Price stickiness at $5 USD/BTC? - page 5.

adamstgBit

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Quote from: asdf on May 08, 2012, 04:29:03 PM

Could be a heavily invested entity keeping the price stable to attract users?

That and, alot of small hobbyist inverters who are simply never going to sell, if anything they will just use the bitcoin economy, day trade with some a % of their coins, and buy more coins!

)

ironically its probably the people that bought at +5$ range that have sold off their bitcoins. Because lets face...the bubble was a bubble and when it poped we lots a lost of people, big and small investors...

and the thing is... when it was poping... "really big investors" didn't wana touch bitcoin with a 10 foot pole

the stable price will hold indefinitely, and this will make bitcoin a more attractive investment opportunity, And taken more seriously as an alternative payment system.

ElectricBrain

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Quote from: Raoul Duke on May 10, 2012, 08:05:00 PM

BitInstant <--- That's what happened. They allowed for people with money to do arbitrage in a simple way, so they keep the market fairly stable.

+1

eleuthria

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Quote from: notme on May 10, 2012, 07:36:30 PM

Quote from: Rothgar on May 09, 2012, 03:32:02 PM

Quote from: jjshabadoo on May 09, 2012, 03:29:08 PM

Seems very odd though we are essentially stuck at $5. It's nice to see some stability, but it's kind of weird considering difficulty has gone up close to 50% this year. BTC is not responding to supply and demand curves...lol. Although maybe we have reached an equilibrium in the speculator market.

As a miner I'd like to see the coin follow economic fundamentals more closely.

Difficulty gone up 50% while the price stays stable got you confused? The hash rate should double every 18 months assuming a constant price due to moores law.

https://en.wikipedia.org/wiki/Moore%27s_law

That, plus difficulty does not change the supply one bit.

Not only does difficulty not change supply (at least not in a material way), supply has very little to do with the value of bitcoins. Daily volume on Mt.Gox is much higher than the number of coins created each day through mining.

Raoul Duke

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BitInstant <--- That's what happened. They allowed for people with money to do arbitrage in a simple way, so they keep the market fairly stable.

notme

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Quote from: Rothgar on May 09, 2012, 03:32:02 PM

Quote from: jjshabadoo on May 09, 2012, 03:29:08 PM

Seems very odd though we are essentially stuck at $5. It's nice to see some stability, but it's kind of weird considering difficulty has gone up close to 50% this year. BTC is not responding to supply and demand curves...lol. Although maybe we have reached an equilibrium in the speculator market.

As a miner I'd like to see the coin follow economic fundamentals more closely.

Difficulty gone up 50% while the price stays stable got you confused? The hash rate should double every 18 months assuming a constant price due to moores law.

https://en.wikipedia.org/wiki/Moore%27s_law

That, plus difficulty does not change the supply one bit.

Technomage

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I personally think OgNasty's explanation is ridiculous. It's the same as playing poker with the mindset of trying to win back money you have previously lost. Some people do this of course but for a serious player there is an expected value and you invest based on it and what happens, happens.

Of course it can be smart to lower your average price if the entry point was really bad. For example, if someone bought bitcoins at $10+ and is still hoarding them, buying now would make sense if you want to get your average entry closer to the current price. But I just can't see how this could be a significant explanation for the sticky $5 price.

My explanation is fairly simple, I just think that Bitcoin growth rate at the moment is fairly close to the inflation of the money supply. Secondary reasons are psychological reasons and the fact that leveraged rallies have been less crazy for a number of reasons ever since we had the massive long squeeze at Bitcoinica.

johnyj

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Beyond Imagination

One market maker is enough: Put sell order when price goes above $5.2 and buy order when price dropps below 5

Maintain the price and start to accumulate enough BTC, and try to push it towards $50, because the liquidity in BTC is so low and there is no regulation for BTC exchange, who knows what can happen...

I think the best time to push the price up is when block reward drops, we'll see...

symbols

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Quote from: OgNasty on May 09, 2012, 10:02:37 PM

I think enough people have now stashed money in BTC that they will step up and buy to keep the price stable when it falls below $5. This is to protect the value of their stashed funds... Just my $0.02.

If that is indeed the case, it's hoarding price stickiness... and its ultimately misplaced. I believe bitcoins will increase in value, so I would buy on a fall in price. But if I think that its my purchases that keep the price up, I would be better served by gradually selling off my investment because I can't keep the market afloat on my own. I could pursue a strategy of buying just a little bit and hoping that other buyers are encouraged by the price resistance, and then sell into their demand... So I guess that last strategy is possible.

OgNasty

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I think enough people have now stashed money in BTC that they will step up and buy to keep the price stable when it falls below $5. This is to protect the value of their stashed funds... Just my $0.02.

Rothgar

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Quote from: jjshabadoo on May 09, 2012, 03:29:08 PM

Seems very odd though we are essentially stuck at $5. It's nice to see some stability, but it's kind of weird considering difficulty has gone up close to 50% this year. BTC is not responding to supply and demand curves...lol. Although maybe we have reached an equilibrium in the speculator market.

As a miner I'd like to see the coin follow economic fundamentals more closely.

Difficulty gone up 50% while the price stays stable got you confused? The hash rate should double every 18 months assuming a constant price due to moores law.

https://en.wikipedia.org/wiki/Moore%27s_law

jjshabadoo

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Seems very odd though we are essentially stuck at $5. It's nice to see some stability, but it's kind of weird considering difficulty has gone up close to 50% this year. BTC is not responding to supply and demand curves...lol. Although maybe we have reached an equilibrium in the speculator market.

As a miner I'd like to see the coin follow economic fundamentals more closely.

fivemileshigh

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Quote from: symbols on May 08, 2012, 11:14:01 AM

So, the exchanges have been keeping a fairly tight band around $5/BTC, I'd like to hear opinions on how much you attribute this to the following factors:

4) Other factors, please describe...

-s

pure coincidence. I think we're going to see both $3 and $15 this year.

yogi

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Hamster ate my bitcoin

And, whatever happened to the 50k walls that used to popup all the time?

asdf

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Quote from: symbols on May 08, 2012, 11:14:01 AM

So, the exchanges have been keeping a fairly tight band around $5/BTC, I'd like to hear opinions on how much you attribute this to the following factors:

1) Fundamentals: economy is growing at the same rate of the influx of coins from mining so prices stay constant
2) Price stickiness: optimal trade would occur at a different rate but either hoarding or excessive selling is keeping the price up or down
3) Price comfort: easy to think of bitcoin rate as divide USD by 5, works well with our decimal system
4) Other factors, please describe...

-s

Could be a heavily invested entity keeping the price stable to attract users?

symbols

newbie

Activity: 29

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So, the exchanges have been keeping a fairly tight band around $5/BTC, I'd like to hear opinions on how much you attribute this to the following factors:

1) Fundamentals: economy is growing at the same rate of the influx of coins from mining so prices stay constant
2) Price stickiness: optimal trade would occur at a different rate but either hoarding or excessive selling is keeping the price up or down
3) Price comfort: easy to think of bitcoin rate as divide USD by 5, works well with our decimal system
4) Other factors, please describe...

-s

Topic: Price stickiness at $5 USD/BTC? - page 5. (Read 9765 times)