Dan on Nostr: The price for an item at an auction is whatever the highest price offered is. When ...
The price for an item at an auction is whatever the highest price offered is.
When you buy Bitcoin it's exactly the same situation. The Bitcoin you're buying is Bitcoin another user is selling. The exchange is essentially running tons of tiny auctions constantly to get seller's the highest price possible and buyers the lowest possible price. When those prices overlap, the sale happens.
The same way that you can't "confirm" the correct price at an auction - because the price is set by whomever buys/wins the object - you can't "confirm" the correct price for Bitcoin.
The price of Bitcoin is whatever price most recently had a buyer and seller agree to transact. That price changes constantly and is organic.
When you buy Bitcoin it's exactly the same situation. The Bitcoin you're buying is Bitcoin another user is selling. The exchange is essentially running tons of tiny auctions constantly to get seller's the highest price possible and buyers the lowest possible price. When those prices overlap, the sale happens.
The same way that you can't "confirm" the correct price at an auction - because the price is set by whomever buys/wins the object - you can't "confirm" the correct price for Bitcoin.
The price of Bitcoin is whatever price most recently had a buyer and seller agree to transact. That price changes constantly and is organic.