinion that affect the price and its value is the increased demand for bitcoin while bitcoin available is limited and
which can make a lot of bitcoin enthusiasts is the spread of news or good news about bitcoin

[rodskee]

Nothing to discuss argument about bitcoin how does it work and their affects in the users or the ethusiasm bitcoiners, people before they can adopt bitcoi as currency they know how is work as digital currency moving high volatile fluctuations.

[hadveach]

in fact, bitcoin is very easy to destroy, and dropped. but I think that a large volume of public enthusiasm becomes a bitcoin buffer, so bitcoin can survive until today.

of course, bitcoin works with the concept of decentralized, anonymous, so the volatility is very high.

I say that bitcoin is easy to drop, because all factors affect the value of bitcoin except for factors related to world politics and economics.

[ronalsi]

There are a number of reasons that affect the price of Bitcoin, as bitcoin's intrinsic fluctuations are often affected by any negativity and FUD can lead to price cuts.

[hknknitin]

Bitcoin, currently the most famous digital currency, is used for transacting money privately with low cost money transfer. It is also being used, in the legalised part of the world, for purchasing of day-to-day goods. It works with transparency with the help of Blockchain technology. Its price is governed by supply and demand of it in the market mainly plus the major bitcoin holders also affects the valuation of bitcoin to some extent.

[Dharmmie]

Helpful comments

[mfyilmaz]

Bitcoin works because of trust and people trust it because they dont need to trust but have full controll... everybody knows exactly how many btc are there who owns how many and who transfers to whom... you dont need to ask questions because everything is so transparent that there are no questions and that is the reason people want to use it because they work hard for their wealth and they dont want some people to controll their wealth... well at least thats the reason for me.

[Sonik33]

bitcoin prices this year are not as good as last year, but in the last few months I see bitcoin prices so somewhat stable, the price movement is not far away, if it can be more stable then bitcoin would be more worthy to become official currency.

[GeorgiyBilyk]

I have been trying to understand the entire crypto market for a year already! and I am ready to say with great certainty that no one will ever be able to say what will happen tomorrow with a crypto market, or what the price will be tomorrow! Crypto market is very unpredictable !!!! I certainly believe only in good, the only thing I hope that bitcoin will soon cost about 50,000!))) I add that the price affects everything that happens in the world!

[Sydney Chapman]

Like all things value is determined by basic demand. While the  bitcoin market is very new and still vary susceptible to price swings  bitcoin is worth what it is because of a few broader philosophical  ideas:
It's  a means of transferring wealth outside of the given institutions  governed by centralized (and objectively biased) institutions. This  simple idea alone adds to the "value" of bitcoin.
Bitcoin  is the only completely transparent way of exchanging wealth. Every  transaction is publicly listed on what's called the Blockchain. (Blockchain.info)
It's  as anonymous as you'd like it to be. While every transaction is  publicly viewable, it doesn't have to be tied to an individual, there  are methods of cycling transactions that create a virtually untraceable  exchange.
It's global. I can trade  with anyone in the world virtually instantly without having to exchange  one foreign currency for another. Even countries that have strict  currency laws can be subverted, as long as both parties have access to  the internet.

[James Fleming]

It has value largely because a lot of people think it has value. Like other commodities, currencies and tradable stuff, if people are willing to pay for it, then it has value. If people are willing to accept it as payment, then it can be used to transfer value. If people are willing to buy and keep it, then it can be used as a store of value.

Bitcoin however, isn’t all hype. Unlike ponzi schemes or turlips and such, bitcoin is a real thing. It’s a global network that’s not controlled by anybody, and does one thing very very well: keeping a record of who paid bitcoins to who that cannot be modified, destroyed or reverted any anybody. One cannot possible comprehend why this is a big thing if you don’t know how insurmountable a task this is as a software developer. Bitcoin is grounded in solid technical fundamentals, and is one of the few wonderfully written piece of software that got the mass recognition it deserves.

So yes, bitcoin has value, as real as other things that has value, and I highly recommend you look deeper into it beyond the trading, currency and hype if you want to know more about how technologies like these can help us build infrastructures for the world of tomorrow.

[Gurjasmeet]

I think it's all depends upon them demands.there is a fundamental rule if a product has big demand in the market & the supply is less than its demand.there results will be high price.

[yayat]

The way Bitcoin works is very easy, he is transferred from Wallet a to Wallet B through transactions that are on the Blockchain.
with great Anonymity and speed.

Which affects the price because there are many requests from traders to buy Bitcoin.

[Sebas.tian]

There are articles, videos, blog, etc that can be find in the internet relating to bitcoin and how it works so you might just want to lool at it is more reliable. As for the price dependencies, I believe this is purely controlled by the news--wether good or bad.

[DJ_Rick]

I think that btc is the best coin and the price is affected by many factors including the supply and demand. to my mind, it is better to choose ether and btc. You should check how the blockchain technology works before investing in it