The price of Bitcoin is determined by supply and demand in the market, and demand determines its value.
First of all, everyone must be optimistic about its future development, so that people are willing to pay for it, and the more people who pay for it, the higher the price.
Due to the characteristics of Bitcoin, only 21 million coins can be produced in the end, which can cause a certain scarcity in the market.
However, with the passage of time, if Bitcoin just stays in the research and development stage of the code, it is meaningless. There must be a realistic practical application scenario to reflect its use value, otherwise it will only have collection value, circulating among Bitcoin enthusiasts in between.
The bitcoin price we usually see is the reference price or the current transaction price given by the exchange. But you will find that the price of each exchange is different, this is because the stock and circulation of bitcoins are different in each exchange, for example, Huobi has 1000 bitcoins, 800 users buy it, and Coinbase has 800 Bitcoin, with 1000 users to buy. According to supply and demand, the price of Bitcoin on Coinbase is higher than that on Huobi.
To sum up, the basic factors that affect the price of Bitcoin mainly include the following aspects:
1. The progress of technology research and development
2. Extensive application of technology
3. The consensus of the people of the world
4. The degree of capital interference
5. Circulation status of exchanges