Ninjastic
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Board Economics
Re: Why the price of Bitcoin change more than traditional currencies?
by
Schuyler
on 08/08/2016, 09:27:23 UTC
Quote from: Xenoblate on August 08, 2016, 08:23:03 AM
Quote from: dumada on August 08, 2016, 07:36:42 AM
Quote from: freundes on August 07, 2016, 06:29:35 PM
Quote from: jak3 on August 07, 2016, 04:27:12 PM
traditional currencys like usd, inr, eur has high amount of volumes and still governments are printing more and more money and banks are controlling them but cryptocurrency like bitcoin has a fixed volume and to reach the total of it we are mining it
I totally agree with this, before reaching the fixed volume i personally think there will be lots of fluctuations in the price of bitcoins every now and then. Even after we reached the fixed volume there might be a slight fluctuations in the price like traditional currencies

I agree with that. In 2140, the bitcoin price will still be volatile, but its volatility will be lower than now.

When the market cap of the bitcoin is larger and used by more people, it will behave similarly to other currencies. 
Market cap isn't that big yet so it is prone to being controlled by the big whales. Compared to fiat which is more stable, bitcoin can fluctuate in a matter of days, even hours. One terrible news and we could see a 10 or 20% drop in just a day. Until such time that bitcoin reaches a level of maturity, we can expect it to be volatile until then.