In brief, Bitcoin prices are determined by the same principles of supply and demand that govern the price of goods and services, exchange rates, etc. Price discovery is now determined primarily on centralized crypto exchanges (CEXs). On May 22, 2010, 10,000 BTC were exchanged for two pizzas, marking the first BTC purchase. Since then, the price has risen dramatically as demand has outpaced supply. Many purchase and use BTC as a fiat currency and payment system alternative as it has a limited supply and is decentralized. Opinion on Bitcoin price predictions vary, but the market price is ultimately determined by the laws of supply and demand. #Bitcoin #Cryptocurrency #PriceDiscovery #SupplyAndDemand
You can read more about this topic here: Decrypt: What Determines the Price of Bitcoin?
