The price is simply derived by supply and demand. At the very beginning, Bitcoins were worth literally nothing. Thats right, nothing. Why you ask, well, no one was buying them, so the only owners were miners, and Bitcoin didn't simply have any value.
Only later on with the first exchanges made between users a price was starting to take shape, then with the first actual exchange the price started to take it's course until what we have today.
OK so basically the bitcoin price started increasing after people became aware of it. So I was right in saying it works the same way as the stock market with respect to the demand and supply.
I wonder why did the price fall from $1000 to $200 - $300. Was it because the demand was high or was it adopted by a brand/company which made the price reach that amount?