Hello, and welcome to a nother awesome lesson. You've probably heard about the rising and falling prices of Bitcoin and potentially other cryptocurrencies as well. So this video won't just be about Bitcoin or the actual call, meaning the essence of it is by cryptocurrency in Germany comply to other commodities and markets, as well. But you might wonder how the actual price of bitcoin determined if it's not controlled by a Central Party. So if there is no 40 if there is no central authority, that who is determining its value, and there is not one individual or one organization that determines its value. There really are at the moment, three main things that determine is whether you want a supply and demand which is Essentially economics 101 there's supply and demand, there is tech nology advancements put advance advance man.

I have 30 advance months. And the other one is this is a pretty simple one perception. So what do all of these mean the supply and demand is simple, more people that want it higher the value, simple as that and if there's less people that want it less people that want it lower the value and in terms of the supply side more supply, supply can feel higher demand. So if the demand is high and this is applicable to any product or a currency, wherever it's fruit and veggie or computer that doesn't matter this is again, economics 101. So if the supply is steadily increasing and the demand is as well then the actual price of it the value of Bitcoin won't really increased much if at all, but if the supply is increasing immensely, but the Demand isn't increasing as much or the demand isn't increasing at all, then the actual price will go down.

So pretty basic stuff, if people want it companies or you know, it's not company, but it's like with a product company control and more the market will automatically shift and have a higher value. So, what about technology advancement, where does that come into all of this? So regarding technology advancements and how that works, so when you so if it becomes more secure in terms of less ad exchanges, this is technology advancements, if it becomes faster, if it is more white bread, so anything that improves the underlying tech, so anything that improves the line. Tech will increase value if something were to happen to the underlying tech that would make it worth that would obviously decrease its value. So finally, we're a perception perception is just that what people people think of it. If people like it value will be higher.

If people do not like it, then the value will be lower is the same with a computer company. If you have two computer companies, one has high reputation again, that's just most of it will just be perception, but if they have high reputation, people will more likely Be willing to pay more for their products. Whereas if they have a terrible reputation, maybe partly of its part part of the reputation has been earned in the form of maybe their customer service isn't very good, maybe the product phone very good, the actual price of their products will have to be low in terms of them to be able to sell any great like quantity of it. And that's the same with cryptocurrency the bearer perception equals higher price and nociception equals lower price and link to perception. What let's say central authority such as governments do in terms of regulations and laws, if they were to ban it, that would obviously having negative impact and that all ties into perception as well.

So these are the three main things that you have to think about when you're thinking about how to determine The price of a decentralized distributed currency is the supply and demand. Again, that's just economics one on one technology advancements as a bit more specific, and perception, which is for the most part applicable to most things in life. So that's it for this video. If you have any questions, feel free to reach out. I'll be glad to help. And feel free to go for the video.

Again, check that any points that you may may be unsure about, there's no shame in checking them out. Again. I do that all the time I go from videos again and again. And as usual, thanks for watching, and I look forward to seeing you in my next lesson.