Why the price of Bitcoin change more than traditional currencies?

[bit1]

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

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.

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[dumada]

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

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

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

[whizter]

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.

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.

[BitcoinFutureCoin]

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.

[Xenoblate]

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.

[lesfrigosa]

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

[icecube45]

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.

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.

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.

[digaran]

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.

[webtricks]

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.

[royalfestus]

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.

[Sled]

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.

[poplolnman]

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.

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.

[deisik]

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

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

[South Park]

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.

[Kevin77]

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.

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.

[ufaiz50]

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?

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

[agamasrori]

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 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.

[ethereumhunter]

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 agree with that, bitcoin adoption is still very low. and also there are some people who have bitcoin in high 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.

[Harlot]

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.

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.

[Dimelord]

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.