As of this writing, the Bitcoin price is $3,393.11.
The highest price for Bitcoin since it began trading in 2010 was $11,791.69 on December 17, 2017. The lowest price was $59.28 on July 5, 2010.
So far in 2018, the Bitcoin price has been as high as $17,135.00 and as low as $3,226.69. There are lots of platforms such as the bitcoin loophole that are providing authentic guidelines for bitcoin trading.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin is pseudonymous, meaning that funds are not tied to real-world entities but rather bitcoin addresses. Owners of bitcoin addresses are not explicitly identified, but all transactions on the blockchain are public. In addition, transactions can be linked to individuals and companies through “idioms of use” (e.g., transactions that spend coins from multiple inputs indicate that the inputs may have a common owner) and corroborating public transaction data with known information on owners of certain addresses. Additionally, bitcoin exchanges, where bitcoins are traded for traditional currencies, may be required by law to collect personal information.
What is the nature of Bitcoin Pricing?
Bitcoin pricing is a function of demand and supply. When there are more people willing to buy Bitcoin than there are willing to sell it, the price goes up. When there are more people willing to sell Bitcoin than there are willing to buy it, the price goes down.
The nature of Bitcoin is such that there will always be some volatility in its price. However, over time, the general trend has been for the price to go up. This is because as more and more people become aware of Bitcoin and start using it, the demand for Bitcoin increases. At the same time, the supply of Bitcoin is limited (there are only 21 million Bitcoins that can ever be created), so this also contributes to increasing prices.
Of course, there are also other factors that can affect Bitcoin prices, such as news events or regulatory changes. However, overall, the demand and supply of Bitcoin is the main driver of its price.
Factors Affecting Bitcoin’s Price
- The first factor affecting Bitcoin’s price is the amount of money that people are willing to pay for it. The more people are willing to pay, the higher the price will be.
- Another factor affecting Bitcoin’s price is the amount of Bitcoin that is available for purchase. If there is a limited supply of Bitcoin, then the price will be higher because people will be willing to pay more for a scarce resource.
- Another factor affecting Bitcoin’s price is the level of adoption by businesses and individuals. If more businesses and individuals start using Bitcoin, then the price will go up because demand will increase.
- Lastly, global events can also affect Bitcoin’s price. For example, if there is a financial crisis in a country, the value of that country’s currency may go down. This could lead to people selling Bitcoin in exchange for that currency, which would then drive down the price of Bitcoin.
Bitcoin’s Demand and Supply
The Law of Supply and Demand is one of the most basic economic principles. The law states that when there is more demand for a product than there is available supply, the price of the product will go up. On the other hand, when there is more supply than there is demand, the price will go down. This law applies to Bitcoin just as it does to any other good or service.
When there are more people trying to buy Bitcoin than there are willing to sell it, the price of Bitcoin goes up. Conversely, when more people are selling Bitcoin than buying it, the price goes down. The reason why this happens is simple: people are willing to pay more for something when they believe that its value will increase in the future.
The demand for Bitcoin is influenced by a number of factors, including its use as a payment system, its store of value properties, and its scarcity. The supply of Bitcoin is also influenced by a number of factors, including the rate at which new Bitcoins are generated (mined), and the decisions made by those who hold large amounts of Bitcoin (known as whales).
As the demand for Bitcoin increases and the supply remains relatively static, the price of Bitcoin will go up. Conversely, if the demand for Bitcoin decreases while the supply increases, the price will go down.