It can happen that the price of Bitcoin fluctuates every minute. Sometimes, people get excited due to an increase in the price while other days, all they talk about is the possibility of a crash. However, while this goes on, a very stable process takes place: Bitcoin continues following its own rules.
Unlike in the stock market where things depend on the mood of the market participants, in the case of Bitcoin network, its main rules remain unchanged regardless of the market. Any transaction needs to meet the criteria of the network to be accepted, blocks follow the protocol, and the supply of new bitcoin does not depend on any company.
The Bitcoin network was created taking into account its maximum possible number (21 million coins). New bitcoin is introduced into the network through the mining process and is limited by scheduled halvings. These rules are one of the most distinguishing features of Bitcoin compared to other currencies and assets.
Thus, when we look at the price, we only consider the opinion of the market at a certain moment.
What is interesting is that Bitcoin's rules are followed by the network participants. On the one hand, miners mine blocks through Proof of Work, whereas on the other, nodes check the protocol validity of the mined blocks and transactions individually. In other words, miners cannot just mine any blocks and be sure that these blocks will be accepted by the network.
However, this does not mean that Bitcoin's rules cannot be changed. Protocol changes can occur; however, they should be adopted and coordinated by the network participants. This differs greatly from having an organization or authority that is able to change the system whenever it wants.
This is why I believe that the price of Bitcoin is exaggerated in comparison with the underlying system. The price fluctuates up and down by thousands of dollars; meanwhile, the rules continue working in the background.
It is possible to argue about the worthiness of Bitcoin, its future, or usefulness. However, the network's rules give the framework to the system. The price shows the market estimation of Bitcoin, whereas the rules define how Bitcoin works.
