wild fluctuation's in BTC price

[hjsbitcoin]

Hi all, newbie here, thought i'd put my 2 bitcents worth in!

everyone in the media whom keep having a dig at bitcoin's wild fluctuation's in its price, are failing to realise a few things...

firstly its a digital currency, so for a merchant to sell a product in btc, doesn't require too much extra programming to have the current btc value (as determined by say a btc exchange like mtgox) kept relative to how much the product is worth in a local currency. Ie the price would change up and down as bitcoins worth is determined by its current exchange rate. (this is obviously what most retailers are already doing)

secondly is it decentralized crypto-trust bitcoins that is going up wildly in value, or that our value in existing centralized 3rd party trustee currencies is dropping wildly in value?

thoughts?

[asciicat]

secondly is it decentralized crypto-trust bitcoins that is going up wildly in value, or that our value in existing centralized 3rd party trustee currencies is dropping wildly in value?

Hello!

I'm pretty sure it's that more buyers are driving the price of bitcoin up, not the dollar getting cheaper (though it is). There's really high volume being traded so I think there's people playing the market. It's had a few dives today and it always rebounds back with lots of small transactions and idk. Shit's weird.

[PachucoBro]

As a Business I would be crazy to sell anything that cost me USD for BitCoins. With BTC fluctuating so much I could sell something equal to $130-$140/BTC this afternoon and tonight realize I can only get $120 for my BTC.

Currently BTC fluctuates too much for any tangible products to be sold successfully.

[Rainmaker25]

I've seen a website selling computer for bit coins....not sure if that is crazy or not because of how volatile it is.

[igba]

obviously you kids haven't heard of bitmit

[PachucoBro]

obviously you kids haven't heard of bitmit

Humpf... Kids...

So anyway... as I said, if I was a business... now if I have extra stuff laying around the house I wanted to get rid of...

Yeah two different things.

[coinator]

I've seen a website selling computer for bit coins....not sure if that is crazy or not because of how volatile it is.

If they see the value in bitcoins and believe it will rise, it's not crazy if they are accepting bitcoins.
If the computer is worth $500 for example and they are selling it for 5BTC, they see that they can easily exchange it to cash if they want too without making a loss after fees. Or, if they chose to keep the 5BTC with them and wait for it to rise, they will make even more money by taking BTC as a payment.

[ijme1989]

As a Business I would be crazy to sell anything that cost me USD for BitCoins. With BTC fluctuating so much I could sell something equal to $130-$140/BTC this afternoon and tonight realize I can only get $120 for my BTC.

So maybe you then cash out the coins as soon as you receive them?

[PachucoBro]

Like I said... a business. There's no business that is going to have some employee dedicated to monitoring BtiCoin exchanges so that they can convert BTC asap.

It just isn't feasible for tangible/retail products at the moment with the huge swings and uncertainty of what a BTC is valued at.

[Allaun]

The way I see it, you could model your risk the same way ebay sellers do. Large transactions usually cover the smaller loses you occasionally get.

[PachucoBro]

Sure... you say that in light of the last 5 days the BTC has increased by 50%.

Come tell me all those business owners think it was a good idea to sell all their good the day the BTC DECREASES by 50%.

It's just not good business sense for most brick and mortar places that sell tangible goods that have USD costs tied to them. Not yet anyways... perhaps once the BTC settles down again like it was a year ago... then it may be an option.

[res]

Wild fluctuation of price is inevitable. Bitcoin ecosystem is still very small market compared to real currency, and they are drawing too much attention nowadays.

Check out Volkswagen's stock fluctuation between SEP 08 - NOV 08. (code - VOW:GR)

VW's market capital is 70B Euro today which is 63 times larger than bitcoin's market cap and one VW stock is slightly more expensive than 1.0 bitcoin.

Still they had a huge fluctuation between SEP 08 - NOV 08 when people started to trade 5~15 millions of VW shares for daily basis.

Bitcoin's daily trading volume is 150-350k which is larger than daily trading volume of VW, the 70B worth company.

[robble]

I weere a merchant there is no way I'd accept bitcoins.  Way too much chance of losing a lot of money.

[simplydt]

As a Business I would be crazy to sell anything that cost me USD for BitCoins. With BTC fluctuating so much I could sell something equal to $130-$140/BTC this afternoon and tonight realize I can only get $120 for my BTC.

Currently BTC fluctuates too much for any tangible products to be sold successfully.

That's the good case scanerio, a $10-$20 loss. It could easily fall back to $60 or less overnight, or of course, double in price overnight.

I too am watching the fluctuation carefully, hopefully it will stabilize soon but I doubt it, as someone said, there must be some holdings in the hundreds or thousands of bit coins that sell high and buy back low every single day, which will cause big candlesticks!

[PachucoBro]

As a Business I would be crazy to sell anything that cost me USD for BitCoins. With BTC fluctuating so much I could sell something equal to $130-$140/BTC this afternoon and tonight realize I can only get $120 for my BTC.

Currently BTC fluctuates too much for any tangible products to be sold successfully.

That's the good case scanerio, a $10-$20 loss. It could easily fall back to $60 or less overnight, or of course, double in price overnight.

I too am watching the fluctuation carefully, hopefully it will stabilize soon but I doubt it, as someone said, there must be some holdings in the hundreds or thousands of bit coins that sell high and buy back low every single day, which will cause big candlesticks!

Oh yeah I see that happen all the time on MtGOX. Someone decides to dump their 1,000 BitCoins at Market price and using http://bitcoin.clarkmoody.com/ all I hear is bong, bong , bong, bong... and that candlestick just falls and falls with each bong.

But sure enough that is the time to buy because it will bounce right back because of the demand at the moment.

I am trading all day long except when I sleep and am aiming for the small 3-5% moves and just make alot of trades. Even with commissions I can make almost 100% on my money over 30 days making only 2.2% on each trade.

[nobbynobbynoob]

I weere a merchant there is no way I'd accept bitcoins.  Way too much chance of losing a lot of money.

BitPay exists for those like you who don't want to carry the exchange risk (despite the historic evidence displaying that most of the time, though definitely not all of the time, exchange risk has heavily favoured holders of bitcoin vis-à-vis holders of fiat; bitcoin has even outperformed PMs!).

[CasinoBit]

Most headlines say "The Bitcoin Bubble Is Here" to announce that the widespread adoption of the cryptocurrency has reached a certain region as if the fluctuations in its price are because of fundamentals of the currency rather than the nature of people (specifically supply-demand)