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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) * unknownIndex)

And ask to buy and ask to sell is made by the popularity / trust (news articles, expectation)

luky
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  • The people, and exchanges? https://coinmarketcap.com/currencies/volume/24-hour/ – Rutger Versteegden Dec 21 '17 at 18:13
  • i am interested in specific math formula answer and also specific answer about how it works with prices for sure – luky Dec 21 '17 at 18:14
  • There is no math formula other then Supply X demand? – Rutger Versteegden Dec 21 '17 at 18:15
  • ok nice, now we are getting closer, yes demand will be probably part of the formula. but you know, the price is strict and specific, so there must be some formula. and almost any crypto currency today has a price. – luky Dec 21 '17 at 18:16
  • No, the price is not strict and specific. The owner of a BTC is free to sell at any price they can get; a buyer is free to offer any price they want. – abelenky Dec 21 '17 at 18:24
  • of course but there is some common consensus :) google "1 btc to usd" – luky Dec 21 '17 at 18:36
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    @luky There is no formula. The reported price is just the last price at which two people agreed to perform a trade (or some average over a number of trades). It is not a guarantee that anyone is still buying or selling at that price. – Pieter Wuille Dec 21 '17 at 18:52

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