Dear steemian fiends :
If you are a Bitcoin trader and are looking to profit from the extreme price rise and fall of Bitcoin to make a profit, Bitcoin's fluctuating price is certainly very much anticipated. But, this will be different if you only use Bitcoin only for transactions like regular money.
Bitcoin prices are rising and falling sharply it has become the daily conversation of bitcoin players throughout this beautiful universe. What are the things that cause bitcoin prices to go down sharply?
News spread widely.
As a simple example, when an item, such as red onion at this time the amount of stock is actually quite a lot. However, with news of the rise in fuel prices, the prediction of the dry season that will happen long enough and the issue of unavailability of existing stock, the price of onion will rise as high. And the cause is just "a news".
Same with bitcoin. Bitcoin is a new currency that is expected to change the world's financial system. From transactions on the jud !, T3rorism, IS1S and other news sites to the capture of bitcoin creators in Australia. Bitcoin more often gets bad news.
When there is news that there is a billionaire who will invest some conventional money, in this case Dollar and kawn, then bitcoin prices will rise instantly. Similarly when there is news that ISIS will use bitcoin as a means of buying weapons, even this will make bitcoin prices will creep up and will soon be hunted by traders to play the market.
However, when bitcoin strikes bad news, such as the arrest of Sathosi Nakamoto, the creator of Bitcoin in Australia, this issue makes many bitcoin users remove the bitcoins simultaneously, resulting in a price drop in unexpected.
###The decrease of bitcoin price is caused by the little bit of Bitcoin stock in the network.
As the law of economics, the fewer the goods, the arga of the goods will rise, but if the amount of goods available enough, then the price will decrease. This also applies to bitcoin prices. Currently, Bitcoin stock in the network is still relatively small, at 14.8 million Bitcoin in November of 2015. This is certainly much different from the total US dollar in circulation, which is 1.34 trillion USD in September. And this is still added with the existing bitcoin factor is not fully used for transactions by users. There is another case that there is a hardrive that stores quite a bit of bitcoin didaamnya, but users forget to private keynya.
This will obviously reduce the amount of bitcoin in circulation. In these circumstances, if someone is buying a bitcoin on a large scale, the bitcoin price will soar.
Circumstances where bitcoin sellers are more than bitcoin users.
In general, the current bitcoin owner is a trading and investing player and is not used to actually transact like to shop for everyday necessities in moderation. This is because there are still few shops or both online and offline who receive bitcoin as a means of payment.
You as a bitcoin player might be able to easily make transactions using bitcoins, but not for those who do not understand at all the bitcoin technology language is quite complicated. This is why bitcoin is still rarely used for trading and selling, but only as an investment tool and many people choose to sell bitcoin to make a profit from using it to shop.
As a result, when bitcoins are high, traders will sell the bitcoins simultaneously, so the price drops dramatically again. Panic sell and panic Buy situation often occurs due to different views so this makes bitcoin price has a very high fluctuation rate.
