Okay so I was working on a script on Timelock
Well practicing should be better used and in the process it hit me
How does transactions affect price?
Like does exchanging Bitcoin for say a Goods or service affect price? (I doubt it does)
So what now affect price
Yes it's the forces of demand and supply
The more the demand the higher the price but how does this differ from exchanging Bitcoin for a goods or service.
I have been looking at Bitcoin from the lense of trading and just found out about that
Like am curious how's the price really affected.
I don't know if I was able to coin my question well though
But why do price move, is it subjective?
Okay this is the first, now the second I'm a fan of holding but what would happen if everybody holds Bitcoin
'If' that is hypothetical. Wouldn't that be bad for the Blockchain.
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Moving Bitcoin from one wallet address to another counts as a transaction
Exchanging for service is a transaction then what's trading or selling or buying.
Sorry everything is just all over the place, I'm just shocked I don't really understand this or maybe I'm just lacking Milk
I realised I was aiming for the moon when I don't even know how the Rocket works.
Thank You.
The sale of goods, works and services (otherwise known as realization) is the transfer of ownership of the goods (the result of the performance of works or the provision of services).
Payment for goods, works and services is carried out by counter-transfer of funds (most often this is fiat currency, less often Bitcoin). A transaction is not only payment for goods, works, services, property rights, but also any movement of satoshi from one address to another. When making transactions, commissions are paid to miners. Miners ensure the security of the Bitcoin network.
The price of Bitcoin depends on supply and demand. Since the price of Bitcoin is denominated in fiat currencies, and fiat currencies become cheaper over time due to inflation, the price of Bitcoin increases over time.
After all, the supply of Bitcoin is initially limited - there cannot be more than 21,000,000 coins in the world (in practice, there are fewer, since some users have permanently lost access to their Bitcoins).
