How is the Bitcoin exchange rate created?

Question

IT education

It has always been interesting how the Bitcoin exchange rate is created. I understand that it depends on demand, but how is it formed? Is there some formula for calculating the bitcoin rate or am I missing something?

Answer 1

https://ru.wikipedia.org/wiki/%D0%97%D0%B0%D0%BA%D...

Answer 2

cost is a thing, an abstract
attempt to determine some kind of formula in the general case (for any product and time) is obviously doomed to failure, but in particular cases using different formulas, sometimes it 'turns out'
this happens not only with the price, but also with many parameters used in the economy, a whole science around this has been created, in which they try to steer all this with varying degrees of unsuccessfulness.
Firstly, the cost consists of at least two bases - the base object of the quote (bitcoin) and the quote (for example usd) - in what units this cost is estimated, and already at this stage 'problems' begin ... for example, the great poo finally goes crazy and gives the order for a direct (and not just shelling on the outskirts) attack on Ukraine, and as a result ...., after a while, the value of the ruble as a monetary unit begins to fall rapidly. What will happen to the btcrub rate? correctly, it will start to grow, even if this growth is not planned in btcusd (although in the situation described, I think everyone will react, I gave such a boundary example only for demonstration).
And at the stage of determining some kind of basis, some kind of virtual currency in which other currencies could be evaluated, you can already break your teeth (and attempts have been and continue)
Secondly, the usual fiat currencies controlled by the central banks of countries are not free, their value is indirect, partially and temporarily, controlled and manipulated for and with the help of various economic indicators and taxation of non-/and just residents who will run to the market to buy/sell currency to pay taxes.
Yes, bitcoin does not have a central bank, but there are the largest exchanges (the main thing is that there are few of them), these are currently coinbase and binance, by the way, it is not easy to assess their influence, they themselves do not report, but by indirect signs - this is fortune-telling. The fact that major exchanges manipulate the price- is not in doubt. It may not happen all the time, but it certainly does. For example, the largest drains or unjustified short-term growth are just manipulations by the exchanges themselves with the help of deposits of their clients who play with margin trading and endless futures (that’s still a scam), with a high probability this process is not a one-time but continuous one, and occurs in smaller forms constantly.
A stupid example - you are the only exchange, clients have come to you, made deposits, opened buy / sell positions and are waiting. Each client position is at least one stop order (forced closing of a margin position - margin call) and the clients themselves foolishly place their stop orders (take profit / stop loss), indicating their risk levels. The exchange has a complete picture of how many and which clients, what volumes are on deposits (as well as the history of transactions, according to which AI can be trained to predict behavior) and can say with 100% accuracy what will happen if a certain large client goes and makes a purchase transaction sale, which stop orders will be triggered when the exchange rate changes and can use a simple formula to calculate how much each client will earn or lose (how the deposit will change when their transactions are executed) ... simple mathematics,
If necessary, control over replenishment of deposits is added here (you can hold deposit and withdraw), plus fake ddos ​​- help, we are being ddosed, and 100,500 clients cannot make transactions quickly at the right time (and minutes here decide a lot).
Well, the most 'smart' clients can simply be thrown out of the exchange by closing their deposits (there is such an example on bitstamp, one time I considered it 'the most honest' in comparison with the exchange, but no, traders stupidly canceled transactions, sold the cryptocurrency they bought and returned the remaining money in fiat to bank deposits, just in time for the holidays so that official proceedings drag on for weeks, and the crypto market will run far away at this time)

Answer 3

It has a cost, which is expressed in the cost of equipment that miners and validators have to buy, in their electricity costs in order for them to reach at least 0. And below this cost, its rate cannot fall, and everything else is, of course , is determined only by exchange demand.

Answer 4

If there was such a formula, there would be no such hype and misunderstandings.
And so Bitcoin sometimes depends simply on the Twitter of a thread of a public person.

Answer 5

from here you take
https://coinmarketcap.com/currencies/bitcoin/
in practice there will be a specific exchange and there it will be + - near above or below