Does the Value of bitcoin depend on economic dynamics?

[Attisob]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others.

On this basis what can we allude to be the cause of the recent decline in value of bitcoin?

This is because, the United States, China, Europe etc experienced mild growth in the 2018 fiscal year as such one would have expected an improvement in the value of bitcoin just as the value of those other countries have either stabilized or improved.

[Bountyhonter]

Bitcoin's value is determined by its supply and demand, which makes it easy for whales (people with large supply) to manipulate it's price

[Jackolantern]

Dynamics of btc depends on the demand which is growing on the regular basis. To my mind, it is possible even due to the fact that more and more people are looking for ways to get btc

[KingScorpio]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others.

On this basis what can we allude to be the cause of the recent decline in value of bitcoin?

This is because, the United States, China, Europe etc experienced mild growth in the 2018 fiscal year as such one would have expected an improvement in the value of bitcoin just as the value of those other countries have either stabilized or improved.

nope it depends mostly on the social support comming from the market

[CryptoBry]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others. On this basis what can we allude to be the cause of the recent decline in value of bitcoin? This is because, the United States, China, Europe etc experienced mild growth in the 2018 fiscal year as such one would have expected an improvement in the value of bitcoin just as the value of those other countries have either stabilized or improved.

I am sure that the price or value of Bitcoin is not dependent on the economic dynamics and developments affecting the global economy. This is just purely demand and supply thing and the main evidence of this was the bull run that happened last year which was fueled by blind speculations. Oh, how I wish to get back to that time last year and cashed out my little Bitcoin hoard...this would have make my December more smiling financially. This is also the reason why I see no big reason for any bull run in the coming next months and even if ETF can be approved it can still be short-lived. The bull run can only happen if there will be massive use of Bitcoin by more and more people but this scenario is not coming in the short-term.

[figmentofmyass]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others.

On this basis what can we allude to be the cause of the recent decline in value of bitcoin?

like you suggested, confidence in national fiat currencies is tied to economic factors and government meddling or instability. bitcoin is different. most of its market valuation is based in speculation on future adoption and utility IMO. while there is arguably value in bitcoin's mining (insofar as security) and utility insofar as the network size, it's still over-priced based on current usage alone. 

the recent decline doesn't have to do with external factors as much as lack of demand. we had a crazy bubble last year and the market is still coming back down to reality, reverting to the mean. same thing happened in 2013-14.

[cindygirl]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others.

On this basis what can we allude to be the cause of the recent decline in value of bitcoin?

This is because, the United States, China, Europe etc experienced mild growth in the 2018 fiscal year as such one would have expected an improvement in the value of bitcoin just as the value of those other countries have either stabilized or improved.

If you consider where the demand for money comes from then you'll have your answer. For most currencies it is for transactional purposes. This is also true for bitcoin, unlike other currencies where it is influence by a single economy it can be influenced by all economies and several micro-economies also.

[Screamshot]

Well if you meant does the non cryptocurrency economy influence bitcoin well I would say it has little or no influence on bitcoin. Bitcoin is not under the control of any government

[ngocbkcse]

The value of bitcoin depends on the economic situation by indirection. Mostly it is regulated by supply and demand.

[biskitop]

I don't think so, because bitcoin doesn't go through a bank and bitcoin doesn't have an estimated value for real estate. so whatever happens in the world of economics, it doesn't affect Bitcoin. bitcoin is only controlled by the users themselves, the demands go up or down that is the most important thing in bitcoin for now. unless bitcoin already has an estimate and is also officially used for some real estate payments.

[Rkss4]

Obviously depends on economic dynamics. Bitcoin is a virtual online digital binary currency. It has a influence on total economic growth and rise of a country income, and economic conditions.

[dothebeats]

I'd like to add that aside from the traditional economic dynamics that affect currencies, since bitcoin is a highly speculated currency, it also depends on the current market conditions and on how people feel about bitcoin (or confidence, if you may). Seeing that bitcoin is seen and used more as an asset than a currency, it does not follow the path of traditional fiat currencies that depends their value on traditional economic activities that you've mentioned. Supply and demand plays a big role, yes, but market sentiment, IMO, was one of the major reasons why bitcoin's price declined and is staying where it is right now.

[coinwizard_]

Bitcoin is not free so it does depend on the dynamics of the economy. When the regular stocks and shares market is down the crypto currency prices also fall. we need to see recoveries in major economies before bitcoin rises

[yrrehc16]

We dont need to talk about the supply of bitcoin as we know it for a long time.
We can determine the price of bitcoin with the demand from the people on the market.
It will rise if there will be a more greedy buyer then panic seller.

[funchiestz]

Actually I believe in that. So yes it does depend. It does not seem like a coincidence that a big drop in the same period with the rise of the dollar. World preparing a new economic crisis. In this situation, everyone is getting ready for that. And FIAT seems more secure way to keeping money.

[tenakha]

There may be relevance but not directly. So when the economy is in a better status, it leads to an increase in money accumulation and a portion of these accumulations may be divided to Bitcoin.
But there is a huge difference between paper money and Bitcoin. Not managing of Bitcoin causes the change in price to be different than the others. Just demand and supply can influence price.

[kryptqnick]

Like every fiat currency today, bitcoin has assumed the position of a currency though typified as a crypto-currency. But in reality, it is obvious that the value of any country's currency depends to a large extent on her economic dynamics and activities (demand, supply, external reserve, level of production, etc.) . By that i mean, the strength of an economy determines the strength or purchasing power of her currency against those of others.

On this basis what can we allude to be the cause of the recent decline in value of bitcoin?

This is because, the United States, China, Europe etc experienced mild growth in the 2018 fiscal year as such one would have expected an improvement in the value of bitcoin just as the value of those other countries have either stabilized or improved.

Fiat depends a lot on the economics of a specific country or union, because its supply and value are under strict regulations. Basically, if local fiat devaluates fastly, it means that the country has problems. Cryptos don't belong to any countries and are their supply as well as value is not regulated. Thus, it doesn't depend on any economics. It probably will start depending if people tend to use it as money to pay for goods globally, but for now it's more of an underground economics.

[GoodAltcoin]

For now, no, I don't think so. If the planned implementation of BTC as a payment method happens, then it will definiately have an impact on BTC.

[canadian33]

At the moment, almost independent. Bitcoin most likely has its own dynamics, which depend on supply and demand on Bitcoin itself. Perhaps in the future the situation will change when Bitcoin integrates into the lives of ordinary people. It is very difficult to predict anything.