Prices fluctuate because someone is constantly buying and selling.
There are more and more people who trust Bitcoin, which will lead to more and more Bitcoin prices and higher values.
At present, it cannot be stabilized. In any case, there will be fluctuations.
Topic: Why is the price of Bitcoin variable and can it stabilize? - page 2. (Read 314 times)
~snipe~
It's your first post for sure and you've not done anything wrong by making a first post, especially one that is valuable and I'm not sure this one is entirely. When you come to a forum @OP, it's always best you first look out for the rules that binds the forum and also, you seek to understand the environment before in order not to make much of a mistake.Perhaps this post is best suited here but, you don't seem to have familiarised yourself with the forum before you started posting. Your topic of discussion as at is now is one that has been talked about one roo many times and all you could have done is just to search it out. You've got ideas alright but, you've got to acquint yourself with the bitcointalk environment.
Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Well I think you should need to read more here before posting, that has been asked so many times here. Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
It can't be stabilized just because with this basic reason, it has a fixed supply that makes the price fluctuate every now and then, there are too many transactions in trading that always involve bitcoin on an exchange, there are too many people transferring their bitcoin into another wallet, many of us a cutting profit when there is a bull trend in the market and those are can create a wave on the price. Plus, bitcoin did not back any currency not like like USDT backed by USDT coins which are purely stable ones.
Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Hi, welcome to bitcointalk, Ali. There might be some illiquid markets for altcoins but if you're talking about bitcoin, it's very well liquid and the rise and fall that you usually see is just all about its main nature, volatility. As for the public trust that you've said, there's already public trust in bitcoin because if there's none then El Salvador won't declare it as their legal tender. As of now, it's the only country that deals with it as a legal tender but there are also many countries that do support bitcoin as they are not stopping their citizens to engage with it.Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Nobody can say for sure what causes particular move day to day, in general however there is a huge amount of extremely "cheap" money floating around right now. If you have millions in the bank in certain countries around the world - the interest rate has gone negative. Which means the bank charges you money to store it (because the central bank wants to force people to spend money) instead of normal where the bank would pay you small amounts for keeping your money there. If you force the super rich to take their money out of bank accounts, it goes into all sorts of other assets and investment funds which try to earn a positive return. However this runaway train of money has happened many times before and eventually it will drive into a recession - they tend to get more powerful as we move along in history and lots of governments have abandoned any fiscal responsibility.
Different to regular currency, bitcoin is not controlled by a government or an economy that influence its price, bitcoin's price is controlled by the people who are buying and selling it and also there constantly new bitcoin being mined and all of these affect the price plus since it is still a fairly new concept we are constantly seeing some good news and some others that are bad from government banning its use to big companies accepting it as a payment method.
Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
One reason a lot of people talk about is adoption. Because the adoption of cryptocurrencies has been relatively low until now, therefore, with new adoption the price starts to shoot up thereby creating huge volatility, but the actual truth due to which volumes remain uncertain in the market due the concentration of the market, Here the big money is controlled by just a handful of people and retail investors aren't that strong which means the market can be easily moved a lot by one person if he decides to sell, these whales work in combined groups, therefore, making the market even more volatile, recently FIIs have also entered the market which means they also can single-handedly dictate huge stakes in this market. Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
First reason is obviously it's an unregulated asset which can't be controlled in the same way as we see with fiat.
The other reason which needs no introduction is market manipulation, this is one of the reasons price of Bitcoin moves in an undecided manner as a result of this market play.
I should also say bitcoin is speculative hence price responds to what people are saying about it, we have see how Elon tweets about crypto once these stories catch the wind it's up or down for crypto.
The other reason which needs no introduction is market manipulation, this is one of the reasons price of Bitcoin moves in an undecided manner as a result of this market play.
I should also say bitcoin is speculative hence price responds to what people are saying about it, we have see how Elon tweets about crypto once these stories catch the wind it's up or down for crypto.
That said, BTC is the same as any traded item. Do stocks, bonds, metals, FOREX, etc have stable prices? No. Prices for them all goes up and down all the time based on a myriad of factors.
Just like other currencies.
Not even USD has a stable price. Just look at USDEUR charts, for example:
Ofc bitcoin has a much higher volatility because it is a really new type of asset.
On the other hand, fiat currencies have a very high volatility as well. If you take a look at USD BRL (Brazilian Real) the volatility is very high. In 2020 alone, BRL lost about 38% of its value against USD
ways to stabalise the price
1. add circuit breakers
if the price moves more than 1%. freeze the market. stop processing orders
fiat markets do this
2. add more decimals/significant figures
instead of only allowing orders at say $45,704.52 and next possible orderline $45704.53
have it where it allows orders at say $45,704.520 and next possible orderline $45704.521
allowing for 10x more orderlines per cent. meaning takes more orders to get to higher prices
3. ban bots
1. add circuit breakers
if the price moves more than 1%. freeze the market. stop processing orders
fiat markets do this
2. add more decimals/significant figures
instead of only allowing orders at say $45,704.52 and next possible orderline $45704.53
have it where it allows orders at say $45,704.520 and next possible orderline $45704.521
allowing for 10x more orderlines per cent. meaning takes more orders to get to higher prices
3. ban bots
As a 1st post, you need to remember to actually ask a question in your posts and postulate a reason you think things might be as they seem to be. That will open the door for discussion of your reasoning. Just because the title is a question does not make it clear to folks who do not use English as their primary language...
That said, BTC is the same as any traded item. Do stocks, bonds, metals, FOREX, etc have stable prices? No. Prices for them all goes up and down all the time based on a myriad of factors.
That said, BTC is the same as any traded item. Do stocks, bonds, metals, FOREX, etc have stable prices? No. Prices for them all goes up and down all the time based on a myriad of factors.
It is a new currency think that fiat has been around for a long time Bitcoin has been around for a little over 10 years. Bitcoin also has a way of injecting new Bitcoin by mining which causes a little unpredictability in the short term because of the amount that is rewarded each block reward but this will reduce in the future helping stabilize Bitcoin. There are also different types of investors atm some are looking to buy into Bitcoin but sell at the price that they define as their target and that causes instability in the market. This should reduce in the future when more people are using Bitcoin as a currency instead of investing to make a profit in fiat.
Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.
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