The principle of Bitcoin is fascinating from two points of view. on one hand, the technical, hardware and software aspects of a currency that is created live in this right moment is interesting for IT and hardware passionate, while the financial transactions connected with this world are studied by financial experts, companies and individuals that are interested about speculating fluctuations on this market.
If you are familiar with Forex, stock exchange and Binary Options, you are probably aware about the fact that patterns and signals can be used to anticipate the evolution of exchange rates. For Bitcoins, even if there are websites with live charts and quotes, it is impossible to apply the techniques from other financial branches to determine if the price would go up or down. For example, the price for 1 Bitcoin was 90$ on 1 April 2013, 250$ on 9 April, and 170$ on 12 April.
The speculators have to understand this currency and its behavior, in order to speculate those huge differences. On the other hand, the websites offering live feeds with rates and courses are important, as from there, investors could draw their conclusions, and they will also be able to buy or sell Bitcoins using other currencies.
Websites offering Live Converters Exchange Rates
Considering the popularity of the Bitcoin during the latest months, many websites offering live feeds and details about transactions appeared. You will need to bookmark a few of these, whether you are a miner or a speculator, to determine the exact price of the currency.
One of the simplest websites offering you the possibility to get live Bitcoin quotes. The site is interesting because it is really simple. You just need to introduce the amount of bitcoins that you want to exchange, and to choose the currency in which you want it transformed. The website will interrogate the main bitcoin website, returning you the value in a few seconds.
Resources – Bitcoin
Bitcoin.org is more than a website offering quotes, as it has several other resources available for bitcoin passionate. You can access the section with Vocabulary to understand the terms used explanations about the bitcoins, useful software, and also the possibility to install a smart bitcoin e-wallet.
Blockchain.info is a complete website offering conversions from bitcoins to any popular currency, the possibility to make transactions, but also many charts about mining, buying selling, volumes of bitcoins created and traded, as well as the possibility to create e-wallets. Another important section of this website is the Markets section, where you can find the most favorable exchange course from you amongst all the available websites offering those types of transactions.
This is not actually an engine or a website offering live feeds, but it is the Wikipedia of Bitcoins, allowing you not only to understand what bitcoins are, but also to find the best websites from where you can conduct your bitcoins transactions.
How are the exchange rates established?
The market of Bitcoins is not regulated, and for this reason, it is hard to anticipate the evolution of prices on this market. The number of miners is growing constantly, as well as the performances of the mining computers, so considering the fact that there are more blocks created in a shorter time, we might say that the price of the bitcoins must go down. On the other hand, the interest of many people, not only of miners, as well as the large number of transactions that happen with the bitcoins will get the price up.
For example, when the financial crisis begun in Cyprus, people found the bitcoin as the safest method to transfer money from Cyprus accounts all over the world, especially because the transactions are anonymous. This made the price of a bitcoin to triple in a few days, creating a huge interest around the bitcoin. Three days later, the price went back down to 60$, which is somewhat normal, as every currency follows a trend of stabilization after those spectacular growths.
The bitcoin is relatively new, and for this reason, it was not analyzed as it should. It is really hard to anticipate the evolution of prices for a currency that does not respect any pattern of the modern economy. As bitcoins are constantly created, in theory, inflation should be produced, leading to a decrease in price. Practically, there are more transactions and the need for this currency is greater than the capacity of the miners to produce those, meaning that the price will continue to go up. Adding the speculators and people that are looking for safe methods to save money to the entire equation will give you a pretty good idea why the bitcoin currency exchange rate is one of the most fascinating charts in the financial world.