I have zero evidence to support this except, perhaps, Occam's Razor and Bitcoin history, but I believe this to be either fraud or manipulation. In fact, I believe the majority of Bitcoin's price, whether volatility or stability, is not the product of natural market forces.
How does an asset with virtually no underlying value remain so remarkably stable for long periods? Then, how does that same asset suddenly experience such sharp increases in value and volatility?
There are those with huge holdings who have an interest in stability for the sake of its adoption as a currency, and its long-term value. They can easily manipulate the market towards stability. And, as we saw with Mt Gox, unsecured and unregulated exchanges can also be a vehicle for market manipulation and outright fraud.
I know that opinion is unpopular with some, especially without hard evidence, but many also believed the increase before the Mt Gox fiasco was organic.
I am not a Bitcoin hater, and have dabbled myself for a decent return. I just think its past time to secure it properly and earnestly acknowledge its vulnerabilities. That vs. pretending that any of this makes sense from a traditional market perspective.
How does an asset with virtually no underlying value remain so remarkably stable for long periods? (...) There are those with huge holdings who have an interest in stability for the sake of its adoption as a currency, and its long-term value.
Long periods? Long-term? When has ever Bitcoin experienced this? Looking at the graphs, I don't think I can find a single month where Bitcoin remains even close to stable.
"There are those with huge holdings who have an interest in stability for the sake of its adoption as a currency, and its long-term value. They can easily manipulate the market towards stability."
I didn't say that it was "suspicious". I said it was manipulation. It appears that you agree?
But, maybe you meant to ask why such manipulation is bad, unhealthy, or similar?
In any event, my comment was directed at the general pontificating about why the price is on the move, which always occurs during periods of volatility. That discussion takes place as if we are talking about, say, an asset that is traded in a free market. But, my point is that it is not a free market and that the price is instead dictated more by manipulation and fraud.
How does an asset with virtually no underlying value remain so remarkably stable for long periods? Then, how does that same asset suddenly experience such sharp increases in value and volatility?
There are those with huge holdings who have an interest in stability for the sake of its adoption as a currency, and its long-term value. They can easily manipulate the market towards stability. And, as we saw with Mt Gox, unsecured and unregulated exchanges can also be a vehicle for market manipulation and outright fraud.
I know that opinion is unpopular with some, especially without hard evidence, but many also believed the increase before the Mt Gox fiasco was organic.
I am not a Bitcoin hater, and have dabbled myself for a decent return. I just think its past time to secure it properly and earnestly acknowledge its vulnerabilities. That vs. pretending that any of this makes sense from a traditional market perspective.