Bitcoin Stock Exchanges

The Market

There are several bitcoin exchanges, but the largest and most notable is Mt. Gox. Mt. Gox handles roughly 80% of the bitcoin transactions that are happening currently. Mt. Gox is a multi-currency trader that allows people to buy and sell bitcoins using other currencies, and trade with other bitcoin users. Essentially, this means that you can buy and sell bitcoins in exchange for money. A person could take twenty U.S. dollars and deposit it into a Mt. Gox account and would receive twenty dollars worth of bitcoins at current market price. Now, that person can save those bitcoins in their wallet for a rainy day, try to play the market and sell them to another buyer at a higher price, or use the bitcoins to buy something. This is the general aspect of any market that allows for people to earn or lose money.

Since the bitcoin is still a very young currency, the bitcoin market does fluctuate quite a bit on a day to day basis. This is something that has both drawn people to, and turned them away from bitcoin. The high fluctuations in the market essentially can provide major loss or gain depending on a person’s timing. One of the main reasons for these fluctuations is the relative amount of people that use bitcoin to the total market. For example, if there was a market with only four people in it, and one of those people sold out and left the market then the market has just taken a hit and there is now a major decrease in the market. This is why the world market is so much more stable. There are so many people that are invested in so many things that it is harder to crash the market. With bitcoin there are considerably less people that are investing and so each transaction has a greater impact on the overall market.

This is part of the reason that the market did crash in the summer of 2013 after the market had hit an all time high point of almost $270 per bitcoin it crashed to just over $100 per bitcoin. This was caused by a high number of bitcoins that were sold and a supposed DDoS attack that froze the Mt. Gox systems. With a huge part of the market being sold, and the fear caused by a system freeze, there was a large chunk of the market that was sold out fear of losing more money.

Other Notable Markets

tradehill

Bitstamp

CampBx

Intersango

Virtex(Canadian)

Click Here for Works Cited