posted on Apr, 11 2013 @ 05:21 AM
Originally posted by ChaoticOrder
Well it's just a popular thing to do with bitcoin because it's so volatile, but as I said that's only because it's so new and novel,...
Actually I think it has more to do with the demographic of people who own it rather than its "newness".
Take the US dollar as a counterexample. The overwhelming vast majority of people who own some of it have no way of trading it on a daily basis, nor
do almost any of them have any interest in trading it for another currency. The vast majority of it sits around in pockets, wallets, or bank
Bitcoin on the other hand, appeals exactly to the technically adept, computer literate types, and because it sits on computers, is rather easy to
trade on the internet. And a high percentage of owners are also wanting to do so. A higher percentage of the owners have it for no other reason
than to trade it.
A much larger percentage of that currency will therefore be traded on a daily basis.