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Questions and StoriesCategory: Questions📈 How Bitcoin Value Determined?
Ahmad Khasan asked 2 months ago

📈 How Bitcoin Value Determined?

Currently, Bitcoin records its highest price and may reach $20,000 by the end of this year. This tremendous increase in Bitcoin price shows that the demand for Bitcoin is very high. Have you ever think about how bitcoin value is determined?

I think it is an exciting topic for a discussion. Does Bitcoin valuation follows everyday goods such as food where the value is determined by supply and demand. Or does Bitcoin follows a radically different mechanism. What do you think?

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10 Answers
Jackson Mugarura answered 2 months ago

I think it’s the forces of demand and supply that determine the value.

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Muda Markus Dolopoto answered 2 months ago

I think Bitcoin price is determined by the factors of scarcity and psychology

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Gareth White answered 2 months ago

Very much Psychology with Bitcoin. Now the name is well known in the trading community its on everyones watchlist and they are all trying to get a piece of the action

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David Matlala answered 2 months ago

Bitcoin, like any currency, stores value. This value depends on its scarcity, transportability, divisibility, durability and if it can be counterfeited. In the past gold was the standard but now the digital gold is about to take over.

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Edward Duffy answered 2 months ago

Bitcoin is a free market and is certainly at the mercy of supply and demand. If the product such as bitcoin is scarce or there are more buyers than sellers then the price will increase. It is exactly the same principle as currency markets where if people are trying to buy a currency and there are only a certain number of sellers the price will increase.

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Leno Jean Pierre answered 2 months ago

It might be the same principle as currencies value wchih is based in supply and demand. Its value is rising every day because there are many demand in bitcoin.

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Eli Davis Keinamura answered 2 months ago

Demand has exceeded supply and the Bitcoin price is getting higher daily.Offcourse demand is driven by market psychology of different individuals in the market.

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Leno Jean Pierre answered 2 months ago

I think the number of transactions make every day using bitcoin for purchasing and selling goods is an important factor to determine the value of bitcoin. It simple word, the supply and demand for bitcoin determine its value.

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Eli Davis Keinamura answered 2 months ago

Is it wright to say that USD is negatively correlated with Bitcoin.And positively correlated with AUD and EUR .

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Ahmad Khasan answered 2 months ago

Most people here refer to the law of supply-demand. But I still don’t believe it is the only determinants because in Bitcoin we don’t know who has the biggest share of the market. Unlike currency which is controlled by the central banks.

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