where does the price of bitcoin come from?

[Smartvirus]

• Mr. Bob puts 1BTC up for sale at the value of $29,700 on binance, that's the price he wants to sell at,
• Mrs. Jane takes up his offer and buys his bitcoins in exchange for $29,700,
• Once the sale is confirmed, that would be the displayed Bitcoin price on binance, until the next trade that is, this is why the value is always changing.

Simple and precise illustration that says it all!

In a single phrase, we can say, the price of bitcoin is determined by you and I using our buy and sell order. Not the exchange or any other governing body as there is non in the case of bitcoin  but yourself and myself. Most of the crypto transactions we do is with or without an escrow of which, exchanges often serve in that capacity but once we are able to agree at a price, we can transact with that price.
Having someone or a body to decide its price means centralisation to it and bitcoin isn't about centralisation. Its the most decentralized of all cryptocurrencies.

It's almost the same as most commodities out there, where scarcity and surplus gets to play a role to its value with each buyer and seller getting to value it as they see fit due to prevailing circumstances.

[bittraffic]

I can understand how newbie the question is because I was once wondering too when I have no idea about how the market works. There is no one up there on the clouds with a long white beard deciding how much the price will be.

The orderbook type exchange is a good visual way to really make you understand it for it displays buy and sell orders of the traders. The price is normally what BTC sellers are willing to sell and if a buyer agrees to pick the order, then its the market price.

[glendall]

the price of bitcoin comes from its many supply and demand transactions and it has become a law in the world economy even.
so the more people interest in bitcoin then the holder has the right to determine their best price

[Majestic-milf]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

I feel every investor is a key player in determining BTC price which is just a clear picture of demand and supply. With the question you have put across, it makes it look as if there is someone up there responsible for determining whether this week it should be $40k or $42k next week.

[amihada]

I see the price of bitcoin is in the hands of the big whale if the big whale lost faith in bitcoin and they sold all the bitcoins in their wallet would the bitcoin price be that expensive now? Of course the answer is that bitcoin will no longer be worth it.

[amishmanish]

The value of bitcoin is determined mainly by market sentiment. The comparative prices of different crypto currencies and market supply and demand.
I think you should also understand the concept of he value and valuation. Value is the price, at which you can currently sell your bitcoin, but valuation is the value that market ascribe to the bitcoin based on its market evaluations

[wxa7115]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

And who told you that it works like that? No asset that is freely traded works like that, there is a process that is called price discovery that is what determines the price of an asset.

Basically it is based on perception, a transaction between a buyer and a seller does not happen unless the buyer and the seller both think they are getting a fair price for an asset, this process happens over and over again all over the world and this helps determine the price of an asset at any given time, however due to different circumstances that perception changes which changes the demand and the supply and it is what causes the price to go up or down, as the perception of what the buyers and sellers think it is a fair price is always changing.

[Desmong]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

I don't know at the first place who told you that the price of Bitcoin will hit $40k when we all know that the price of Bitcoin is mostly based on prediction. When need to predict what the price of Bitcoin will be from few months to years coming. We know that the price of Bitcoin is based on liquidity created for the contineous flow of Bitcoin.

[bitzizzix]

Bitcoin is open source, meaning it belongs to no one and belongs to everyone at the same time.
the market law of supply and demand, and to be more specific how many trades are made through bitcoin, how many people buy bitcoin, how many people sell it and that's what makes the value of bitcoin go up and down.
and people create value and bitcoin belief that it will be a big technological breakthrough in the future, not bitcoin but blockchain technology behind it.

[Ale88]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

It works just like anything else in the world: supply and demand. If more people want to buy the price goes up, if more people want to sell the price goes down. No one "says bitcoin's value", people decide that.

[Leviathan.007]

I think that's pretty much obvious not just bitcoin but the price of everything comes from supply and demand in some markets, because of being centralized and being under control by the governments and some organizations they can set a price by a single order to market so they can get control over it or they can maybe they will get a price range and the price can move on that price range, while because of being decentralized, none can control the price of bitcoin and it's changing because of supply and demand.

[ChiBitCTy]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

I don't know what you're exactly saying here, your post really doesn't make any sense.  Yes bitcoin is decentralized but that doesn't mean that it's value can't move up or down. It works the same way as anything that is bought and sold on an exchange.  If more people are buying bitcoin versus selling bitcoin that it's value will go up, if more people are selling bitcoin versus buying it, the value will go down.  This is how all exchanges work, decentralized or not.

[Nrcewker]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

The price that you see when google is basically determined by the rates in exchanges through which the Bitcoins have been bought.
And if you wonder how does the price fluctuates or goes up and down?
Then my friend, you might have heard the policy of supply and demand. Same happens with Bitcoins.
A fixed supply or amount of Bitcoins already been developed, so when the demand of the coin is high, the price of the coin increases. Reverse happens when the demand is less and people starts selling, so the price also comes down.
Hope I have cleared some of your doubts OP.

[thet]

who is the person who says that today it should be worth 40k and tomorrow 42k? isn't it something decentralized that nobody controls? who agrees on the price to be like this?

Nobody can predict what will be the price of Bitcoin tomorrow or the following day. Bitcoin price can go down or increase at the same time.

[taufik123]

Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.

[GreatArkansas]

I think that's pretty much obvious not just bitcoin but the price of everything comes from supply and demand in some markets,
(.....)

This is always possible, supply and demand and that is what we expect of Bitcoin right now as we all know there will be only limited Bitcoin that will circulate in the future.
But you should also consider some market manipulation in the market right now, especially in Bitcoin which still has still low market cap compared to other assets. So there can be some group of people/entities that can manipulate somehow the price of Bitcoin by just a small percentage and make money through it.

[Kakmakr]

It is determined by "Supply" and "Demand" on public Bitcoin Exchanges and other platforms where bitcoins are traded. Then you get websites that will consolidate the prices from different Exchanges ...and they will combine that data to reflect the Bitcoin price at any given time.

An example of that is ==> preev.com ....where they use data from Bitfinex / Bitstamp / Kraken / Localbitcoins to get an average price.  

So there are not one single entity deciding the Bitcoin price... they look at the trading data to determine the price. You can determine your own price, but there has to be someone willing to buy it at your price to make the trade. 

[horrifiedx1]

Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.

will feel dizzy if we listen to predictions from various sources. it is most reassuring if we can analyze ourselves technically and fundamentally, so that we have decisions based on personal thoughts. and I think when we talk about bitcoin, it's just a matter of time, because the most important holder in crypto is bitcoin. and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.

[dimonstration]

Therefore, don't believe too much in a prediction because everything is just words that can be right or wrong.
Let's go back to our own beliefs, even though many whales manipulate bitcoin prices, but bitcoin prices for now still can't rise and we can only wait and wait.

Predictions without technicals are just bullshit, but if predictions are made using technical analysis and fundamentals, it should be used as a reference for determining the price of bitcoin. Predictions are not 100% accurate but will help to know the price limit of a coin. Currently the market is bearish, we not only wait but we also have to be prepared to buy at lower prices.

will feel dizzy if we listen to predictions from various sources. it is most reassuring if we can analyze ourselves technically and fundamentally, so that we have decisions based on personal thoughts. and I think when we talk about bitcoin, it's just a matter of time, because the most important holder in crypto is bitcoin. and when investors have stated that they bought in large quantities and were followed by many other investors, then that's where the price will go up, and our job is to find areas to get out of the market.

Yeah listening to someone price prediction is really annoying so the personal knowledge on TA is a must to verify all predictions you can see on social media post if valid or not. Actually there's nothing to follow someone TA especially if the analyst has an impressive portfolio and high accuracy prediction in the past because they are spending time to analyze chart compared to us that casually checking chart with just common knowledge only in TA. I think we just need to become diligent on choosing who to follow if we have no talent on this particular area.

[amihada]

I think the price of bitcoin comes from the hands of bitcoin holders in large quantities if bitcoin holders in large quantities sell all of their assets then the bitcoin price will also drop drastically even if bitcoin holders sell all bitcoins then bitcoin will have no value anymore. so I conclude that the price of bitcoin is because investor confidence is still very close to bitcoin.