How the price of Bitcoin is formed
While changes in supply and demand make the value of bitcoin minute by minute, there are two other factors that drive its price on a large scale.
First, bitcoin has value because there are 25 million users who trust and use it.
In addition, bitcoins are worth being rare goods: there will only be 21 million, and there are already 18 million circulating. Being difficult and expensive to produce, to mine, also gives them value.
This price is not regulated by a state, central bank, mint or company. Therefore, although the amount fluctuates due to many factors, it is not affected by inflation.
The Bitcoin Price Agreement
All these elements come into play when two people agree on an amount that conforms to both the one who sells and the one who buys.
Throughout its history, that amount has ranged from fractions of a penny in the early days of the Bitcoin network to nearly $ 20,000 in December 2017.
???For each operation, those involved agree on a price. And the main reason for that variation is that not everyone buys and pays in the same way.
What is the best method? That will be defined by the urgency to obtain the bitcoins, the price sought, the desired form of payment and the experience you have in cryptocurrencies.
Why are there so many different prices for a BTC
- Those who buy "by hand" from another person agree on a value and a commission that, depending on the trust, the amount or the form of payment make the price cheaper or more expensive.
- Those who buy from other users through online P2P platforms (peer-to-peer or peer-to-peer) review the crypto sales “offers” and choose based on the best price, the payment method and the seller's reputation.
- Those who buy from an exchange can keep a "real time" control of their purchase and choose to make it with the best possible price. Operations can also be scheduled for when the BTC reaches the desired amount.
- And those who buy from a broker access the amounts that that platform offers, a cost that is accepted in exchange for benefits such as security, simplicity and speed. Therefore, this is the most recommended way for novice users.
