Questions to answer before venturing into crypto

[Flydove]

As a newbie and baby in this very exciting crypto educational forum, with a desire to increase my knowledge bank and drive to invest in cryptocurrency. I needed to answer these key questions about bitcoin:

  what factors influence the value of bitcoin?
   
   What factors influence the price of bitcoin?

   what factors influence the supply of bitcoin?

   What factors influence the demand of bitcoin?

 I stumbled upon bits of information in my personal study that the price of bitcoin is determined by its market value at any given time. And its value is directly affected by the demand and supply flow in the economy. Also, that traders resolve to sell bitcoin to other buyers and not hold back more than its necessary drives its demand and supply.

Obviously, there is still more I need to learn! 

   

[Mia Chloe]

As a newbie and baby in this very exciting crypto educational forum, with a desire to increase my knowledge bank and drive to invest in cryptocurrency. I needed to answer these key questions about bitcoin....

Some of the questions are actually not too necessary since they are just repetitions of the previous ones. To start with the value of bitcoin and the price of bitcoin are almost the same thing. Now price works mainly on the concept of demand and supply.

One advantage bitcoin has unlike a lot of other meme coins and crypto currencies is that aside from its massive adoption to also has a limited supply of 21M so demand is higher making price progress.

[Ojima-ojo]

Why do you need to worry your head with all of those unnecessary questions, and forget to ask the most important and valuable questions such as the best wallet to store the crypto assets that give you strong security and control over your assets?


Since Bitcoin for example is already a well-established coin in the cryptocurrency space, trying to know the factors that drives its market may lead you into more confusion there for it is better to just keep up with the fundamental propellers of the market.

[rby]

  what factors influence the value of bitcoin?

Scarcity. The value of bitcoin is still being preserved because bitcoin has a fixed supply of 21m which makes it relatively scarce and a good store of value unlike fiat.

   What factors influence the price of bitcoin?

When the demand for bitcoin is high, the price goes up and vice versa.

   what factors influence the supply of bitcoin?

The supply of bitcoin is capped at 21m

   What factors influence the demand of bitcoin?

Have you seen how people struggle to acquire bitcoin once there is a positive international news about bitcoin? Certain news trigger people to demand for bitcoin. Other factors might be for investment purposes and maybe greed.

[Zed0X]

The supply is pretty fixed into the 'code'. You can read about the maximum supply and the halving of block rewards that happens in approximately every four years.

What factors influence the demand? I guess this depends on who you are asking. Most people/businesses nowadays want to buy BTC hoping they will profit from this investment. There are others who want to keep their wealth private and in their full control.

[Cryptsafe]

OP I believe you are still doing your research, and hence, you are asking this question,n but it is not bad to ask because the more you ask, the more you know and let me just say this that these two factor greatly influence bitcoin value and price and they are scarcity and demand.

Scarcity in the sense that there are only 21 million bitcoins as total supply and can not be minted. 19 million already in circulation and 1milion still not in circulation, and from this 19 million, some already lost ie, the owners lost the keys to the wallet holding them, etc.

Demand in the sense that the adoption rate is fast increasing, and this would cause an increase in the price and value of bitcoin as people already begin to accept it as a legal tender, etc.

[joniboini]

So, like, do you use these questions to determine how much you want to buy Bitcoin at any given time, how long you will hold it in your wallet, and so on? Because if that's your goal, I believe the answer is still too broad to help you make any decision at all. Let's say the current BTC price is $70k. Even if you figure out supply and demand, how will you translate that to your trading plan? I'm not saying this to discourage you, by the way; I'm just trying to understand the goal of your learning so far.

[Makus]

  what factors influence the value of bitcoin?
   
   What factors influence the price of bitcoin?

   what factors influence the supply of bitcoin?

   What factors influence the demand of bitcoin?
   

Op the question 1 and two mean thesame thing the value of bitcoin is also the price of bitcoin we see today, if bitcoin increases  its price to $200k we'll say the value of bitcoin has increases so they are literally saying thesame thing however the price of bitcoin is determined by several factors like the supply and demand, crypto news, most importantly the strength of buyers and seller in the market. However the supply of bitcoin in the market is fixed, Satoshi programmed bitcoin such that there would exit only 21 million bitcoin total in circulation, so if this 21 million bitcoin gets mined there would be no more bitcoin to mine, and that also help made bitcoin scarce thereby increasing its worth as the demand increases.  Most people consider bitcoin as digital gold because of its limited supply even as demand increases.

The crypto new is all about favoritism, any news that favour's crypto will eventually lead to a bullish movement while any news against crypto will lead to a bearish movement, just like the few manipulations we saw on the market when Trump discussed about the bitcoin reserve.

[KryptoBull]

As a newbie and baby in this very exciting crypto educational forum, with a desire to increase my knowledge bank and drive to invest in cryptocurrency. I needed to answer these key questions about bitcoin:

  what factors influence the value of bitcoin?
   
   What factors influence the price of bitcoin?

   what factors influence the supply of bitcoin?

   What factors influence the demand of bitcoin?

 I stumbled upon bits of information in my personal study that the price of bitcoin is determined by its market value at any given time. And its value is directly affected by the demand and supply flow in the economy. Also, that traders resolve to sell bitcoin to other buyers and not hold back more than its necessary drives its demand and supply.

Obviously, there is still more I need to learn!

Right now, information about BTC is readily available online. You just need to read about 10 major articles to get a pretty comprehensive overview of BTC from various angles like technology, value, supply, manipulation, position, cycles, and more! You can also chat with ChatGPT to get more detailed information based on your needs.

I think you might want to learn a little more about the challenges of managing your psychology when investing in BTC, because I believe you're coming to BTC not just for the fun of the technology, but also to earn some extra income. Learning about the technology can be very interesting and low-pressure, but investing will be a completely different journey. So, get ready, and we welcome you to this crazy market

[Celph]

As a newbie and baby in this very exciting crypto educational forum, with a desire to increase my knowledge bank and drive to invest in cryptocurrency. I needed to answer these key questions about bitcoin:

  what factors influence the value of bitcoin?
   
   What factors influence the price of bitcoin?

   what factors influence the supply of bitcoin?

   What factors influence the demand of bitcoin?

 I stumbled upon bits of information in my personal study that the price of bitcoin is determined by its market value at any given time. And its value is directly affected by the demand and supply flow in the economy. Also, that traders resolve to sell bitcoin to other buyers and not hold back more than its necessary drives its demand and supply.

Obviously, there is still more I need to learn! 

   

    There isn’t much to say here cause other members have spoken all and alot here.
  Anyways; as a newbie; i think it’s important to feed yourself with knowledge and ask questions also.There’s basically no harm in doing that as it only improves what you know as well as add to your personal growth; so kudos in that firstly.
     Now for the questions asked; i think these two are actually the firsthand knowledge you need to know while investing in crypto.there are actually two questions laid down cause just like everyone has said;  question one and two are quite similar basically they both have focus on the same concept.
   There are alot of factors that influences the price and value of bitcoin either positively or negatively. The growing demand and adoption of bitcoin in several institutions and countries influences the value of bitcoin as well as it’s scarcity; there are only 21 million bitcoin with 19 million being aquisited or mined already.  These factors influences the price and value of bitcoin.
   The block reward halving is also a factor that influences the supply of bitcoin.This is an event that happens every four years that reduces the number of bitcoin awarded to miners.
    There are alot of factors that influences the demand of bitcoin basically.Factors such as investors sentiments, crypto related news and most importantly; market volatility amongst others.
   

[Crwth]

You could easily find different tools and literature that would help you answer that. It's not that hard to find. You could also use AI to point you to the right direction, making sure that you validate it. I don't think you need to post a topic just for this because it's readily available on the internet.

[MrSpasybo]

You could easily find different tools and literature that would help you answer that. It's not that hard to find. You could also use AI to point you to the right direction, making sure that you validate it. I don't think you need to post a topic just for this because it's readily available on the internet.

Well, I think a topic that could generate a more interesting and beneficial discussion compared to AI feedback. I'm not saying we can provide more accurate information, but I want to focus on the right attitude we should have when participating in this market.

Before learning about BTC, investors should answer a few other questions for themselves:
+ Why should I invest in crypto?
+ What are the risks of the crypto market?
+ How much money am I willing to lose?
+ How long am I willing to hold?
+ Where can I find guidance and help?

I think these things are more important than the nature of BTC itself. Because in the end, investors just want to make a profit, not just show their love for BTC ^^

[Wiwo]

Multiple factors influence the price of Bitcoin at each point in time and we must be ready to outline those factors and consider them before we venture into buying Bitcoins at least for us to know which direction the market is and what we can expect based on the availability of market forces.

But then aside from market speculation and analysis, knowing the technicality around Bitcoin may not be too important if you are not a developer who wants to support the Bitcoin network.

[TomPluz]

We are all happy to see someone who is just a newbie exploring into the world of Bitcoin and cryptocurrency and it is good to know that you are so eager to learn more and of course you never made a mistake by becoming a part of this forum. So you can see that many members here are really good in answering any question or concern anybody of us here may have. As to your query, the value of Bitcoin is being derived by many factors...first it has a brilliant technology behind it and it has a fixed supply which is the opposite of the unlimited supply of the fiat money. As a currency, Bitcoin can be transferred to anyone, anywhere and anytime at so low-cost compared to transferring cash. And since it is already recognized by big financial institutions and the Wall Street, its value could not be ignored anymore as it has already arrived mainstream. So if I were you and since you are still young, invest on Bitcoin so that when you gets old you can have the financial freedom you should be dreaming now.

[bitterguy28]

  what factors influence the value of bitcoin?
   
   What factors influence the price of bitcoin?

you do not need to be an expert in crypto to know that value and price are just the same and there are many factors that could affect the price but in the end it really is just market perception bitcoin is a speculative asset and people speculate on the future value of bitcoin which is why they buy now

or it is also possible that people buy because they need to use bitcoin to pay for something or maybe they just need somewhere to put their money in aside from banks

   what factors influence the supply of bitcoin?

nothing the supply is fixed at 21 million

   What factors influence the demand of bitcoin?

the price of bitcoin is due to demand if there are a lot of people buying it then the price will go up

like i said it could be speculations or maybe economic events that lead people to perceive bitcoin as profitable and safe