The Factors of Demand and supply

[gowobonyok]

so far yes, because the other investment assets are the same, that is influenced by suppy and demands. when the supply is running low but demands increase, it can make prices go up very high, and vice versa when there is a lot of supply, even though demands increase but prices can actually go down. I experienced this situation now for the love bird. when there is more supply, there are also many demands, but many traders actually reduce market prices so they don't compete. that's normal in any industry.

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[boyz97]

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

I am believe the price of bitcoin determined by supply and demand. With limited supply, bitcoin price will always increase because it will needed as store of value or as a currency. If people using bitcoin for transaction or for investment, the demand of bitcoin will increase and the price will follow

I think the one that most influences the demand and supply is the trust factor. with good price trust to buy it will affect the psychology of investors to buy and vice versa. so a trend will occur, which can be a reference for traders to transact. the more requests, of course, will make other traders believe that prices will rise

trust only come if developers team could deliver product and developt roadmap consistently.if communication between investors and developers team run well, i am sure they will accumulate token amount and stablize the price.

[Irvinn]

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

This is common knowledge. Decentralized cryptocurrency is not secured, has no financial support compared to the usual currency, which have such support from central banks. Decentralized cryptocurrency exists only on the basis of the ratio of supply and demand. Therefore, it has a high price volatility. For several days, it can rise in price or fall by 30-50 percent and this will be considered normal.

[glowing10]

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

I am believe the price of bitcoin determined by supply and demand. With limited supply, bitcoin price will always increase because it will needed as store of value or as a currency. If people using bitcoin for transaction or for investment, the demand of bitcoin will increase and the price will follow

I think the one that most influences the demand and supply is the trust factor. with good price trust to buy it will affect the psychology of investors to buy and vice versa. so a trend will occur, which can be a reference for traders to transact. the more requests, of course, will make other traders believe that prices will rise

trust only come if developers team could deliver product and developt roadmap consistently.if communication between investors and developers team run well, i am sure they will accumulate token amount and stablize the price.

That is the reason it is said that Vision of the owner and to execute you require a great team which can make really big difference in the future. This will also enhance and make things more better for the smooth transition of new development and proper communication across all the parties.

[raumonds]

If you do not take into account the more insignificant factors, but to look only at the main thing, then yes. In fact, Bitcoin rose so much in 2017 because of its popularity, and therefore, because of such a huge demand for it. Growth trends will appear when Bitcoin’s popularity increases (or its need in the modern world).

[Jating]

If you do not take into account the more insignificant factors, but to look only at the main thing, then yes. In fact, Bitcoin rose so much in 2017 because of its popularity, and therefore, because of such a huge demand for it. Growth trends will appear when Bitcoin’s popularity increases (or its need in the modern world).

You forgot one thing why bitcoin became so popular that time, it's because of all the positive news, (CBoE and CME bitcoin future contracts is the last great catalyst), but after the demand has wane out and so at the price.

So everyone 'buy" the news in the market. And that's how the market operates. Positives news will result in more demand, and no news or complete FUD will make the market goes down.

[bonker]

Bitcoin is also just like other thing in the world the value of bitcoin is just driven by its supply and demand,the value of bitcoin per unit looks huge only because of its very limited quantity of 21 million compared to 7 billion people on this earth but the real fact is it is highly liquidated so we can just buy or sell the amount as we wanted.

[brotherwood12]

yeah the factor are from demand and supply and i think the most cause for that is news in case of bitcoin , rumor about bad news also afffect for that

[Annalise24]

I do not believe 100% that prices in cryptosphere are driven by the factors of demand and supply.
It's more of speculation..news .
It's news that drives Prices.
It could be downward or upwards depending whether the news is positive or negative.

[breathlessz]

Bitcoin is also just like other thing in the world the value of bitcoin is just driven by its supply and demand,the value of bitcoin per unit looks huge only because of its very limited quantity of 21 million compared to 7 billion people on this earth but the real fact is it is highly liquidated so we can just buy or sell the amount as we wanted.

although it's limited, but not everyone uses it, even a few people use it. so there are still many who can monopolize it because the price is still affordable. with the funds he has certainly can easily move the market

[Burogh]

I do not believe 100% that prices in cryptosphere are driven by the factors of demand and supply.
It's more of speculation..news .
It's news that drives Prices.
It could be downward or upwards depending whether the news is positive or negative.

News have big impact to bitcoin price but demand and supply still important factor could drive the price. I agree that bitcoin price is speculation from investor but its free market and anyone can set the price like they want and its depend on demand and supply

[PlusOne88]

Well the same thing is used in the pricing of bitcoin. Prices are still so connected to the real usage. That is why if a big whale (big time investors) dumps, then it is for certain that prices will as well go down. The result is that more supply is now available and the usage is low with respect to the remaining volume of unused coins. If you might have observed the prices sometimes drop vertically straight. This is just a sign that some are moving out or is trading their coins.

[Cherylstar86]

The demand for Bitcoins is based on the awareness about Bitcoin, its popularity, the trust among crypto community members, and a lot more. If the demand is high and the supply does not meet the demand, this causes a spike in the Bitcoin rate. There are only a total of 21 million Bitcoins that can be mined, thus supply is very controlled and price will keep on increasing. Once it will be unlocked, the supply will essentially be exhausted unless its protocol is changed to allow for a larger supply.

[beerlover]

I do not believe 100% that prices in cryptosphere are driven by the factors of demand and supply.
It's more of speculation..news .
It's news that drives Prices.
It could be downward or upwards depending whether the news is positive or negative.

The major determinant of crypto currency price is the law of demand and supply mate, news are just factors that facilitate demand and supply. The news you talked about is what makes people consider either cashing out or not, when people make this decision, if demand and supply does not play out, everything will become static.

Even if the president of the united states comes out today to say he is in full support of crypto, that news alone will not make the price go up if there is no demand, but it will rather facilitate demand which in turn affects the price of the coin.

[Lpim01]

The demand for Bitcoins is based on the awareness about Bitcoin, its popularity, the trust among crypto community members, and a lot more. If the demand is high and the supply does not meet the demand, this causes a spike in the Bitcoin rate. There are only a total of 21 million Bitcoins that can be mined, thus supply is very controlled and price will keep on increasing. Once it will be unlocked, the supply will essentially be exhausted unless its protocol is changed to allow for a larger supply.

Even though we have that huge demand but it is still far enough to reach its limitations. We don't know if there is a back-up numbers of bitcoin hide for now and 21 million circulating supply is just we know since before. The only possibility when it totally mined, there might be an increase of price and we surely get more profits during that time.

[yvesp110]

I do not believe 100% that prices in cryptosphere are driven by the factors of demand and supply.
It's more of speculation..news .
It's news that drives Prices.
It could be downward or upwards depending whether the news is positive or negative.

The major determinant of crypto currency price is the law of demand and supply mate, news are just factors that facilitate demand and supply. The news you talked about is what makes people consider either cashing out or not, when people make this decision, if demand and supply does not play out, everything will become static.

Even if the president of the united states comes out today to say he is in full support of crypto, that news alone will not make the price go up if there is no demand, but it will rather facilitate demand which in turn affects the price of the coin.

To be agree it is true that news are not reality I think as some news come for our benefit and some are not for us, so it has not effect about price but demand and supply makes market shake and price also get change with it, I think it has ability to raise the price when in market demand become higher than supply, and falls when supply become higher than demand so both of them are inversely proportional.

[Sum24]

I do not believe 100% that prices in cryptosphere are driven by the factors of demand and supply.
It's more of speculation..news .
It's news that drives Prices.
It could be downward or upwards depending whether the news is positive or negative.

Why not mate demand and supply are the two factors which has ability to increase and decrease the value of crypto along with the price, when in market supply become higher than demand it makes market go bearish and when demand rises than supply so it makes price higher, and makes bull run, news are all fake just make your own analization.

[LUCKMCFLY]

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

Of course I do, totally and support myself according to Wyckoff's theory, where:

If the Demand> Offer prices go up.
If the Offer> Demand the prices go down.

This is the basic principle, and can be applied fully to the speculative market of Bitcoin and Altcoins.

When Wyckoff refers to the Law of Supply and Demand, it is towards the stock in the Stock Market, where many of these shares are backed in some way, either by having liquidity with FIAT money or by having Gold or any other precious metal backing .

The current market of Bitcoin is not only governed by this Law of Supply and Demand, it also has a factor that distinguishes between markets like the Stock Market, and it is the high volatility, and its support behind blockchain technology.

Many speculators can talk about the news influencing, that there is manipulation, but the cryptocurrency trader understands very well the concept of Law of Supply and Demand, and hence all the speculation is derived.

[Ucy]

Yes.  Prices of cryptocurrencies in general are determined by demand and supply... more like how food or property prices are determined by demand and supply. If food is scare and demand is high the price shoots up and likewise properties.
Bitcoin works in this way too. It is scarce already, so high demand does push the price up as a result.

[BUK2016]

When I was in college we were taught that the price of any commodity is determined by the factors of demand and Supply to a large extent.
In your understanding, do you think that the price of bitcoin is determined by the factors of demand and supply?

The answer is YES because even though some people here are saying something about either regulation policy by the government or some other factors as mentioned by some members above all tend twords demand factors that led to the decrease in the market value of Bitcoin and other crypto currency in general.