Topic: Bitcoin's High Volatility - page 27. (Read 3123 times)

You're right. Maybe the market has to consolidate. Over time, the market should expand enough to eliminate errors that are now. Then bitcoin should be more stable.

The parameters that determine the volatility of the bit are many factors.

Still the creator of the bitcoin code, the developer of the blocking process Satoshi Nakamoto compared the crypto-currency mining with gold mining. The similarity is obvious: the value of precious metals and elements is determined not so much by their practical relevance, as by the rarity and demand. Digital money has a cost that must be taken into account in calculations, from which the bitcoin rate develops:

electricity costs;
investing in the organization of mining farms;
commission for transactions.
But compared to the price of the crypto currency, which is ready to be paid at any time by the market-controlling structures and private investors, this is insignificant waste. The greater part of the price is consumer demand, the willingness to give in exchange for bitcoins more traditional material goods.

To understand how a set of numbers and letters of code began to cost as a second-hand foreign car, you need to imagine how the cost of bitcoin is formed, and how the demand for any exclusive is formed:

Another 8 years ago, a system was proposed in which for its "work" of the machine its owner became the owner of a unique code-bitcoin. While no one understood what it was, the question of what bitcoin depended on did not stand: the value of this set of signs was not higher, at this page of the site.
The group of crypto-enthusiasts takes the case, explains to some of the followers that this code is money, and suggests entering into the game. The analogy with children playing in the sandbox, and assigning a mountain ash a valuable bill, and the lilac - a bargain, is obvious: the participants in the game decide on what the price of bitcoin depends on. The equivalent of btc was assigned to $ 1.
But playing children, as a rule, exchange the same "conditional" goods. With bitcoin, a miracle happened: someone, namely the seller of pizza, agreed that the resultant set of signs, the key to the purse with bitcoin, has a real price - he gave for 10 thousand btc two circles of pizza. And from that moment into the question of how the bitcoin rate is determined, child factors did not intervene at all-the crypto currency was worth as much as it is offered for. This system has survived to this day.

I think its volatility has dropped since trading volume has dropped the past few weeks as well. This would probably be good for thos who want to buy and accumulate, but not so good for the quick traders at the moment.

Bitcoin's volatility considered a good thing by crypto traders and at the same time it considered a bad thing by some regular holders and by almost all the merchants who are willing to accept BTC. In fact, we can't do anything about it and it will always be like that. Well, maybe not always and at some point Bitcoin will be more or less stabilized, but this will happen not sooner than when the vast majority of BTC will be in hands of people who are not crypto traders. I think it can take from 20 to 50 years for that to happen.

That is the nature of bitcoin and other digital currencies so i am not surprised anymore as to why bitcoins will always go up and down from time to time but even with that, you can still earn profit out from a very small change of bitcoin's market price.

I agree because bitcoin is very unstable. People have invested so much that bitcoin is true that it is unstable ......

Perhaps the problem is that the whole crypto systems has been built from the top to the bottom. We have created currencies before the market, and markets before adoption. Now is time to build the foundations.

More trust on value increase kept the investors invest and keep it growing in the market caused not only bitcoin but also other crypto currencies capture the market in no time. The more the demand increased the more the market spread. This kept everyone's eyes fall into crypto. Its dumps and pumps kept assuring everyone to innovate new altcoins following its path at the beginning.

Bitcoin's volatility is one of the main reason why bitcoin become such a popular crypto in a matter of days or week you can become an instant millionaire just by making an investment to bitcoin. Volatility is somewhat bad and good this makes the market active such as investors wait when the price drops to invest then sold when the price goes up and appreciate, though at some point volatility makes investment to take so much risk but seeing how it succeed is something you will love about this feature

                                       Bitcoin's High Volatility
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Do you know bitcoin? And you can read, Bitcoin can invest. And in a short time you can be rich.

I might be agree with you. The current investment mindset in bitcoin has been changed. People are starting to following the trend of both panic-buy or panic-selling, which this is already happening in altcoins with its dump-pump pattern. Their buying bitcoin for short-term profit without considering affect on other coins.

The volume of trades are the only reason i think, most of us see this changes last year and just to compare about what market cap we have 2 years ago and now, i can safely say that it is the market rapid activities push bitcoin in this state.

Bitcoin volatility is common and this is applicable to all cryptocurrency, however this is not only for crypto market but also for share market which deals with normal currency. Without volatility there won't be any good trend going to happen in any currency market. Actually this is a good sign and due to this everyone invests or buy and sell as per the volatility trend. However, only Bitcoin has the capacity and potential to rise x100 upwards at any point of time.

Bitcoin has been having a daily increment in it's user base globally at a very high pace consequently the volatility will keep increasing and this is a good sign of healthy market of buyers and sellers and I belief the only obstacle faced by bitcoin presently is scaling problem once resolved BTC will continue to grow in leaps and bound thus with an increasing volatility.

Volatility is important for bitcoin because it's very needed ,we can see bitcoin is able to experience volatility in the form of price changes 10x very quickly up versus dolar but quickly low too,in short time

Right now bitcoin has hit main awareness but is very far from main adoption. This means that although we hear people talking about bitcoin all over the world, and we keep seeing news about how exchanges are doing well, and getting a lot of new users, the truth is that most of them are just retail investors, with low amounts of capital, and this results in low liquidity in the markets. Usually retail investors are not as "educated" as institutional investors. It's like comparing amateur sports players to elite sports players, the difference is just absurd.

Usually assets hit the institutional markets, and only after that some retail investors kick in. This didn't happen in bitcoin, and this is one of the main reasons why BTC is so volatile. There is not enough liquidity right now, retail investors are influenced by fomo and fud very often, and the few big whales in the market manage to take advantage of that. I think this is why we see prices going up and down so easily.

bitcoin is decentralization and high Volatility is good fro bitcoin.
High volatility means better gains and thus more profits because you can double the money you get if you are lucky and buy and sell at the right time.
No one can control price and market only set it and this is the main reason for high Volatility.
yesterday bitcoin lost 500$ and in the past bitcoin lost 1300$ at 2 hours only.
If you are a professional in trading, you can take advantage of these fluctuations by buying and selling during the period of volatility and profit of $ 1,300 when going up and $ 1,300 upon collapse in just two hours if you have 1Bitcoin.

bitcoin's votality is pretty normal. votality is part of its nature since its value fluctuates almost everyday. so what we're gonna do is adjust instead and just think of things that you'll do or strategy to use.

This is maybe bacause of that it is far away from its real value? Some people say this, I think it is about demand and supply. One news can cause it to crash from $15k to $10k 

Exactly, for every coin, there should be a market correction in order to increase it's value further because every time it is not possible to give profits. Share and crypto market always need patience without patience we cannot make money in this.