Bitcoin & Ethereum
I want to know what drives/affects the prices of bitcoin and ethereum. Is it basically all speculative dollars right now?
Bitcoin and ethereum are different, one is crypto currency, another is token( for things like digital sign, smart contract s etc..)
Not to sound like a crazy person, but for real, eth is going down because of bots making micro sells hundreds of time a minute. People are controlling the price of eth
Net selling decreases price. As long as the bots buy before they sell, they have no effect on price
Speculation. Nothing normal appreciates >2k in a month. To he clear I am not complaining at all :)
If so, how can this speculation materialize? For any security, speculation either materializes or sinks. Like housing which ppl may speculate based on their future value. How does bitcoin/eth gain such that it justifies the price other than more people speculating and waiting for something that nobody knows?
You are over thinking it, there are simply more buyers than sellers. Buyers speculate on the value as there is no other book value or way to value each coin so the ceiling is unlimited.
Ok folks, this is how markets work and prices change. In a market with many actors and no actor having major negotiating power, the price is determined by total net supply and demand. Let's start with 2 orders. Buyer order is 10 widgets at $5 or less (limit). Seller order is 8 widgets at market. 8 widgets go for $5 each. [Last] price is $5. Let's move up to 4 orders. Buyer 1: buy 10 widgets at $5 or less Buyer 2: buy 10 widgets at market Seller 1: sell 5 widgets at market Seller 2: sell 11 widgets at $12 or more Here 5 widgets will go at the last price / cancel each other out between buyer 2 and seller 1. The remaining demand is buy 5 widgets at market. Those buys go from seller 2 for $12. Now the best buy offer is 10 at $5, the best sell is 6 at $12, and the [last] price is $12. As you can see, the net buy/sell changed price. In all major markets, there are market makers who buy and sell. They may buy at $10 and sell at $12, for example, making $2 per widget. These actors have no net influence on price because they buy as many widgets as they sell. They do stabilize markets, however, as in the 2nd example they may have buy orders for 20 widgets at $7 and sell orders for 20 widgets at $9, so the [last] price would have only gone up to $9 rather than $12. Almost all quotes quote the last price. In Bitcoin, we've seen more net Bitcoin buy orders than sells (by the coin), which has increased the [last] price. If someone invested $10,000 when Bitcoin was $100, they got 100 coins. If and when that person decides to sell 50 coins on market when the [last] price is $10,000, it would take $500,000 worth of new buy orders to keep the price stable. The problem is yes many dollars are speculative and they are holding (for now).
You say many dollars are speculative. Arent all dollars in bitcoin speculative? Who are ppl not speculating and genuinely in need of bitcoin? Money launderers?
Lol. Yeah probably the drug market. I don't know of any other legitimate uses right now
Why is bitcoin going up while ethereum is inching down right now?
I ll answer the easier part.. Ethereum is going down mainly because bitcoin is shooting up.. most of the other cryptos are also performing bad... Bitcoing is shooting up because of multiple reasons some of which are upcoming fork, upcoming trade options..
Why are bitcoin and ethereum (or any other coins) inversely correlated?