I always have this question in mind, yes i do much researching on this question but still does not sink in.
What makes the value of bitcoins increase?
What makes the value of bitcoins decrease? And why is it decreasing now?
The value of bitcoin and other currencies, as well as of every commodity depend on a balance between supply and demand. Supply is determined by how much bitcoin people are willing to sell and demand is how much bitcoin are people willing to buy.
So in the extreme case where nobody wants to sell but everyone wants to buy, then the price will go up a lot. In the other extreme case of everyone selling and nobody wanting to buy the price crashes.
Right now bitcoin price is descreasing because the supply is bigger than the demand.
Just know this! BTC's value will raise extremely high once block halving occurs in late 2016 so acccumulate now.
DO NOT DEAL WITH THIS MEMBER
Supply and Demand, how much people need it, how much there is available and how people may supply themselves with it.
(Sep 18, 2014 04:34 AM)hiphopheroin Wrote: Just know this! BTC's value will raise extremely high once block halving occurs in late 2016 so acccumulate now.
Is this true? BTC has been dwindling down and hanging out in the low $400 range. I've been looking for a great time to invest in btc, but I was looking for a decent roi in less than 2 years time.
Sep 19, 2014 07:02 AM
(This post was last modified: Sep 19, 2014 07:04 AM by Crypto™.)
Anyone making predictions with any degree of certainty is a purveyor of bullshit. However, the market is based entirely on supply, demand, and what people are willing to pay for it. If you're familiar with stocks at all, it's vaguely similar to that, with the difference of Bitcoin being a finite product, a store of value rather than a piece of a company, and a bunch of other stuff. Basically someone says, "Hey, I have 1 Bitcoin I'm willing to sell for $500." Now that on its own means nothing to the value. However, if someone comes along and buys at that value, Bitcoin has a price and a value. Now imagine that happening thousands upon thousands of times a day, every one changing the value of a Bitcoin minutely. Someone offers to buy at $1 lower than the current price, and someone fills it. That changes the price. It goes both ways. In short, it's what someone is willing to pay for it at any point in time. That's an oversimplification, but still the gist of it.
Get a signed message before dealing: Keybase
Still here sometimes.
I have no clue what's happening with BTC at this current time.
(Sep 18, 2014 04:27 AM)XMR Miner Wrote: The value of bitcoin and other currencies, as well as of every commodity depend on a balance between supply and demand. Supply is determined by how much bitcoin people are willing to sell and demand is how much bitcoin are people willing to buy.
So in the extreme case where nobody wants to sell but everyone wants to buy, then the price will go up a lot. In the other extreme case of everyone selling and nobody wanting to buy the price crashes.
Right now bitcoin price is descreasing because the supply is bigger than the demand.
Exactly but this is a GOOD THING
As while people sell and the supply gets lower, the rarer it becomes
While people begin buying again the price slowly increases as people see it as a rare commodity
Soon enough the price will boom, give it time
Also small price changes can occur with good and bad news for Bitcoin....this includes something like MtGox closing down (price fall) or PayPal integrating Bitcoin (price rise) which will also happen very soon, which will increase buyers
The price is solely up to supply and demand.
Meaning:
The more you use it, the more the value increases as the more people are paying for it and trading it. The less you use it and trade it the less it is worth as no one wants to put money into something that is worthless and unusable.
It is kinda like the same way all Crypto Currencies work. The more you work with them the more the value increases.
That is why any Crypto Currency that is dreamed up and made needs to be put into use by the people who make it. It needs to be accepted by marketers and businesses so that it can be traded, used, and bought/sold by everyone.
You see, with Crypto Currencies the value of the coin depends on how useful it is. That makes it unlike any other currency. The more technology grows behind the coins the more its will increase in value. The more its value and tech increase the more useful it will be. This in turn will also increase the value of the coin.
I am excited to see what will happen with BTC as well as other Crypto Currencies but for right now there isn't much we can do but mine, buy/sell, trade, and get ready for what is to come.
(Sep 18, 2014 10:07 PM)Purps Wrote: Is this true? BTC has been dwindling down and hanging out in the low $400 range. I've been looking for a great time to invest in btc, but I was looking for a decent roi in less than 2 years time.
You won't get a "decent" roi in less than 2 years time. Buy and hold, forget about it for a decade, and reconsider.
I love how many people panic and try to sell their BTC :)
It gives room to more decrease in prices, meaning we can earn even more BTC before it goes up again
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