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Questions tagged [price-volatility]

Collects questions concerned with the stability and volatility of the exchange rate of Bitcoin.

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15 votes
1 answer
307 views

Why are the mining rewards set to reduce in such dramatic steps?

The mining rewards are scheduled to drop from 50btc to 25btc. The next drop again will be from 25 to 12.5btc. In each of the steps into a new "era" the mining reward is reduced by 50%. This seems ...
Andrew Vit's user avatar
10 votes
9 answers
1k views

What are the obstacles to pegging the value of bitcoin to an established stable currency?

Many people will not touch bitcoin due to it's historically extreme volatility. Many new currencies have pegged their value against an established currency until such time as it is sufficiently ...
barrymac's user avatar
  • 1,605
10 votes
2 answers
2k views

Digital currencies pegged to dollar value

Some digital currencies, like NuBits, declare that they peg their value to dollar or other fiat currency. How does this work? Under what conditions this can work? Can this be distributed, or does ...
Mikko Ohtamaa's user avatar
8 votes
4 answers
626 views

Can there be dollar version of bitcoin?

Why can't there be a p2p software that works like bitcoin but you load it with dollars? Can't something be made that's just p2p dollar transfers and not deal with a speculative new currency and its ...
George Richardson's user avatar
7 votes
6 answers
10k views

Why did Bitcoin lose value so fast in early January 2015?

What on earth is driving the price of Bitcoin and other alternative currencies down lately? It's one thing for it to go down a bit but losing practically 80% of its value in less than a year? I feel ...
Martin Robert's user avatar
7 votes
3 answers
1k views

Pricing bitcoins

Bitcoin functions as a a quasi-commodity currency and I believe it can be priced according to particular factors, variables, instead of simply by the supply and demand in the exchange order book. The ...
CQM's user avatar
  • 1,590
6 votes
5 answers
260 views

Is price volatility necessarily a bad thing?

Discussions of Bitcoin as the potential basis for a future global monetary system often point to the currency's price volatility as a shortcoming. Fiat currencies, by comparison, are (mostly) a lot ...
user avatar
5 votes
3 answers
3k views

Is it possible to create a cryptocurrency that has a fixed value? [duplicate]

I like Bitcoin for its ease of use and security. It makes "money" transfer fast and easy, however a lot of people are afraid to use it because of its volatility, Would it be possible to create a ...
frazras's user avatar
  • 151
5 votes
5 answers
684 views

Could a futures market be included in the Bitcoin protocol?

One of the most common reasons I hear that Bitcoin is "not ready for prime time" is that because of its wildly oscillating valuation businesses can't accept bitcoins without becoming speculators. In ...
eMansipater's user avatar
  • 14.5k
4 votes
1 answer
3k views

Why do prices of all cryptocurrencies move in sync? [closed]

For example, when bitcoin moves up/down, most other cryptocurrencies also move for a similar amount. What is the reason behind this? I almost see no point in investing in different cryptocurrencies, ...
GrumpyKitten's user avatar
3 votes
4 answers
519 views

Can the price of Bitcoin ever be stable to the USD?

It seems like the only way to sell BTC for products/services is to have the BTC reflect how other currencies are doing. I'm not great in economics but can it ever be stable?
Corey Farwell's user avatar
3 votes
1 answer
76 views

What were the dates of Bitcoin's previous price plummets prior to 2015? What articles were written about it?

As of Jan 2015, the price of Bitcoin has plummeted from 300ish to 200 since the summer of 2014. This wasn't the first time happening to have the price plummet in such a state where mass media starts ...
Patoshi パトシ's user avatar
3 votes
1 answer
237 views

Is there a calculation for exchange rate stability?

Exchange rate stability can be used as an indicator to determine how consistently you will earn the same profit over a period of time when mining a cryptocurrency. My current thinking is that a chart ...
user avatar
3 votes
1 answer
4k views

Why does GBTC frequently not track Bitcoin's price?

As far as I know, the Grayscale Bitcoin Investment Trust (symbol GBTC) is currently the closest thing on the market to a Bitcoin ETF. According to their web page, the investment objective of the ...
pacoverflow's user avatar
3 votes
2 answers
642 views

How can bitcoins be used for daily currency if their value changes erratically?

If Bitcoin was the worldwide money system... Suppose that you work and save your bitcoins, to purchase something big like a house or car, but the value fluctuated like crazy, as the stock market does....
Vali's user avatar
  • 67
2 votes
1 answer
4k views

How do exchanges keep relatively similar price on coins?

I know there are price difference across all exchanges but they are relatively similar. If each exchange operated independently I would think the price of coins would be radically different since the ...
t q's user avatar
  • 129
2 votes
1 answer
141 views

Mining in a down market

Is there something in the design of the bitcoin system that prevents this scenario? The price of bitcoins drops by 80% (or some number) for some external reason. The profitability of bitcoin mining ...
xpda's user avatar
  • 123
2 votes
1 answer
104 views

Cryptographic "Central Bank" [duplicate]

Is it possible to create a bitcoin-like system that has a central authority? I know that the reason that many people like bitcoin is that it is completely unregulated, but I was thinking that a "...
Stack Tracer's user avatar
2 votes
1 answer
416 views

How do goods & services sellers manage price instability?

How do retail outlets manage the massive price instability? Are they really repricing every second with 25-50% spikes and drops over 24 hours? How much does it cost to maintain accurate prices? ...
user avatar
2 votes
2 answers
156 views

What does "buy the dip" mean?

I keep hearing "buy the dip" constantly with Bitcoin people/comments. I get that it means that you should buy Bitcoin while the price is temporarily low, but what do they mean by it? Do they ...
Richardi's user avatar
2 votes
6 answers
230 views

Bitcoin Volatility

I am a French student in a Business School and currently working on a Bitcoin study. I have 2 questions to you: Are there means, for companies or states, to limit or at least to curb on the ...
Quentin Cluzel's user avatar
2 votes
1 answer
85 views

Are there any instruments that I can use to trade bitcoin volatility?

In the stock market, there are several financial products that allow an individual investor to trade/hedge daily volatility? As an example, there is the VIIX. Are there any such financial products ...
RohitJ's user avatar
  • 165
2 votes
1 answer
281 views

is bitcoin stability by securitization possible?

Bitcoin is subject to high volatility with little means of hedging. The available ways of hedging being to be short or buy puts on VERY ILLIQUID exchanges that contain no market participants, no ...
CQM's user avatar
  • 1,590
2 votes
0 answers
44 views

How do LocalBitcoin's merchants prevent volatility risk?

For example, how does a Bitcoin merchant (someone who buys and sells Bitcoin as a business type deal to make commission) prevent the losses induced by the volatility in the market? I.e., say you buy a ...
b0xxed1n's user avatar
  • 121
2 votes
6 answers
2k views

How does a merchant ensure sufficient value in light of the price volatility?

When a merchant accepts bitcoin payment (for example 10 btc for the purchase), the buyer send the payment of 10 btc and it is settled. However, the 10 btc value will fluctuate every minute (up to 20% ...
user2104890's user avatar
2 votes
6 answers
380 views

Why did the price of bitcoin increase so dramatically?

I read this question on money.stackexchange, in which a user asks how to tax the speculation gain they (involuntarily) made. This guy (or girl) bought BTC for a few hundred USD a few years ago, lost ...
henning no longer feeds AI's user avatar
1 vote
8 answers
9k views

Bitcoin alert service if price dips or rises by a percentage base?

Is there a Bitcoin alert service that monitors the price and alerts the user when price dips or rises by a percentage base? Say I want to monitor the btc price if it rises by 5% and have it email me.
Patoshi パトシ's user avatar
1 vote
2 answers
68 views

How to avoid contagious media stories affecting Bitcoins? [closed]

There is an integral connection between fiat currencies and shop prices. Can crypto's achieve the same shop use? If a crypto has a giant user base, It can be less physical than Fiat. It needs to ...
bandybabboon's user avatar
1 vote
1 answer
44 views

I do accept bitcoins as a way of payment on my website. How could I stabilize value of accepted bitcoins to usd?

I have a website which accepts bitcoins (and other non-stable coins). The amount of ways to accept coins is pretty big: from btcpay to some proprietary solutions. But I do care about volatility of ...
Alex Antonov's user avatar
1 vote
1 answer
91 views

How does Bitcoin protect against inflation?

In an economy where the prices of goods keep inflating, like a car going from $10,000 to $20,000 in 1 year, what would be the incentive for people to put their money in Bitcoin? Wouldn't the price of ...
Saxtheowl's user avatar
  • 2,810
1 vote
2 answers
88 views

Volatility-reducing investing strategies in Bitcoin?

I am looking for options to reduce the impact of volatility on the portfolio while accumulating Bitcoins over years. In comparison to ETF funds, we have options such as TIPS where volatility is ...
hhh's user avatar
  • 121
1 vote
2 answers
451 views

What drives the price of bitcoin, in other words, what makes it go up or down?

I am interested in knowing what kind of events and news have a direct impact on the bitcoin prices besides the raw supply and demand.
Peter Mel's user avatar
  • 635
1 vote
2 answers
48 views

The impact of Mining relativne to supply and therefore the price of Bitcoin

What impact does Bitcoin Mining have to on the supply of the coin, and how does it reflect on the price per coin on the exhange. I am trying to understand better the Bitcoin Mining instituons and the ...
user138378's user avatar
1 vote
0 answers
21 views

Is there a standard metric or approach to measure Bitcoin’s price volatility over time?

I am wondering whether there’s a standard here. By standard I mean a common or generally used method.
StatsScared's user avatar
1 vote
0 answers
79 views

Are there any academic papers on the link between energy markets and Bitcoin mining?

I am keen to see if there have been any academic papers that have studied the link between bitcoin miners and energy markets, in-particular, if there is a so called 'no-arbitrage' requirement, or a ...
Hamish Gibson's user avatar
1 vote
0 answers
412 views

Why do prices of different cryptocurrencies on exchanges often go up/down in synchrony? [closed]

This might be a dumb question, but it's been puzzling me for a while. I have noticed that oftentimes, prices for various cryptocurrencies go up/down almost simultaneously. I do understand that ...
megamoser's user avatar
1 vote
0 answers
136 views

Real bitcoin buying versus forex speculation [closed]

so I had a discussion with the colleges today and I would that my arguments would be verified here. Basically the question is what are the differences between buying and selling real cryptocurrencies ...
jan kowalski's user avatar
1 vote
0 answers
1k views

How is the Blockchain.info Bitcoin Market Price Exactly Calculated?

I am about to apply traditional univariate GARCH tools to analyze the volatility of the Bitcoin - US Dollar exchange rate. The index that I would like to investigate is the Bitcoin Market Price (...
msmna93's user avatar
  • 23
1 vote
1 answer
255 views

What would happen to the world if Bitcoin were the only allowed currency? [closed]

Could a world economy be based solely on Bitcoin? I mean the only mean to pay would be bitcoin. From the point of view of economy would this be possible or would all the economy collapse? Could we ...
Jose Javier Garcia's user avatar
0 votes
2 answers
37k views

How Do I Calculate the profit of the value of my bitcoin? [closed]

Lets say I buy $50 of a bitcoin for 3916.74, And then the price goes up to $4200. How Do I calculate how much I have made in profit? As in What type of formula do I use to see how much more my $50 is ...
HGMatt's user avatar
  • 3
0 votes
1 answer
136 views

Any supervisory power on earth to ensure that Bitcoin system will remain resilient if hashing conditions change rapidly?

Assume that Bitcoin value versus the “fiat money” is of great significance and imagine suddenly discounted by 50% or more, the current pools are not in money any more, stop hashing. The current ...
efaysal's user avatar
  • 41
0 votes
2 answers
50 views

Is the USD amount the same for both sender and receiver?

I sent .004 bitcoin to someone. In USD the amount was $223. The receiving party said they received only USD $212. Is that possible?
user149648's user avatar
0 votes
1 answer
70 views

How to keep my bitcoin funds price stable?

I have some bitcoin amount in the wallet of the app I am building. These funds are used to run some transactions between the users of the app. Say, I have 1 BTC and it's $22000 today. But tomorrow it ...
Sergei Basharov's user avatar
0 votes
1 answer
99 views

How does Lightning payment service Works?

Let's say A merchant is using lightning payment service to accept BTC as payment for his shop. How does existing lightning payment service were able to manage to provide merchant's BTC in form of fiat ...
Arjun Reddy's user avatar
0 votes
1 answer
94 views

Why would people buy bitcoin these days if its too expensive?

I'm curious on why would bitcoin rise in the near future since its not affordable anymore. It's actually but for wealthy people only. How could it even reach mass adoption because of its extreme price?...
Eugen Sunic's user avatar
0 votes
1 answer
184 views

dollars being sent to me for no reason?

I bought 200 ($700 worth) bitcoins in 2012, and I found them last week. Now, my wallet says they are worth $2371959.00 apparently. Is this a scam or do I need to sync my wallet? The computer is pretty ...
2523454's user avatar
  • 321
0 votes
1 answer
91 views

Why is Bitcoin's closing price different from the opening price of the next day?

Why is Bitcoin's closing price different from the opening price of the next day? For example, below is bitcoin prices of the last month. Close price on day 08/21/2022 was 21380.6, but open price on 08/...
zell's user avatar
  • 101
0 votes
1 answer
51 views

How can non-backed cryptocurrencies be stable (like by algorithm) [closed]

Is it possible that a cryptocurrency can be stable, without being backed by another currency, for example stable by algorithm? For example, when the value is too high, the algorithm will increased ...
Andrew's user avatar
  • 35
0 votes
2 answers
2k views

Why bitcoin rise causes altcoins to drop?

Bitcoin has grown significantly in the last few days. From what I can see on Binance, price of the majority of altcoins has dropped significantly relative to bitcoin at the same time. I've been ...
Ivan Yurchenko's user avatar
0 votes
2 answers
177 views

What does the value of bitcoins depend on?

I've been looking up stuff about bitcoins for some time now and i have two question stuck in my mind: How is the value of bitcoins so unstable? And can there be bitcoin inflation?
Liam's user avatar
  • 101