Why is crypto so volatile?? Is value completely determined by the free market?
Let's just say yes and no. In an ideal world, the price would be influenced only by supply and demand, but the market is not an ideal place. The market is speculators, manipulators and shullars in huge quantities. Naturally, there are normal buyers and sellers, but such a minority. Therefore, the market has very different laws. 
Topic: Is value completely determined by the free market? (Read 150 times)
The price is determined by the free market, yeah
However, the expectation about the future is what determines the price of any financial asset.
As nobody knows the future about cryptocurrencies, it's high volatile.
Bitcoin is not as volatile as other altcoins, because its older, more stable, more resilient... It's future is more certain than others
That's why a bad news for bitcoin may cause a small drop in its price but crash the others, because their future is too uncertain.
However, the expectation about the future is what determines the price of any financial asset.
As nobody knows the future about cryptocurrencies, it's high volatile.
Bitcoin is not as volatile as other altcoins, because its older, more stable, more resilient... It's future is more certain than others
That's why a bad news for bitcoin may cause a small drop in its price but crash the others, because their future is too uncertain.
Why is crypto so volatile?? Is value completely determined by the free market?
Just like standard oil which started places in close to other oil companies and offered smaller prices until the other company went bankrupt and bought them and made the price even bigger, that is what free market brings, monopolies, so if you see the price controlled by just one person, don't be shocked but that is the risk we have to pay if we want freedom from government controlled money.
Why is crypto so volatile??
Being volatile is the nature of crypto, since the price can unpredictably increase nor decrease because of its young market. And the fact that cryptos haven't backed by anything so it can freely manipulate.
Is value completely determined by the free market?
Just simply the supply and demand.
For the most part, the answer is yes.
There’s a known and limited supply, so when demand goes up, so does the price. Technical innovation also contributes to bitcoin’s value.
There’s a known and limited supply, so when demand goes up, so does the price. Technical innovation also contributes to bitcoin’s value.
Value should be the determinate of free market but manipulation of free market is worrisome as the Rich ( Big money bag) will manipulate the market to favor them. This is what is happening in crypto now.
This is a complicated issue, theoretically like this. But some whales or big institutions can have a huge impact on cryptocurrencies.
Why is crypto so volatile?? Is value completely determined by the free market?
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