Bitcoin beats oil, price more stable than oil in 2016

Compared to other financial assets in the foreign exchange market, Bitcoin has always been more volatile. However, over the past year, data from the world's major crude oil producers show that Bitcoin's price has been more stable than oil.

The price of Bitcoin is mainly determined by the activities of the Bitcoin community, which ultimately comes down to the supply and demand of Bitcoin. Bitcoin has always been more volatile than fiat currencies. However, according to data from last year, Bitcoin's price fluctuations are not as large as those of oil.

What’s the reason for the small fluctuation of currency price?

Major global events such as Brexit and Trump’s election have led to a steady rise in the price of cryptocurrencies. Observations show that the fluctuations in the price of cryptocurrencies caused by such events have become smaller and smaller compared to previous years.

Coinidol.com interviewed Tim Horlick, CEO of Bitcoin Global Capital, about the factors that have led to the steady rise in the price of the currency. He said:

Bitcoin has reached a mature stage of development. More and more users are using this digital currency, and many governments have shown a high degree of acceptance of Bitcoin. The economic downturn in countries such as Venezuela has also led more and more people to choose Bitcoin as a safe way to store assets.

What causes large fluctuations in oil prices?

After comparing the price of Bitcoin and the price of oil, we can conclude that there are several factors that affect the price of oil. Oil analyst Tom Kloza pointed out:

The volatility of oil prices is mainly caused by the supply and demand issues in the crude oil market. The recent market supply of oil is sufficient, so global oil prices have continued to fall. As the world's largest crude oil consumer, the activities of the United States will also affect oil prices.

What does this mean for the Bitcoin community?

The stability of the currency price and the global economic and political crisis suggest that Bitcoin is destined to become stronger and is the best choice for consumers. Eric Larcheveque, CEO of Bitcoin hardware wallet Ledger, believes:

I think this is progress. Price volatility is the biggest barrier for Bitcoin investors. Once this barrier is overcome, Bitcoin trading volume will continue to rise and people will have more and more confidence in Bitcoin's value storage function.