24 hours of "stability" is not "stable"...
Stability is relative to reaction time / population not absolute time. For a thin market it is plenty stable.
Topic: Oddly Stable - page 2. (Read 5558 times)
Stability is relative to reaction time / population not absolute time. For a thin market it is plenty stable.
24 hours of "stability" is not "stable"...
Look how nicely symmetrical the order book is. I don't like it, it makes me feel nervous 
There's not enough "real economy" as of now to support a stable price. So it's investors and not "real economy" that are supporting this price.
Still, the stable price will BENEFIT ALL OF BITCOIN. Why? Because a stable price can lead to people setting up businesses with actual set prices. If you are selling something for 20$ USD, you can now set the price to 1 BTC and know that you won't be selling something and generating a loss.
Stop pricing in dollars. No loss. Problem fixed.
Bitcoin needs a stable appreciation not a stable price.
There's not enough "real economy" as of now to support a stable price. So it's investors and not "real economy" that are supporting this price.
Still, the stable price will BENEFIT ALL OF BITCOIN. Why? Because a stable price can lead to people setting up businesses with actual set prices. If you are selling something for 20$ USD, you can now set the price to 1 BTC and know that you won't be selling something and generating a loss.
It is the calm before the storm.
real businesses and trade will not be possible until it is stable. So yes, I think it would be a good thing
Actually common business won't. Real business is priced in around 80/20 BTC/fiat. And that's always stable.
Thanks for the replies guys.
(never took and never plan to take any sort of economics classes)
(never took and never plan to take any sort of economics classes)
Can somebody answer me this question....
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
If in your example, there was an order to buy 100k near that offer, yes - it would cross and not really move anything.
It's really all about the order book. You are right, your order is on the opposite 'side' of anyone elses, and you are matched to the closest bid/offer. Where order depth comes into play is what 'moves' price. (This also assumes you've put in a market order and not a limit order.) Your order simply takes out all the offers if you are buying, or the bids if you are selling - depending on how many are at each price level.
Hope that helps.
Can somebody answer me this question....
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
Increase the number of sellers and you increase the quantity of BTC available at a certain price. Someone will be desperate enough to let a BTC go for less than you are selling, and consume orders before you are able to. If enough time passes before your sale goes through, you may be forced to lower your price.
Can somebody answer me this question....
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
If your selling at the market value then as each bid is filled the price will get lower as it goes to the next bidder in line.
Can somebody answer me this question....
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
If I have an order on the books for $20/BTC for 10 BTC's, and someone else wants to sell their bitcoins, but are a bit more desperate to do so, then they'll have to post their price below mine.I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
Really, when people say that selling btc makes the price go down, they really mean that listing bitcoins for sale makes the price go down.
Can somebody answer me this question....
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
I see all this talk about how people selling their btc makes the value go down.
Why?
I could understand if there was in fact a central place buying up the coins per-se. But isn't MTGOX simply filling orders that other users have on the books with them? If somebody sells 100k btc, that means somebody is buying 100k btc, right?
So.. somebody please tell me where my logic is flawed.
There's not enough "real economy" as of now to support a stable price. So it's investors and not "real economy" that are supporting this price.
Not so. Increased velocity effectively increases supply, which would lower price.
When the coins have had a price/dollar vary less then +- 10% for over a year I'll call them stable...
What about stability wrt GBP and EUR?
It's an international currency, not a US currency.
The price has been floating around 19USD for the last couple of days. Does anyone have any idea why?
yes, the market participants are emotionally exhausted.
This is an equilibrium price, the players have said "yeh ok thats good" to this range on both the buy and sell sides.
This happens to be the point between the launch point and the high.
Once rested they will return to the same type of volatility.
-trader of many many years
real businesses and trade will not be possible until it is stable. So yes, I think it would be a good thing
There is also an inherent volatility when the prices are low. For example, if I want to buy a $10,000 car using Bitcoins, and it is only 1 Bitcoins per dollar, then by nature that will extremely disrupt the market to do the conversion (in this example am converting currencies in addition to car purchase). People are only going to be converting 20-80k Bitcoins per day no matter what the price is. So this 20-80k Bitcoins will have to accommodate the cash flow of millions of dollars or the market will go berzerk.
Take advantage of the chance to buy at a stable price
real businesses and trade will not be possible until it is stable. So yes, I think it would be a good thing
The problem is that when the prices become too stable, Bitcoins seem more attractive which leads to the price increasing. Might not be a "problem" exactly.
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