What Causes Bitcoin Prices to Rise Down?
Actually the price of Bitcoin is influenced by what ya? If you notice fluctuations or ups and downs of Bitcoin prices are quite extreme.
Let's find out what lies behind the price of Bitcoin?
Rising Bitcoin Prices Down
If you are currently observing Bitcoin prices, then you will be amazed by the rapid rise and fall of Bitcoin prices (fluctuations). In fact you may also wonder whether companies (such as Luno) that determine the price of Bitcoin?
The answer is no, because Bitcoin is interoperable.
The Analogy of Citrus Price Determination
Before discussing the establishment of Bitcoin prices, we would like to discuss the pricing concept. Let's talk about the price formation of an orange.
What is the price of an orange?
The answer: depends on the price of the request (the person who buys) and the offer price (the person who is selling). In the practical language is supply and demand.
Example:
If Budi wants to sell oranges for Rp3.000 and Anton only wants to pay Rp2.000 then the deal does not happen. But if Budi and Anton agree with a certain price, for example Rp2.500, then the deal takes place and the transaction takes place.
In addition, there are also several reasons that led to the formation of prices. In determining the price of oranges, the context and the market environment will also affect the price.
In the summer, more people want to buy oranges, so the price of oranges will rise.
When there is a natural disaster such as floods so that the supply of oranges is reduced, more and more people are having trouble buying oranges so the price of oranges will also rise.
Orange prices are also influenced by size, taste of sweetness and so forth.
Bitcoin Price Determination
In principle, Bitcoin's pricing is the same as setting the price of oranges. There must be a deal between the offer price (the price of the people who sell Bitcoin) and the demand price (the person who buys Bitcoin).
The difference is, Bitcoin and digital currencies are homogeneous. This means one Bitcoin is identical to the other Bitcoin. There is no
Determination of Gold Price
The price of gold in the world (not only in Indonesia) is affected by demand and supply.
In addition to demand and supply there are several factors that make up the price of gold, such as the interests to protect the value (hedging), the price of gold trading contracts and so forth.
If you are people who are already accustomed to investing in gold, then you see the price of gold changes every day.
Determination of Investment Product Price
Some investment products in Indonesia, such as company stocks are also indirectly affected by demand and supply.
Why would someone dare to bid Telkom stock price at Rp4.200 per share and on the other hand why there are people who want to sell Telkom stock price around the price of Rp4.200 per sheet.
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