Who decides bitcoin price: Revealing the Truth behind the Myth
We all are discussing about “bitcoin” from a long while ago, Right? During this period we have discussed a lot of ideas, facts behind bitcoin and how it is used in exchanges, how it is used in online business, etc. But every time the bitcoin price rises or falls, the one question which strikes on everyone mind is “who decides the price of bitcoin or how bitcoin price is decided?” Why bitcoin price fluctuates, why bitcoin price is increased, why bitcoin price falls and etc” . We all had a lot of assumptions, opinions, and statements got by word of mouth, regarding the above questions. Get set, the confusions are going to end now (i.e.) we are going to reveal the truth about who fixes the price of bitcoin.
How bitcoin price decided?
There is no single person involved, and it is not anyone else. It is you and people like you.
Yep, there is no network or anonymous persons decide the price of bitcoin. Traders (users) alone decide the bitcoin price and the market support the people; this relies on an economical concept “supply and demand”.
1. When the number of supplies or the number of people who sells bitcoin is increases then bitcoin price will fall down, and then bitcoin will on low demand
2. When the number of supplies or the number of people who sells bitcoin is decreased then bitcoin price will increase, and then bitcoin will be on high demand.
There are some factors and events correlated to this supply and demand of bitcoin, lets see what are they
Factors which affects bitcoin price
- Price of bitcoin varies on every exchange website
Regardless of the bitcoin’s global price, exchanges set their own price in terms of acquiring profit. So it is also a factor behind deciding the bitcoin price.
Events which affects bitcoin price
1. When a country announce its regulation towards bitcoins and its transactions this will affect the bitcoin price.
2. Also when there is hacking or criminal activities involved in bitcoins will affect the bitcoin price.
3. Unevenly distributing the ownership of limited bitcoins which collected from bitcoin giants who involved in bitcoin trading.
4. Also the bitcoin price will be driven to down when a seller sells bitcoin in high volume.
(i.e) when a person sells millions of bitcoins at a time, will decrease the demand for bitcoin, and will decrease the bitcoin price. This is known as cracking the entire bitcoin market.
Hope we have given you the major factors which decides the bitcoin price. So if you are wishing to trade bitcoin here after, please be aware of the market supply and demand, and get in to the trading.