Bitcoin Forum

Does it matter? Its mostly bots autotrading while price flucuates
I noticed that volume transaction are much higher daily when the price flucuates more
So we can assume that the transaction volume doesnt necessarily reflect people demand?

i dont think that depends on volume

So youre saying autobot trading machines transaction doesnt count??

The volume may be higher, but I think, most of those transactions, end up being converted to fiat.

If only people/merchants can hoard a little, the price will increase. Transaction volume can climb through the roof, but bots will manipulate everything on exchanges, to suite their agenda.

Yes, I think, there is a co-relation between the tx volume and price fluctuation.

No, of course it reflects people demand. All bots are trading on behalf of real people, using real people's money. If there was no demand from real people, there'd be no bots.

M2M transactions are going to be one of the main drivers of value going forward as more and more apps get built on top of the protocol. These txs will dwarf trading-related bot txs in time.

Computers trading in meaningful volume against other computers? This just means the Bitcoin market has something in common with the stock market, the bond market, the forex market, and just about every other securities market on the planet.

Volume is not really anything more than a way to make a technical analysis, people who do currency technical analysis use the volumes of trades made in an area of time to guesstimate  how the next months news might impact a market. A high volume of trades on a certain release of news should be the same every month the news is released.

Volume trades and technical analysis are based on market activity, usually due to news reports release or information based upon the demand for the currency. So if the United states is releasing a report of Durable Goods Orders this has a heavy impact on its market, and is considered a high priority report. If the news report reflects a higher than predicted number number of goods ordered the demand for USD increases thus people will be buying it, if it reflects lower than expected number of goods ordered the demand for USD decreases and many people will sell it. Then based upon \last years number of volumes in conjunction with last months number of volumes traded fr this news report an analysis can be made of roughly how much that market will move with the release of this next report.

Because there is nothing in the Bitcoin market Demanding the purchase of the coin, a technical analysis can not be made. Because you never know why or when investors will actually buy Bitcoins it makes it impossible to try and make a technical analysis and even more stupid to try and follow some idiot who is attempting it.  In the case above you can see the market moves becasue the demand for the USD is moved due to people wanting it based upon a report of the US doing something. Either a lotof countries have ordered goods produced by USA or they did not, and this impacts its demand according tohow the news has moved. Other countries buying a lot of United States goods increases the need (demand) for the USD and intices investors to buy the USD, not selling a lot of goods to other countries decreses the need for the USD and intices investors to sell the USD and get out of the market ASAP.

Now do some of you "veterans" understand what i mean by Bitcoins has NO demand, there is nothing forcing people to want to invest in bitcoins, there is nothing that can give an investor a clue as to how he can make money from bitcoins, to a high dollar investor the market is not only volatile, but can be controlled by any 1 person with enough Bitcoins or cash to move the market. To an investor buying bitcoins is just a gamble, there is no guarantee of anything in this market, and until they have something they can make an estimated guess on this market they will sit back and watch. If they wanted to gamble with bitcoins they can better do that on seals than buying bitcoins in hopes the market is going to move.

most of the bot trading happens on exchanges anyway...
which is going to be within the exchange's buckets.
So, its all "off chain" until the end of the day or whenever
the account cashes out those coins.

Not really! It is true"All bots are trading on behalf of real people, using real people's money". But the ppl behind the auto trading bot aims to have some profits in terms of fiat from the arbitrage. They are practically not eager to have some bitcoin and hoard them up!

Right bot volume is "backed" by real money, however the volume is artificially high because the trades are extremely short term by design