Bitcoin went from £26k to £49k in just six months last year, and I genuinely don't understand what the calculations are based on. Is there an actual formula or is it just pure supply and demand? My mate keeps banging on about blockchain mathematics but I need it explained simply.
The math behind crypto prices isn't some secret formula - it's basically supply and demand like anything else, just more volatile. Your mate's probably talking about blockchain math, which is real but separate: that's the cryptography securing transactions, not what determines price. Bitcoin's jump from 26k to 49k happened because more people wanted to buy it than sell, institutional money moved in, and everyone's guessing what it'll be worth next (speculation). There's no underlying calculation the way a company's stock price might relate to earnings - you're literally just watching what people are willing to pay for it at any given moment, which is why it swings wildly.
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