It’s difficult to put a price on bitcoin as it fluctuates quite frequently. It’s never really in the same price range for very long as there are so many factors affecting it. There are a number of websites that offer you real-time indications of the price of bitcoin. These range from currency exchange websites to bitcoin websites. In fact, you’ll find that the majority of websites offering any kind of bitcoin trading software or cryptocurrency exchange will have a current price on bitcoin listed on their home pages.
Some of the websites you can refer to for updated bitcoin pricing include:
What Affects The Price Of Bitcoin?
At its very core, the price of bitcoin is affected by supply and demand. The more people want to buy bitcoin, the higher the price will become. People buying bitcoin are constantly seeking out bitcoin at the lowest price possible. People selling bitcoin are listing theirs at a variety of different costs, some more expensive than others. As the lower priced bitcoins get bought up, the general public has no choice but to start buying up the bitcoin at higher prices too. This is what creates a higher current value as more people start purchasing bitcoin at higher prices, the current mediums go up too.
At the end of the day, the value of bitcoin is determined by how valuable bitcoin is perceived to be.
It does get more involved than that, though. As with any currency or commodity, bitcoin is sensitive to external factors too. Here are a few additional elements that affect the price of bitcoin:
- General news – news releases relating to bitcoin can have an impact. As an example, the bitcoin sign guy caused the value of bitcoin to spike
- The converse is also true. When news of MtGox broke, the value of bitcoin plummeted
- Popularity – as more bitcoin wallets are bought up, the price starts to rise
- Acceptance – as businesses start offering bitcoin as a method of payment, the value starts to increase
- Competition – as more altcoins enter the market, bitcoin is faced with more competition. This could result in price drops as the public adopt use of alternative cryptocurrencies