Bitcoin Forum

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?

Stability is useful, but not nearly as useful as significant upward volatility. Volatility is a measure of instability, both upward and downward.

In any case, Bitcoin price cannot stay stable for long. It's a cork floating in an ocean of fiat currencies. With luck, the cork will absorb the fiat currencies' desirability.

If this happens, Bitcoin will appear stable and the other currencies will fluctuate around it.

There is no depth in the market probably. No walls, no supports. That's why it is being manipulated easily. Simply there isn't enough volume in the market to resist whales with big wallets.

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.

This thread is not in the right section. Speculative talk should be in 'Bitcoin Forum > Economy > Economics > Speculation'.

Correct. It is too early to have a 'stable' price for something that is not backed by the traditional "ways" (gold and such). It is possibly that the price will stabilize more after we have some ETFs and such (i.e. it will have smaller, percentage-wise, upswings and downswings).

Exactly. Most of the people 'panicking' in the Speculation section during "crashes" are actually playing in their hands.

I disagree. You can't know this as there is no way to measure it.

It is because bitcoin isn't very liquid. There are maybe 20,000 speculators doing all the trading, while most fiat currencies have millions of people trading them. It will take time for bitcoin to become more stable - more people involved and exchanged that don't collapse at the slightest thing.

Marketcap is tiny at aroun 10 billion dollars. This is nothing and there are thousands of companies that have marketcaps way higher than this, so when you take this into a global perspective, it's tiny and this will mean that the price will grow a lot when new money enters the ecosystem. Until we are at around 100k per coin, we will not see real stability.

I think price of Bitcoin change more than traditional currencies because it wasnt established as the traditional currencies.  Bitcoin price relies on promotion and press at this point.  If Bitcoin is hampered by bad press then the bitcoin price will surely go down as there will be panic sellers.  And if press about Bitcoin is good then it will go up. 

bitcoin price change is not at all like altcoins.

you should take a look at coinmarketcap and see the percentages on the price change and do some calculations the changes in bitcoin is never that big considering the price. but in altcoins they can easily rise 200% and there are some that have risen 1000% in less than a week.

Indeed this is the difference of the Bitcoin and other currencies (traditional). Because of the bitcoin indeed designed and built like this, so that everyone can benefit and pleasure at any time. The price of the bitcoin influenced from mining and the transactions that occur on the market. In contrast with traditional currencies, currency rates traditionally dependent on Government policy and the number of circular

Another reason why Bitcoin change more than traditional currencies is due to it's preceived store value.  Bitcoin has properties that maybe similar to gold.  Since the developer of the core technology limit the production to a fixed amount of 21 million and differs to fiat currency which is managed by government to maintain low inflation,as economies built with fiat currencies show signs or weaknees and  Investors may invest more or less into bitcoin.

I am also not sure why the price of the Bitcoin is changing that much but I do have to say that I like it this way.
This way waiting is not as long and you can do things at a faster pace.

First of all, bitcoin is a decentralized currency. No one actually controls it. Whereas the traditional currencies are controlled by the respective government and they can do number of things to prevent the fall of their currency value.

Here, no one is doing it to safeguard the falling price of bitcoin. Since there is no one to safeguard, bitcoin prices are free to move anywhere.

Agree! At the moment, this is the case. Hopefully with more and more people joining, we will see less people with big wallets (they will sell when price is good). With that the volatility will gradually reduced. I think we are seeing that happening slowly.

There are literally billions of people who buy/sell dollars each day. They don't go onto the exchange but they exchange goods and services for dollars and they exchange dollars for goods and services.

After such a long time and so many people, the price has pretty much evened out. Same with euro and other currencies. There are only small differences between the countries that change the value between the currencies.

Once Bitcoin is being used daily by billions of people then it will not fluctuate very much.

Maybe because bitcoin is spinning by itself and no one can control like government control fiat currency. in my opinions bitcoin is like a gold it's intended to the investment but at the same time became a currency too, Government always maintains their currency.

In many ways Bitcoin is similar to traditional currencies: it can be used to buy things, and its value can change according to market variables. Increased demand for Bitcoin over the last few years has seen an increase in its circulation and its value.

 Bitcoin is not bound to an institution or country. It is in a sense, international, and it is not subject to authorities like banks or governments that are typically associated with other currencies.

No its really different from those traditional currencies in many aspects, the one and most biggest is this currency is Decentralized, mean it has n center, no one is controlling it. This is the thing that cause in the change in the price very frequently, few pumps and dumps group of people or big companies cause the change in the value of bitcoin any time they want.

I have read in one of the article online that one of the reason why Bitcoin change more than traditional currency is that too much variance in perceptions of Bitcoin's store of value and method of value.  It was said that Bitcoin volatility is driven in large part by varying perception of intrinsic value of the crytocurrency as a store of value and method of value transfer.

It is mainly because of marketcap of bitcoin or in other word total number of fiat converted into bitcoin. In is so much small compared to other currencies traded on market. And some whales can easily manipulate whole bitcoin market with few millions of fiat in their hand.

The distribution of the coins are now more widespread and cannot be manipulated that easily by these whales... that said, some fiat moguls can still manipulate the price, if they dumped enough fiat

into some of the exchanges. Let's not forget that this scenario is not anywhere close to normal, because we have a quarterly event coming up, called the Halving and this leads to a lot of speculation

and hype, influencing the price dramatically.  ::)

This is true about whales, since large holders have little option value.  Bitcoin volatility is driven by large proportions of the outstanding float of the currency. for example, if the Bitcoin whale currently holds above $15M worth of BTC, it's not clear how would they liquidate that large amount into fiat.  It's either they will dump it or make little trade so the price won't plummet.  In this scenario the volatility of BTC depends on the whales of BTC.

It is just a matter of fact that it is mostly the large holders/users are to be blamed of the upward and downward motion of the value of bitcoin.

Also, I believe the value is affected by the law of supply and demand, which is kind of disturbing that the highest % of coins belong to chinese/china. Nevertheless, it is all good.

The market cap of bitcoin is too small, it can be manipulated easily. If the bitcoin is worth $1 trillion, it will be more stable.

Bitcoin and normal currency is completely different, day and night different!

exactly, the stability of the bitcoin's price might be achieved by increasing of the market cap. There are several advantages or disadvantages of bitcoin's volatile nature, as an investment bitcoin is the fastest way to earn interest with it's volatile, but it also bad if the price going down,
and the price was really unpredictable

I think because bitcoin has no central control of its value. it has no central controller like the Fed and it has no effective futures markets.

That and because it can be easily bought. And also you can buy for for a little price. Unlike gold where you have to buy the whole ring. Here you can buy just a chip from the ring and make it as a whole buying it little by little.
People without much money can afford it.

The currency like euros you are talking is different from bitcoins because when their is a low supply of paper money the government can easily make more and would not affect the value of a certain currency unlike bitcoins which is back by real supply and demand.

because btcoin is decentralization market, no goverment, no country, no organization can control it.
only "real market" , it's the basic economic low, just supply and demand.

Well thats the nature of bitcoin. It's price are always going up and down. I think it will be stable after halving but for now it will rise and fall like a yo-yo.

Well that is how trading goes, and another reason of high volatility of bitcoin is about it's security breaches, everytime there is a news about Bitcoin being hacked, majority of the investors panic sell causing for the price of BTC to plummet.  And one of the fact that supported such argument is the  OpenSSL vulnerabilities attacked by the Heartbleed bug and reported by Neel Mehta of Google’s security team on April 1, 2014, seem to have had some downward effect on the value of Bitcoin in the ensuing month, with a decrease in value of approximately 10% for the month of April versus the US Dollar.  then when it was fixed, BTC started to rise again.

That is the risk but the more bitcoin exist the more bitcoin becomes stronger, us being not new to the community that kind of news is just normal to us and we know and understand already the risk before we used bitcoins and we even invested on it.

you may find the changes similar in the first look but it actually is a lot different in many aspects. the most obvious one is the percentage of these changes, altcoins usually change with huge swings which can be from 30% in a day to even 1000% in one day and that is because of the second difference which is the size of the market. you can easily change an altcoin price with $100-$500 but the same change with bitcoin will require a huge amount of money and will take a lot longer.


again you can't compare bitcoin with traditional currencies like USD or EURO the same way that you can't compare bitcoin with altcoins.
as mentioned before by others, those traditional currencies have been around for a longer time and they are being used by billions of people everyday so the stability is the result of that and as bitcoin grows it becomes more stable too, you can see this in the charts comparing it with 3+ years ago.

The bitcoin is still very young, just 7 years old. The market cap is also very small, so it is very volatile.

It's the unregulated plaything of a few thousand scumbags.

It'll take growth of a couple of orders of magnitude before it calms down.

Even then it never will. Gold is huge and not anywhere near stable either.

the answer is simple because of the size of the market and also because bitcoin is still growing as a new technology. it takes time to reach a more stable state and as the number of investors grow there are more buys and sells so the price rise/falls are slowed down.

The market capitalization of the bitcoin is just 10 billion dollars at the moment. When it becomes !0000 billion, it will be more stable.

The cap is not important, what is important is that large to very large holders dissapear.
They got the power to pump and dump bitcoins and so manipulate the price. This is what is crucial if you want bitcoin to be stable.

The countries regulate their currencies, usually they let the currencie loose value soo they can export more, this is a financial tool, used by all countries for a long period. You can see euro/ dollars almost being worht the same, because Europe is facing financial problems, and USA are handling their problems the way they can. Bitcoin has no entity behind it, the entity is each of us, and the big miners and whales.

It is still a new currency so you and everybody else needs to give it time to settle in and then it will be stable. Isn't this how all other currencies started catching up with the other currencies themselves until they proved themselves to be somewhat self sufficent.

thats true, i think that bitcoin price is going to be fluctuating all the time while fiat is going to go down only as bitcoins take more and more people

I also was curious about this point and that reply cleared up it for me.
Thank you for your smart and logical reply.

Bitcoin is a new technology that is still developing. It hasn't really achieved mainstream success yet and the price will change with news or public opinion more than a fiat currency or stock that is established.

I think because of its international  currency and the price depends on the value and supply thats why it's easy to increase if more buyer come and invest in it. And then easy decrease when a bag holder sell thier hold coin and the other investor do the same sell thier coin.

Its a mixture of multiple things that factors those assumptions of price.. but any market order can literally persuade the audience to be convinced to buy a tad more then they expect.

But if there is a solid foundation of reasons why buying is a factor like we saw with the halving situation - then this is where it becomes more of a solid situation.

the reason can simply be to make a profit. because at this point bitcoin is mostly viewed as an investment and everybody is looking for making a big profit from it. and that is why everybody (at least most of the investors) is buying and holding it.

Well its all about the Demand and Availability. As BTC has users/ wallets around the world. It says that many people accept Bitcoin as the way to pay and earn. Also it acts as an international currency as it is widely accepted by everyone.

It also makes it a hell of a lot easier to send money back home if your country does not accept money transfers from your bank. I know several people that have complained of high amount of charges if those transfers do go thru. >:(

Because Bitcoin user base is very small, if we compare to EUR user base and in general EUR is based on all EU economy. BTC is based on mainly BTC user Web sites buy/sell/gambling. EUR therefore is stable more or less, BTC as new crypto currency can change much more.

In many ways Bitcoin is similar to traditional currencies, it is recognised and has a value, it can be used to buy things. But bitcoin has still a much smaller market than other currencies.

Bitcoin price change more than the traditional currencies because bitcoin prices depends on the demands of the investors.  Aside from the, market thaat accept bitcoin is somehow not that huge to make bitcoin price stable.  Another thing is that whales somehow can crash the market when they want  it by selling their hundreds of thousand of BTC.

Yes right first of all bitcoin is very new currecy as compared to all other like euro or usd that op is talking about.Its pretty limited as compared to other ones so much buying and selling causes changes in its prices.If more people in the world are buying bitcoin than selling then the price of bitcoin is gonna increase and vice versa.It will take some time for btc to be stablished and have a stable price.

The price of other traditional currencies do not change more and do not have big fluctuations because it has a specific number and have created all of them so the supply is constant, and almost all citizens of a country have that currency and they all are using it with that the demand is also constant, so in that condition we will not see any higher changes in the price of it,

while the number of all bitcoins are not mined till now with passing time new bitcoins are mined and so the number of bitcoin is not constant but increasing and supply is increasing, and not all people of the world have joined it, every day different number of people come to adopt it and invest in it, so the demand is also not constant. that is the reason.

Bitcoin is not an established currency till now and with that we see daily that a lot of people invest in there and a lot of people withdraw their money from their, but other traditional currencies are established currencies and people do trust on it heatedly and put their wealth in that currency for longer or lifetime, therefore we see no fluctuations in traditional currencies.

Yeah bitcoin is use for trading until now we use it the price is always depends in demand and supply unlike fiat or traditional currencies..
Bitcoin is just like a gold.. but the movement of the price of bitcoin is fast because of supply and demand..

well on traditional currencies the price is more selected by the government and prices are controlled while bitcoins market is not controlled by anyone afaik

We have a local wallet for BTC It can direct transfer btc to any currency of the bank account without any fees. Very Convenient for people. You just have to time when BTC value is up .

Bitcoin change its price more compared to other alternative currencies and cryptonotes it is simply because bitcoin has higher demands compared to other cryptocurrencies. Aside from the number of demands its supply is also limited and that also affects the price increase.

You have mentioned those currencies that are stable in prices because they are controlled by the government. Cryptocurrencies are different to them in a way that they are not being controlled by the government instead their prices are controlled by the market.

because bitcoin is a universal currency and not a centralized like other fiat currency. it is free from the influence of any state or government or from the influence of other group or sector. so it is free to move up or down and is not artificially supported by govt or agency. it can move up or down according to the demand and supply.

The bitcoin is still you, its price is very low and easy to be affected. In a few years, when it is $1T, it will be stable.

I agree with you. Forex trades in volumes that go over trillions of dollars 24/7, all around the world. Bitcoin trades in volume that is less than some of the top companies' stocks in the US. We are under the impression and illusion that bitcoin is on its way to rule the world. It is not.

you mean 1 trillion dollars per bitcoin? i think it is pretty much impossible as the bitcoin price is going to go at 3 million dollars only if it replaces all the money

Well price of bitcoin change more than traditional currency because of some reasons. One of the reason for it is that bitcoin is a free market, where the price is determined by how much someone sell and how much someone is willing to buy 1 Bitcoin. other reasons for it is that the selling and buying of many people that happens continuously.

In the last few weeks, the bitcoin price is quite stable. I think it is almost as good as the British Pounds.

i don't actully want to compare the faints but as you need to so government can pribt more and more faint on specific situation to control hos crices as their volum are increasing in a large scale but bitcoin has very less volumn compared to them so it will take much time to became stable

Its very impossible to reach at that price and i believe really that bitcoin price will not surpass to 1300$ for now and i think the maximum growth of it will remain their just like what happen in the past since we really have some faint hearted people or whales who could dump their coins if they can earn more money enough for its flactuation.

And i think bitcoin is just like commodity where if many people needs it the price will rise up for more and if people wouldn't likr and dump it and more supply the price will dump

I think every user has disagreements to the fluctuations and stable price. me maybe I prefer a stable price compared to prices fluctuate. but maybe traders would prefer to have the price of a high speed compared to the price stable due to the fluctuations they can benefit

I think the stable price is good for the adoption. If the volatility of the bitcoin is less 2% a week and rise 1% every week, that is ideal.

Yeah, the stable price is good for adoption. I guess traders will just have to move to the more volatile altcoins in order to make good profit as things are now.

Price of bitcoin is more volatile than fiat currencies because of the volume of transactions. When many people are buying it then only few sell then the price will be bullish because the absorption of the ones who sell it is not enough driving the price higher and same also when the people are selling it and there's not enough absorption of the people who bought it then the price will be bearish. There is no strong support and resistance established yet so the ones who hold a big volume of bitcoin can make a big impact when they do their transactions whether buy or sell. Whereas with fiat currencies, there is really big volume and one cannot just easily make the price go up or down because he holds a greater volume. There are people who are ready to absorb their transactions or set already their support and resistance making the price stable.

That would be awesome!
It would bring us a 52% increase in one year.
I think a crypto currency can handle that without going down rapidly in some point later.

I think that would make a fluctuation into a stop or disappear not because prices become so high that the stable will be lost.
as in the past few years. although the price is high at around $ 1,200 but fluctuations still occur at that time dude

I don't thing that only bitcoin change that much than traditional currency, If you obsereve, there are lots of ups and downs of each currency everyday, the same with bitcoin. it is only noticeable  in bitcoin because of the range of changes, but I think this past week, bitcoin had been stable in range 630usd - 670 usd.  Another reason is that traditional currencies value had been established unlike bitcoin.

I think as long as bitcoin have a little users then the price will still have high fluctuations. unless the user bitcoin already spans the globe. probably will not happen panic selling and buying when it has many users right ? and prices will not be manipulated when the user covers the whole world

That is right. When the bitcoin has fewer user, the price is lower and the market cap is lower, easier to influence the price.

Yes also all the added features of BTC make the price of it goes up. Not only is it  free oc charge to transfer BTC you can also mine/earn from it. That's one of the factors why BTC's price goes up.

Yes prices for traditional currencies are more fixed then bitcoin price, cause of the governments control the price of their currencies, and that price depends from many factors inside the country. And bitcoin is controlled by nobody.

Not government,central banks control the prices with money supply.

Bitcoin supply is more limited and the bitcoin price depends only from the demand of btc.

That`s why the bitcoin price is more volatile.

The bitcoin is still in the early stage development. The market cap is too low and easy to manipulate.

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.

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.

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.

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.

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.

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. 

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

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.

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.

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).

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

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 .

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.

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

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

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.

The main reason for such volatility for me is there arent banks or governement control over bitcoin, something fiat has, when the currencie is loosing or getting too many gains against others they readjust it. Bitcoin for other side has some big farmers holding a lot purchase power, and its in the general the people purchase making bitcoin being soo volatil.

I totally agree with this, before reaching the fixed volume i personally think there will be lots of fluctuations in the price of bitcoins every now and then. Even after we reached the fixed volume there might be a slight fluctuations in the price like traditional currencies

I agree with that. In 2140, the bitcoin price will still be volatile, but its volatility will be lower than now.

When the market cap of the bitcoin is larger and used by more people, it will behave similarly to other currencies. 

Market cap isn't that big yet so it is prone to being controlled by the big whales. Compared to fiat which is more stable, bitcoin can fluctuate in a matter of days, even hours. One terrible news and we could see a 10 or 20% drop in just a day. Until such time that bitcoin reaches a level of maturity, we can expect it to be volatile until then.

When the bitcoin price is over several trillion dollars, the price of bitcoin will not be easily controlled by very few people.

At that time, there could be 1 billion active bitcoin users. So the distribution of the bitcoin could be quite evenly.

But according to my views the price of bitcoin fluctuate more than other traditional currencies because other currencies has sufficient users, while bitcoin do not have sufficient users and each time the number of its users increases the value of bitcoin increases higher and when the number of its users decreases the value of it also decreases.

I think i dont agree that if the users are increase the price or value of bitcoin is also increase for me its not its always depends in demand and supply
If the price of bitcoin right now is high expect that the price of bitcoin will drop in few days..  just always think that the price of bitcoin is always depends in demand and supply.

It is true that Bitcoin is more volatile, when compared to the major currencies such as the United States Dollar, Euro, Japanese Yen, British Pound, Australian Dollar, Canadian Dollar, and the Swiss Franc. But at the same time, there are currencies which are even more volatile than Bitcoin. One example is that of the Azerbaijani manat. A few weeks back, it lost almost 40% of its value against the USD in a single day. 

Government can't also control Fiat money. Example when they produce more Fiat money the value of that money will be less, thinking because they printed more money does not mean more purchasing power. Avery different approach of btc in were btc can be generated at the same time the value increase.

bitcoin and other crypto currency is decentralized, its mean that nobody can control the value, the one that control the value of bitcoin is the user, bitcoin is depending of demand and supply from the user, that is the reason the bitcoin price is change more than usual fiat, because in usual fiat the government has the way to keep it steady, because if the fiat is unstable then the country economic will be affected

I think he have some point there about fiat. the government or the world bank limit the amount of fiat money that circulate in the world. that's why money have a serial number to easily track the volume of fiat that can produce. It is in the law. Unlike Bitcoin, there is no law regarding the limitation of volume of btc that can be mined. as long as you have a miner. you solve a block what ever you want..but for me, the important factor that caused the volatility of the price of bitcoin is the fast trade features of crypto unlike fiat. :)

traders/whales are the one controlling the price. the decentralization aspect doesn't matter in this case. anyone can buy up the price with enough liquidity as anyone can freely purchase bitcoins through exchanges and other services.

Bitcoin system didnt expect in the strict sense in most countries  because of the price is changing so much more than traditional currencies and it is still officially unrecognized currency because of peopele dont trust like traditional currencies  , i think it can be reason .

Government dont control bitcoin price. We are the one responsible for thay. The holders , the buyers, the sellers and users. Se can create a fluctuation but due to high price of bitcoin you wont feel it much if it is you only. Bitcoin is limited that is why they put a great value in it.

Bitcoin price changes very often because there are less supply if we compare with the traditional currencies like USD,CHF and more and more people that use fiat money the more stable it is and of course someone in the head of the money regulate the price and don't let it drop often, bitcoin is new and the number of people is not a lot but this is keeping increasing.

The reason is there is no back up for it like fiat money has in gold and oil. That is what I have come to believe in my quest into the bitcoin world.

I think it's problem with liquidity, distribution and trading volume. When the currency gain more acceptance by people and merchants,
the problem will certainly decrease.

Yes this is true. But if merchants accept it as a form of payment then this will attract more of them to see it as viable solution to their problems of trying to garner customers to buy from them with the funds that they have available.

you are right, it is going to be fluctuating all the time though the price is going to be way higher then and make us some decent money

In 2014, the price of the bitcoin will be very high, so is the market capitalisation. So the price will be more stable.

yeah we cannot do anything about it and i dont think that it is going to change any time soon, i hope that the price of the bitcoin is going to be more stable in the future though

The government also need to control on how much money they print as the more you pront the lesser the value you will get. The Supply and Demand concept is still in place. The only different is is that BTC has a finite limit where our Fiat money has not. So that's why BTC prices are more volatile than real money

This is easy question.
Price of bitcoin is not controllable so its more dynamic.
That's not downside in most.
It may make weak hands lose money but its good to be speculative sometimes.

because all of the traditional currencies are already distributed to every user of it and the demand and supply of that currencies are constant, while bitcoin is in early stage and with the increase in demand(adoption) the price increase higher.

The price of Bitcoin change more than traditional currencies because it's digital currency working only online, and depend in the market so the price is not stable.

just because it depends only on people and nothing else

Because governments control the FIAT currencies, and therefore it's not as volatile as a currency which is managed by people. Decentralization means that.

The price of Bitcoin change because it depend in the market and because fiat is too not stable . So the price still increasing and decreasing mostly

I agree with you, when a time come when every citizen will have their bitcoin and the demand and supply will come to constant then the price of bitcoin will be stable.

you are right, only people themselves control the bitcoin price and nothing else, i think that the overall trend of the price should be up

That's because bitcoin has so little user base than the other major currencies like Euro or USD. In fact, bitcoin is more like a stock rather than a currency at this time. It solves some huge problems but it is nothing near to be a currency. That's why its so volatile.

There are too few users of the bitcoin. Most people who own the bitcoin just use it as a speculation tool now.

you are right, the price of the bitcoin is going to be increasing really strong for a while, i think that right now it should also grow a lot

I just watched a video where Tony Vays mentioned that it would help reduce bitcoin's volatilty if the price is really high something like $10,000 per BTC. He explained that percentage wise the volatility will be low since the price is so high. A $100 price move will be huge if BTC is at $600 but minuscule if it is at $10,000. Also the supply of BTC goes only up to 21,000,000 coins. With a limited and low supply, it would make sense that BTC should be high enough in price to become more stable and have minimal volatility. I hope that helps.

you mean in 2140? i think that then the price of the bitcoin will be much more safer and make me some decent money, it is going to be huge

2014 has already passed dude, the price of the bitcoin changes that much because in my opinion it depends only on people

This year, the price was not very volatile. It survived several mini crisis, the price just drop 30% in each occasion.

It is not stable.  Unlike the usual currencies which the government has the control.  Plus it usually depends on the people that uses the bitcoin.  If I keep more of the bitcoin and so my friend and other friend then its price would goes up because of the scarcity of its existence or the numbers of bitcoin on the market.  But if many will sell their bitcoins and floats on the market then its price would go down.  It is usually dependent on the people that uses it.  It depends on the demand.

Scarcity of Bitcoin does not exist its just simply volatile because of the demand and how new bitcoin is new to the currency world. Although its not the universal currency yet it acts like one as many companies and sites are accepting bitcoin now. That is one of the factors that make bitcoin attractive to both consumers and suppliers.

The bitcoin is not a univesal currency now. But it has much more users than before. I think the user number will also increase.

but we can believe that a time will come when bitcoin will be widely used not only on digital market but also in our offline market and then we can expect that the price will get stability.

I think in that year bitcoin will be more stable as the technology of bitcoin is much faster and its adoption is also on a fastest speed so when a time come when every perso will have bitcoin the price will be pretty stable.

of course such time is going to come, in my opinion bitcoin will make me some huge profit because of that

All bitcoin together just have about 10 billion dollars of worth.
When you look at the stock market you can find businesses that are worth at about the same amount.
Small incidents trigger a bigger reaction in their stock price than they do with a larger business.
Besides, traditional fiat are partly backed up by gold, with bitcoins there is just the community.

I also like that the price of bitcoin come to stability because whenever I have my money in bitcoin I do worry for them and check the price every time so that to be aware that how is my money if it will be stable than I will not have any worry.

Maybe cause traditional currencies are very old, they have big markets, banks, government and private sector are using it. In last 15 years we saw some econ crisis, so traditional currencies are also vulnerable. They also don't worry about demand, everyone is asking constantly for more, that's why they are printing more money each year.
Bitcoin depends from  demand, and demand for bitcoins is changing. Also we need to consider how many people in this world are using traditional currencies and how many people use bitcoins.

But printing more money is not going to help the economy of a country and that is just going to make their currency very low valued money. And with bitcoins, because of its demand and limitation it is making itself to increase more and change it price daily accordingly. And when someone bought volume of bitcoins that is going to have big affect in bitcoin economy.

I would say that scarcity does exist, however not necessarily in the way you'd expect it to. While we don't have the 21m cap completely set out for us yet, the limit imposed on the miners is quite effectively limiting the supply available and has quite neatly limited what the market is able to push out at any point in time. However it is definitely something that a decent number of consumers and suppliers use and value, so I'll take it.

Those who are traders will like that way as with fluctuation they are much happy and they want that the fluctuation remain in bitcoin forever but maybe it will come to stability in some time as those who want to put their money in bitcoin and want to start business with bitcoin like its stability.

Because there are much less bitcoins than other currencies, mean each large bitcoin sell can change price ( other people will see that price crash so they will sell bitcoins too)

to me it is because bitcoin is a new currency and still its price is not so stable and that is therefore are observing so much change in the price of bitcoin, as much people will inter in world of bitcoin the price of bitcoin will become more and more stable.

Bitcoin's price is changing more than traditional currencies   yes and it is normal because it is not one country 's currency and market of bitcoin is not enough , if bitcoin users  grow and bitcoin market can be strong , bitcoin price will be stable then bitcoin price will not chage so fast.

Bitcoin is still very new an is not backed by any government. Until it is well established, it can have large fluctuations from news stories or public opinion more so that fiat.

But, you have to know that when the supply becomes limited then a at some stage the price become stable and it start to run in a uniform rise because of the increasing demand with the day and when a stage come when the demand and supply becomes constant to each other then stability occurs.

News/Rumours has really a little effect on price. What really moves the price of bitcoin is demand. On How the Buyers and Sellers react to it. For example there are more sellers in the market than buyers than the price if bitcoin will go down. And Vice versa if the buyers dominate price market. It is just that there are many sellers today than buyers that is why its on a low price.

Demand is impacted by news. When Bitfinex was hacked, people lost appetite for buying bitcoins.
This resulted in an immediate drop in price.

Agree with you. The price of bitcoin is not stable because it not reached to every person and with the passage of time people are coming and adopting it so whenever we see some adoption the price increase much higher and when everyone will have their own coins then that will be the time of stability.

See, fiat currency is controlled by government and whenever there is inflation in fiat price, immediately government changes its policies to make fiat price increase and remain stable.But in bitcoin, there is no such regulatory body and thats why it is said that bitcoin is owned by the community

The main reason for the price volatility of the bitcoin is that it is too cheap, it can be easily maniuplated.

Lol, how could bitcoin price is too cheap $640? Is that true, and then I guess you have around BTC100, right? Because bitcoin price is too cheap. It just increase or decrease depending on how much people, company bought bitcoin making it more valuable.

not really. bicoin the price up and down because of many factors such as investors and others. why the price of currencies such as the euro / usd price is not changed not because the government

The volatility of the bitcoin price is mainly due to the low market cap. It can be easily manipulated very rich people.

That is right. When the market cap of the bitcoin is around one trillion US dollars, the price will be more stable.

But printing more money is not going to help the economy of a country and that is just going to make their currency very low valued money. And with bitcoins, because of its demand and limitation it is making itself to increase more and change it price daily accordingly. And when someone bought volume of bitcoins that is going to have big affect in bitcoin economy.

I think the price of bitcoin changes more frequently than the traditional currencies because it is used globally. People are selling and there are people buying. We don't know when will there be another bitcoin investor that will pump the market, we also don't know when's the next major exchange website hack. Bitcoin still in the early stages for it to have a stable price. This is just the beginning, more and more people will find out about bitcoin and start using it. Thus, making the price of bitcoin grow even more.

that's for sure. Price Bitcoin increases depending on its popularity. No one can predict how many people will buy Bitcoin tomorrow. Another factor that affects the price of Bitcoin - a difficulty of its production, which is also growing

Even though bitcoin is a currency, it's very different from the traditional currencies. You don't hear people saying, "Oh wow, EUR is low today. I guess I would invest in this currency in hopes that I would get profit."

The main difference of bitcoin to the traditional currency that makes the price of bitcoin move more is the fact that people actually invest a lot of money in this currency. By design and because of experience, they know that the price of bitcoin will increase in the future.

this is because many people using bitcoin and they come from many country and places so this can make any fluctuation for the price. beside that, the price of bitcoin is following the fiat rate and this is why the price is change in every day. and beside that the market itself is really give contribution for the changing of the price of bitcoin.

That might be due to the fact that the bitcoin is not a major currency yet. The usage is rare and it is just for speculation.

even fiat's rate always changing so does with bitcoin. keep in mind, those fiat are owned by a country and the country will do anythingpossible to keep their currencies rate high to prevent crisis,different with bitcoin which had not made by government and pure demand by the market

That is true, while fiat has ascope on that specific country bitcoin is a different case. There is no country owning the bitcoin and it can be transacated around the world.By this, it is possible for bitcoin to frequently fluctuate as no one controls it but the market movement and some news affecting it.Bitcoin has a worldwide scope where any speculation from any country who are signiicant bitcoin shares can affect the market.

but if bitcoin is stand alone and not depending from fiat, maybe bitcoin will not be  like this, and the price will not very often to go up and down and i think in the future, bitcoin is ready to get the stable price like fiat.

Good question. It is because of the limited amount of it. Just like gold and other precious items. You see when something is rare it becomes more valuable.

It changes because it is universally use, unlike in other currencies where it is controlled by a certain countries and depend on the economy of a certain country. Bitcoin is simply played by supply and demand.

Because Bitcoins and other altcoins are very vulnerable to price manipulation by big time traders due to its decentralized nature unlike fiat currencies which are being monitored and controlled  by central banks.

Because no body owns bitcoins, No one can ever dictate if how much it could be. That's why if the government takes place on bitcoins, you think the price of bitcoins will be stable? as i observe, if the price of USD increase, The price of Bitcoins also increase. If the price of bitcoins become stable, maybe only few people got an interest with bitcoins. But why is it the exchange rate of dollar was also changing?

I agree. Bitcoin depends on many factors and more vulnerable. But the price also depends on the popularity. Centralized currency of this does not become more expensive

There are certain fiat currencies, which are even more volatile than the Bitcoin. For example, two years ago the Ukrainian Hryvnia got devalued by 200% in a single day. Also, after the Brexit, the UKP lost almost 10% of its value in a few hours.

that reason is not that big a deal, it can still be cheap and have a more stable price. for example in Forex market USD vs EUR is ~1.1 there is nothing cheaper than that but the price is stable!

it is all about the size of the market (marketcap or better said the volume of trades each day)

Unlike other currencys bitcoin is not something that is not controlled by the overall market there is no constant demand on it the Euro and Usd are being used on very thing by producers and consumers so it is always moving so its price never goes up but as for the bitcoin it is controlled by the community and if they want to use it or not if bitcoin was used so often then its price won't change a lot

And bitcoin price has been moved by its users and traders since its just small percentage of people who knew about the system its more depend with every single person whos supporting it the more the demand the more value will will go either up or down.

But the main reason is that as bitcoin is not yet such a stable currency therefore, as thee is a lot of flocculation in the price of bitcoin therefore there is expecting a big change in the price of bitcoin every time.  I think when bitcoin will become a stable currency there its price will also become stable.

That's true and will never be stable because it's decentralized and the supply is just limited only. Currency can always produce more when demand increases..

I also believe that the price of Bitcoin will never be stable. It will fluctuate. However, in some frames. In the long run the price of Bitcoin grows

The value of a bitcoin is tied purely to the laws of supply and demand. In other words, the price is determined only by what the markets is willing to pay. If more people wanted to buy bitcoins, then the price will increase. If more people wanted to sell, the price will decrease. Bitcoins value can be volatile when compared to more established currencies and commodities. This can be attributed to its relatively small market size, and it means that a smaller amount of money can move the bitcoin price more significantly.

Yes that is the whole idea behind the changing price in bitcoin, the active movement of bitcoins price compared to other altcoins. But the question really is why is bitcoin has bitcoins price change more frequent than traditional currencies as the author implies, the answer is simple, bitcoins stock is limited only to 21 millions plus coins in circulation which means the supply is not growing anymore while the demand is increasing the price will goes up. So in short the movement comes from the growing community that are sharing from the limited supply.

Bitcoin is a decentralized currency,it's price is based in it's demand and people speculating on it,you cannot control  it's price but you can speculate and if the market follows through it's speculation it will go up or down I don't see the price of bitcoin stabilizing in a particular price but it will spike it's price ,because people believe it will and the market is growing fast..

At the time when bitcoin will reach to every corner of the world and will start on work everywhere on the world just like other currencies which are working fully in the places for where it is created bitcoin will also become stable and the price of it will not change more but will be the same as other traditional currencies.

Even if bitcoin reach every corner of the world its price or value, I believe, it will not be stable,  it will remain volatile. It will still be dictated by the market price trend.

The world is not ready for cryptocurrency to be used as a legal tender given the fact that internet connection cannot reach the outskirts and is not stable during calamities fiat currency remains the legal tender. Hence bitcoin will continue to be a cryptocurrency dicated by the markets supply and demand.

What I know is bitcoin price affected by supply and demand which mean how big global trading volume will impact on bitcoin. Lack of liquidity and low market cap makes bitcoin fluctuate more than any traditional currency, but at least we have higher price than any other and when the market cap getting bigger where there are more people involved on bitcoin global trading, we could get stable price I guess.

As bitcoin is not a centralize currency that is not limited to some area and is also not in control of any government, group or persons, As the traditional currency is limited to specific area and are mostly depending on the economical conditional of that state, but bitcoin is free from these things and is being used in all over the world, and the users of bitcoin are increasing from day today which effects the price of bitcoin, therefore we can see change in bitcoin more than traditional currency.

Bitcoin price keeps on changing because nibody control it, all of the price is based on the market, so if more people demand bitcoin the price will be up, so if there are more users the the price will surely up, while the traditional fiat is control by government to prevent the inflation rate

not just about bitcoin are decentralized , bitcoin also have a limited supply .

which means the price will keep rising more than any other currency if you compare them. the more demand of bitcoin and then the supply available decreased , it is make bitcoin getting rare and make the price jump up.

That becouse not all bitcoin in exchange is use able and bitcoin spreading is not so good. So if the hoarder buy a lot of bitcoin, it price will aoutomaticaly rise but if they sell the bitcoin, the price will be drop.

Perfectly right. There is no control Bitcoin. It's value completely depand on supply and demand only. More over Bitcoin price is so volatile and we do not able to predict the pump and sink.

Because it has a predetermined volume . The laws of supply and demand will be applied here, There is a increasing demand but has a limited supply that will cause its price to increase . Unlike in government,  they have a tons of billions supply of their local currency . The traders also has a role in this too cause they are the onea who circulate the coins mostly 

I think that yes, traditional currencies are more stable, because there are many banks using it and governmental regulation. ANother thing is regulation via propagand. Some government can find ways to encourage people to use some currency more. If we think about bitcoin, it is merely impossible and nobody is doing such a thing.

Basically the price of bitcoin is influenced by many parties i.e miners,bitcoin holders,politics, you and me{literally everybody}their by making the price easily changeable were as fiat is basically influenced by fiscal policies of that country  and monetary policies

You're right. The price of Bitcoin do we all. But the centralized currency is strictly controlled by the government. Therefore, fluctuations in prices Bitcoin is much more tangible than the currency price swings centralized

If you can use the fluctuation, you can make a lot of money.

the price is influenced by the demands which was made by those you mentioned above. bitcoin is just about the market's demand and an economic law about demand-supply is really apply here
there's demands then the thing will more valuable otherwise the supplies were too much then the value will be lesser

the reason why it's changing more than other traditional currency because the programmer of the bitcoin who created bitcoin already do an algorithm that can make us earn more than using other traditional currency. and the users of the bitcoin and investors have been rapidly growing it all depends on the investor. and one of the reason of bitcoin growing is gambling site because they donating on bitcoin currency more than we bought bitcoin thats why .

But the value is small.

This is because the popular level, the more that know and use the course the more powerful a currency, just as the already widely used bitcoin people so the price always rises.

Because it s popularity is increasing day by day and it is deternmined how much it is being used.when the demand of bitcoins is very high and the quantity is less it is then the price becomes very high.

Bitcoin is a network of virtual P2P form of digital currency, he is a cryptographic based digital currency, and every 4 years to reduce the total issued half.
Unlike most currency, bitcoin does not depend on the specific issue of monetary institutions, according to a specific algorithm, produced by a large amount of computation, the bitcoin economy using distributed database of many nodes in the entire P2P network to identify and record all the transactions, design and use of cryptography to ensure the safety of all aspects of the circulation of money.

I think it depends on the adaptation of a user to the currency. The more that it is being used, the more is the impact. Bitcoin is now the most popular crypto-currency in the whole wide world especially in web. BTC is the money of internet.

We must use bitcoin as we use our fiat money. Most of the people use bitcoin not as payment system but only for hoarding and trading in exchange markets. So it's natural to have many fluctuations of its price.

Other currencies are not like bitcoin, it is not something that is not controlled by the overall market there is no constant demand on it the Euro and Usd are being used on everything by producers and consumers so it is always moving so its price never goes up but as for the bitcoin it is controlled by the community and if they want to use it or not if bitcoin was used so often then its price won't change a lot.

You right, fiat has been used for trade long time ago, so the price is have more stable high-low, besides that it's controlled by government, which means the price also have intervened from government. But all currency basically move based on supply-demand.
Bitcoin have less supply than fiat, means although it's used more often than nowadays, there's possibility the price also change a lot.

Yes I agree with you two, the government have strength to controk their fiat price.  But for all countries, there are some country that can not control their fiat price so the price is fall far away against dollar. Bitcoin price move  so wild becouse the circulation and spreading is not good. So the hoarder have bigger control of bitcoin price. But I think its just for now becouse I really sure that the circulation and spreading will much better in the future.

Bitcoin price relies on promotion and press at this point. 
 No one actually controls it. Whereas the traditional currencies are controlled by the respective government and they can do number of things to prevent the fall of their currency value. 

The changes in the price of bitcoin we experience are due to a major component and that is the non-involvement of a government regulatory authority. As all the traditional currencies are regulated by concerned government authorities and the changes is these currencies depends on many other elements which a bit coin is free from.

yes that is the main reason i think as bitcoin is a new currency and people are entering in the world of bitcoin. and that is the reason that the price of bitcoin is not so stable.

I was very surprised that Bitcoin in the past few days since risen. I find it hard to understand why this is happening. It may not dramatically grow people's interest in Bitcoin

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.

One of the reason I see why bitcoin is always fluctuating is  because of demand. The buying and selling of users is what makes bitcoins price go up and down and of course it is decentralized and it is in the free market unlike fiat that is decentralized of course because of government and banks, also it is used mainly for transactions everday without even needing an exchanger that's why.

I agree that the reason of the fluctuation of bitcoin is the decentralized system.  We all know that there is no body that regulates bitcoin meaning anyone with capacity and capability can manipulate it according to their likings.  Aside from that, bitcoin is susceptible to speculations of investors that makes it highly volatile.

Price fluctuations, but indeed a bitcoin I bet that the price of bitcoin no regard to investors who are interested in bitcoin. Because the existing investors in the bitcoin does not have any policy or the correct strength inside. So if an investor is associated as the person who controlled the economy of bitcoin, then it's all not true. Bitcoin nobody mastered and could only give a good effect is mining, without mining bitcoin will not be able to walk normally

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.

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.

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

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.

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.

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.

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..

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Yes fiat currencies do change big time either from inflation, recession, depression, etc. Printing of fiat currencies from thin air by the governments, is actually one such moves to counter price falls, but which most often end up creating more problems than the much it aimed to solve. Bitcoin however is limited in supply and its decentralized nature leaves it responding to changing market forces.

Because Bitcoin is mostly used as a vehicle for speculation, not as a means of exchange (unlike traditional currencies)


Bitcoin may be tiny when compared with the US dollar or Euro (and other major currencies out there)

But even with this market cap Bitcoin is in the upper half of the list of all countries if we ordered them by the amount of money in circulation (in dollar terms). The problem is the Bitcoin market cap is utterly misleading itself since only a minor part of all bitcoins mined so far gets actually circulated (traded or used as a currency and casino chips), The rest is stashed away and doesn't circulate. Indeed, that makes the price higher, though it can be detrimental to Bitcoin in the long run

to me actually more and more people are entering in the field of bitcoin and they are investing their assets here which increase the demand of bitcoin which ultimately increase the price of bitcoin.

In my own opinion, bitcoin price change more than traditional currencies because its not part of traditional currencies. As what we can observe, day by day people are getting bitcoin to invest. We can notice that their is price speculation, the dumpers and pump of bitcoin. However, Bitcoin is volatile and decentralized coins and not being controlled by certain people.

But still there are some losses whenever there is a price drop. When one person suddenly decides to buy bitcoin. Example is when it is at its peak at $1000+ there might be some who just started and buy coins and regrets it afterwards. This are the losses of users that we cant control but somehow we can make it right through proper explanation.

I think the answer to that is pretty simple. With my little knowledge of economics and even the exposure I have about bitcoin, I will say its due to the penetration bitcoin is still getting in the sense that no matter how popular bitcoin is today, its still growing and not the whole citizen knows about it and everyday we get new entrant. So this to a large extent explains the reason for the high volatility but the moment the rate of entrants is not as much as we now have enough population, then we should expect more stability compare to what we are having now...

lose by falling prices on the Bitcoin mainly those who do not have experience in cryptocurrency trade. And those who have weak nerves, and those who can not wait

Bitcoin is a digital currency which is mainly created for decentralisation. It is not controlled by any one. Its value is determined by its demand and supply. If demand increases, bitcoin value increases and if demand decreases than supply, then bitcoin price decreases.But situation is totally different in fiat currency. It is totally controlled by the respective governments. When the value of fiat currency decreases, government takes appropriate measures to retain its currency price.But in bitcoin, there is no one to regulate it since it is a decentralised currency.

Bitcoin value is volatile but i think this pump and dump is depending on the due to supply and demand. I wish any country should adopt the Bitcoin and start the digital currency revolution.

Right now the biggest factor affecting it because there is no government controlling it. Fiat currency is stable because every countries' government control the supply of Fiat in which it also affects it's value. We all know that Bitcoin is independent in any form of government that is why the supply and demand is uncontrollable.

Bitcoin is an unregulated market.
Everybody can enter or leave as he pleases. There is no government behind it that would manage the capital flow in and out of bitcoin.
When somebody with enough capital enters, the market reacts. The same happens if he leaves.
With bitcoin, 'enough' money to make the market react is reached much easier than it can be acheived in fiat markets.

Though it is decentralized, which means its not under control of a central authority the open source programming runs based upon several algorithms which at times have dependence upon world market movements. Recently too based upon the market variation happened due to inspections in China's bitcoin exchanges the economy just gave a shake which too made an impact on the bitcoin price. This is the reason for difference in price variation happening between bitcoin and traditional currencies.

Still the only thing that determines the price of the bitcoin is the users who use it, if people creates more demand then we can see prices getting flying. Based changes of demand, the price fluctuates. The price of the bitcoin is highly fluctuating compared to other currencies is because the bitcoin is not being controlled by any central authority to calm down traders on any unexpected events.

The price of bitcoin is not as volatile, but one of the reason is simply volume, bitcoin does not move as much volume as the dollar or the euro so it is easier to manipulate.

You have a right point for explaining the fluctuations in the price of bitcoin. The coming up of more bitcoins to the market the adoption of bitcoin by more people and sudden sale of bitcoin by more people to the market actually increase and decrease the price. That is why we say hold your coins as with holding the supply decrease and the demand increases.

The history of the bitcoin price for the 2016 year can be rightfully entered into the books. During the year the price rose more than 80%, and despite some sharp fluctuations, we can clearly see the bullish trend. Bitcoin price increased from 430$ for the beginning of 2016 to 950$ to its end.
Exchange rate volatility is a response to some global events, including the decision of people in the UK about leaving the EU, the hacking of the Bitcoin exchange Bitfinex, as well as halving the rewards for mining, because of which the number of new bitcoins in each block was reduced from 25 to 12.5 BTC.

Yes you are right.  if bitcoin spread and circulation is better than now, bitcoin price will more stable. If many people just hold bitcoin, the hoarder can easily influence bitcoin price.

Bitcoin user market is much smaller, if we compare with traditional currencies, like EUR. Bitcoin have 11+ million users, EUR 338+ users, so you see EUR have much more users than Bitcoin. And Bitcoin have most probably some big players, which buy and sale. EUR is too large, investors do not have enough capital for large buy/sale deals.  

the price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price increases, and when demand falls, the price falls. there is only a limited number of bitcoins in circulation and new bitcoins are created at a predictable, which means that demand must follow this level of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could be, it doesn't take significant amounts of money to move the market price up or down, and thus the price of a bitcoin is still very volatile.

currently people are using bitcoin as investment, therefore they are mostly holding bitcoin so that they can get better price and then sell it with profit, but when bitcoin will be start as currency then trend of holding bitcoin will a little decrease and hope that the price of bitcoin will become more stable.

i do not think that it is so easy to manipulate the price of bitcoin. actually bitcoin do not belong to a single country or some area. but it belong to all the  world. therefore i do not think that a single country or a group of people can manipulate the price of bitcoin. because so many people cannot come on the same point.

I think so. because of the limitation of bitcoin, it makes the price does not stable. so when there are a lots of demands and people buy and sell using bitcoin, the price will increase and so the opposite.

while traditional currency is probably controlled by a community, but bitcoin is controlled by bitcoin users.

Ultimately, it all comes down to the balance of supply and demand which determines the price of Bitcoin, i.e. how many bitcoins people want to sell and buy. But when you sit on a pile of, say, Chinese Yuan and see that your currency gets devalued today, you rush to buy bitcoins since evidently it would be a sane decision if you want to retain the buying power of your money. This will cause the rise of Bitcoin price against all currencies because demand for Bitcoin doesn't distinguish what currency caused its expansion. When you next see that the US dollar is appreciating, you sell your bitcoins for dollars in the hope of earning profits through the dollar. And this will cause the drop of Bitcoin price against all currencies because supply of Bitcoin doesn't distinguish either which currency caused its increase...

Cumulatively, this makes Bitcoin volatility surpass the volatility of individual currencies it is traded against

You mentioned that once Bitcoin price cannot stay stay  stable for long. It's a cork floating in an ocean of fiat currencies. Meaning vice versa
if altcoins will appear stable at price the Bitcoin  will fluctuate, is that correct?

Agree. Even bitcoin is spread evenly, the price will never stable because the deflation makes it's value increase. More than 80% of bitcoin holded by chinese, so they can easily  influence the price of bitcoin.

Fiat money also change every day, we don't just notice its changes because fiat on FOREX has 4 decimals 1.2345 the changes that occur on fiat money usually are noticeable only by traders.  It changes every day and the slightest chance can make a trader profit for more than a hundred already.  This don't happen on BTC and other crypto because the marketcap is just billion. FOREX are trading trillions of money everyday.

Due to that fact, most of the people the not care about the change in traditional currency. It is not significant to be noticed about. That's why more people are paying their attention to Bitcoin and buy it as a type of investment. The more fluctuating Bitcoin is, the higher chance they become rich in the future.

Bitcoin has very less number of users as compared to FIAT. Also Bitcoin does not adhere to geographical boundaries. What this means is the government as no control over it and they cannot manipulate prices as they do in case of FIAT. Because of all these factors and many others, bitcoin price can never be same and stable.

This is issue of demand, the volatility in Bitcoin has reduced significantly comparedd to 2-3 years ago. Once we have more BTC users and the demand increase this volatility will reduced more

Bitcoin is still new* as compared with the fiat currencies that you mentioned and since there is no one who controls bitcoin, the price is determined by the users of bitcoin and thus the price of bitcoin keeps changing because of the bitcoin and fiat trades of these users. In fiat currencies, no one sells their fiat currency (except forex or crypto traders) and we just transfer it so the value and the price remains constant in short period of time.

If Bitcoin had the same number of users as fiat, then the price would actually be somewhat more stable.
So don't say that Bitcoin can never be stable, it's simply not true.

The price of bitcoin is relaying in demand and supply the number of users of bitcoin won't help the price of bitcoin.. unless every time of users are buying bitcoin that can affect the value of bitcoin..
our fiat is very stable and our fiat is not relaying in demand and supply.. banks can make new paper money..

Because it is low on supply. You see, everything that is low on supply because costly. Gold also have a low on supply that it why its price is too high. There are many people who want it or to wear some gold or to stock it for future preferences thinking the price of it will go up until every gold is depleted. Same with bitcoin and it we already know the limit to where bitcoin will end to be mined.

It is because Bitcoin is decentralized unlike traditional currency. We all know  that a digital currency like bitcoin is cannot be control by any of the government of each country. That's why fluctuation is always happened in the trading exchange platform. And if ever Bitcoin will become stable in price it is surely that all altcoins will down their value price, if that so many of the cryto enthusiast will get disappoint unto it.

i think that the reason is that traditional currencies are under the control of government, therefore they can influence the price of traditional currency, while bitcoin is decentralize currency  and no government have any control on it, it is effected by the demand and supply, if the demand of bitcoin is increasing so the supply decreases which cause the price to increase.

Bitcoin price is totally determined by the laws of the market. Supply and demand rule over bitcoin.
While governments try to give their fiat a certain stability that can not be done with bitcoin.
Every wealthy investor can influence bitcoin price by changing the demand side.

With the fiat currencies the respective governments/nations of the world has absolute control over their gem through their central banks and they are able to control inflation against their respective currencies by either printing more notes into the system or withdrawing money from the system. This is different with Bitcoin which has no central bank controlling it's flows and so its pump and dump will depend on the demand and supply of Bitcoin at any particular moment.

We have seen the Chinese, Japanese, United States of America and now the European Union governments intervening every time their local currency is taking the heat. They usually do that by printing money out of thin air, nothing at all to back them. With so much supply of money in circulation in their countries, their values soon falls and inflation takes center stage. That is the world of the fiat currencies across the globe and the reason financial crisis are remains unabated in the globe.

Interestingly, Bitcoin is limited to only 21 million coins and with no one solely in control of that, it value, a true reflection of demand and supply, it is quickly assuming the role of an answer to our messed up monetary systems.

yes that is the main reason that why the price of bitcoin changing as compare to fiat. actually the number of bitcoin users are continuously increasing, and they are investing their money in bitcoin that is why the demand of bitcoin also increase which ultimately increase the price of bitcoin.

The way I see it is not only the maturity of bitcoin. Of course now there are more users who own bitcoins but most of them are in the hands of a very few people. So they have the power to affect the price moving big volumes to buy and sell positions for a short period of time. Besides that, I agree with some of the members who posted that behind the traditional fiat there are governments and banks where when trace these market behaviors support the fiat currency accordingly

Each country has a trade balance between its incomes and its expenditures, a greater example are the export of goods and services in the case of incomes, in the other hand the import of goods and services  are the greatest example of expenditures, so income-related activities constitute or give rise to the offer, and expenditure-related activities constitute or give rise to the demand, but for that peoples need a foreign exchange market which is constituted by the central bank, the commercial bank, houses of exchanges, exchange houses, etc, sometimes when there is a greater imbalance, governments must intervene by controlling the exchange rate, for example that when they see that their currency is devaluing they use some of their international reserves and auction a number of these to counter the devaluation and make necessary adjustments in its economy,  in the case of BTC  the supply(offer) is mainly done by  the miners and holders, but because the market is still at an early stage it could be said, there is no mechanism to control prices, except that exercising the big holders and events that occur daily and influence the opinion of users, sometimes causes such great variations.

I think the bitcoin is more distributed then before as more people are buying the bitcoin at the moment.

actually traditional currency is under the control of government and they try their best not to let their currency down. while bitcoin is a decentralize currency and is not under control of any one and therefore it is purely depending on the interest of the people if people are taking interested and they are holding or buying more and more bitcoin then the supply decrease because of the increasing demand of bitcoin and therefore we can see a lot of fluctuation in the price of bitcoin.

Yea I think that it is because of that and it is also because bitcoin is cryptocurrency I mean world value which have biggest price then any other value which is virtual or fiat money.

The value of the bitcoin is still to low. If it is 10 trillion market cap, it will be more stable.

The reason why the Bitcoin changes this much is because the Bitcoin has support to stay stable at one price.
Also because many people don't use it for invest but for sending transactions or other things

Absolutely, which makes the traditional currency more stable is government. The government would do in any way to make its currency stable by improving the condition of the country, because if currency is unstable it will affect the economy of the country. While bitcoin always fluctuation because there is no control of anywhere, condition of bitcoin is influenced by the user so it is very difficult to create a stable price. But now I think bitcoin prices are more stable and continues to increase, it was very good.

Price of bitcoin doesn't change comparing to any available currency, it is completely unique and first of it's kind, the first decentralized and massively distributed and advertised with a heavy and strong attraction of people with new ways of thinking, not many yet understand it, they don't know what a rare gem this bitcoin is.
It's like a new element, when scientists discover a new element first only the scientists and universities get excited and show interest and until engineers and doctors find out what can be built and created with it the common people just hear and see in websites and magazines and see their involvement far fetched.
There is yet a nuclear bomb of crypto to get detonated for all the world to see the shining star in the sky.

Bitcoin is more volatile than traditional currency because-
1. It is non-regulated and move up/down owning to customers' demand.
2. The bitcoin market is still so small, addition and exclusion of users cause fluctuations daily.
3. Bitcoin is comsidered less of currency and more of investment by people thus creating speculation impact.

Traditional currencies are more stable because they are centralized and under close monitoring of a financial agency of the central bank. I dont think limited quantity of bitcoin affect its volatility because other currencies are also limited.

Bitcoin change more often than traditional currencies because it is not completely the same like fiat because bitcoin is a kind of currency but more on asset or stock so it means that it is available in the market and people can play with it. Another reason i think bitcoin change more often because of its limited supply which affects the market price a lot.

the point are noone would know the bitcoin price movement as bitcoin are decentralized not like any other currency around the would that actually regulated by banks and it's just make them centralized also have stable price. while the whole bitcoin available supply are owned by a lot of people from different places and it makes bitcoin unpredictable to move up or down, the sure thing are bitcoin has a very high volatile due it's decentralized system.

As I often repeat, there is no abstract fiat in the real world

Fiat has always a certain name, for example, US dollar, Chinese yuan, Swedish krona. While I certainly concur that Bitcoin is largely a financial asset (though it is certainly not stock since there are no dividends), to claim that it is not fiat just because it is too volatile would be outright far-stretched. It is indeed overly volatile in comparison with major currencies such as the US dollar or Swiss franc (the beacon of stability, just in case) but with other purely local currencies it is quite on par in this regard (if we just look at the absolute volatility). Many genuinely local currencies are in fact as volatile as Bitcoin, though they tend to depreciate over time while Bitcoin as we can see mostly appreciates

The price of bitcoin changes so much for many reasons, for example bitcoin is still a new currency so it is still in a growing state, bitcoin is also a new technology never seen before, and third bitcoin adoption is still very low so as more people adopt it the price will change fast.

I disagree, the other regular currencies are constantly being printed which makes them always there unlike bitcoin which a very limited thing and eventually it is going to go away, the other currencies are centralized meaning they are located in a certain area which makes the government of the country that owns it control, but that is not the case with bitcoin and that is why the price is always changing.

fiat price changes depending on the state of the country itself and governments that control their prices in accordance with the country situation but because bitcoin is decentral where only prices of bitcoin are determined by supply and demand, so changes to everything that happens in the country that will have an impact on lowering or rising value fiat not will affect bitcoin

I agree with that, bitcoin adoption is still very low. and also there are some people who have bitcoin in big amounts, they can easily affect the price of bitcoin to take profit. as more and more people are using it, then I believe bitcoin prices will be more stable.

i think its make sense that this is the reason for bitcoin price is change in every time because bitcoin price itself is depend with supply and demand and for the people that have bitcoin in big amount, they can give affect too for bitcoin market but this is not always true, i am sure that the people in the market will not allow this is happen, they will make preventing to make sure that bitcoin price is on its way.

People play/trade with Fiat Currency too (Forex Exchange) they are also active movers like stock and or any other commodities that can be traded. One main reason that Bitcoin change more often than any Fiat currency is that it is controlled by many people who hoard it, they can decide whether to hold or perform a massive shorting which results into a more volatile currency. There is no government involve but people who have lots of money who can buy and sell a lot anytime.

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.

Because bitcoin controlled by free market and people who invest money in to this system. Investors are people who bough this currency and make it cost more with that operation. Traditional currensies controled by goverments and try to stabalize the price of that currency, they are not intrested to risk on that because it can make really bad influence for there people, that's why our currencies always more stabalized by goverment

Well beside the obvious fact of government control over currency, there's also the fact that Bitcoin's supply and demand can vary drastically.  Countries all have their own local currency which is seldom used anywhere else and therefore the value of the currency (usually) stays about the same because the use of it is the same - all of the people in the country.  Bitcoin, on the other hand, could freely be used by anyone in the world, in any amount for any time.

There's also the fact that Bitcoin is too small to be accepted by major retailers and online shops so most people see it less as a currency and more as an investment, and when there's no actual company running it or any physical assets backing it up (e.g. gold) it results in the value fluctuating, sometimes wildly.

But this isn't an inherent problem of Bitcoin, it's a current problem of Bitcoin and it will be fixed once Bitcoin has found its appropriate place in society.

Fiat currencies are not immune to volatility either - the difference is that Bitcoin's value broadly goes up over time, whereas fiat currencies usually go down over time, especially with those that hyperinflate - and this is a huge part of what makes Bitcoin great.

The availability of bitcoin is limited to 21 million while traditional currencies can be printed at will.
Also a large portion of bitcoin is in cold storage and some is lost for ever.This creates huge gap between demand and supply.

Traditional currencies has a large amount of number in circulations and it will reach about trillions in counting. Aside from that local currencies is only limited to their country as it can never be accepted on the other country. Bitcoin on the other hand is only 21 million in circulation and is serving all countries all over the world and that means that bitcoin has more demand and with the limited supply its value will surely increase a lot compared to traditional currencies.

Bitcoin price is very volatile is because of the news and updates that can affect a lot the price. I also think why bitcoin price change a lot is because of its being limited and the demand of the people around the world, if an asset has a limited supply with a lot of demand then it can surely change more than traditional currencies which have a unlimited supply.

Bitcoin is unique currency I've ever know so bitcoin value also move in unique in different way and time.
Nobody can expect the value of bitcoin exactly but as long as you keep holding bitcoin , I'm sure bitcoin will keep exist and the value keep increase exponentially for time to time

This is not always the case

In fact, many governments do quite the contrary, i.e. intentionally devalue their national currencies. Artificially keeping the exchange rate at certain levels can be expensive and ultimately counterproductive, especially if the local economy is not quite on par with the economy of a country against which currency the government is pegging a local currency. For example, Saudi Arabia has pegged its currency to the US dollar but it may cost them dear, and more so if oil prices continue to remain where they are now or even go lower

I don't think it fluctuates more than some fiat currencies because this volatility has been there from day one just like my local fiat which has such high fluctuations too. This has been on going for the past 8 months after the halving. The reason behind bitcoins volatility has to do with people's growing interest and the panic sellers. Those two seem to be occurring every now and then so it keeps taking all of us for a roller coaster ride.

This is also a factor while there are people with a lot of fiat, the whales have so much bitcoin in terms of percentage that they have an enormous influence on the price, also since no country prints bitcoin then there is no entity trying to stabilize the price of bitcoin.

But panic selling would bring the price down, isn't it ?
I mean the more orders getting filled at cheaper price would mean less orders at a higher price and hence a low overall price of bitcoins.

Growing community hasn't played all that big part in the rise and change of price because you see the price almost doubled up and the community hasn't even grown 25% in this much time as compared to original community. Maybe there are some big investors in bitcoins that have caused such a rise ?

You are quite right said. Such manipulation of the bitcoin courses are held group of users who have a large number of bitcoin and they especially do bitcoin price fluctuations on the market, then to be able to earn on the difference in price.

Yes, more and more people are starting with bitcoins and those who are already using bitcoins would quit it that is one of the main reasons behind the growing and the change in price is mainly occurring because there are people who sell and buy bitcoins all the time resulting in a fluctuation of price every second.

I would correct you a bit, though I agree on the later part, bitcoins is not a currency rather its an asset that is so popular that we tend to believe that its a currency.

And being the ability of bitcoins like transparency and ease of use there are most of the stores that are looking forward to accept it, though I think big stores like amazon would never accept bitcoins because then government would ban such companies in their country.

The reasons are quite many in which in that same vein appeals differently to people in my own case I think its largely due to the fact that its limited in supply compared to the population going after it. For example it becoming increasingly difficult to mine just one bitcoin compared to the total amount of people in the world trying to get one. That is enough reason for it to increase at a rate more 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.

They have certain principles are assign in tha traditional currencies. It is based on our country sensex. But Bitcoin not a government control. It like varies only in the supply and demand of the Bitcoin. Bitcoin are increasing gradually and continuously.

i do not think that there can such a big fluctuation in any fiat currency, i think the reason for such a big fluctuation can only be because of the adoption of bitcoin by the people. the number of bitcoin users are increasing which is causing the increasing demand and so the price of bitcoin also increase too much.

lol i don't think so , things causing the bitcoin price keep moving in volatile are due the bitcoin growth itself , when there is an issue makes some bitcoin holder in fear and then that time the potential bitcoin price to get dropped are high . and so on when there is an issue could make the demand increased the price bounce back and there's no pattern to know the market charts movement.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

This is a highly theoretical conclusion which can only be tested in reality

Apart from that, this point can be challenged on the premise that Bitcoin will never get to a point of "merchants being relevant to accepting it". Since adoption of Bitcoin necessarily leads to its higher price (simply because the supply is limited) while with higher prices volatility is set to accelerate as well, there is less and less incentive for merchants to start accepting Bitcoin as a means of payment. I don't know if there is a way out of this vicious circle of sorts

Two reasons. Firstly low volumes. Imagine a thought experiment where there were two bitcoin transaction per day. If the counterparties to the morning trade settle at $900, and the afternoon counterparties settle at $918, you've got a 2% shift. If those trades were two amongst millions, they wouldn't move the needle.

Secondly, the bitcoin price isn't linked to any fundamentals or utility. It's purely priced on sentiment. So if say a news article engenders positive sentiment, people are attracted to buy based on the article, or attracted to buy on the prospect that others will be too. So there is a snowball effect.

The two combine, so if there is a positive trend, it's exaggerated by the lack of liquidity. So for example, if sentiment is negative, you're struggling to find buyers at FMV, so are forced to chase the price down.

I have see this especially this week bitcoin price is fluctuating to the extent that I cannot imagine what is happening. Just imagine price deep from $1,300 to 997 back to $1,110 and now $905 and it keeps on deeping. Traditional currency don't take that kind fluctuations USD cannot fluctuate like that only crypto currencies which is at it infant stages can behave like that.

Obviously, you shouldn't equal "traditional currency" with the US dollar

The US dollar is nowhere near being a traditional currency. And not so much because it is a de facto global currency as because of its nature as a "hard currency" of sorts (among which there are also the Swiss franc and the Euro, to a degree). Traditional currencies are as volatile as hell too unless their exchange rates are firmly bound to a hard currency (like, for example, the Saudi Arabian rial is pegged to the US dollar). But their volatility is more often than not severely skewed toward depreciation over time while Bitcoin, on the contrary, is set to appreciate in the long run

Probably those that sold are those that are new to bitcoin and are new to this kind of instability since this is not that common in other markets but in bitcoin is something you will need to get used to it if you want to thrive.

It is not like that when the FUD of Hardfork released in the market who ever are the old traders have sold the bitcoins on high price as they know that surely this FUD will give them 10 to 20% short sell in market and same happened and who ever sold the bitcoin in 12xx to 1150 price range they bought back at $1000 range. This is what we call as trading on FUD. but some of them sold it but did not bought in greedy of hope that they will get in more low and cannot say what happened to their position.

Why does Bitcoin continue to increase? Because of the growing volume of Bitcoin transactions each day, then the limited number of Bitcoin supplies and the decreasing number of Bitcoins printed by the system. This keeps the bitcoin value up.

I think it is because the traditional currencies is controlled by the bank while the bitcoin is decentralized ,
So the price of bitcoin really depends on the demands.

I think I agree with that because I also experience that once I research it in my PC and I think that's probably natural to bitcoin and I just wonder why it is happening then a thing pop-up to me says that maybe because of other currency that are now growing.

For me the reason why bitcoin value is fluctuating compared to the traditional currency is that bitcoin is virtual currency and a decentralized system so there is no central control to regulate the volatility value and second thing is that world demand of bitcoin affects its price mainly.

So because Internet currencies and cryptocurrencies are not controlled by anyone or anything, these currencies course will always change so these currencies are arranged. As for about euro, dollars and other official currencies, they dont change so dramatically because as you said any government controls its currencies.

Anyhow we know that bitcoin is a digital currency that have a characteristics which's much different from the traditional currency or regular currency that's still controlled by the government / bank system as well as more stable and not easily changes which's easily influenced by various things.
Bitcoin, Altcoins., it's really proven their prices changed more naturally till now, and obviously because no one to controlling it, it can be influenced by many different factors such as buying,selling that we do in general and being more easily changed.

The price of bitcoins has increased every year due to increased number of the user's of bitcoins which is one of the main reason for the high demand for bitcoins which leads to the rise in price of bitcoins than traditional currencies all bitcoins and other crypto currencies are always backed by traditional currencies as there is no physical existence of the digital currencies and the digital currency is transacted through online networks using internet world wide.

In my own opinion it is because of how no one can controls it other than the current currencies we are using. Bitcoin is the first "decentralize" cryptocurrency which means no one is controlling it like what I said and its market value is increasing because of the increasing popularity due to its high security.

Bitcoin's price is very volatile and is really uncontrollable because it is decentralized which means no one can actually regulate its price and it is directly correlated to current demand. Since it's also not limited to one country, its demand is very2 high.

Traditional currencies like USD,Gold, Euro are operating from many years some are in operation since centuries. They are settles in wrld economy.However cryptocurrencies like bitcloins, altcoins are the recent inventions. They are still young in nature. It will take time for them to settle and mature. All traditional currencies are centralised in nature, their flow of supply is controlled or regulated by its users. On the other hand bitcoin is a decentralised currency operating on peer to peer exchange system. There is no regulating authority controlling bitcoin. Bitcoin`s supply is restricted in numbers at the time of its creation. It has more volatility than other currencies, which pushes its price from time to time.

I think it is due to the market being very new, and a lot of people are here to make a profit, especially big whales. So they fluctuate the price by buying large amounts which increases the price, and then sell it, thus bringing the price down.

For me, what makes Bitcoin's price change more than traditional currencies is due to it's limited or fixed supply and increasing of enthusiasts and investors. It could possibly be a factor wherein Bitcoin is decentralized. I think high volatility of a traditional currency is not that good for every economy as loss might happen in just a matter of seconds on any businesses. Local fiat currencies are I think made just to be a stable currency by governments who has a full control to avoid any conflict regarding a sudden rise or fall because it might cause bankruptcy and will make a country's economy to something like "crash".

Bitcoin is volatile its because it is decentralized and it's value depends on the supply and demand, and bitcoin have fixed amount of supply. Also, no one controlled bitcoin.

Our traditional currency is a centralized one which banks and government have a  control on it, also it depends on gold deposits on your country but in cryptocurrency its not, its price changes and value changes because of inflation made by investors and people who are using bitcoin this tends to change in price upwards, there is scarcity on supply and does not meet the demand of people more probably price will increase.