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When the price of Bitcoin was set

The price of bitcoin is considered a very unstable price, mostly due to the capacity to sell and buy it in a short time.

physical bitcoin on table
Image: Unsplash

Bitcoin is named as the currency which was never sponsored by any bank or any government nor it has become the legal currency yet. In any case, if some private parties want to use it as a transaction if they agree that they can use it like that. 

By investors, it can also be used as trading and for the exchange. But the fact is, the legality of this bitcoin system varies with the country, or some countries are banning it to use completely. 

Bitcoin can be considered as an unstable investment if you first get to know the basics of the currency.  When it was launched in the start, it had no exact or accurately known value because it was not sold. But when the first exchange started, it developed its price.

In the start, its price was very small, about some cents or a few, and it was not able to be tracked by the market as other things that were highlighted at that time. After a few years, still it was not in the spotlight of the people and the market. But gradually its price began to increase month by month and at the end of the year of 2013, its price was almost near to thousand dollars.

This high value, in the end, started to make some impression on the people, and investors and speculators began to notice this after the increase in the price of it. 

Factors that increase its Price

Bitcoin price was not particularly set by any specific one. It was set by the market, this thing then makes the pricing of the currency more difficult and complex because it depended upon the exchange prices. If you take a look over the internet you will find two different prices of bitcoin available on different platforms.

If you are going to search for Coindesk.com you will see the last update of the price in this currency was in June 2020, and it was near to 10 dollars. Whereas if you go to Winkdesk.com, you will see the price update was in July 2020 and it was also near to 10 dollars but a few differences of some points in the price of it. 

But keep one thing in mind that you cannot use these sites to buy bitcoins, these sites only represent or aggregate the price information. But if you want to learn and also want to sell and purchase about bitcoin mostly traders prefer Bitiq app.

How Exchanges work in Bitcoin

The difference which is in the prices on different sites is just because of the source from where the data is coming. Bitcoin can never trade only in one place. Instead of this, it can be traded on a number of different exchanges, after that they differently set their different prices according to that exchange rate that was being traded by different exchanges.

What are Indexes in Bitcoin

Indexes are the thing that are used to collect all the price information from several exchanges and make them average by calculating. But there is one thing that all the indexes do not use the same exchanges for their data. If you are willing to buy or to sell your bitcoin, you will need to select that one particular exchange, which will make its price average. The price of Bitcoin goes up and down and used to fluctuate at any moment of time depending upon the situation on which exchange the information is coming. 

Price of Bitcoin

The price of bitcoin is considered a very unstable price, mostly due to the capacity to sell and buy it in a short time. The price of the bitcoin gives the investors the capacity to enter and get out from positions very fastly due to the flow of the bitcoin amount spreading the markets at any point. 

If people are willing to invest a big amount of assets in it, it will become difficult for the person to change that price in one direction. Think this is a matter of steam water.

With currencies like the US and British, Their currencies are flat and used to trade in a huge volume. By using Bitcoin, there is a small trading volume as compared to the rest of the assets that trade on a daily basis. Which indirectly meant that a single event can make a huge difference.

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