Im new to crypto world, still learning and therere lots of things I couldnt understand yet. Following is one of that,
Its saying something like the Bitcoin price decides by the demand. As I was understood, when more people buy Bitcoins, the Bitcoin price rises and wise versa.
Before asking the next part of the question, I need to know that, is what I was understood right?
This is a basic rule of everything actually. It is the famous
Supply and Demand model. Basically yes, this affects bitcoin price, but as any other commodity in the market, other factors can also influence its price.
On a long term basis, the price will tend to go up, but it should go up slower and slower as the years and decades pass. This is because the thing people use to compare value loses value yearly by (foolish) anti-deflation policies of countries who just can't bother to read the Austrian economists and are scared of deflation, which Bitcoin is designed to be.
So all things equal (say in 100 years), if you then always moved all your money into Bitcoin, it would "earn" 2%, but that is actually everyone else inflating at least 2%.
Think of it as if you today moved all your money into gold, and only at the moment you were to buy something, changed only the minimal amount needed to purchase things (because the shop won't take your grams of gold directly). Of course real gold is a hassle to deal with. Bitcoin actually makes things easier.
I guess
Digital Gold is an ok analogy.