What determines the price of Bitcoin?
Unlike fiat currencies such as the Euro or US Dollar, the value of Bitcoin (BTC) is not defined by a single entity such as a central bank. Instead, the price is defined by supply and demand, or in simpler terms, what people are willing to pay.
The price of Bitcoin is defined by supply and demand. When there is more demand for Bitcoin, the price goes up. When there is less demand, the price goes down.
Historically, global financial events and moments in popular culture have affected the price of Bitcoin.
The maximum supply of Bitcoin is capped at 21,000,000 BTC.
