Hi folks,
As a newbie of this group, i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demandif more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya
As a newbie of this group, i would just to clarify things with regards to the factors or what are the reasons why bitcoin will increase or vice versa. How can I determine the value of the bitcoin? Is it the prices of cryptocurrencies are driven by the laws of supply and demandif more people want to buy, prices increase; if more people want to sell, prices decrease. Due to the nascency of and uncertainty surrounding cryptocurrencies (e.g., regarding regulation, technical challenges, enterprise adoption), supply and demand fluctuate wildly and hence, prices become volatile.
thank you for the enlightment!
Happy earnings!
camsicuya
Supply and demand determines the price of a decentralised currency and in this case, Bitcoin.
As the demand for an item goes up and more people want bitcoin, then people will start selling bitcoin for a higher price, when the bitcoin eventually does sell, the price goes up and people will start selling them for an even higher price.
If the demand for an item goes down, and people aren't able to sell their bitcoin at a desired price, they will start selling low, and then the price would keep falling and the snowball effect will keep the price falling
If the supply for a product diminished, say some strange event killed all the blocks, bitcoin would rise in price, since there wouldn't be that much bitcoin available.
If the supply for a product rose, bitcoin would become cheaper since there would be more bitcoins avaliable.