Pages:
Author

Topic: Why the price of Bitcoin change more than traditional currencies? - page 2. (Read 15528 times)

full member
Activity: 224
Merit: 100
This is because the demand and supply bitcoin, many people turn their traditional investments such as gold, land and so on to the bitcoin thus making traditional currency depressed.
newbie
Activity: 42
Merit: 0
I don't think that the bitcoin prices are affected by only Chinese.  I agree that China is the biggest exchange area of bitcoins but because of that we can not guess like this. Now the Bitcoin users increased lot in all countries this is also one of the reasons for the price increase and decrease. And the digital currency will not stable like traditional currency.
Chinese market used to be shaping force for the bitcoin's price in the past. But since PBoC intervention early this year this situation changed.
We have reached ATH during Chinese exchanges blockade when withdrawal of BTC/LTC were suspended. In the past this would cause major price drop, but not anymore.

The higher the adoption, the higher the market cap, the lower the fluctuation of price and stability

I'm curious how long people will repeat this nonsense

It should ve pretty evident to anyone having an eye (or pair of eyes) that it will never be the case (if you actually mean higher stability with a higher market cap, of course). Conversely, with Bitcoin price rising we are set to witness even higher price volatility. This had been discussed many times before when the price was still well below the 1,000 dollar mark, and it was not yet quite clear whether this theory is going to be proved right in practice. And the recent price volatility (whatever may be causing it) proves exactly that. Within three months of this year we've seen the price reach over 1,100 dollars per coin, then flash crash to 750 dollars, rise again to ATH of 1,300 dollars and plummet once again to 950 dollars. And now we are rising one more time
This only applies up to a certain point though.  Once Bitcoin has found its common place, the price will fluctuate less - that will come when its usage is nearly stable in the merchants which are relevant to accepting it.
legendary
Activity: 3430
Merit: 1280
English ⬄ Russian Translation Services
I don't think that the bitcoin prices are affected by only Chinese.  I agree that China is the biggest exchange area of bitcoins but because of that we can not guess like this. Now the Bitcoin users increased lot in all countries this is also one of the reasons for the price increase and decrease. And the digital currency will not stable like traditional currency.
Chinese market used to be shaping force for the bitcoin's price in the past. But since PBoC intervention early this year this situation changed.
We have reached ATH during Chinese exchanges blockade when withdrawal of BTC/LTC were suspended. In the past this would cause major price drop, but not anymore.

The higher the adoption, the higher the market cap, the lower the fluctuation of price and stability

I'm curious how long people will repeat this nonsense

It should ve pretty evident to anyone having an eye (or pair of eyes) that it will never be the case (if you actually mean higher stability with a higher market cap, of course). Conversely, with Bitcoin price rising we are set to witness even higher price volatility. This had been discussed many times before when the price was still well below the 1,000 dollar mark, and it was not yet quite clear whether this theory is going to be proved right in practice. And the recent price volatility (whatever may be causing it) proves exactly that. Within three months of this year we've seen the price reach over 1,100 dollars per coin, then flash crash to 750 dollars, rise again to ATH of 1,300 dollars and plummet once again to 950 dollars. And now we are rising one more time
legendary
Activity: 1400
Merit: 1001
I don't think that the bitcoin prices are affected by only Chinese.  I agree that China is the biggest exchange area of bitcoins but because of that we can not guess like this. Now the Bitcoin users increased lot in all countries this is also one of the reasons for the price increase and decrease. And the digital currency will not stable like traditional currency.
Chinese market used to be shaping force for the bitcoin's price in the past. But since PBoC intervention early this year this situation changed.
We have reached ATH during Chinese exchanges blockade when withdrawal of BTC/LTC were suspended. In the past this would cause major price drop, but not anymore.

The higher the adoption, the higher the market cap, the lower the fluctuation of price and stability.
legendary
Activity: 1092
Merit: 1000
The number of trading activities would certainly affect the price of the bitcoin, they take the advantages of the rise and fall of the prices, but I'm sure it will not be able to prevent rising prices in the long term.
people only spend a small amount of Bitcoin for trading compare to Bitcoin for investing. Therefore, we can not expect that the trading activities can stop the Bitcoin prices from going up. MOreover, China is now the biggest exchange area for Bitcoiners and investors. The prices are affected a lot by the Chinese
I don't think that the bitcoin prices are affected by only Chinese.  I agree that China is the biggest exchange area of bitcoins but because of that we can not guess like this. Now the Bitcoin users increased lot in all countries this is also one of the reasons for the price increase and decrease. And the digital currency will not stable like traditional currency.
hero member
Activity: 854
Merit: 500
The number of trading activities would certainly affect the price of the bitcoin, they take the advantages of the rise and fall of the prices, but I'm sure it will not be able to prevent rising prices in the long term.
people only spend a small amount of Bitcoin for trading compare to Bitcoin for investing. Therefore, we can not expect that the trading activities can stop the Bitcoin prices from going up. MOreover, China is now the biggest exchange area for Bitcoiners and investors. The prices are affected a lot by the Chinese
sr. member
Activity: 1148
Merit: 251
The price of bitcoin change more than traditional currencies because bitcoin is not controlled by the government unlike the traditional currencies. Traditional currencies was already been used so its been obvious bitcoin is always fluctuating its price and demand is rising daily.
legendary
Activity: 3108
Merit: 1115
Leading Crypto Sports Betting & Casino Platform
The number of trading activities would certainly affect the price of the bitcoin, they take the advantages of the rise and fall of the prices, but I'm sure it will not be able to prevent rising prices in the long term.

It will not. Because the lower it gets it also becomes rare and that makes it more valuable that can be seen thru pricing it with a large amount of fiat. As time goes by, many will see the truth about it being more expensive than any other currency. Sure, they might think of it like a commodity first but as they grow knowledge within the bitcoin community it will come to sense that it is really a currency.
sr. member
Activity: 322
Merit: 250
The reasons that I will ascribe to why the price of bitcoin is more volatile than fiat are as follows:

1. Fiat is already being used by the whole country there is no need for it to start penetrating unlike bitcoin that if you tell some other people, the only thing they can attach it to is that its a Ponzi scheme and people are equally coming in on a daily basis to really know about what its all about.

2. Another reason is that in the case of Fiat its being regulated by the Central Banks to ensure that the forces of demand and supply is kept at par unlike bitcoin that is just a free market to a large extent.
hero member
Activity: 1022
Merit: 511
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?

Of course all those fiats are government regulated currencies with the help of a central bank so they know when to pump and when to dump to bring about the stability of the currency. And because all fiats are centralized currencies, it is easier to stabilize its prices.
The bitcoin’s price changes more compared to fiat currencies it is because it is a perceived store of value compared to the fiat currency.

Bitcoin has properties that makes it similar to gold, it is controlled by a design by the developers of the core technology to limit its production to 21milion BTC, and that the complete opposite of the fiat currency which is managed by the governments who want to maintain low inflation.
sr. member
Activity: 812
Merit: 251
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?

Of course all those fiats are government regulated currencies with the help of a central bank so they know when to pump and when to dump to bring about the stability of the currency. And because all fiats are centralized currencies, it is easier to stabilize its prices.
member
Activity: 112
Merit: 10
The number of trading activities would certainly affect the price of the bitcoin, they take the advantages of the rise and fall of the prices, but I'm sure it will not be able to prevent rising prices in the long term.
legendary
Activity: 3122
Merit: 1147
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
may be in some countries it is possible. but i think when we speak about bitcoin, the uses of bitcoin are increasing from time to time and therefore it is now becoming more difficult to manipulate the price of bitcoin.
I thought the same but the recent decrease in price came mostly from FUD about the possible hard fork, which seems to be incorrect that  alone is the reason of the price decrease so while bitcoin has become more resistant to some type of manipulation it seems it will always be vulnerable to FUD like that.
Well if you believe in FUD then definitely you will be tempted to sell, the price has drop really hard and it seems like people are panicking so much that is why in a short period of time we have seen this price. I'm not selling actually, I don't care if it will continue to fall down, currently the price is over $1,000 which is good IMO and I hope we will a price increase again.
hero member
Activity: 840
Merit: 502
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
may be in some countries it is possible. but i think when we speak about bitcoin, the uses of bitcoin are increasing from time to time and therefore it is now becoming more difficult to manipulate the price of bitcoin.
I thought the same but the recent decrease in price came mostly from FUD about the possible hard fork, which seems to be incorrect that  alone is the reason of the price decrease so while bitcoin has become more resistant to some type of manipulation it seems it will always be vulnerable to FUD like that.
sr. member
Activity: 378
Merit: 250
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
may be in some countries it is possible. but i think when we speak about bitcoin, the uses of bitcoin are increasing from time to time and therefore it is now becoming more difficult to manipulate the price of bitcoin.
hero member
Activity: 770
Merit: 500
It's pretty simple: The supply of USD is in no way limited: The fed can increase or decrease the money supply at will. Also, there is the expectation that the fed will alter the money supply to keep an inflation target of 2%. Therefore, you don't see big spikes on the dollar: If the dollar were to spike, the supply would change to bring it back.
In comparison, Bitcoin works just like a commodity, like oil or gold. There's a limited supply, which increases according to a formula that has absolutely nothing to do with an actual economy. This formula is actually set up to make the supply increase very slowly, which made people want to mine it early, and now hoard it. In essence, it's designed to reward those that buy it early, like a pyramid scheme.
hero member
Activity: 1806
Merit: 671
traditional currencies are controlled by governments. When there is a fall in traditional currency price, governments take immediate steps to restore its value.So there is no big difference in it price.But, Bitcoin is a decentralized currency not controlled by any one.Its price increases when there is an increase in demand and its price decreases when the demand decreases.So, Bitcoin price changes more and frequently than other currencies.
This is correct, since bitcoin is not controlled by anyone then the only thing that determines its price is supply and demand but in fiat, the governments will take actions to make this changes in price smoother by trying to print more of their own currency or by selling some of their reserves.

I think the market cap of the bitcoin is still too small. Any rich orgainsation can manipulate the price.
The market cap of bitcoin is bigger than many of the fiats in the world, but I get your point, unfortunately the only way that can change is with an increase in adoption from the average people, remember that bitcoin is still relatively new, so the market cap should increase as time goes on.

In the long term, the price should increase. But in the short term, the price will go lower due to the hard fork threat.
The point is a government's goal is to have a stable currency because if a currency is not stable it won't be reliable to be use in their economy. Also it won't be attractive to foreign investors to invest in their country because a unstable currency is a reflection of a bad economy.
hero member
Activity: 840
Merit: 502
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
newbie
Activity: 69
Merit: 0
traditional currencies are controlled by governments. When there is a fall in traditional currency price, governments take immediate steps to restore its value.So there is no big difference in it price.But, Bitcoin is a decentralized currency not controlled by any one.Its price increases when there is an increase in demand and its price decreases when the demand decreases.So, Bitcoin price changes more and frequently than other currencies.
This is correct, since bitcoin is not controlled by anyone then the only thing that determines its price is supply and demand but in fiat, the governments will take actions to make this changes in price smoother by trying to print more of their own currency or by selling some of their reserves.

I think the market cap of the bitcoin is still too small. Any rich orgainsation can manipulate the price.
The market cap of bitcoin is bigger than many of the fiats in the world, but I get your point, unfortunately the only way that can change is with an increase in adoption from the average people, remember that bitcoin is still relatively new, so the market cap should increase as time goes on.

In the long term, the price should increase. But in the short term, the price will go lower due to the hard fork threat.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
traditional currencies are controlled by governments. When there is a fall in traditional currency price, governments take immediate steps to restore its value.So there is no big difference in it price.But, Bitcoin is a decentralized currency not controlled by any one.Its price increases when there is an increase in demand and its price decreases when the demand decreases.So, Bitcoin price changes more and frequently than other currencies.
This is correct, since bitcoin is not controlled by anyone then the only thing that determines its price is supply and demand but in fiat, the governments will take actions to make this changes in price smoother by trying to print more of their own currency or by selling some of their reserves.

I think the market cap of the bitcoin is still too small. Any rich orgainsation can manipulate the price.
The market cap of bitcoin is bigger than many of the fiats in the world, but I get your point, unfortunately the only way that can change is with an increase in adoption from the average people, remember that bitcoin is still relatively new, so the market cap should increase as time goes on.
Pages:
Jump to: