Why the price of Bitcoin change more than traditional currencies? - page 14.

Backside walkaround

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Quote from: fenican on June 22, 2016, 07:42:58 AM

Bitcoin is more like a speculative stock than a real currency. While a few people use it to conduct transactions for goods and services, the majority buy it for speculative price appreciation. That causes wild swings up and down.

Exactly. Bitcoin is thought of as a currency but really isn't. Plus there are tons of people speculating on it, which drives the price up and down drastically because it doesn't take that much money to do so. More than I have of course, but 10 bln is not a lot for rich players.

Even real currencies have volatility against each other. Usually not like bitcoin though.

jak3

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traditional currencys like usd, inr, eur has high amount of volumes and still governments are printing more and more money and banks are controlling them but cryptocurrency like bitcoin has a fixed volume and to reach the total of it we are mining it

greatr

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Quote from: dumada on August 04, 2016, 04:07:29 AM

Quote from: useless4 on August 03, 2016, 06:40:55 PM

Quote from: ivanst776 on August 03, 2016, 06:31:47 PM

Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

The number of people that use bitcoin is much less than the total number of people that use traditional currencies like the usd,eur,gbp, and because there are less people using bitcoin means that if a big group of these people decide to not trade or sell their coins then the bitcoin price increases a bit, but if they decide to sell them at a lower price (dumping) then the price falls down and makes panic to others to sell their coins because the price is falling.

thaght might be the case, though in my opinion it is because of that banks are not controlling it right now, i hope that stability will be reached in the future

Stability will be reached when the bitcoin price is over 50,000. That could happen in 5 to 20 years.

i hope that you are right i really dont want to see the price to be stable at the moment, because if not then i wouldnt be able to make profit with trading

Shiroslullaby

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Yes Bitcoin and all cryptocurrencies are still so new.
There will be wild swings depending on things like media coverage, buying and selling by large investors/ panic buys and sells when you have some price change.
This is still the wild west, the gold rush in California where people can make or lose a fortune.

yenxz

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bitcoin prices are currently dependent on the promotion and press at this point . if BTC was delayed by bad press the BTC price will come down because there will be sellers panicked . and if the press on either the BTC bitcoin prices will rise anyway. I thought the price of BTC will change over traditional currency because it wasnt designated as a traditional currency .

patricken

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Quote from: dumada on August 06, 2016, 06:42:47 AM

Quote from: Supercrypt on August 05, 2016, 02:34:43 AM

All currencies (includes fiat and crypto-currencies) are subject to price fluctuations. No exceptions. But the range of fluctuations is solely dependent of affecting factors like events and adoption.
But with respect to crypto-currencies the ratio of adopting people and affecting factors is very slim hence high volatility are becoming inevitable most of times.

That is right. I think the bitcoin price is volatile is because it is not mature enough and is mainly a speculation tool.

It will take many years for the bitcoin to be mature and the price to be high enough so that is more stable.

densuj

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Because bitcoin was used by people around the world not one country only( bitcoin is more high fluctuating than fiat money), it is different with fiat money who be used by people one country and be controled by government ( more stable than bitcoin).

dumada

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Quote from: Supercrypt on August 05, 2016, 02:34:43 AM

All currencies (includes fiat and crypto-currencies) are subject to price fluctuations. No exceptions. But the range of fluctuations is solely dependent of affecting factors like events and adoption.
But with respect to crypto-currencies the ratio of adopting people and affecting factors is very slim hence high volatility are becoming inevitable most of times.

That is right. I think the bitcoin price is volatile is because it is not mature enough and is mainly a speculation tool.

Supercrypt

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All currencies (includes fiat and crypto-currencies) are subject to price fluctuations. No exceptions. But the range of fluctuations is solely dependent of affecting factors like events and adoption.
But with respect to crypto-currencies the ratio of adopting people and affecting factors is very slim hence high volatility are becoming inevitable most of times.

dippididodaday

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It's personal

I can not say for sure if this is actually the case, but I have a suspicion that bitcoin, because it is not tied to any country-currency at all, which is really cool, is a fantastic NEW standard of currency worldwide and therefore it is sensitive to fluctuation and will continue to be so as adoption continues.

coin_gambler

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Quote from: useless4 on August 03, 2016, 06:40:55 PM

Quote from: ivanst776 on August 03, 2016, 06:31:47 PM

Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

The number of people that use bitcoin is much less than the total number of people that use traditional currencies like the usd,eur,gbp, and because there are less people using bitcoin means that if a big group of these people decide to not trade or sell their coins then the bitcoin price increases a bit, but if they decide to sell them at a lower price (dumping) then the price falls down and makes panic to others to sell their coins because the price is falling.

thaght might be the case, though in my opinion it is because of that banks are not controlling it right now, i hope that stability will be reached in the future

thats why i like bitcoins, nothing can control them and its price is based only purely on people, i think it is the best currency that has ever been invented

Mark1003

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Quote from: PsursV on August 04, 2016, 05:06:32 PM

yes the price of bitcoin is really changing more tha traditional currency and to me the main reason is that bitcoin is a universal currency and not under the influence of any one or any state, more ever bitcoin is a new currency and need some more time to stable people are continuously adopting it and therefore there is a bit variation in the price of bitcoin.

Indeed, Bitcoin although is in its stable state, it's price is continually changing its price because it is in its adopting state. Many are using it now that makes the fluctuation of the price. Moreover, In my own opinion, it is on the bids that affects the changing of price of bitcoin. As we can see, if you are going to compare the exchange in BTC/USD or EUR/USD for example. In BTC/USD we can easily pump/dump the price if we have for at least 2-3 BTC right? Unlike in EUR/USD. It needs a very high amount (even million) for the price to change.

PsursV

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yes the price of bitcoin is really changing more tha traditional currency and to me the main reason is that bitcoin is a universal currency and not under the influence of any one or any state, more ever bitcoin is a new currency and need some more time to stable people are continuously adopting it and therefore there is a bit variation in the price of bitcoin.

Bestwishes745

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The price of bitcoin change more than traditional currencies, because bitcoin is not a well established currency and is on the way of establishment so it varies according to its adoption.

MingLee

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Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

It's mostly because the government controls the prices, and that there is less volatility because there is more money involved and more people trade it constantly. Plus their values don't number in the hundreds.

Bitcoin is volatile mostly because the investors are typically weak-handed and will buy or sell at the slightest bit of news, and so until we get a lot of money with strong-willed investors we're going to see a lot of fluctuations within the market, and nothing much is going to change. Which might be for the better, to be honest. It keeps investors interested.

Harlot

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Bitcoin is not a baby anymore. It matured quite quickly. Want proof? Mining BTC is harder now and you need expensive equipment to mine it. It now reach 12.5 blocks now it will affect the price of the BTC considerably base on supply and demand.

dumada

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Quote from: useless4 on August 03, 2016, 06:40:55 PM

Quote from: ivanst776 on August 03, 2016, 06:31:47 PM

Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

The number of people that use bitcoin is much less than the total number of people that use traditional currencies like the usd,eur,gbp, and because there are less people using bitcoin means that if a big group of these people decide to not trade or sell their coins then the bitcoin price increases a bit, but if they decide to sell them at a lower price (dumping) then the price falls down and makes panic to others to sell their coins because the price is falling.

thaght might be the case, though in my opinion it is because of that banks are not controlling it right now, i hope that stability will be reached in the future

Stability will be reached when the bitcoin price is over 50,000. That could happen in 5 to 20 years.

useless4

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Quote from: ivanst776 on August 03, 2016, 06:31:47 PM

Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

The number of people that use bitcoin is much less than the total number of people that use traditional currencies like the usd,eur,gbp, and because there are less people using bitcoin means that if a big group of these people decide to not trade or sell their coins then the bitcoin price increases a bit, but if they decide to sell them at a lower price (dumping) then the price falls down and makes panic to others to sell their coins because the price is falling.

thaght might be the case, though in my opinion it is because of that banks are not controlling it right now, i hope that stability will be reached in the future

ivanst776

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Quote from: Woshib on June 22, 2016, 06:34:35 AM

I noticed that the price of Bitcoin change much like all altcoins.
But the price of other traditional currencies like the euro, for example, are stable and do not change much.
It is the government that control their prices?

The number of people that use bitcoin is much less than the total number of people that use traditional currencies like the usd,eur,gbp, and because there are less people using bitcoin means that if a big group of these people decide to not trade or sell their coins then the bitcoin price increases a bit, but if they decide to sell them at a lower price (dumping) then the price falls down and makes panic to others to sell their coins because the price is falling.

Dudeperfect

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The very first reason I see is that, bitcoin is a global currency and yet to reach throughout the world. Traditional currencies are being used by the world for the long time (say centuries) and bitcoin is just on the way to touch first decade mark. If we are comparing fiat currency with bitcoin (or any other crypto currency) then it’s like comparing a matured person with new born baby. Bitcoin is still a baby and needs our attention and care in order to adopt new things right now bitcoin is as naughty as kid of 7 years old and evolving as a currencybeing (just like human being). Over the time we will see good behavior (for what most people call stability in price) of bitcoin.

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