I believe that BTC price is determined by an alcoholic garden fairy, named Phil. He takes his most recent Pacman score (he plays nearly everyday) divides it by the middle two digits of a random phone book entry, then multiplies it by the number of things he can see that begin with the letter 'F'. That, to the power of 3 and dived by Pi, is the current value of BitCoin.

oh that bigga

Haha, you write really well. Reminds me of Douglas Adams.

Kudos.

I've posted this before on here but when the Silk Road was a thing (around 2014), I bought 46 bitcoin for $9 each. Spent them all on drugs.

Didn't save any.

Apparently you live and learn but that was a hell of a pill to swallow when they went to $10,000 a piece!

Oh well. Fuckabix.

Cheers BB

Wrong you forgot to multiply by infinity at the end.

Pretty much all coins vary in value like stocks do. There is finite supply of coins based on mining, which is using processor power to solve pieces of the block chain which gets more difficult as it progresses. However no matter the amount of coins that are availible if they are not wanted then the price goes down.

Often times certain events influance the demand for the currancy. The reason it went down this time was due to a Coinbase announcement that they where not going to be allowing BCH trades for a specific period after the hard fork that happened just recently. A big BTC holder sokd off a shiload of coin which started it to drop and of course others started following suit and sold off their coin as well. There are also things like market corrections, people pulling out to invest in stock or alt coins and a bunch of other random shit. Some of which is predictable and others very much not so.

Hope that kinda sumarizes things.

The cryto world is even more fickle then the actual stock market. CoinBase is one of the biggest market places / sellers of crypto so it put a lot of people on edge. Been downward a lot since then.

Supply and demand. Not being short here but every price comes down to that.

OK what determines supply and demand?

Supply is limited by mining difficulty so it's always growing at a slower rate. Basically coins are getting harder and harder to mine.

So the bitcoin value should be increasing not decreasing?

I noticed my wallet went down a couple days ago, the pound happened to drop at the same time, is this just purely coincidental?

You also have the halving coming up, which will further reduce supply, unlike quantative easing from fiat currency.