By default, the chart on this page shows the real-time bitcoin price of the past year. You can choose from different display options such as per day, week or month. The bitcoin price can change at any time, this is because trading in the digital currency never stops. Let's just say every trader's dream and nightmare.
At the moment 1 bitcoin is exactly: 23.493,42 € worth.
Recently we have received a lot of questions about the price of bitcoin. On this page you will find the most frequently asked questions about the bitcoin price and its formation.
Everything about the bitcoin price and current value
- Why do bitcoins have value?
- How is the price of bitcoin determined?
- Can bitcoin lose its value?
- Is bitcoin a bubble?
- Is bitcoin a pyramid scheme?*
Why do bitcoins have value?
There are several reasons why bitcoins have value. The first is because bitcoins are seen as a form of money, just like our euro or the US dollar. Bitcoin shares many properties that we also see with money, just think of: divisibility, scarcity, recognisability, sustainability and portability. The main reason why bitcoins have value is undoubtedly the trust in them by its users. You may not realize it, but Bitcoin is one of the first currencies people choose to use. As a citizen you have never opted for the euro and certainly not for using it. The central authorities oblige you to use the euro, for example you cannot pay your taxes in a currency other than the euro.
A frequently heard argument is that bitcoins have no intrinsic value, while the euro does. However, this is not true, it is what you as a user consider an intrinsic value. For example, we see the computing power of the bitcoin network (the so-called hashing power) as the underlying value of the digital coins. The euro has no intrinsic value, so the central bank's gold reserve has nothing to do with the number of euros that are put into circulation. The euro is based on trust and if that trust is lost, there will be little value left. Would you like to know more about our current money system? Then we recommend the following documentaries and books:
- The documentary 'Money creators' by VRPO Backlight
- Radar Extra's television series 'The question of guilt'
- The book 'Money comes out of nothing' by Ad Broere
- The book 'This cannot be true' by Joris Luyendijk
How is the price of bitcoin determined?
The bitcoin price is simply determined by supply and demand on the various cryptocurrency exchanges. When the demand for bitcoins rises, the price will automatically rise with it (if the demand is greater than the supply at that moment). To our bitcoin explanation page did you read that only 21 million bitcoins are put into circulation.
The bitcoin market is relatively small compared to other markets, the result is that with a large investment, the price of bitcoin quickly shoots up. This is one of the reasons why the price of a bitcoin is very volatile. In comparison: at the time of writing the total bitcoin market is about 100 billion euros, a commercial company like Apple is worth ten times as much.
Can bitcoin lose its value?
Yes, bitcoin can lose its value. Although we are very enthusiastic about bitcoin and the underlying blockchain technology, it is important to keep both feet on the ground. The history books are full of coins that are no longer used. Just think of the Deutsche Mark or the Venezuelan bolivar, both lost their purchasing power due to hyperinflation. Although bitcoin hyperinflation is not possible because the amount of bitcoins cannot simply be increased, there are plenty of scenarios that could cause bitcoin to lose its value.
Our tip remains the same: never invest more money than you are willing to lose. However, no one can predict the future, not even for bitcoin.
Is bitcoin a bubble?
Bitcoin has been compared to a 'bubble' by some critics, and this opinion stems mainly from the rapid price increase that the digital currency has experienced in recent years. Although a sudden downward correction due to artificial overvaluation can be called a bubble, we see bitcoin as something else. The price of bitcoin is determined by thousands of factors, the price fluctuations could also be seen as a market that is still looking for a price (price discovery).