Why bitcoin prices are always very unstable - page 2.

panju1

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Quote from: calchuchesta on October 10, 2014, 06:25:26 PM

At this point in bitcoins life, people are treating it more as a stock... people are buying into bitcoin and waiting for it to go up...Any little ups or downs cause a rush to sell or buy as if there was bad news with a tech company's product or third quarter earnings... As long as bitcoin is treated this way... we will have these price swings.

More people need to treat bitcoin as if it were gold or silver.... hoard it away for 5+ years .... and then see what the price is... there needs to be a few more reward halving for to be realized just how rare bitcoin really is.... Then and only then can bitcoin be used as a stable means of trade....

Next ... Bitcoin must not be traded into and out of fiat currency.....

100 years ago...you could buy a fine 3 piece suit for a 1oz .gold coin.. And at today's prices... you can buy a fine 3 piece suit for that same gold coin...... this is only a reference at the gold or the suit didn't change any in 100 years.... it was the fiat currency value that changed.....

Buy and hold bitcoin for long term investment .. and price doesn't matter.

A lot of the early adopters have hoards of bitcoin. They have been holding for a long time now. I guess it will be some time before others think that way as well.

calchuchesta

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At this point in bitcoins life, people are treating it more as a stock... people are buying into bitcoin and waiting for it to go up...Any little ups or downs cause a rush to sell or buy as if there was bad news with a tech company's product or third quarter earnings... As long as bitcoin is treated this way... we will have these price swings.

More people need to treat bitcoin as if it were gold or silver.... hoard it away for 5+ years .... and then see what the price is... there needs to be a few more reward halving for to be realized just how rare bitcoin really is.... Then and only then can bitcoin be used as a stable means of trade....

Next ... Bitcoin must not be traded into and out of fiat currency.....

100 years ago...you could buy a fine 3 piece suit for a 1oz .gold coin.. And at today's prices... you can buy a fine 3 piece suit for that same gold coin...... this is only a reference at the gold or the suit didn't change any in 100 years.... it was the fiat currency value that changed.....

Buy and hold bitcoin for long term investment .. and price doesn't matter.

fewcoins

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Quote from: Coincoin1991 on October 10, 2014, 10:32:19 AM

I think about this question for quite a long time. The main reason I think is because it is only used for speculation. We need more real world applications to make it more stable.

Great so we're all gambling on a digital currency with no use yet... great.

Coincoin1991

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I think about this question for quite a long time. The main reason I think is because it is only used for speculation. We need more real world applications to make it more stable.

fewcoins

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Quote from: resya on October 09, 2014, 05:23:18 PM

BTC become more stable now at $350 and will always be the daddy coin, but IMO LTC does have more profit potential, like right now LTC to $12 is not going to be as hard as BTC going to $1000 again

Lmfao this comment is hilarious... Lite coin is crashing & burning atm, soon LTC will be a thing of the past! It has no future!!

BJay87

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Quote from: btckold24 on October 10, 2014, 05:42:02 AM

Quote from: PenAndPaper on September 27, 2014, 08:53:36 AM

Because of the poor liquidity... Even moderate orders can move the price up or down big time.

Gonna have to go with this response IMHO

I have to agree with this.. I think you have more to say than others here.

runam0k

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Touchdown

Quote from: btckold24 on October 10, 2014, 05:42:02 AM

Quote from: PenAndPaper on September 27, 2014, 08:53:36 AM

Because of the poor liquidity... Even moderate orders can move the price up or down big time.

Gonna have to go with this response IMHO

The correct response. Anyone with an inkling of how capital markets work will realise liquidity in Bitcoin is a serious issue. We only just got our very first regulated derivative FFS. We have a long way to go but ultimately liquidity will bring price stability.

btckold24

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Quote from: PenAndPaper on September 27, 2014, 08:53:36 AM

Because of the poor liquidity... Even moderate orders can move the price up or down big time.

Gonna have to go with this response IMHO

fewcoins

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Quote from: arbitrage001 on September 28, 2014, 08:01:04 AM

Quote from: ytr8 on September 27, 2014, 08:29:00 AM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

The rally is real on good news, but there are still more miners selling than speculators buying.

A few years ago, mining were spread out over many small fish when people believe in the technology and horde all the coins they mined. This is no longer the case when ASIC came out and cooperation get involved.

In other words the price will keep falling at a faster rate as more and more cooperations get involved

resya

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BTC become more stable now at $350 and will always be the daddy coin, but IMO LTC does have more profit potential, like right now LTC to $12 is not going to be as hard as BTC going to $1000 again

GenieBTC

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Quote from: Gallah on October 09, 2014, 12:36:54 AM

Quote from: DhaniBoy on October 08, 2014, 01:38:34 PM

it is because a lot of selling going on bitcoin in Russia, this is because his existing laws that prohibit possession of bitcoin in Russia, it makes the holder bitcoin bitcoin in Russia to sell to the market, so stock bitcoin abundant in the market, and as a result of law if the stock market an abundance of goods, then the selling price of the item will be dropped ... Cry

But the price is going UP

Russians selling all their BTC should be pushing the price DOWN.

Maybe Russians are selling because they are making their own.

Wanesst

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Nowadays a lot of btc users are traders and ASIC owners. They create the up and down waves. Price will be stable if shops, customers and other participants of market use more btc.

There is the forecast for btc exchange rate from Korea

redHeadBlunder

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Quote from: youngwallst on October 08, 2014, 12:38:21 PM

Quote from: 51percemt on October 08, 2014, 12:13:15 AM

Quote from: youngwallst on October 07, 2014, 10:48:39 AM

Quote from: ytr8 on September 27, 2014, 08:29:00 AM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

I personally think that corporations that are accepting need to turn it over back into fiat (because thats how they ultimately look at their bottom lines), miners needing to cover their costs, various reports of very early adopters converting large sums, & regulatory uncertainty is the reason for the extreme volatility. If you're bullish bitcoin, this shouldn't matter much. Considering bitcoin went parabolic last year, this type of retrace amid the black swans that I just mentioned is natural. From a technical standpoint you'd be a bit concerned maybe in the near term, possibly. Real price expansion will happen once we work thru alot of transitory variables (most mentioned above) and more mainstream aggregate demand occurs along with merchant adoption to support the supply/demand imbalances we are seeing being reflected in price as volatility. Hope that helps!

Corporations need to convert their bitcion back to fiat because they have nothing to do with it. Corporations are not investment vehicles and will generally not hold an asset for an investment (except extremely safe ones like US treasuries) unless it relates directly to their business (for example a warehouse or their inventory). Until we see more B2B bitcoin transactions corporations will continue to sell their bitcoin quickly (likely causing large spikes in supply), however as we see more b2b transactions this will slow down and eventually stop

While I understand the point you're trying to make, it's moot because OP asked what factors were dropping price and creating volatility. As Im sure you already know, when sell orders are larger than buy orders it creates downward pressure on price... As far as the corps having lack of desire to conduct B2B transactions in Bitcoin, I agree until we see larger willingness from said corps to utilize their btc in a way that supports price, it will continue to be volatile.

Part of the selling pressure is because of large merchants selling the bitcoin they receive from their customers. If they were to engage in b2b transactions then this selling pressure would be reduced

Gallah

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Quote from: DhaniBoy on October 08, 2014, 01:38:34 PM

it is because a lot of selling going on bitcoin in Russia, this is because his existing laws that prohibit possession of bitcoin in Russia, it makes the holder bitcoin bitcoin in Russia to sell to the market, so stock bitcoin abundant in the market, and as a result of law if the stock market an abundance of goods, then the selling price of the item will be dropped ... Cry

But the price is going UP

Russians selling all their BTC should be pushing the price DOWN.

DhaniBoy

sr. member

Activity: 280

Merit: 250

it is because a lot of selling going on bitcoin in Russia, this is because his existing laws that prohibit possession of bitcoin in Russia, it makes the holder bitcoin bitcoin in Russia to sell to the market, so stock bitcoin abundant in the market, and as a result of law if the stock market an abundance of goods, then the selling price of the item will be dropped ... Cry

youngwallst

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Quote from: 51percemt on October 08, 2014, 12:13:15 AM

Quote from: youngwallst on October 07, 2014, 10:48:39 AM

Quote from: ytr8 on September 27, 2014, 08:29:00 AM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

I personally think that corporations that are accepting need to turn it over back into fiat (because thats how they ultimately look at their bottom lines), miners needing to cover their costs, various reports of very early adopters converting large sums, & regulatory uncertainty is the reason for the extreme volatility. If you're bullish bitcoin, this shouldn't matter much. Considering bitcoin went parabolic last year, this type of retrace amid the black swans that I just mentioned is natural. From a technical standpoint you'd be a bit concerned maybe in the near term, possibly. Real price expansion will happen once we work thru alot of transitory variables (most mentioned above) and more mainstream aggregate demand occurs along with merchant adoption to support the supply/demand imbalances we are seeing being reflected in price as volatility. Hope that helps!

Corporations need to convert their bitcion back to fiat because they have nothing to do with it. Corporations are not investment vehicles and will generally not hold an asset for an investment (except extremely safe ones like US treasuries) unless it relates directly to their business (for example a warehouse or their inventory). Until we see more B2B bitcoin transactions corporations will continue to sell their bitcoin quickly (likely causing large spikes in supply), however as we see more b2b transactions this will slow down and eventually stop

While I understand the point you're trying to make, it's moot because OP asked what factors were dropping price and creating volatility. As Im sure you already know, when sell orders are larger than buy orders it creates downward pressure on price... As far as the corps having lack of desire to conduct B2B transactions in Bitcoin, I agree until we see larger willingness from said corps to utilize their btc in a way that supports price, it will continue to be volatile.

51percemt

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Quote from: youngwallst on October 07, 2014, 10:48:39 AM

Quote from: ytr8 on September 27, 2014, 08:29:00 AM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

I personally think that corporations that are accepting need to turn it over back into fiat (because thats how they ultimately look at their bottom lines), miners needing to cover their costs, various reports of very early adopters converting large sums, & regulatory uncertainty is the reason for the extreme volatility. If you're bullish bitcoin, this shouldn't matter much. Considering bitcoin went parabolic last year, this type of retrace amid the black swans that I just mentioned is natural. From a technical standpoint you'd be a bit concerned maybe in the near term, possibly. Real price expansion will happen once we work thru alot of transitory variables (most mentioned above) and more mainstream aggregate demand occurs along with merchant adoption to support the supply/demand imbalances we are seeing being reflected in price as volatility. Hope that helps!

Corporations need to convert their bitcion back to fiat because they have nothing to do with it. Corporations are not investment vehicles and will generally not hold an asset for an investment (except extremely safe ones like US treasuries) unless it relates directly to their business (for example a warehouse or their inventory). Until we see more B2B bitcoin transactions corporations will continue to sell their bitcoin quickly (likely causing large spikes in supply), however as we see more b2b transactions this will slow down and eventually stop

xinxi

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I guess China has contributed a lot to the volatility. There are many irrational traders. They get panic or ecstatic quite often.

youngwallst

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Quote from: ytr8 on September 27, 2014, 08:29:00 AM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

I personally think that corporations that are accepting need to turn it over back into fiat (because thats how they ultimately look at their bottom lines), miners needing to cover their costs, various reports of very early adopters converting large sums, & regulatory uncertainty is the reason for the extreme volatility. If you're bullish bitcoin, this shouldn't matter much. Considering bitcoin went parabolic last year, this type of retrace amid the black swans that I just mentioned is natural. From a technical standpoint you'd be a bit concerned maybe in the near term, possibly. Real price expansion will happen once we work thru alot of transitory variables (most mentioned above) and more mainstream aggregate demand occurs along with merchant adoption to support the supply/demand imbalances we are seeing being reflected in price as volatility. Hope that helps!

CryptoCarmen

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Quote from: braum on October 06, 2014, 02:20:46 PM

we must ask satoshi

i just called him, and he said it`ll go to $1,000 soon.

he can only make it go to $1, he cant make it go to $1000

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