Why the fiat price of Bitcoin is stagnant.

yayayo

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Quote from: Pepin on July 21, 2014, 06:04:42 AM

I read a lot of people on here complaining about how there is all this good news coming from Bitcoin but they don't understand why the fiat exchange rate remains rather stagnant. How can the market be bullish if the price doesn't increase? It is simple. There are 144 blocks found each day, each containing 22 newly mined Bitcoins. Regardless of whether the miners sell or hold their coins, the market capitalization of Bitcoin is increasing by about 2,000,000 USD per day. So don't worry about Bitcoin being stagnant, because it isn't. Stagnant would be coins continuously being added and the price of Bitcoin going down by an equal percentage.

You're right with your explanation. It's like a traded company constantly releasing new shares to the market.

However, there might be another reason for stagnant/declining exchange rates: The use of payments processors as intermediary, who instantly convert bitcoin to dollar. In this scenario growing acceptance of bitcoin by companies could negatively affect exchange rate, as long as these companies choose dollar conversion of all bitcoin payments.

ya.ya.yo!

giveBTCpls

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^ This lol. Look at the graphic from all time perspective, there was a period of months when Bitcoin was like 1 dollar. Get real, constant growth is a fact, but you'll only see it was constantly growing when you step away from the alltime graph in 10 years. Ups and downs ill happen, that will confuse people into incoming crashes or rallies. HODLING is the name of the game for me.

BusyBeaverHP

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I like how when prices are stable, newcomers who wants to get rich quick calls it stagnant... fucking rookies.

Swordsoffreedom

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Leading Crypto Sports Betting & Casino Platform

Well its stagnant in terms of its been a few months since the last rise.
And those months feel like they drag on but your right were not thinking clearly Bitcoin is averaging a large amount of merchant adoption in terms of market capital and users, that might be pushing the price down with all those merchants converting and may be why the rise is being stalled.
But when it picks up eventually it will be fun

Bogleg

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Need new money to pump bitcoin to another level.

Everyone right now is expecting bitcoin etf will make them rich.

Cranky4u

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Quote from: Malin Keshar on July 22, 2014, 03:36:24 AM

Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

Same sort of things were said last halving day...Generally miners will not sell at a loss so a reasonable amount of market liquidity dries up and then supply / demand pushes the price up until miners start to sell because mining is economical (just).

negafen

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Quote from: Pepin on July 23, 2014, 06:54:42 AM

Quote from: Malin Keshar on July 22, 2014, 03:36:24 AM

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

If mining is uneconomical, many miners will drop out until mining is break-even again. It is a self-balancing system. A halving is a shock to that system, but it will work itself out naturally.

Two possible outcomes.

Either price needs to double or total hash rate need to go down in half.

Pepin

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Quote from: Malin Keshar on July 22, 2014, 03:36:24 AM

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

If mining is uneconomical, many miners will drop out until mining is break-even again. It is a self-balancing system. A halving is a shock to that system, but it will work itself out naturally.

negafen

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Stability doesn't mean stagnant. Market still expanding for bitcoin usage.

RobertDJ

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Quote from: Malin Keshar on July 22, 2014, 03:36:24 AM

Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

By then the TX fees will hopefully have increased a lot by then, making the block subsidies not as import to miners.

Febo

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Quote from: Malin Keshar on July 22, 2014, 03:36:24 AM

Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

You cant be sure. Maybe cost of electricity will 1/3 till then.

tinof

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Quote from: BitcoinAddicts on July 22, 2014, 09:28:11 AM

Not enough hot money into Bitcoin, need a good reason for people to invest..

Last stage of bubble is always hysterical.

BitcoinAddicts

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Not enough hot money into Bitcoin, need a good reason for people to invest..

InwardContour

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Quote from: gentlemand on July 22, 2014, 07:32:48 AM

Quote from: crocko on July 22, 2014, 07:27:19 AM

On July 22 the next bubble was supposed to burst and the Bitcoin price to jump at least at $4000 (see post on this forum).
Today is that day Undecided

and Bitcoin is still under $650.. The price it is stable, but still low. Even mining for altcoins it is no option anymore.
I don't know, but last year, if you purchased an ASIC you still had chance to ROI and make some profit.
I don't understand one thing: why the Bitcoin price don't react when good news occurred (ex. Dell adoption) and only when bad things happens..

The 'bad' news usually affects people who hold coins right now. Most of the good news that has occurred is a slow burn towards a more epic future.

It's just a matter of months, I don't think that this calm period will lasts forever.
Every day the adoption is increasing and the good news are popping out more frequently, we are close to the new rally.

gentlemand

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Welt Am Draht

Quote from: crocko on July 22, 2014, 07:27:19 AM

On July 22 the next bubble was supposed to burst and the Bitcoin price to jump at least at $4000 (see post on this forum).
Today is that day Undecided

and Bitcoin is still under $650.. The price it is stable, but still low. Even mining for altcoins it is no option anymore.
I don't know, but last year, if you purchased an ASIC you still had chance to ROI and make some profit.
I don't understand one thing: why the Bitcoin price don't react when good news occurred (ex. Dell adoption) and only when bad things happens..

The 'bad' news usually affects people who hold coins right now. Most of the good news that has occurred is a slow burn towards a more epic future.

crocko

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'All that glitters is not gold'

On July 22 the next bubble was supposed to burst and the Bitcoin price to jump at least at $4000 (see post on this forum).
Today is that day Undecided

and Bitcoin is still under $650.. The price it is stable, but still low. Even mining for altcoins it is no option anymore.
I don't know, but last year, if you purchased an ASIC you still had chance to ROI and make some profit.
I don't understand one thing: why the Bitcoin price don't react when good news occurred (ex. Dell adoption) and only when bad things happens..

Malin Keshar

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Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Bitcoin will be a failure if the price still under 650 after the next halving, somewhere around 2016, because the mining costs will be greater than the bitcoin price.. Or if it retracts in market cap with some constance, what will not happen if bitcoin price is stagnating.

smoothie

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LEALANA Bitcoin Grim Reaper

look at the bears....so funny. i da cute. Kiss

maker88

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Quote from: falllling on July 21, 2014, 06:35:42 AM

you are wrong man, Good news won't save Bitcoin's price any more

Quote

Because after all those bubbles & pools easily > %50 hash & crackers and governments and shit having 1200k coins(mtgox 200k, Ross Ulbricht 140k, crackers: 850k) people has lost faith in bitcoin!
The Bitcoin fundamentals has broken, people found out that bitcoin can not be saved after all!

https://bitcointalksearch.org/topic/why-good-news-didnt-push-price-up-capital-flight-it-is-703267

did you just quote your own FUD from another thread to support your argument that he's wrong? god you are a sad sad little person..

strunberg

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#SWGT PRE-SALE IS LIVE

How about you guys check out some of the first pages of the Wall Observer thread?
Chill out.
Stop treating bitcoin as a get rich quick scheme.

hyperdimension

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How about 100K per coin? i cant wait that much. Roll Eyes

MrBtcSenior

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Quote from: hyperdimension on July 21, 2014, 02:43:15 PM

IMO we need 1 million per coin in order to reach a stable price in a big worldwide adoption scenareo...

Maybe in 140 years from now it will happen, when the last bitcoin will be mined.

hyperdimension

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IMO we need 1 million per coin in order to reach a stable price in a big worldwide adoption scenareo...

zimmah

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Quote from: Amph on July 21, 2014, 08:32:05 AM

Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

bitcoin can't skyrocket until the world will accept it as a payment option and only for pumper&dumper

It has to increase in price a lot before it can be used by many people around the world, the total amount of bitcoins with their current price is just a tiny drop compared to the ocean of fiat money in circulation.

InwardContour

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Untill now, after every bubble there was a period of stagnation, we have seen this pattern before.
Sometimes it takes months to start another rally but it may lasts years, there's no written rules to follow.

BurtW

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Quote from: Frapparpeles on July 21, 2014, 01:24:28 PM

Someone should do every investor a favor and mine to some address he/she doesn't have the key to. This would limit the supply and help the price on its trip to the moon! Come on, GHash.IO!

Or, better yet, why don't you personally buy as many BTC as you can and send them to this address:

https://blockchain.info/address/1BitcoinEaterAddressDontSendf59kuE

We will all thank you if you do.

Frapparpeles

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Someone should do every investor a favor and mine to some address he/she doesn't have the key to. This would limit the supply and help the price on its trip to the moon! Come on, GHash.IO!

Cryptopher

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Keep it dense, yeah?

That's a fair point you mention, Pepin, but surely the market value is affected by the supply that hits the markets, rather than the supply in general.

Also isn't it 25 bitcoins that are minted per block? Either way your point stands that the Bitcoin market cap is growing at least $2 mill per day at these rates.

log2exp

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Agreed, just waiting on one of the fiat to collapse. Argentina not showing any action yet, since USD still strong there.

Quote from: GenTarkin on July 21, 2014, 10:02:08 AM

Bitcoin not only needs merchants jumping on the bandwagon, thats one piece of the puzzle. In order for the price to move, it needs consumer demand. All the merchants in the world could take Bitcoin but if ur average consumer doesnt desire to use it for purchasing then theres no new demand behind Bitcoin for being used as a payment system.

I think people will need to hit "rock bottom" by a failing fiat currency around them, the dominant USD would be a start. Then, they will start taking alternatives & freedom more seriously. Till then they are all just sheeps being lead to the slaughter and dont give a fuck about it.

GenTarkin

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Bitcoin not only needs merchants jumping on the bandwagon, thats one piece of the puzzle. In order for the price to move, it needs consumer demand. All the merchants in the world could take Bitcoin but if ur average consumer doesnt desire to use it for purchasing then theres no new demand behind Bitcoin for being used as a payment system.

I think people will need to hit "rock bottom" by a failing fiat currency around them, the dominant USD would be a start. Then, they will start taking alternatives & freedom more seriously. Till then they are all just sheeps being lead to the slaughter and dont give a fuck about it.

BurtW

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All paid signature campaigns should be banned.

Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Well, BTC is below $650 and has been for a while now.

Since you consider it a failure I suggest you sell all of your BTC, if you have any, leave, and don't come back.

Seriously, we cannot sustain $50,000 in this era or the next or even the next because then we would be using too much of the world electrical power production. See my thread:

https://bitcointalksearch.org/topic/m.7858978

We cannot sustain $100,000/BTC or even $50,000/BTC until maybe 2033. Bubbles caused by greed sure, sustained price no way.

BTW $600 is just fine. It can stay here for a while as far as users, as opposed to speculators, are concened. Staying at one price is called stability and it is good from a user's point of view.

BurtW

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All paid signature campaigns should be banned.

Quote from: wobber on July 21, 2014, 08:34:24 AM

Quote from: Pepin on July 21, 2014, 06:04:42 AM

I read a lot of people on here complaining about how there is all this good news coming from Bitcoin but they don't understand why the fiat exchange rate remains rather stagnant. How can the market be bullish if the price doesn't increase? It is simple. There are 144 blocks found each day, each containing 22 newly mined Bitcoins. Regardless of whether the miners sell or hold their coins, the market capitalization of Bitcoin is increasing by about 2,000,000 USD per day. So don't worry about Bitcoin being stagnant, because it isn't. Stagnant would be coins continuously being added and the price of Bitcoin going down by an equal percentage.

22 newly minded bitcoins?

minded?

wobber

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Quote from: Pepin on July 21, 2014, 06:04:42 AM

I read a lot of people on here complaining about how there is all this good news coming from Bitcoin but they don't understand why the fiat exchange rate remains rather stagnant. How can the market be bullish if the price doesn't increase? It is simple. There are 144 blocks found each day, each containing 22 newly mined Bitcoins. Regardless of whether the miners sell or hold their coins, the market capitalization of Bitcoin is increasing by about 2,000,000 USD per day. So don't worry about Bitcoin being stagnant, because it isn't. Stagnant would be coins continuously being added and the price of Bitcoin going down by an equal percentage.

22 newly minded bitcoins?

Amph

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Quote from: falllling on July 21, 2014, 07:36:02 AM

Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

bitcoin can't skyrocket until the world will accept it as a payment option and only for pumper&dumper

falllling

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Quote from: Amph on July 21, 2014, 07:23:21 AM

at least is not volatile anymore, that's good

no, that's bad.
i consider bitcoin a failure when it can't even get past $650
we need orders of magnitude more to be able to be called anything of value in a world where trillions mean nothing anymore.
lets talk about "stability" when/if it gets to $50,000.

Amph

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at least is not volatile anymore, that's good

Teppino

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bitcoin hates walls

When conditions are met (adoption/hashing power mostly) whales pump the price up anticipating, for profit, the trendline for some months (around 237 days past pumps).
This process need a lot of fiat in the exchanges but converting btc-> fiat then back to btc is not optimal as taxes are paid. Therefore everything is done in btc and a period of sideways/consolidation is needed, where a lot of btc are sold to fiat in the exchanges. the longer the period the bigger the "bubble" (but also more the exchanges/leveraging in place the "harder" it is). This process in this forum is called "coil ready to spring" or "pressure accumulating".

I am probably wrong in everything above.

falllling

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you are wrong man, Good news won't save Bitcoin's price any more

Quote

Because after all those bubbles & pools easily > %50 hash & crackers and governments and shit having 1200k coins(mtgox 200k, Ross Ulbricht 140k, crackers: 850k) people has lost faith in bitcoin!
The Bitcoin fundamentals has broken, people found out that bitcoin can not be saved after all!

https://bitcointalksearch.org/topic/why-good-news-didnt-push-price-up-capital-flight-it-is-703267

bitleif

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I'm always grumpy in the morning.

Also people who hang around here too much get completely myopic and think every price changes from one week to the next somehow reflects some kind of long-term trend in price. If you instead go out and, you know, actually have a LIFE every once in a while, you'll worry much less about bitcoin, and you'll see everything in perspective. Long "stagnant" stretches like this are very normal in bitcoin history. In fact this one hasn't even been that long.

Pepin

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I read a lot of people on here complaining about how there is all this good news coming from Bitcoin but they don't understand why the fiat exchange rate remains rather stagnant. How can the market be bullish if the price doesn't increase? It is simple. There are 144 blocks found each day, each containing 22 newly mined Bitcoins. Regardless of whether the miners sell or hold their coins, the market capitalization of Bitcoin is increasing by about 2,000,000 USD per day. So don't worry about Bitcoin being stagnant, because it isn't. Stagnant would be coins continuously being added and the price of Bitcoin going down by an equal percentage.

Topic: Why the fiat price of Bitcoin is stagnant. (Read 3739 times)