I would think that this unnatural stability is caused by either:
1. One or more parties accumulating BTC and ready to buy large quantities slightly below 5$
2. One or more "early adopters" are slowly converting their BTC fortune into fiat by selling large quantities slightly above 5$
3. One or more parties are "stabilizing" Bitcoin by doing both 1. and 2.
4. Some or all of the above
Simple really. The one thing is certain, this will end sooner or later and this status quo is highly unlikely to persist beyond Jan 2013.
Once this "trade" runs out volatility will return with vengeance, probably on the upside (based on fundamentals).
Want this to happen quicker, buy yourself 50x bundle of Bitcoin Magazine and distribute everywhere around you. Or go for 10x bundle that's only 60$ and free shipping, btw.
Topic: Why is bitcoin now so absurdly stable when priced in USD? - page 2. (Read 4799 times)
One word : market manipulation.
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
Someone calculated the impact this would have in another thread. It wouldn't move the price much at all and certainly not long-term.
1. Stable exchange rate promotes commerce
2. Discourage hoarders
3. Wear speculators out
Probably they can afford doing it now because they have equal amount coins denominated in BTC and USD.
righty right!
This is all CIA#s fault, I am telling you. In 50 years time they will declassify how Satoshi is a codename of one of their departments.
One word : market manipulation.
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
Someone calculated the impact this would have in another thread. It wouldn't move the price much at all and certainly not long-term.
1. Stable exchange rate promotes commerce
2. Discourage hoarders
3. Wear speculators out
Probably they can afford doing it now because they have equal amount coins denominated in BTC and USD.
One word : market manipulation.
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
Someone calculated the impact this would have in another thread. It wouldn't move the price much at all and certainly not long-term.
Obviously anyone interested in this question understands the MtGox Live graph: http://mtgoxlive.com/
If not, play with it till you do! It's a graphical representation of their order book. So, for example, there are a lot of orders to buy at $5.10. For the price to drop that low, just under 1900 bitcoins would need to be sold. But then another 1200 would need to be sold before the price dropped any lower. There's an even larger shoulder at $5.01.
Toby.
If not, play with it till you do! It's a graphical representation of their order book. So, for example, there are a lot of orders to buy at $5.10. For the price to drop that low, just under 1900 bitcoins would need to be sold. But then another 1200 would need to be sold before the price dropped any lower. There's an even larger shoulder at $5.01.
Toby.
One word : market manipulation.
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
With Bitconica supposedly buying 18K BTC I would think price would rise.
Not so because some HEAVY players like pirateat40 don't like price going up
I think Bitcoin would be increasing in value right now if there wasn't so much inflation.
I don't just mean via mining new coins, I mean the amount of lending that is going on creating a large amount of BTC denominated bonds. This is a very healthy sign though, as long as it doesn't get out of control.
I don't just mean via mining new coins, I mean the amount of lending that is going on creating a large amount of BTC denominated bonds. This is a very healthy sign though, as long as it doesn't get out of control.
Offer and demand of bitcoins is mainly speculation (gambling) instead of a real use of the currency. This way the behavior of the price is uncertain (some periods of high volatility, others of high stability).
In order to fix this problem we need more entrepreneurs, engineers and developers (real work), and less economists, speculators and gamblers (zero-sum game).
There are millions of ideas, projects and systems that were infeasible before Bitcoin (due to transaction costs) but now are fully feasible. The success of Bitcoin is our responsibility.
In order to fix this problem we need more entrepreneurs, engineers and developers (real work), and less economists, speculators and gamblers (zero-sum game).
There are millions of ideas, projects and systems that were infeasible before Bitcoin (due to transaction costs) but now are fully feasible. The success of Bitcoin is our responsibility.
I think things are moving in this direction.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
If the influx in capital into the market keeps pace with the new 7200 BTC produced every day, there is no need to buy up all those daily 7200 BTC. It is my understanding, that the named influx has risen over the past year along with bitcoins rising awareness.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
If the influx in capital into the market keeps pace with the new 7200 BTC produced every day, there is no need to buy up all those daily 7200 BTC. It is my understanding, that the named influx has risen over the past year along with bitcoins rising awareness.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
A lot of people mine and keep their coins like me. Also when I sell my btc i usually try to first buy something from a user in the forum. There is probably thousands of dollars worth of computer hardware on the forum. When people buy from the forum it helps keep some of the btc out of the exchanges lowering the volume of bitcoins on them.
I suspected that as well.
If you treat Bitcoin as a product/service as the creators/investors/super early adopters the best feature you could offer to entice mass adoption is price stability.
If you treat Bitcoin as a product/service as the creators/investors/super early adopters the best feature you could offer to entice mass adoption is price stability.
Especially if you aren't particularly innovative or risk prone. The "service" that is easiest to provide without any particular skill or niche would be to dampen volatility. That produces value for everyone using it to conduct transactions. Higher real value means higher long term appreciation which means a more likely exist scenario for a bitcoin millionaire.
All markets tend toward stability, volatility will always fall in the long-run.
So, it's possible this amazing stability of the past 3 months is just a natural occurrence with no specific reason. However, I am honestly suprised such stability has been achieved this early. It's a very good sign, indeed.
With that said, when the price breaks out of this range, we could see another long period of volatility while a new equilibrium price is discovered. All the people who, last year, said Bitcoin would never see stability have been proven wrong, big time.
So, it's possible this amazing stability of the past 3 months is just a natural occurrence with no specific reason. However, I am honestly suprised such stability has been achieved this early. It's a very good sign, indeed.
With that said, when the price breaks out of this range, we could see another long period of volatility while a new equilibrium price is discovered. All the people who, last year, said Bitcoin would never see stability have been proven wrong, big time.
Perhaps one of the early adopters is using their pile of bitcoin to manage the rate ?
Imagine you have a large number of bitcoin and, for whatever reason, want to stabilise BTCUSD.
When the rate rises to, say, $5.10 you start selling from your pile to kill the momentum.
It trends down to $5 again.
All systems have volatility.
Imagine it blips down to $4.90. You start buying Bitcoin with the USD you got from your $5+ sales.
The downward trend is stopped.
You have just bought low, sold high = profit.
You have also set a price anchor $5 = 1 BTC which is conveniently easy for everyone to remember.
I suspect we will never know if this is the case though.
Imagine you have a large number of bitcoin and, for whatever reason, want to stabilise BTCUSD.
When the rate rises to, say, $5.10 you start selling from your pile to kill the momentum.
It trends down to $5 again.
All systems have volatility.
Imagine it blips down to $4.90. You start buying Bitcoin with the USD you got from your $5+ sales.
The downward trend is stopped.
You have just bought low, sold high = profit.
You have also set a price anchor $5 = 1 BTC which is conveniently easy for everyone to remember.
I suspect we will never know if this is the case though.
I suspected that as well.
If you treat Bitcoin as a product/service as the creators/investors/super early adopters the best feature you could offer to entice mass adoption is price stability.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
There is no reason to assume that every single miner sells every single bitcoin mined every day.
Yeah I've been mining for a year and half and haven't sold any.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
There is no reason to assume that every single miner sells every single bitcoin mined every day.
Sure there's a reason to assume that - to make it seem like demand is really high.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
There is no reason to assume that every single miner sells every single bitcoin mined every day.
One thing to consider is that, for the price to remain stable, someone has to buy up all of the 7200 Bitcoins produced every day. I imagine that that is the answer to your question. Someone who holds a lot of dollars, a wealthy investor or perhaps even a bank or government, has decided to buy a large volume of Bitcoins over a long period of time.
Also, the options exchanges have contributed hugely to price stability.
Also, the options exchanges have contributed hugely to price stability.
Perhaps one of the early adopters is using their pile of bitcoin to manage the rate ?
Imagine you have a large number of bitcoin and, for whatever reason, want to stabilise BTCUSD.
When the rate rises to, say, $5.10 you start selling from your pile to kill the momentum.
It trends down to $5 again.
All systems have volatility.
Imagine it blips down to $4.90. You start buying Bitcoin with the USD you got from your $5+ sales.
The downward trend is stopped.
You have just bought low, sold high = profit.
You have also set a price anchor $5 = 1 BTC which is conveniently easy for everyone to remember.
I suspect we will never know if this is the case though.
Imagine you have a large number of bitcoin and, for whatever reason, want to stabilise BTCUSD.
When the rate rises to, say, $5.10 you start selling from your pile to kill the momentum.
It trends down to $5 again.
All systems have volatility.
Imagine it blips down to $4.90. You start buying Bitcoin with the USD you got from your $5+ sales.
The downward trend is stopped.
You have just bought low, sold high = profit.
You have also set a price anchor $5 = 1 BTC which is conveniently easy for everyone to remember.
I suspect we will never know if this is the case though.
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