Why is Bitcoin value more Volatile? - page 3.

BTCevo

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Quote from: gripflierGO on May 31, 2015, 03:55:35 PM

Quote from: qiwoman2 on May 26, 2015, 03:47:19 AM

It's more volatile because there are more big players in ratio with smaller ones so there is a lot of speculation. Bitcoin is not as mainstream as other fiat currencies and no central govt to keep a currency price steady so it is more at the mercy of speculators than an ordinary fiat currency is.

One reason why bitcoin may fluctuate against the fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount.

Nope I dont think there are some people that control the flow of price except the market itself and there are no properties that bitcoin is similar to gold so bitcoin doesnt correspond to gold in other aspect to. It is too much contrast between gold and bitcoin. The is one thing that only bitcoin can win against everything, that is their technology other else is nothing

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Quote from: bornil267645 on May 31, 2015, 05:53:12 AM

Well the Bitcoin market price is trying to hold it's ground in the recent past. It hovered a lot around 320 mark and then it's hovering around 230 mark. Hopefully it can become more stable and put an end to your agony.

That's true but it is as same as stock market the value keeps on increasing and decreasing and the value keeps on fluctuating but as per my knowledge and experience it is better to invest in bitcoin rather then going for stocks and i believe that bitcoin have something really special for us to offer.

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Quote from: qiwoman2 on May 26, 2015, 03:47:19 AM

It's more volatile because there are more big players in ratio with smaller ones so there is a lot of speculation. Bitcoin is not as mainstream as other fiat currencies and no central govt to keep a currency price steady so it is more at the mercy of speculators than an ordinary fiat currency is.

One reason why bitcoin may fluctuate against the fiat currencies is the perceived store of value versus the fiat currency. Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount.

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Well the Bitcoin market price is trying to hold it's ground in the recent past. It hovered a lot around 320 mark and then it's hovering around 230 mark. Hopefully it can become more stable and put an end to your agony.

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Quote from: grendel25 on May 31, 2015, 05:12:29 AM

There's a big difference with crypto currency and other markets. Cryptocoins are the wild west at the moment. There's all sorts of arbitrage capable markets and it's totally unregulated. There are absolutely no trade rules enforced or at least no rules that really matter.

Enjoy it while it lasts.

It follows the rules of the market, the only regulation that we need. Enjoy, forever.

grendel25

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There's a big difference with crypto currency and other markets. Cryptocoins are the wild west at the moment. There's all sorts of arbitrage capable markets and it's totally unregulated. There are absolutely no trade rules enforced or at least no rules that really matter.

Enjoy it while it lasts.

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In the free market, the interest rate and the value of the money (1/(all prices measured in that money)) should fluctuate to clear the market. Changes in nature (catastrophies, number of people, inventions) and changes in people (tendency to save / fear of the future, religion, tradition, culture) will necessarily affect both interest rate and value of money. On top of that we have speculation, the successful trading will reduce volatility but unsuccessful trading will increase it. Appearantly people like a stable economic environment with fixed prices, which will lead to step increases or decreases when the prices have to move to clear the market. This includes also money managers' attempts to lock one fiat type onto another.

So just forget stable money, it has always been only a dream.

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Quote from: Krang on May 27, 2015, 03:32:52 AM

Quote from: johnyj on May 26, 2015, 09:42:59 AM

It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

The halving is a good thing because hopefully and in theory that should make bitcoin's value increase. I think we can all agree that the value increasing couldn't possibly be a bad thing. As long as it keeps creeping up gradually everything is rosey but it's when it falls or a bubble bursts which causes panic.

the value increase should bring more stability, so it's not the halving the problem but the time required for it, if it was 2 years, it could have been far better fr a faster grow of bitcoin, now we are stuck with this slow motion because of this also

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Quote from: Krang on May 30, 2015, 10:25:55 AM

Quote from: BTCevo on May 30, 2015, 10:14:39 AM

Quote from: Krang on May 27, 2015, 03:32:52 AM

Quote from: johnyj on May 26, 2015, 09:42:59 AM

It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

The halving is a good thing because hopefully and in theory that should make bitcoin's value increase. I think we can all agree that the value increasing couldn't possibly be a bad thing. As long as it keeps creeping up gradually everything is rosey but it's when it falls or a bubble bursts which causes panic.

Yes its true halving will make value of bitcoin increase and that is a great thing when the value is going up and higher and the low of bitcoin producing so the price will going high but I saw near the end of month the price suddenly drop, I didnt know what happened to the value

I don't think it's a certainty, hence why I said in theory. If less people are involved or there's little demand for bitcoin it wont do anything positive. I'm also not sure if the last halving had a positive impact on the price or not, but hopefully by the time it comes bitcoins demand will have increased so we'll see positive gains.

Let us ait for that time. I guess the price will stay the same until the end of this year and after that hope it will going rise again since the halving is already done. May be it will have some positive impact but I guess that will not that much

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Quote from: BTCevo on May 30, 2015, 10:14:39 AM

Quote from: Krang on May 27, 2015, 03:32:52 AM

Quote from: johnyj on May 26, 2015, 09:42:59 AM

It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

The halving is a good thing because hopefully and in theory that should make bitcoin's value increase. I think we can all agree that the value increasing couldn't possibly be a bad thing. As long as it keeps creeping up gradually everything is rosey but it's when it falls or a bubble bursts which causes panic.

Yes its true halving will make value of bitcoin increase and that is a great thing when the value is going up and higher and the low of bitcoin producing so the price will going high but I saw near the end of month the price suddenly drop, I didnt know what happened to the value

I don't think it's a certainty, hence why I said in theory. If less people are involved or there's little demand for bitcoin it wont do anything positive. I'm also not sure if the last halving had a positive impact on the price or not, but hopefully by the time it comes bitcoins demand will have increased so we'll see positive gains.

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Quote from: Krang on May 27, 2015, 03:32:52 AM

Quote from: johnyj on May 26, 2015, 09:42:59 AM

It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

The halving is a good thing because hopefully and in theory that should make bitcoin's value increase. I think we can all agree that the value increasing couldn't possibly be a bad thing. As long as it keeps creeping up gradually everything is rosey but it's when it falls or a bubble bursts which causes panic.

Yes its true halving will make value of bitcoin increase and that is a great thing when the value is going up and higher and the low of bitcoin producing so the price will going high but I saw near the end of month the price suddenly drop, I didnt know what happened to the value

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Quote from: Benjig on May 20, 2015, 01:21:05 PM

Even anwsering your own post, you miss some details that determine its volatility:
- Rate of adoption is hampered by bad press.
- The perceived store of value versus the fiat currency; fixed amount, 21 million.
- Little option value to large holders of the currency.
- News about security breaches make investors react.

Yup, that's a much better description of the factors influencing the prices.
A breakthrough in mining is essential though for crypto currency to really 'take over', and well time too.

Krang

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Quote from: johnyj on May 26, 2015, 09:42:59 AM

It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

The halving is a good thing because hopefully and in theory that should make bitcoin's value increase. I think we can all agree that the value increasing couldn't possibly be a bad thing. As long as it keeps creeping up gradually everything is rosey but it's when it falls or a bubble bursts which causes panic.

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Quote from: qiwoman2 on May 26, 2015, 03:47:19 AM

It's more volatile because there are more big players in ratio with smaller ones so there is a lot of speculation. Bitcoin is not as mainstream as other fiat currencies and no central govt to keep a currency price steady so it is more at the mercy of speculators than an ordinary fiat currency is.

big players dominate each market. whether it is gold, oil, currency, and so on. it's not only like this in bitcoin. the only difference is that bitcoin has a very low market cap. that makes bitcoin volatile. 2000-3000btc dump can get the price down like $10-$20 which is insane.

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It will always be volatile because of reward halving every 4 years. If FED cut new money supply by half every 4 years, it will cause some shock for sure

qiwoman2

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It's more volatile because there are more big players in ratio with smaller ones so there is a lot of speculation. Bitcoin is not as mainstream as other fiat currencies and no central govt to keep a currency price steady so it is more at the mercy of speculators than an ordinary fiat currency is.

Krang

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Quote from: 1Referee on May 21, 2015, 07:43:07 AM

Quote from: dothebeats on May 20, 2015, 05:49:31 PM

Well it is less volatile than most fiat currencies nowadays, but the volatility remains, though. Also, there are traders who try and play the markets so we can assume that they are adding into the volatility of the price. Supply and demand doesn't affect btc as much as other commodities are affected, that is one thing I observed in bitcoin's economy.

Volatility is not a bad thing. It gives us the opportunity to make profit on price swings. Which is also one of the reasons why it attracts wealthy investors.

If volatility didn't exist, I probably would check the Bitcoin price once a week or so. Compared to plenty of times per day now.

The volatility is the biggest factor that attracts speculators and new investors. Do you think the Winklevii and half of the people who get involved nowadays would even bother with bitcoin if they didn't believe its value would rise considerably in the future? It's all about supply and demand and creating more demand is obviously key to that. Hopefully in the future the value of a bitcoin will become more stable (but lets just hope its worth several thousands when that does work.

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Quote from: nextgencoin on May 20, 2015, 01:49:49 PM

Quote from: Meuh6879 on May 20, 2015, 01:38:11 PM

Bitcoin is NOT VOLATILE.

Actually not much more than fiats these days, ask a Russian or an Iranian or some South American countries how stable their currency is.

http://www.bloomberg.com/quote/DXY:CUR

Yeah, but the standard of stability is USD and EUR. Unfortunately I doubt BTC will ever be as stable, since it's not regulated. We don't need a super stable BTC price anyway, BTC is like gold.

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Quote from: dothebeats on May 20, 2015, 05:49:31 PM

Well it is less volatile than most fiat currencies nowadays, but the volatility remains, though. Also, there are traders who try and play the markets so we can assume that they are adding into the volatility of the price. Supply and demand doesn't affect btc as much as other commodities are affected, that is one thing I observed in bitcoin's economy.

Volatility is not a bad thing. It gives us the opportunity to make profit on price swings. Which is also one of the reasons why it attracts wealthy investors.

If volatility didn't exist, I probably would check the Bitcoin price once a week or so. Compared to plenty of times per day now.

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Well the fact that there is no central bank that intervenes also is one of the reason that led to the volatility. If you observe certain currencies like JPY, the central bank actually intervened if the appreciation of the yen goes up too fast. The central bank will sell their own currency in order to normalize the situation.

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