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polor12

Price Determination

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first off if a topic has a similar layout..let me know so i close this topic or any mod..i wasn't into bitcoins or altcoins or even knew about until late 2016 when it was at 800$..we all seen the rise gradually from the start of  2017 and the sudden spike early december that year..17k-20k..and very slowly decline in 2018 and was steady at 6k from mid year til november when bch fork came into play..then roller coaster ride to the price we are at right now..how is bitcoin priced? is it by mining or by the people purchasing it..how can virtual currency be really valued...who decides the value for each coin..right its at 3k+..in secs it could drop to 2k even 1k..and a few secs later it can rise to 4k or higher..in secs...how..almost like the stock market...but is not even close to it..can some one drop some knowledge..hopefully it would give me or any one else a better understanding? like i said from the start if this was brought up already let me know..

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Id still be happy if it remains above 1k .. thats still alot of money.. for me anyways xD .. i know to some that would be a disaster due to many different reasons.. but common reason would losing money for sure., which is totally understandble.. some already accepted the loss but still holds on in hopes it will rise again.. if not soon, then perhaps someday.. xD

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The price of Bitcoin fluctuates by supply and demand. Think about as if it bitcoin was a stock, looking at total outstanding shares and the current float (float: total shares held by shareholders). Say there was 20 million shares of Company A and the shares are available to buy on the stock market. However only a few people actually buy  some of Company A shares, tas a result the share price is going to be extremely cheap because the demand isn't there and the price would continue to drop. On the other hand if If you have a lot of people buying shares of Company A then the price will rise because the demand is high. And as less and less share become available, the more valuable the company and it's stock(Bitcoin) becomes. That's why when you see sudden spikes when looking at the bitcoin chart it usually means someone has just either purchase or sold a very large amount of Bitcoin. Hope that helps.

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that does help.. broke it down how it would be used if it was in a stock market.. but again is completely different...you said only a few can buy from Co. A.. so price drop because of the demand...but with that sudden drop that would bring new share holders wouldn't it.. then demand  will rise and price..like i said roller coaster ride..unlike the stock market where they have 2 or 4 companies supplying the same product...while 1 miner can make as much as those 4 companies..i know is a bad comparison but it can happen..

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Bitcoin did in fact have a good rise and a great huge fall to 3000$ sadly. But we cannot complain about it. The price is actually affected by people buying selling and whales of the market.

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Great question Polor! I wonder this myself sometimes too. Kix makes good point even above 1k is great for most people i think especially if you can collect a few coins! Going to be interesting to see if Humber's prediction comes true!

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On 1/24/2019 at 3:54 AM, polor12 said:

first off if a topic has a similar layout..let me know so i close this topic or any mod..i wasn't into bitcoins or altcoins or even knew about until late 2016 when it was at 800$..we all seen the rise gradually from the start of  2017 and the sudden spike early december that year..17k-20k..and very slowly decline in 2018 and was steady at 6k from mid year til november when bch fork came into play..then roller coaster ride to the price we are at right now..how is bitcoin priced? is it by mining or by the people purchasing it..how can virtual currency be really valued...who decides the value for each coin..right its at 3k+..in secs it could drop to 2k even 1k..and a few secs later it can rise to 4k or higher..in secs...how..almost like the stock market...but is not even close to it..can some one drop some knowledge..hopefully it would give me or any one else a better understanding? like i said from the start if this was brought up already let me know..

I'm not veteran also in terms of investing but in my own point of view, the factor that gives btc the value is its volume in market by means of transactions being made by investors everyday by paying and buying, that gives it a true value and aside from that it is decentralized without a central bank or administrator.

And in my speculation also regarding the price, btc will hit $5k in next months from now but will not exceed from that.There's a possibility also of price drop correction of about $2.9k.

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On 2/23/2019 at 5:20 PM, skillex said:

I'm not veteran also in terms of investing but in my own point of view, the factor that gives btc the value is its volume in market by means of transactions being made by investors everyday by paying and buying, that gives it a true value and aside from that it is decentralized without a central bank or administrator.

And in my speculation also regarding the price, btc will hit $5k in next months from now but will not exceed from that.There's a possibility also of price drop correction of about $2.9k.

The most important thing is education and skill, if we want to try trading the same applies + emotion control. So in the near term everything can happen but we all know that in the long term we are going up

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On 3/25/2019 at 9:20 PM, m3ndshok3r said:

The most important thing is education and skill, if we want to try trading the same applies + emotion control. So in the near term everything can happen but we all know that in the long term we are going up

True. Its just the same as gambing. It requires a lot of patience and perseverance of waiting especially when doing long term. Thats why more people prefer doing short term investments although very risky and requires enough expertise and timing of right scalping.

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