The price of Bitcoin How is it determined?
The cryptocurrencies are here to stay.Its importance will not stop increasing in parallel to the exponential increase that we will see in blockchain technology .But it is necessary to differentiate between cryptocurrencies as a means of payment in a blockchain world and cryptocurrencies as an investment.
The price of a bitcoin is determined by anyone who wants to participate in its buying / selling process, in essence its users .That is, what ultimately determines the price of bitcoin, although many factors influence it.
The bitcoin trade allows you to distribute and benefit from it.As in other scenarios, producers (in the case of Bitcoin: miners can propose a price by selling their bitcoins to interested parties reaching agreements.
When another sale offer matches your purchase, the transaction is made automatically.This purchase / sale operation makes the price of bitcoin fixed to the price of the exchange made.
This process is the same as that used to set the prices of all the materials that exist.And it happens tens, hundreds or thousands of times a day, sometimes with great variations.
The value of bitcoin has been changing over time and is based, fundamentally on three factors, user confidence, utility and popularity.
In 2017 alone, 1366% has been revalued.
If you've invested 100 on July 11, 2010 at the price of 0.008 cents of Euro per Bitcoin, today you would have 87 Million and a half euro.
Everything indicates that the next 10 years the cryptocurrency market will have a very similar progression.
In the absence of a single platform in the world where to trade with bitcoins, there is no world or single price of it.However they tend to equate.When there are very large differences in the prices of two exchange houses, whatever they are and due to the nature of Bitcoin that allows sending money almost instantaneously, some people take advantage of this price difference to buy in the exchange house with cheap price and sell at the expensive price, performing an arbitration process.
The first price of a bitcoin in history was determined by a transaction between individuals.It happened on May 22, 2010, in the BitcoinTalk forum, where the user "jercos" decided to buy with the credit card two pizzas to the user "laszlo" in exchange for 10,000 bitcoins, possibly with an exchange rate of 1BTC x $0.003.This simple fact supposed the spark that ignited an accelerated process of revaluation.
Anyway, the price of bitcoin will be worth what people are willing to pay for it because, as we have mentioned, Bitcoin is determined by the trust of its users, as well as by the supply and demand in the markets Exchange
|Evolution of the Bitcoin|
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