The price of bitcoin is different from its value. The price is determined by the supply and method policy and the market in which it is trading. The bitcoin price is calculated against the fiat currency such as the American Dollars. Chinese Yan, Euro etc.
However, there is no official price for Bitcoin and is based on an approximate price that is generated from the global exchanges like the Coin Desk and Bitcoin Average. These are the indices that report the average price. Bitcoin generally trades in exchanges even with higher or lower price to the one reported at the indices.
Bitcoin price is determined by its supply. The supply has been fixed at 21 million coins of which about 16.2 million have already been in circulation. At present, miners on an average produce 3600 bitcoins
each day some of which are used up to meet the expenditure of energy and other business necessities. Second is the demand. The mining reward is 25 bitcoins and this value will be halved every 210000 blocks.
The bitcoin network is decentralized and is both assorted as well as well distributed. Its decorum aims to seek harmony and accord among the nodes with a healthy and sturdy network