why has the market flux so high and low in the past week?

[aznmonky]

title says it all, i am trying to understand yet the answers are so variable and some contradict. i want a answer or collective answer that i can draw a picture to . thanks

[Peter Lambert]

title says it all, i am trying to understand yet the answers are so variable and some contradict. i want a answer or collective answer that i can draw a picture to . thanks

Recently there seems to have been an influx of new users into the bitcoin ecosystem. The general consensus is that as the number of users goes up, the price should go up (because more people are holding the same number of coins, and also the coins are more useful because there are more people to trade with). The problem is nobody knows how many new people are joining, how much capital/expertise they bring with them, or how much they will affect the overall price. So the price will continue to be volatile and jump up and down as the market tries to find an optimum level.

tl;dr New voluntary currency in price discovery phase.

[Walter Rothbard]

title says it all, i am trying to understand yet the answers are so variable and some contradict. i want a answer or collective answer that i can draw a picture to . thanks

Recently there seems to have been an influx of new users into the bitcoin ecosystem. The general consensus is that as the number of users goes up, the price should go up (because more people are holding the same number of coins, and also the coins are more useful because there are more people to trade with). The problem is nobody knows how many new people are joining, how much capital/expertise they bring with them, or how much they will affect the overall price. So the price will continue to be volatile and jump up and down as the market tries to find an optimum level.

tl;dr New voluntary currency in price discovery phase.

Excellent post.

[Bitc0in_diGGer]

I was wondering the same thing.  Avalon rolled out their first phase of new machines.  BFL has yet to release their new machines.  The new influx of bitcoin users and miners must be it.  New people purchasing bitcoin and trading.  The new machines must be changing the difficulty and hash rate standards.  Only time will tell the truth as the market goes through it's transition.

[aznmonky]

thank you it helps me understand more

[Giddeon]

I would like to see if this stays constant and build upon it's growth or pops like a bubble. With the advent of ASICS, I'm not sure if it will make any difference or not. 

[move_zig]

I think the news about Reddit and Mega accepting bitcoin is one reason. The more merchants that accept bitcoin, the more people will want to buy bitcoins.