📈 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?
I think it’s the forces of demand and supply that determine the value.
I think Bitcoin price is determined by the factors of scarcity and psychology
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
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.
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.
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.
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.
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.
Is it wright to say that USD is negatively correlated with Bitcoin.And positively correlated with AUD and EUR .