Need to know how BITCOIN is priced - This is how it is being priced

Most of us usually think and some of us also find it difficult to catch how a currency that does not actually exists priced.
Here is the post for those who often think how can be a currency so powerful without being actually been existence.

The answer to the question is quite simple The power or you can say the price of currency can be determined lies in basic economics: scarcity, utility, supply and demand.

Exlaination - if something is rare but is very useful then it has a demand and supply.

lets Take gold as a best example, have you ever thought Why does gold cost as much as it does? Put simply, it is relatively expensive because it is rare, hard to find and limited in supply (scarcity). Gold also has some uses to which consumers derive satisfaction from (utility).

Anything which is in demand has also a supply and the rates are determined by the fact that how rarerest is it in supply.
simply prices of these things absolutely depends on its scarcity.

As you all know that BITCOINS are limited in supply since its existence as per now the current circulation is about just over 16.2millions and the maximum circulation Bitcoin will ever exist is capped at 21 million.
However, you can say to have value for the BITCOIN itself, Bitcoin must also be useful.
as we all know the popularity of BITCOINs in past decade Bitcoin is perfectly fungible. and it is also divisible and can be easily verifiable via you can say BLOCKCHAIN.

Bitcoin is just not Rare or Scare, it also has utility all over the world.
"Bitcoin also has other desirable properties. It is fast, borderless and decentralised with the potential to change the financial world for better".
The price of Bitcoin is not the same as its value. Price of a BITCOIN is determined by the markets in which it trades: by means of supply and demand. This is the same way the price of your diamond, a bag of sugar in the supermarket, an ounce of gold and just about everything else which exist in the market and is being sold is determined.

Question Arises That why Price change so often ?
This is called volatility and it’s not only Bitcoin exchange rate that seems to change from day to day. The price of many things, such as stocks, currencies, oil and many other products, can be quite volatile: moving up and down a lot against a base currency (such as the US dollar).

In conclusion of the above topic we now Know that BITCOIN is both rare and has also usability and thus it holds certain price in the market.

*************************************HOPE YOU LIKED MY POST**************************************************
********************************Please Upvote and share Comments*********************************************