Why the price of Bitcoin change more than traditional currencies?

[Woshib]

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?

[culuuton]

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.

[mindrust]

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.

[fenican]

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.

[Lauda]

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

In any case, Bitcoin price cannot stay stable for long.

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).

That's why it is being manipulated easily. Simply there isn't enough volume in the market to resist whales with big wallets.

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

While a few people use it to conduct transactions for goods and services, the majority buy it for speculative price appreciation. .

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

[alyssa85]

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.

[thejaytiesto]

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.

[serjent05]

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. 

[BTCLovingDude]

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?

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.

[Anon_7716]

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?

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

[serjent05]

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.

[bitlancr]

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?

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.

[avikz]

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.

[7788bitcoin]

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.

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.

[Elwar]

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.

[X-ray]

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?

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.

[CoinFoxs]

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.

[irfan_pak10]

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.

[serjent05]

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.

[~Bitcoin~]

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.