Why has the price of Bitcoin become stable recently?

[davidpbrown]

So we seem to have had a month of relatively stable price in BTC, obviously BTC value is growing slowly and in line with the long term trend and perhaps there is a compound and exponential ahead of us but what changed from the previous six weeks instability? Obviously, a few dash for cash investors got burned but that's not repeated in the way that it could have done.

Are there now fewer miners, more deliberate with setting a price they know will sell or some great attractor to stability? Do miners or buyers have more control over the market now or does no-one really know wtf is going on? I noticed a lot of fractional buying a selling on MtGox when they were talking of DDos; would those fractions be just miners selling and there is less of that now the difficulty has risen?

[wachtwoord]

So we seem to have had a month of relatively stable price in BTC, obviously BTC value is growing slowly and in line with the long term trend and perhaps there is a compound and exponential ahead of us but what changed from the previous six weeks instability? Obviously, a few dash for cash investors got burned but that's not repeated in the way that it could have done.

Are there now fewer miners, more deliberate with setting a price they know will sell or some great attractor to stability? Do miners or buyers have more control over the market now or does no-one really know wtf is going on? I noticed a lot of fractional buying a selling on MtGox when they were talking of DDos; would those fractions be just miners selling and there is less of that now the difficulty has risen?

Go through the history. There are many long stretches of price stability. Take a seat and relax

[ThatDGuy]

So we seem to have had a month of relatively stable price in BTC, obviously BTC value is growing slowly and in line with the long term trend and perhaps there is a compound and exponential ahead of us but what changed from the previous six weeks instability? Obviously, a few dash for cash investors got burned but that's not repeated in the way that it could have done.

Are there now fewer miners, more deliberate with setting a price they know will sell or some great attractor to stability? Do miners or buyers have more control over the market now or does no-one really know wtf is going on? I noticed a lot of fractional buying a selling on MtGox when they were talking of DDos; would those fractions be just miners selling and there is less of that now the difficulty has risen?

Go through the history. There are many long stretches of price stability. Take a seat and relax

Interestingly enough, OP registered in 11/2010!

As for the stability, I think it's remarkable that BTC has shown so much of it considering the events that have happened during the month of May.

[davidpbrown]

Yes, I remember when they were handing out four digit user numbers :0

[wopwop]

The only thing that changed in the last month is that there is currently $9.000.000 per month of electricity wasted to keep bitcoin healthy as opposed to $6.000.000 per month 4 weeks ago

miners are going to start taking profits soon enough.. and some have been doing in the past few days as we've seen

goodluck to you if you hold bitcoins trying to make a profit

source: http://blockchain.info/stats

[glendall]

2 cents from the peanut gallery:  the bubble of about 2 months ago now completed it's cycle. It came and left. What we have now is Bitcoin returning to it's performance before the bubble happened, with a return to the stability as well. Bitcoin should be about 120 - 130 right now if you follow the trend line that has being going on for over a year.

Bubble grew, then blew up, things are back to BTC normal.

[wopwop]

2 cents from the peanut gallery:  the bubble of about 2 months ago now completed it's cycle. It came and left. What we have now is Bitcoin returning to it's performance before the bubble happened, with a return to the stability as well. Bitcoin should be about 120 - 130 right now if you follow the trend line that has being going on for over a year.

Bubble grew, then blew up, things are back to BTC normal.

15yo has spoken

[glendall]

^^^ wow thanks man. That was a really impressive contribution to this discussion. You seem really mature; are you 16?

[counter]

I think all the media exposure a positive news in the past month has really made an impression on bitcoiners.  A lot of faith has been restored since the crash with talk of building an infrastructure, new exchanges and seeing more users flock too existing exchanges and not only Mtgox.

As for the miners, I don't t know what they got planned but I suspect it will be along the lines of taking profits and maintaing the security of their investments and future profits.

[bitcoinbear]

So we seem to have had a month of relatively stable price in BTC, obviously BTC value is growing slowly and in line with the long term trend and perhaps there is a compound and exponential ahead of us but what changed from the previous six weeks instability? Obviously, a few dash for cash investors got burned but that's not repeated in the way that it could have done.

Are there now fewer miners, more deliberate with setting a price they know will sell or some great attractor to stability? Do miners or buyers have more control over the market now or does no-one really know wtf is going on? I noticed a lot of fractional buying a selling on MtGox when they were talking of DDos; would those fractions be just miners selling and there is less of that now the difficulty has risen?

Starting in January/February the bitcoin market went through a correction. Now the market has reached a point where it is comfortable. The price will stay about where it is now until something happens to change the equilibrium of the market.

Miners get 3600 bitcoins per day. Adding the top 10 markets from bitcoincharts.com gives a 24 h volume of about 50300 btc, or about 14 times the number of bitcoins mined. So clearly the traders have a much bigger control than the miners. (and I didn't even count the amount over OTC, which I have seen around the forum claimed is larger than MtGox.)

[ElectricMucus]

Stable.

[Frozenlock]

2 cents from the peanut gallery:  the bubble of about 2 months ago now completed it's cycle. It came and left. What we have now is Bitcoin returning to it's performance before the bubble happened, with a return to the stability as well. Bitcoin should be about 120 - 130 right now if you follow the trend line that has being going on for over a year.

Bubble grew, then blew up, things are back to BTC normal.

You miss one step: despair.

[granolageek]

You miss one step: despair.

It's too early in Bitcoin's life cycle to really despair, as long as you're only playing with money you can afford to lose. A few have already seen three zeros of appreciation. If this thing flies, there's three to six more zeroes in it. If it doesn't, pick up some alpaca socks on the way down. They rock when it's 20 below (C or F irrelevant)

[CurbsideProphet]

The only thing that changed in the last month is that there is currently $9.000.000 per month of electricity wasted to keep bitcoin healthy as opposed to $6.000.000 per month 4 weeks ago

miners are going to start taking profits soon enough.. and some have been doing in the past few days as we've seen

goodluck to you if you hold bitcoins trying to make a profit

source: http://blockchain.info/stats

Holy bipolar posts Batman!

if bitcoin fails i'll consider killing myself

i believe this is our salvation, btc must succeed

Consider killing myself seeing as I'm invested BIG in this

[BitcoinAshley]

The only thing that changed in the last month is that there is currently $9.000.000 per month of electricity wasted to keep bitcoin healthy as opposed to $6.000.000 per month 4 weeks ago

miners are going to start taking profits soon enough.. and some have been doing in the past few days as we've seen

goodluck to you if you hold bitcoins trying to make a profit

source: http://blockchain.info/stats

Holy bipolar posts Batman!

if bitcoin fails i'll consider killing myself

i believe this is our salvation, btc must succeed

Consider killing myself seeing as I'm invested BIG in this

wopwop revealed?
maybe I shouldn't pick on him so much
 

[notme]

The only thing that changed in the last month is that there is currently $9.000.000 per month of electricity wasted to keep bitcoin healthy as opposed to $6.000.000 per month 4 weeks ago

miners are going to start taking profits soon enough.. and some have been doing in the past few days as we've seen

goodluck to you if you hold bitcoins trying to make a profit

source: http://blockchain.info/stats

From your source:

Electricity consumption is estimated based on power consumption of 650 Watts per gigahash and electricity price of 15 cent per kilowatt hour. In reality some miners will be more or less efficient.

I just started up 3 GH today @ under 30 watts with $0.09/kwh electricity costs.

I'd say the estimate is way off.  It was decent when GPUs were king, but that has been several years now.

[SZD]

I think it has a lot to do with the trade bots buying every little price drop automatically.

[SGExodus]

Personally, I think the bitcoin price is still a little on the high side.

I don't think it has reached a stable equilibrium state in term of supply (3600 coins per day) and demand.   Moving forward, I think the market will face sell pressure from the miners.   

The media hype attracted many curious people to buy a few bitcoins to see what the buzz is all about.    But I don't think these demand can sustain for the next 3.5 years.

[davidpbrown]

Personally, I think the bitcoin price is still a little on the high side.

I don't think it has reached a stable equilibrium state in term of supply (3600 coins per day) and demand.   Moving forward, I think the market will face sell pressure from the miners.   

The media hype attracted many curious people to buy a few bitcoins to see what the buzz is all about.    But I don't think these demand can sustain for the next 3.5 years.

lol.. that only reminds me of, who was it suggesting that ~32kb was enough memory for any computer.. Bill Gates?

[naphto]

The only thing that changed in the last month is that there is currently $9.000.000 per month of electricity wasted to keep bitcoin healthy as opposed to $6.000.000 per month 4 weeks ago

miners are going to start taking profits soon enough.. and some have been doing in the past few days as we've seen

goodluck to you if you hold bitcoins trying to make a profit

source: http://blockchain.info/stats

Lol