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- How is the exchange rate for Bitcoin established? 6 answers
how is the price of any cryptocurrency computed, how is the math equation and who actually does it? if you would say a trading site like Coinbase then i say there are also currencies that are i guess not listed in any trading site and still they have a price.
edit: Ask and bid plays the role in the making of price probably. Of course i can sell 1 btc for $ 1 if i will want, but when selling i have to know what is the worth of it.. and i need to get it from somewhere. If all sellers need to know it from somewhere, where they take it from? You might say again from trading site (again from bid and ask) it is a bit recursion.
Maybe the source is really the biggest trading site.
Maybe the equation is something like:
price = price * (ask to buy / ask to sell)
And ask to buy and ask to sell is made by the popularity / trust (news articles, expectation)
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