Where are all the bitcoins?

[wachtwoord]

So 2% of the complete currency is being traded on forex exchanges daily. Isn't that more than with fiat currencies?

Forex volumes are very high. How high as a percentage of money supply depends on how you count.

http://goldseek.com/news/2009/1-12mh/11.png

If you compare money in circulation to day forex volume, you get a ratio somewhere in the region of 1:1. I'm sure that's quite inaccurate, but 2% traded daily doesn't appear to be all that much.

Of course, you might as whether the forex market with its HFT bots and complexities is really very sane to begin with.

Haha, well even more fun then because I don't know how these figures make sense. Can it be that only 0.5% is traded but it's traded back and forward 200 times a day or something? Because to me that would be 0.5% of the circulation but volume would by 100%.

100% is not possible for Euros at least because I am holding some in my hand right now (and guessing more people are)

[rebuilder]

Wachtwoord:  Back and forth, of course. Just like with bitcoin.

[wachtwoord]

Then that is likely the answer to your initial question.

Q: Where are all the Bitcoins?
A: Volume does not imply the portion of all Bitcoins being traded. Instead is highly like the frequency of trade on individual Bitcoins (or portions of Bitcoins) is lower due to the lower amount of professional Forex traders.

[shkiser]

Is it true that those holding bitcoins are actually driving the price down, and those spending, and making several transactions a day are actually moving the price up?

[xxjs]

Is it true that those holding bitcoins are actually driving the price down, and those spending, and making several transactions a day are actually moving the price up?

No no. Volume of trading does not tell anything about price. Low volume only says that the actors are content with their current holding levels (of bitcoins, of fiat and of different warez). When peoples valuations change, we will have trades.

Anyway, new users hearing about bitcoins and wanting to have some, is an example of change of valuations.

[timeshareafrica]

I think few people are just waiting until they are able to buy a house and cars with BTC , I am not going to change my BTC back into FIAT, WHY?
It is like changing your Mp3 player into a old record player.
I am waisting my fiat now and once it is gone I am starting to use BTC

[zoinky]

I think few people are just waiting until they are able to buy a house and cars with BTC , I am not going to change my BTC back into FIAT, WHY?
It is like changing your Mp3 player into a old record player.
I am waisting my fiat now and once it is gone I am starting to use BTC

The sound of an audiophile-grade record player will always trump a MP3 player (least go for a lossless player).

[timeshareafrica]

[/quote]

The sound of an audiophile-grade record player will always trump a MP3 player (least go for a lossless player).
[/quote]

I agree, I just have difficulties to pack 40 Megabyte of records in my backpack.

[Elwar]

When I was doing the estimating it was 6% traded on Gox about a year ago.

This is the reason that the price can move so quickly one way or the other. This "small" volume compared to all Bitcoins determines the dollar value.

You do not need to invest $1 per actual Bitcoin for the value to go up $1 in price.

[timeshareafrica]

When I was doing the estimating it was 6% traded on Gox about a year ago.

This is the reason that the price can move so quickly one way or the other. This "small" volume compared to all Bitcoins determines the dollar value.

You do not need to invest $1 per actual Bitcoin for the value to go up $1 in price.

But this small volume will not be for long.