Question from BTT Expert
Can anyone explain that how the prices of bitcoin goes up and falls down? Any verified Reasons?
Bitcoin price fluctuates based on the demand and supply. When demand is more it means more number of people are buying bitcoins and hence bitcoin price goes up.
When demand is less, people are selling their bitcoins and hence the price goes down.
How and what is the procedure other then academic economics?
There are also other factors which derive the spike in bitcoin's price such as psychological factors, news and media, FUD and FOMO etc..
The current FUD related to double spending of bitcoin is a solid example of how FUD can lead to decrease in bitcoin's price.
Also explain that if we ary buying it through money and exchange it through money and save that money in our bank accounts, then how we cay say that it is not monitorised by banks? And there is no middle man in between and it is peer to peer currency? Are not we are fooling ourselves?
You need to buy bitcoin through fiat. Although there are other ways to earn bitcoin for this example let's consider you are buying bitcoin through fiat from an exchange.
This is the basic need to acquire bitcoin in this case but once you have those bitcoins in your bitcoin wallet you can do anything with it.
You can send it to anybody without involving any middle man. You can control your bitcoins and nobody 3rd party is required to have control over your money.
You can even spend it for shopping online as there are services which accept bitcoins directly.
But if you want to exchange your bitcoins for fiat then you will need to exchange it and then get the amount to your bank account.
I hope I answered your queries.