Why the price of Bitcoin change more than traditional currencies? - page 7.

Betwrong

legendary

Activity: 3374

Merit: 2198

I stand with Ukraine.

Quote from: farhaan on January 05, 2017, 06:45:39 AM

Bitcoin is a decentralised currency and not controlled by anyone. So it is subject to price fluctuations. But fiat is totally controlled by the respective governments. So, when there is a chance of great fall in fiat price, the respective governments change their policies to control the price fall. So, fiat prices does not change more like bitcoin.

That's not true, fiat currencies fall pretty often too. If you'd look through past history you'd see that almost every country had a period of inflation at one point. Right now it's Venezuela where their currency, Venezuelan Bolívar, losing its buying capacity faster than BTC in 2014.

n2004al

legendary

Activity: 1134

Merit: 1000

Quote from: Woshib on June 22, 2016, 05:34:35 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?

Bitcoin is decentralized while the traditional currencies are centralized money. Being decentralized mean, among other things, to not have someone or something that can take care of you. Bitcoin is free to do what "he do". While the centralized currencies are subject of care from the Central Banks (not the governments) of the respective countries which control those and their value controlling mainly the supply of those at the market.

farhaan

sr. member

Activity: 392

Merit: 250

Bitcoin is a decentralised currency and not controlled by anyone. So it is subject to price fluctuations. But fiat is totally controlled by the respective governments. So, when there is a chance of great fall in fiat price, the respective governments change their policies to control the price fall. So, fiat prices does not change more like bitcoin.

patricken

newbie

Activity: 47

Merit: 0

Quote from: mrbigmugs on January 04, 2017, 05:00:39 PM

Quote from: tabas on December 26, 2016, 04:09:11 AM

Quote from: mace15 on December 25, 2016, 10:14:38 PM

I think Bitcoin change more than traditional currencies
because it is designed to be fluctuating price. Theres
no walls not supports that it is should be at the limit
price. Everyday its fluctuating than traditional currencies.

Your point is right, bitcoin is simply created to have no absolute value at all and because of its limitation to its supply. The value of bitcoin is changing every time the market of crypto's are in massive buy bulk orders. And every time the price of bitcoin is decreasing then that's because many are selling bitcoins at the same time.

to me i think still the main reason is that people re accepting bitcoin in a large scale, therefore there is always a big fluctuation in the price of bitocin. i think once the price of bicoin become stable then the price of bitcoin will also change and tazeyat.

I think not many people are using the bitccoin, it is still a speculation tool.

mrbigmugs

sr. member

Activity: 247

Merit: 250

Quote from: tabas on December 26, 2016, 04:09:11 AM

Quote from: mace15 on December 25, 2016, 10:14:38 PM

I think Bitcoin change more than traditional currencies
because it is designed to be fluctuating price. Theres
no walls not supports that it is should be at the limit
price. Everyday its fluctuating than traditional currencies.

Your point is right, bitcoin is simply created to have no absolute value at all and because of its limitation to its supply. The value of bitcoin is changing every time the market of crypto's are in massive buy bulk orders. And every time the price of bitcoin is decreasing then that's because many are selling bitcoins at the same time.

to me i think still the main reason is that people re accepting bitcoin in a large scale, therefore there is always a big fluctuation in the price of bitocin. i think once the price of bicoin become stable then the price of bitcoin will also change and tazeyat.

romero121

legendary

Activity: 3234

Merit: 1214

Vave.com - Crypto Casino

Quote from: RajaJudi on January 04, 2017, 10:50:11 AM

It is obvious that Bitcoin is different from traditional currencies since it is made for the digital and the new developed world. According to what I have learned from Bitcoin, it is faster, more secure and it is a potential investment which can bring profits. This has increased Bitcoin prices to the new level and I think this process will not stop for at least 10 years

Everyone have different perspective on digital currency. In my view the digital token that initiated with some store of value soon due to the increased demand to the decreased supply makes it grow high based upon the the algorithms.

RajaJudi

sr. member

Activity: 403

Merit: 250

Less is more

It is obvious that Bitcoin is different from traditional currencies since it is made for the digital and the new developed world. According to what I have learned from Bitcoin, it is faster, more secure and it is a potential investment which can bring profits. This has increased Bitcoin prices to the new level and I think this process will not stop for at least 10 years

Victorycoin

hero member

Activity: 1134

Merit: 517

Quote from: mace15 on December 25, 2016, 10:14:38 PM

I think Bitcoin change more than traditional currencies
because it is designed to be fluctuating price. Theres
no walls not supports that it is should be at the limit
price. Everyday its fluctuating than traditional currencies.

Well it doesn't fluctuate just for the fun of it, market forces brought about by demand and supply are the factors that make market price go up or down. These days a number of countries are having tough times with their national currencies as well as double digit inflation rates, making people to run for safety. Bitcoin is very promising in terms of being a safe heaven asset and that explains the over $1000 per bitcoin we are seeing these days. Except something drastic happens in the industry, the price would not be in a hurry to go south.

olushakes

sr. member

Activity: 476

Merit: 254

Although its kind of hard to pin-point one particular answer to this because I am of the opinion that several factors will be responsible for what we have at hand. The major factor I would ascribe to it is the forces of demand and supply as that is the only explanation anyone can give. On the other hand another factor I would consider is the fact that Bitcoin as a digital currency is still penetrating there relatively scarce causing the increment we are seeing compared to Fiat which has been been with us since ages past.

DomainMagnate

hero member

Activity: 602

Merit: 500

Quote from: Woshib on June 22, 2016, 05:34:35 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?

Besides government controling fiat currency price thers is also other reasons of bitcoin price instability.
Bitcoin is relatively new and has limited supply.When new users adopt bitcoin, it creates it's demand and hence price goes up.
Bitcoin is truly global : unlike Euro,dollar etc bitcoin is not restricted to international boundaries and this is also one of the reasons why bitcoin price fluctuates frequently.

Xianantung

newbie

Activity: 68

Merit: 0

Quote from: izanagi narukami on December 26, 2016, 12:39:29 PM

It's because not all people trust on bitcoin. I think a few whale trader like Chinese trade can move bitcoin value whenever they like.
The story is different if you comparing fiat since fiat is being control by goverment so they can make it stable meanwhile bitcoin is decentralization currency

The Chinese are rich. They can affect the price more.

izanagi narukami

legendary

Activity: 2030

Merit: 1028

It's because not all people trust on bitcoin. I think a few whale trader like Chinese trade can move bitcoin value whenever they like.
The story is different if you comparing fiat since fiat is being control by goverment so they can make it stable meanwhile bitcoin is decentralization currency

xdrpx

hero member

Activity: 616

Merit: 603

Honestly Bitcoin's market capitalization is very small (at about US $14 Billion) when compared to the large amount of fiat currency notes in circulation. This often leads to higher volatility cause bigger whales can infuse and dump a lot of cash causing the price fluctuations. There was this large infographic somewhere online that showed how small Bitcoin's market cap was compared to other currencies that show stable values when compared to Bitcoin's price. Also there's mostly no regulating authority to regulate it's price, but honestly we will never need one and over time naturally when there's more Bitcoins in circulation the market will become more stable. Infact the price of Bitcoin is more stable these days than it used to be.

molsewid

hero member

Activity: 2170

Merit: 530

we all know that bitcoin nowadays is a huge popularity in thte whole world.. because of its features and advantages in terms of online wallet. and also the reason why its growing and growing because of the investors of bitcoin and other supporters.. that accepting that bitcoin is the number one crypto currency.. but in my town bitcoin is hardly to recognize maybe my province is so far..

marcoman22

sr. member

Activity: 350

Merit: 250

Bitcoin price changes in accordance with increase or decrease in demand and supply of Bitcoins. Bitcoin prices are not controlled by anyone since it is a decentralized currency. But traditional currencies are different. Its prices are controlled by governments.When there is a fall in price, government immediately takes necessary steps to retain its price.

tabas

hero member

Activity: 3024

Merit: 745

Top Crypto Casino

Quote from: mace15 on December 25, 2016, 10:14:38 PM

I think Bitcoin change more than traditional currencies
because it is designed to be fluctuating price. Theres
no walls not supports that it is should be at the limit
price. Everyday its fluctuating than traditional currencies.

Your point is right, bitcoin is simply created to have no absolute value at all and because of its limitation to its supply. The value of bitcoin is changing every time the market of crypto's are in massive buy bulk orders. And every time the price of bitcoin is decreasing then that's because many are selling bitcoins at the same time.

pooya87

legendary

Activity: 3472

Merit: 10611

Quote from: bit1 on December 25, 2016, 07:31:38 PM

Quote from: Taki on December 25, 2016, 01:50:58 PM

Honestly I don't know why the price for bitcoin is jumping so much if compare it with traditional currencies. Maybe cause of traditional currencies are depend from country's good and politic situation inside it, bitcoin has nothing with that, so it's price depends only from demand.

Yes, maybe supply plays a very important role as well, this and what you mention(demand), these two reasons may be the main cause for this.

well i think it is mostly because of the trades who are trading bitcoin compared to those trading fiat for example in forex market. you see in forex the traders are so much more experienced and they never panic sell at least no in this magnitude and the size of the market and also the order sized on the orderbook are too big to do a change. but in bitcoin they are all thing orders and there are too many newbie traders who panic easily.

Danimore

full member

Activity: 294

Merit: 123

The World’s First Blockchain Core

Quote from: Woshib on June 22, 2016, 05:34:35 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?

Bitcoin is central digital currency. almost people accepted. BTC looks like gold.

mace15

hero member

Activity: 1428

Merit: 506

I think Bitcoin change more than traditional currencies
because it is designed to be fluctuating price. Theres
no walls not supports that it is should be at the limit
price. Everyday its fluctuating than traditional currencies.

bit1

legendary

Activity: 938

Merit: 1000

Quote from: Taki on December 25, 2016, 01:50:58 PM

Honestly I don't know why the price for bitcoin is jumping so much if compare it with traditional currencies. Maybe cause of traditional currencies are depend from country's good and politic situation inside it, bitcoin has nothing with that, so it's price depends only from demand.

Yes, maybe supply plays a very important role as well, this and what you mention(demand), these two reasons may be the main cause for this.

Topic: Why the price of Bitcoin change more than traditional currencies? - page 7. (Read 15605 times)