Ninjastic
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Board Economics
Re: Why bitcoin prices are always very unstable
by
a447513372
on 04/10/2014, 07:31:47 UTC
Quote from: joris on October 03, 2014, 11:55:40 AM
Quote from: shockinglyugly on September 29, 2014, 12:05:52 AM
Quote from: arbitrage001 on September 28, 2014, 12:01:04 PM
Quote from: ytr8 on September 27, 2014, 12:29:00 PM
Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal  made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

The rally is real on good news, but there are still more miners selling than speculators buying.
Speculators can only buy so much bitcoin. What we need to see happen is more people buying bitcoin that will actually use bitcoin to stimulate the bitcoin economy. If we only have speculators buy bitcoin then they will eventually wish to sell causing the price to decline

Speculators can only buy have so much bitcoin fiat. And for every seller, there's a buyer.
There are more speculators with a lot of fiat then there are speculators with bitcoin. However if the only reason a speculator were to buy bitcoin is because they hope other speculators would buy more at a later time is really just a form of a ponzi. The reason that speculators are buying needs to be that they hope that 'normal' people are going to buy bitcoin in order to use it if they are to be successful