Bitcoin’s Price

Like gold or oil or any other asset, bitcoins have a value that can be priced in USD or any other currency. This means there are people who are willing to exchange BTC with USD, usually using cryptocurrency exchanges, marketplaces which attract buyers and sellers. On exchanges you can see indications of supply and demand for cryptocurrencies at any price level (more on these later). You can also buy and sell bitcoins with anyone in the world, physically on the streets or over the internet, or using brokers who mediate between buyers and sellers, or who trade on their own behalf. To trade BTC, you simply need the ability to send or receive BTC and the ability to receive or send the other asset, usually a local currency.

Like any other market-traded asset, the price of Bitcoin fluctuates with supply and demand. At any point in time, people trade at prices that they are comfortable buying or selling at. If there is more buying pressure and people want to buy more bitcoins, prices will increase. If there is selling pressure and people want to sell more bitcoins for fiat currencies, then the price at which the bitcoins change hands will drop. Later we will go into more detail about how cryptocurrencies and tokens can be priced, but here we will look at specifically Bitcoin’s price. Bitcoin’s price has been a wild ride. A recent price rise to almost $20,000 USD per Bitcoin and subsequent fall the $4,000 levels has caught the media’s attention. But this is not the first time Bitcoin has been this volatile. Bitcoin appears to be cyclically volatile, with each cycle as dizzy as the previous.