Bitcoin price establishing is an interesting phenomenon and widely differs from the way the price of ordinary money is set. First of all, despite popular belief, Bitcoin does have a cost price. It is set as a combination of expenses on electricity, transaction fees and the installation/purchase of software.
However, the price of Bitcoin is not determined by its cost price and is mostly estimated by consumer demand. It causes huge fluctuations in the price of Bitcoin, as Bitcoin has no backing, and traders are largely dependent on the news of Bitcoin’s price, multiplying volatility of the asset. As Bitcoin’s market cap is nearly $159 billion, the price of Bitcoin became an important
a form of money that is used on the Internet
two or more different things that exist together or are used or
a business deal or action, such as buying or selling something
someone who buys and sells goods or stocks
using money, time, goods etc carefully and without wasting any
Reference: Bitcoin Price