Questions tagged [price-volatility]

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

62 questions
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1 answer

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 like a very dramatic pay cut at each juncture, Is…
10
votes
2 answers

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 there have to be trusted parties who are always…
Mikko Ohtamaa
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10
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9 answers

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 established to be decoupled. For example the Irish…
barrymac
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8
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4 answers

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 volatility?
7
votes
3 answers

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 pricing of bitcoins reminds me of the days before…
CQM
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7
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6 answers

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 like bitcoin is coming to a complete collapse. A…
6
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5 answers

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 less volatile. My question is whether an economy…
user4581
5
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3 answers

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

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 currency with a system that enforces a stable value?
frazras
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5
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5 answers

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 my own experience trying to use bitcoins for…
eMansipater
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4
votes
1 answer

Why do prices of all cryptocurrencies move in sync?

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, when it seems that when Bitcoin falls, Ethereum…
GrumpyKitten
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3
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2 answers

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. Whats to say you wont be rich today, but broke…
Vali
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3
votes
1 answer

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 trust is that: Shares track the bitcoin market…
pacoverflow
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3
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4 answers

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?
3
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1 answer

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 of the daily average exchange rate values from…
user37509
3
votes
1 answer

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 reporting "the death of bitcoin". What were the…
Patoshi パトシ
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