Bitcoin is very liquid virtual currency for small or medium size payments. This means that changing small amounts (tens, hundreds or thousands) of euros or dollars to bitcoins or vice versa is not a problem. According to the bitcoin.org the daily trading volume of bitcoins is aroung 1 million USD and it consists of 40000 transactions. This leads to a conclusion that the average bitcoin transaction is appr. 25 USD. The total value of bitcoins in circulation is over 300 million USD. This all leads to a conculusion that bitcoin cannot be very liquid for very large transactions and therefore currency value is volatile and individual big exchanges to traditional currencies can affect bitcoin exchange rate.
Bitcoin historical exchange rate to USD or EUR has been very volatile. The value of bitcoin has risen significantly but there has been several drops in the value.
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