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Topic: Volatility and its effect - page 2. (Read 1003 times)

legendary
Activity: 2086
Merit: 1058
September 12, 2023, 02:46:49 AM
I was compelled to reply to your post due to many errors I found and I hope this corrects it.

Volatility, Liquidity and Market participation work hand-in-hand to define the condition at which the market moves. With low liquidity and market participation, the market could be very volatile and could also be manipulated as well, which is why we see some spikes and haphazard movements at times when the market is speedy. This could cause some unrest and whipsaws as well, conditions that are not good for trading. However, it's often difficult for the market to be manipulated when the liquidity and participation are high. This is when you see the market smoothly sailing towards a definitive trend without much of the dangerous moves.

Mind you, any market could experience high or thin liquidity, gold is not an exception, and when it comes to volatility in the market, gold is one of the assets on the high side, it's volatile.
The low amount of liquidity causing a lot of volatility is the hardest part of it all. I understand that it is not that simple to make it go up in volume, because liquidity lacking is a problem with a lot of low coins and that's an issue, but we can't fix it aside from finding more liquidity and many of them can't find it even if they try hard for it.

So long story short manipulation due to low liquidity is very common at low cap tokens and that's something that cause a lot of people to lose money as well. One whale could make it go up a lot all by themselves, make it trending and liked by a lot because of how much it went up, and then they could sell it to all those new buyers to make their profit from it as well.
legendary
Activity: 2436
Merit: 1561
September 11, 2023, 02:51:39 PM
Gold obviously has less risk than Bitcoin for the money invested in it due to the level of its volatility which is a lot lower than Bitcoin's volatility. And gold barely loses value over time but it just keeps getting more and more expensive as we move into the future, whereas Bitcoin is volatile and moves in both directions equally. In a total Bitcoin cycle, it has a bull market and a bear market, and we get to see both a very low price and then a very high price every cycle.

Gold being a safe investment (or store of value) is a bit of a myth. People confuse the actual value with the nominal value (aka fiat price). When adjusted for inflation, things are not looking so rosy. Depending on methodology, some charts like the below are looking pretty grim:

source: https://goldprice.org/inflation-adjusted-gold-price.html
hero member
Activity: 896
Merit: 654
Leading Crypto Sports Betting & Casino Platform
September 10, 2023, 09:06:41 PM
Yes, volatility is trader's best friend, but it's not necessarily welcome by (long-term) investors. Low volatility doesn't mean the market does not move at all, it means there are no sharp and sudden movements, and instead of jumping up and down, price can go up slow but steady.
Example: gold is still considered a low-volatility market, but it's still popular among investors. There's nothing stopping Bitcoin behaving more like gold in the future, when block-rewards are lower and halvings have less impact on the supply.

Volatility can play both good and bad roles but it depends on us that how move according to it like if there is increase and decrease so we have to take decision of buying and selling according to it but if decrease in price persists for longer time then it can be unhealthy for investors.

Volatility is beneficial for both trader and investor but due to Volatility short term traders are in more risk due to regular changes occur in value. People consider gold as a safe investment because the changes are not so sudden and huge down like that of bitcoin.

One disadvantage of volatility is that someone wants to multiply income quickly so when market decreases due to volatility then there is a chance of losing your hope as well as money.
I was compelled to reply to your post due to many errors I found and I hope this corrects it.

Volatility, Liquidity and Market participation work hand-in-hand to define the condition at which the market moves. With low liquidity and market participation, the market could be very volatile and could also be manipulated as well, which is why we see some spikes and haphazard movements at times when the market is speedy. This could cause some unrest and whipsaws as well, conditions that are not good for trading. However, it's often difficult for the market to be manipulated when the liquidity and participation are high. This is when you see the market smoothly sailing towards a definitive trend without much of the dangerous moves.

Mind you, any market could experience high or thin liquidity, gold is not an exception, and when it comes to volatility in the market, gold is one of the assets on the high side, it's volatile.
legendary
Activity: 4326
Merit: 8950
'The right to privacy matters'
September 10, 2023, 07:46:44 PM
If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
Gold obviously has less risk than Bitcoin for the money invested in it due to the level of its volatility which is a lot lower than Bitcoin's volatility. And gold barely loses value over time but it just keeps getting more and more expensive as we move into the future, whereas Bitcoin is volatile and moves in both directions equally. In a total Bitcoin cycle, it has a bull market and a bear market, and we get to see both a very low price and then a very high price every cycle.

However, as you said, the higher the risk, the higher the potential for greater rewards. So, people who want to get a lot of profit in a very short span of time, tend to go for investing in Bitcoin, and those who are okay with stable and long-term profits, prefer investing their money into gold.

or is btc going flatter in its peaks and valleys.

2012-2013 about a 200x move up

2016-2017 about a 40x move up

2020-2021 about a 17x move up

2024-2025 maybe only 10x up?
full member
Activity: 1176
Merit: 140
September 10, 2023, 07:35:23 PM
If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
Gold obviously has less risk than Bitcoin for the money invested in it due to the level of its volatility which is a lot lower than Bitcoin's volatility. And gold barely loses value over time but it just keeps getting more and more expensive as we move into the future, whereas Bitcoin is volatile and moves in both directions equally. In a total Bitcoin cycle, it has a bull market and a bear market, and we get to see both a very low price and then a very high price every cycle.

However, as you said, the higher the risk, the higher the potential for greater rewards. So, people who want to get a lot of profit in a very short span of time, tend to go for investing in Bitcoin, and those who are okay with stable and long-term profits, prefer investing their money into gold.
legendary
Activity: 2688
Merit: 1106
DGbet.fun - Crypto Sportsbook
September 10, 2023, 06:59:20 PM
Volatility is what makes an investor and also trader hopeful but sometimes regretfull because it has a two way effect and as it's good and beneficial for you as a trader that's the same way it's aslo dreadful when the volatility doesn't favour you. For bitcoin volatility is what made people like us who missed the early time bitcoin started to actually be able to buy now because of the constant fluctuation of price.
How the volatility benefits the people is based on the way the market is being observed and the decisions were made. Volatility is one among the best of bitcoin and other cryptocurrencies. If the Market used to be stable we couldn't have got such a level of growth in the short time period.
hero member
Activity: 616
Merit: 749
September 10, 2023, 05:18:54 PM
Volatility can play both good and bad roles but it depends on us that how move according to it like if there is increase and decrease so we have to take decision of buying and selling according to it but if decrease in price persists for longer time then it can be unhealthy for investors.

Volatility in the market is good for traders as they use the opportunity to make money from the market. An investors doesn't have any business been concerned about the volatility of the market because he isn't trading and only holding his investment up till it gives him or her profits then she can sell. Mostly when an individual invest in Bitcoin they already know when they want to sell and it's mostly during the next all time high of Bitcoin during the bull market.

Without volatility the market won't have been interesting and it wouldn't have had the opportunities it has to give traders profits everyday depending on how good the trader is in interpreting the charts and predicting correctly the movement of the market if it'll be up or down.
sr. member
Activity: 546
Merit: 342
September 10, 2023, 01:34:59 PM
Volatility is what makes an investor and also trader hopeful but sometimes regretfull because it has a two way effect and as it's good and beneficial for you as a trader that's the same way it's aslo dreadful when the volatility doesn't favour you. For bitcoin volatility is what made people like us who missed the early time bitcoin started to actually be able to buy now because of the constant fluctuation of price.
hero member
Activity: 2506
Merit: 645
Eloncoin.org - Mars, here we come!
September 10, 2023, 12:51:51 PM
Crypto has a much higher volatility than the stock market. In rare cases, the price of stocks or gold can rise or fall as much as in crypto. If the price changes by more than 10%, trading on the stock market stops. And in crypto, this is a common thing. That's why people are more worried about crypto than gold.

If there is a decrease in the price of gold then people don't rushes towards its investment like that of bitcoin and neither they wait for the dip but in case of bitcoin people wants a season of bear where they can buy bitcoin at affordable price.

Gold is not only used as investment but there are other purposes of gold like for marriage gold is utilized as an ornaments for bridal therefore people believes that gold cannot vanish and price will go more higher.

Other thing is that crypto volatility occurs in a few moments but the gold price does not changes as soon as that of crypto coins so may be this is the cause of worry in people who desires to invest in crypto.
full member
Activity: 322
Merit: 113
Sinbad Mixer: Mix Your BTC Quickly
September 09, 2023, 02:35:54 PM
Yes, volatility is trader's best friend, but it's not necessarily welcome by (long-term) investors. Low volatility doesn't mean the market does not move at all, it means there are no sharp and sudden movements, and instead of jumping up and down, price can go up slow but steady.
Example: gold is still considered a low-volatility market, but it's still popular among investors. There's nothing stopping Bitcoin behaving more like gold in the future, when block-rewards are lower and halvings have less impact on the supply.

Volatility can play both good and bad roles but it depends on us that how move according to it like if there is increase and decrease so we have to take decision of buying and selling according to it but if decrease in price persists for longer time then it can be unhealthy for investors.

Volatility is beneficial for both trader and investor but due to Volatility short term traders are in more risk due to regular changes occur in value. People consider gold as a safe investment because the changes are not so sudden and huge down like that of bitcoin.

One disadvantage of volatility is that someone wants to multiply income quickly so when market decreases due to volatility then there is a chance of losing your hope as well as money.
hero member
Activity: 2632
Merit: 833
September 08, 2023, 11:02:35 PM
When you enter the cryptocurrency market, either as an investor or as a trader, volatility is basically what you look for. An investor is someone who just buys and holds specific assets or cryptocurrencies like Bitcoin, while a trader is someone who buys and sells cryptocurrencies for a very short period of time to get very small percentages of profit out of each trade, however, both of these need volatility to help them achieve their goals and earn some money.

An investment from an investor would make no sense if the market doesn't move from where they've bought because they will only earn money if the market moves up, and when it moves up, it can move down as well. Similarly, a trader cannot make any trades if the market is completely stagnant.

Yes, volatility is trader's best friend, but it's not necessarily welcome by (long-term) investors. Low volatility doesn't mean the market does not move at all, it means there are no sharp and sudden movements, and instead of jumping up and down, price can go up slow but steady.
Example: gold is still considered a low-volatility market, but it's still popular among investors. There's nothing stopping Bitcoin behaving more like gold in the future, when block-rewards are lower and halvings have less impact on the supply.

Yes, we can either see it as a friend, even with long term holders though. I mean long term doesn't care about what the current price is, or how it move, maybe it was sideways or going down on a free fall.

What's important for long term holder is when they are going to sell. And obviously they are not going to offload their stash during a bear market. They are going to maximized and squeeze every profit so for them volatility is non-factor.
legendary
Activity: 2436
Merit: 1561
September 08, 2023, 04:26:34 PM
When you enter the cryptocurrency market, either as an investor or as a trader, volatility is basically what you look for. An investor is someone who just buys and holds specific assets or cryptocurrencies like Bitcoin, while a trader is someone who buys and sells cryptocurrencies for a very short period of time to get very small percentages of profit out of each trade, however, both of these need volatility to help them achieve their goals and earn some money.

An investment from an investor would make no sense if the market doesn't move from where they've bought because they will only earn money if the market moves up, and when it moves up, it can move down as well. Similarly, a trader cannot make any trades if the market is completely stagnant.

Yes, volatility is trader's best friend, but it's not necessarily welcome by (long-term) investors. Low volatility doesn't mean the market does not move at all, it means there are no sharp and sudden movements, and instead of jumping up and down, price can go up slow but steady.
Example: gold is still considered a low-volatility market, but it's still popular among investors. There's nothing stopping Bitcoin behaving more like gold in the future, when block-rewards are lower and halvings have less impact on the supply.
hero member
Activity: 2828
Merit: 611
September 08, 2023, 01:34:01 PM
The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.
When you enter the cryptocurrency market, either as an investor or as a trader, volatility is basically what you look for. An investor is someone who just buys and holds specific assets or cryptocurrencies like Bitcoin, while a trader is someone who buys and sells cryptocurrencies for a very short period of time to get very small percentages of profit out of each trade, however, both of these need volatility to help them achieve their goals and earn some money.

An investment from an investor would make no sense if the market doesn't move from where they've bought because they will only earn money if the market moves up, and when it moves up, it can move down as well. Similarly, a trader cannot make any trades if the market is completely stagnant.
hero member
Activity: 3220
Merit: 678
www.Crypto.Games: Multiple coins, multiple games
September 08, 2023, 03:42:55 AM
I would say it's even better, why? Because gold could be stolen, whereas if you store bitcoin good then it shouldn't be stolen. Like a bitcoin that is in your own possession shouldn't be stolen without any type of passphrase or anything, whereas gold could be stolen very easily.

We have seen that happen many times, to be fair a lot of people also got their bitcoin stolen but that was their own fault, not the fault of bitcoin whereas gold is naturally easy to steal, wherever you put it, someone could take it there without much force. That's of course a tough deal, and you need to be careful about what you are doing. I think it is going to be a big deal when you are not careful, and that is why it is going to take some time.
I do agree that bitcoin is much safer to hold and it's definitely a good bet. I know that it's not going to be easy to make it work but at the end of the day gold is tough and we shouldn't really rely on it. I get that some people do not think that it's going to work out in the end but we can't really make it change.

All we have right now is that bitcoin is digital and digital things are sensitive. This means that it could be stolen easily as well as protected easily. Depends on how you secure it, you could make your bitcoin impossible to be cracked if you want and impossible to be stolen, or you could literally give it to some project that will rug pull it, simple as that. So, it's not that easy and you shouldn't really expect anything.
hero member
Activity: 2268
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DGbet.fun - Crypto Sportsbook
September 08, 2023, 03:27:28 AM
volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.
If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
I would say it's even better, why? Because gold could be stolen, whereas if you store bitcoin good then it shouldn't be stolen. Like a bitcoin that is in your own possession shouldn't be stolen without any type of passphrase or anything, whereas gold could be stolen very easily.

We have seen that happen many times, to be fair a lot of people also got their bitcoin stolen but that was their own fault, not the fault of bitcoin whereas gold is naturally easy to steal, wherever you put it, someone could take it there without much force. That's of course a tough deal, and you need to be careful about what you are doing. I think it is going to be a big deal when you are not careful, and that is why it is going to take some time.

Well, what I am comparing is about the popularity and acceptance of those 2 assets. Having your property stolen is a risk created by you, not by anyone else.

That's right, if you own a large amount of gold, storing it will be difficult and can be attacked and stolen. But bitcoins can also be stolen if someone knows you have a lot of bitcoins, or they can also be hacked if you are careless while storing them...In short, this is a risk you create and you can control it, but in terms of popularity and acceptance by people, it is a risk you cannot control. If your gold is lost, you cannot blame the gold but your carelessness.
legendary
Activity: 3024
Merit: 1132
Leading Crypto Sports Betting & Casino Platform
September 07, 2023, 12:56:31 PM
volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.
If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
I would say it's even better, why? Because gold could be stolen, whereas if you store bitcoin good then it shouldn't be stolen. Like a bitcoin that is in your own possession shouldn't be stolen without any type of passphrase or anything, whereas gold could be stolen very easily.

We have seen that happen many times, to be fair a lot of people also got their bitcoin stolen but that was their own fault, not the fault of bitcoin whereas gold is naturally easy to steal, wherever you put it, someone could take it there without much force. That's of course a tough deal, and you need to be careful about what you are doing. I think it is going to be a big deal when you are not careful, and that is why it is going to take some time.
sr. member
Activity: 1148
Merit: 409
Duelbits
September 07, 2023, 07:24:25 AM
I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Profit from investing in gold (or any other commodity) is not anymore physical than profit from investing in bitcoin. But if you meant that gold is physical, while Bitcoin only exists online - that's true, but the majority of those invested in gold would not hold physical gold anyway (but rather be invested online, i.e. via ETFs), as it's very inconvenient to store, so the difference is just theoretical.

Yes, most commodity investments today use ETFs or sheets of paper which are also done online, while people who buy gold directly might be a different story, but that's rarely encountered.

Returning to the topic of the impact of volatility because of some of the influences that the OP mentioned, it is scary because volatility is very high, and because of that bitcoin is also very difficult to use as a standard of value, because it is too volatile and moves based on sentiment.
If bitcoin's price had a stable movement, I think there would be many people who would use it as a currency, but bitcoin would not be a place to invest if it moved as a stable value standard.
hero member
Activity: 2268
Merit: 579
DGbet.fun - Crypto Sportsbook
September 07, 2023, 04:34:31 AM
#99
Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
You cant really compare a digital currency or something that in build with codes into a natural resource or mineral that could be seen physically and its true that it is been known for thousand of years and it does have that supply which could really be dig and extract out on this world compared to something which it is that built by a human. We can compare out numbers but it would really be just that good on that way and i dont know on why they are really that a fan off on trying out to compare both things knowing that they are really that totally different to each other. Bitcoin as digital gold? I dont think so but if they do have that kind of impression then so be it but comparing about their value then its obvious on whose volatile and who do have that potential on rising up even more in the future.

Market volatility is always been that present or something in default. If this market turns out to be stagnant then there would be no investors that would really be loving on hanging out
on this place but rather finding out some place on which they could really be able to make money.

Because gold is one of the most valuable assets we have and people think that just by comparing bitcoin with what is considered the most valuable, bitcoin will become more valuable than anything else. Those who are comparing gold to bitcoin just want to say one thing, bitcoin is the best and nothing can compare.

I have also said that before, we only care about bitcoin's volatility, I believe that if it becomes as stable as gold, people will no longer care about bitcoin. It can be said that volatility is what makes people more interested in bitcoin than any other investment.
legendary
Activity: 2436
Merit: 1561
September 06, 2023, 04:43:34 PM
#98
I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Profit from investing in gold (or any other commodity) is not anymore physical than profit from investing in bitcoin. But if you meant that gold is physical, while Bitcoin only exists online - that's true, but the majority of those invested in gold would not hold physical gold anyway (but rather be invested online, i.e. via ETFs), as it's very inconvenient to store, so the difference is just theoretical.
sr. member
Activity: 2604
Merit: 338
Vave.com - Crypto Casino
September 06, 2023, 04:34:13 PM
#97
Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.
You cant really compare a digital currency or something that in build with codes into a natural resource or mineral that could be seen physically and its true that it is been known for thousand of years and it does have that supply which could really be dig and extract out on this world compared to something which it is that built by a human. We can compare out numbers but it would really be just that good on that way and i dont know on why they are really that a fan off on trying out to compare both things knowing that they are really that totally different to each other. Bitcoin as digital gold? I dont think so but if they do have that kind of impression then so be it but comparing about their value then its obvious on whose volatile and who do have that potential on rising up even more in the future.

Market volatility is always been that present or something in default. If this market turns out to be stagnant then there would be no investors that would really be loving on hanging out
on this place but rather finding out some place on which they could really be able to make money.
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