Many people are curious how the price of Bitcoin is determined. First of all, know that the way the Bitcoin price moves is the same as a currency or other object. Let's take an example of how the price of an object is determined - we can use oranges as parables. What is the price of oranges?
The answer: depends. The first point in determining the price of oranges is the following two things: what price is desired by the person who sells it, and what price is desired by the person who bought it. If John wants to sell oranges at a price of Rp. 3,000, and Sarah just wants to pay Rp. 2,000, the deal doesn't happen. But if they agree to a certain price, for example Rp. 2,500, then the transaction occurs. In the summer, more people want to buy oranges, so the price of oranges rises. Or if there is a flood so the supply of oranges decreases, but many people want to buy oranges, the price will also increase.
Bitcoin and other currencies are slightly different from oranges because they are 'homogeneous' - one dollar is identical to another dollar, like Bitcoin is identical to other Bitcoin. Oranges, on the other hand, can differ depending on the size and quality. In other words, it is easier to determine the price of a Bitcoin or currency because of the identical nature.
Many people don't realize that other currencies also work exactly like Bitcoin - if you are holding coins or banknotes in your local currency in your hands at the moment, at the same time there are millions of people buying and selling your local currency, so even if you feel the price of your currency is stable, the price actually changes continuously. If you want to exchange your money in another local currency, for example for USD, today you might pay with your 10 local currency, but the next day it could be 11 or 9. Bitcoin works exactly like that - you can imagine it like other types of currencies than what you have now.
