|
mastermold
|
 |
March 25, 2017, 05:22:25 AM |
|
Two reasons. Firstly low volumes. Imagine a thought experiment where there were two bitcoin transaction per day. If the counterparties to the morning trade settle at $900, and the afternoon counterparties settle at $918, you've got a 2% shift. If those trades were two amongst millions, they wouldn't move the needle.
Secondly, the bitcoin price isn't linked to any fundamentals or utility. It's purely priced on sentiment. So if say a news article engenders positive sentiment, people are attracted to buy based on the article, or attracted to buy on the prospect that others will be too. So there is a snowball effect.
The two combine, so if there is a positive trend, it's exaggerated by the lack of liquidity. So for example, if sentiment is negative, you're struggling to find buyers at FMV, so are forced to chase the price down.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
It is a common myth that Bitcoin is ruled by a majority of miners. This is not true. Bitcoin miners "vote" on the ordering of transactions, but that's all they do. They can't vote to change the network rules.
|
|
|
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
|
|
|
|
|
|
Idrisu
|
|
March 25, 2017, 06:16:03 AM |
|
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 have see this especially this week bitcoin price is fluctuating to the extent that I cannot imagine what is happening. Just imagine price deep from $1,300 to 997 back to $1,110 and now $905 and it keeps on deeping. Traditional currency don't take that kind fluctuations USD cannot fluctuate like that only crypto currencies which is at it infant stages can behave like that. |
|
|
|
|
deisik
Legendary
 Offline
Activity: 3444
Merit: 1280
English ⬄ Russian Translation Services
|
|
March 25, 2017, 11:41:45 AM |
|
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 have see this especially this week bitcoin price is fluctuating to the extent that I cannot imagine what is happening. Just imagine price deep from $1,300 to 997 back to $1,110 and now $905 and it keeps on deeping. Traditional currency don't take that kind fluctuations USD cannot fluctuate like that only crypto currencies which is at it infant stages can behave like that Obviously, you shouldn't equal "traditional currency" with the US dollar The US dollar is nowhere near being a traditional currency. And not so much because it is a de facto global currency as because of its nature as a "hard currency" of sorts (among which there are also the Swiss franc and the Euro, to a degree). Traditional currencies are as volatile as hell too unless their exchange rates are firmly bound to a hard currency (like, for example, the Saudi Arabian rial is pegged to the US dollar). But their volatility is more often than not severely skewed toward depreciation over time while Bitcoin, on the contrary, is set to appreciate in the long run |
|
|
|
|
The_Dark_Knight
|
|
April 05, 2017, 12:51:23 AM |
|
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
may be in some countries it is possible. but i think when we speak about bitcoin, the uses of bitcoin are increasing from time to time and therefore it is now becoming more difficult to manipulate the price of bitcoin. I thought the same but the recent decrease in price came mostly from FUD about the possible hard fork, which seems to be incorrect that alone is the reason of the price decrease so while bitcoin has become more resistant to some type of manipulation it seems it will always be vulnerable to FUD like that. Well if you believe in FUD then definitely you will be tempted to sell, the price has drop really hard and it seems like people are panicking so much that is why in a short period of time we have seen this price. I'm not selling actually, I don't care if it will continue to fall down, currently the price is over $1,000 which is good IMO and I hope we will a price increase again. Probably those that sold are those that are new to bitcoin and are new to this kind of instability since this is not that common in other markets but in bitcoin is something you will need to get used to it if you want to thrive. |
|
|
|
|
equator
Legendary
Offline
Activity: 1190
Merit: 1002
|
|
April 08, 2017, 03:12:52 PM |
|
Some countries control the exchange rate of their national currencies against the dollar, most don’t because it is impossible to fight against the markets, in the case of bitcoin the swings in price happen because the lower market cap and because speculators are in fact looking for those big swings so those swings get amplified by the market.
may be in some countries it is possible. but i think when we speak about bitcoin, the uses of bitcoin are increasing from time to time and therefore it is now becoming more difficult to manipulate the price of bitcoin. I thought the same but the recent decrease in price came mostly from FUD about the possible hard fork, which seems to be incorrect that alone is the reason of the price decrease so while bitcoin has become more resistant to some type of manipulation it seems it will always be vulnerable to FUD like that. Well if you believe in FUD then definitely you will be tempted to sell, the price has drop really hard and it seems like people are panicking so much that is why in a short period of time we have seen this price. I'm not selling actually, I don't care if it will continue to fall down, currently the price is over $1,000 which is good IMO and I hope we will a price increase again. Probably those that sold are those that are new to bitcoin and are new to this kind of instability since this is not that common in other markets but in bitcoin is something you will need to get used to it if you want to thrive. It is not like that when the FUD of Hardfork released in the market who ever are the old traders have sold the bitcoins on high price as they know that surely this FUD will give them 10 to 20% short sell in market and same happened and who ever sold the bitcoin in 12xx to 1150 price range they bought back at $1000 range. This is what we call as trading on FUD. but some of them sold it but did not bought in greedy of hope that they will get in more low and cannot say what happened to their position. |
|
|
|
|
MeongElek
Member
Offline
Activity: 418
Merit: 10
"simply getting the job done"
|
|
January 09, 2018, 08:51:13 AM |
|
Why does Bitcoin continue to increase? Because of the growing volume of Bitcoin transactions each day, then the limited number of Bitcoin supplies and the decreasing number of Bitcoins printed by the system. This keeps the bitcoin value up.
|
|
|
|
jahmes123
Member
Offline
Activity: 200
Merit: 11
|
|
January 09, 2018, 09:03:43 AM |
|
I think it is because the traditional currencies is controlled by the bank while the bitcoin is decentralized ,
So the price of bitcoin really depends on the demands.
|
|
|
|
|
heleng05
Member
Offline
Activity: 322
Merit: 10
|
|
January 09, 2018, 09:17:24 AM |
|
I think I agree with that because I also experience that once I research it in my PC and I think that's probably natural to bitcoin and I just wonder why it is happening then a thing pop-up to me says that maybe because of other currency that are now growing.
|
|
|
|
|
Allura74
|
|
January 09, 2018, 09:25:06 AM |
|
I think I agree with that because I also experience that once I research it in my PC and I think that's probably natural to bitcoin and I just wonder why it is happening then a thing pop-up to me says that maybe because of other currency that are now growing.
For me the reason why bitcoin value is fluctuating compared to the traditional currency is that bitcoin is virtual currency and a decentralized system so there is no central control to regulate the volatility value and second thing is that world demand of bitcoin affects its price mainly. |
|
|
|
trauchot
Member
Offline
Activity: 1764
Merit: 10
|
|
January 09, 2018, 09:38:18 AM |
|
So because Internet currencies and cryptocurrencies are not controlled by anyone or anything, these currencies course will always change so these currencies are arranged. As for about euro, dollars and other official currencies, they dont change so dramatically because as you said any government controls its currencies.
|
|
|
|
|
denny27
Full Member
Offline
Activity: 546
Merit: 101
★Bitvest.io★ Play Plinko or Invest!
|
|
January 09, 2018, 10:06:38 AM |
|
Anyhow we know that bitcoin is a digital currency that have a characteristics which's much different from the traditional currency or regular currency that's still controlled by the government / bank system as well as more stable and not easily changes which's easily influenced by various things.
Bitcoin, Altcoins., it's really proven their prices changed more naturally till now, and obviously because no one to controlling it, it can be influenced by many different factors such as buying,selling that we do in general and being more easily changed.
|
|
|
|
|
Stac
|
|
January 09, 2018, 10:13:59 AM |
|
The price of bitcoins has increased every year due to increased number of the user's of bitcoins which is one of the main reason for the high demand for bitcoins which leads to the rise in price of bitcoins than traditional currencies all bitcoins and other crypto currencies are always backed by traditional currencies as there is no physical existence of the digital currencies and the digital currency is transacted through online networks using internet world wide.
|
|
|
|
tophe15
Newbie
Offline
Activity: 280
Merit: 0
|
|
January 09, 2018, 10:44:23 AM |
|
In my own opinion it is because of how no one can controls it other than the current currencies we are using. Bitcoin is the first "decentralize" cryptocurrency which means no one is controlling it like what I said and its market value is increasing because of the increasing popularity due to its high security.
|
|
|
|
|
Chandler32
Jr. Member
Offline
Activity: 85
Merit: 1
|
|
January 09, 2018, 10:47:31 AM |
|
Bitcoin's price is very volatile and is really uncontrollable because it is decentralized which means no one can actually regulate its price and it is directly correlated to current demand. Since it's also not limited to one country, its demand is very2 high.
|
|
|
|
|
|
boyshx
|
|
January 09, 2018, 11:00:10 AM |
|
Traditional currencies like USD,Gold, Euro are operating from many years some are in operation since centuries. They are settles in wrld economy.However cryptocurrencies like bitcloins, altcoins are the recent inventions. They are still young in nature. It will take time for them to settle and mature. All traditional currencies are centralised in nature, their flow of supply is controlled or regulated by its users. On the other hand bitcoin is a decentralised currency operating on peer to peer exchange system. There is no regulating authority controlling bitcoin. Bitcoin`s supply is restricted in numbers at the time of its creation. It has more volatility than other currencies, which pushes its price from time to time.
|
|
|
|
|
shaun98
Member
Offline
Activity: 238
Merit: 10
|
|
January 09, 2018, 11:13:54 AM |
|
I think it is due to the market being very new, and a lot of people are here to make a profit, especially big whales. So they fluctuate the price by buying large amounts which increases the price, and then sell it, thus bringing the price down.
|
|
|
|
|
0t3p0t
|
|
January 09, 2018, 11:18:53 AM |
|
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?
For me, what makes Bitcoin's price change more than traditional currencies is due to it's limited or fixed supply and increasing of enthusiasts and investors. It could possibly be a factor wherein Bitcoin is decentralized. I think high volatility of a traditional currency is not that good for every economy as loss might happen in just a matter of seconds on any businesses. Local fiat currencies are I think made just to be a stable currency by governments who has a full control to avoid any conflict regarding a sudden rise or fall because it might cause bankruptcy and will make a country's economy to something like "crash". |
|
|
|
reck1ess
Member
Offline
Activity: 350
Merit: 30
|
|
January 10, 2018, 12:03:07 PM |
|
Bitcoin is volatile its because it is decentralized and it's value depends on the supply and demand, and bitcoin have fixed amount of supply. Also, no one controlled bitcoin.
|
|
|
|
|
Granslam
|
|
January 10, 2018, 12:28:52 PM |
|
Our traditional currency is a centralized one which banks and government have a control on it, also it depends on gold deposits on your country but in cryptocurrency its not, its price changes and value changes because of inflation made by investors and people who are using bitcoin this tends to change in price upwards, there is scarcity on supply and does not meet the demand of people more probably price will increase.
|
|
|
|
|
|
