Topic: Bitcoin and Forex: A Comparison
Like Forex, The price of a Bitcoin is determined by supply and demand.
And when the demand for Forex or Bitcoin increases, the price increases, and when demand falls, the price falls.
There are only a limited number of Bitcoins in circulation, with new Bitcoins created at a predictable and decreasing rate. Although Forex has over 4 trillion dollars in Liquidity
The demand for Bitcoins must follow this level of inflation to keep the price stable.
Forex works on the fundamentals of Countries.
Because Bitcoin is still a relatively small market compared to existing models, the market price of Bitcoins may go up or down in response to relatively insignificant amounts of money. This means that, for the time being at least, the fluctuations in the price of a Bitcoin can be quite volatile, whereas FOREX is one of the largest markets in the world which you can trade 24 hours a day/5days a week.