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Author Topic: What keeps Bitcoin price stable?  (Read 4232 times)
rajasumi3
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May 10, 2017, 05:09:06 AM
 #101

One of the most important factor for keeping the price of bitcoins stable is that when the selling and buying of bitcoins in the international market is just the same,otherwise you might have seen that the price of bitcoins going high,it means that the people are buying a lot of bitcoins rather than selling their bitcoins.
Zicadis
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May 10, 2017, 05:59:50 AM
 #102

Price rising =  rumours + good news
Price going down =  bad news + panic selling + whales cashing out

But what factors keep Bitcoin price stable?
You are actually very correct ,afaik price stabilization is as a result of an active buying and selling process influenced by supply and demand and the only explanation to why price is stable is when rumours + good news and bad news + panic selling + whales cashing out are happening at the same time to allow that equilibrium to exist.
To be honest sometimes BItcoin defouls everything we thought we knew its like it has a mind of its own.
Jherek
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May 10, 2017, 07:09:39 AM
 #103

Price rising =  rumours + good news
Price going down =  bad news + panic selling + whales cashing out

But what factors keep Bitcoin price stable?

The main factor is having a large user base right now and also having people actually trusting in the value of bitocin instead of dumping it because the price seems to be out of control or pumping it because it is too low.

Honestly I'd rather see $1,000 bitcoin on a daily basis instead of seeing bitcoin as it is right now, probably in a bubble situation and maybe it's going to go to $2,000. But it's unlikely that it won't become a big dump afterwards.

It is becoming increasingly difficult to perform day to day functions with bitcoin. With the volatile prices, high tx fees and all that stuff.
magneto
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May 10, 2017, 07:28:54 AM
 #104

Price rising =  rumours + good news
Price going down =  bad news + panic selling + whales cashing out

But what factors keep Bitcoin price stable?

Well, if there is a balance of sellers and buyers.

I think that healthy economic activity and a low level of speculation is what makes bitcoin prices stable. For example if a merchant can start accepting bitcoin as it is right now instead of using a Bitpay API and converting that bitcoin instantly into USD as soon as he receive it, then bitcoin is definitely going to be more stable. We have users doing that but we need big corporates doing that as well.
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