Volatility of bitcoin has developed due to the dearth of market knowledge amongst it's investors. People investing in bitcoin for a quick cash generally tend to get swayed by market emotions and overambitious claims by the champions of the crypto currency.
The complexity of Blockchain and the esoteric manner in which the currency operates makes it a tough study, this leads to people investing mostly on the basis of little know ledge and hearsay. As a result the market experiences intermittent patterns of sharp rise and fall, this leads to volatility.
Topic: Why Bitcoin Is So Volatile - page 5. (Read 1300 times)
Thanks for sharing such a kind article. I would like to add that bitcoin volatile movement is due to many factors and some of them are like a huge increase in the participation number and because of which the demand and supply behavior changes. The popularity of the bitcoin is also another reason because of which thousands of new traders enter this crypto market daily and because of all these reasons the volatility of the bitcoin is increasing with rapid speed. I am expecting to increase more in upcoming months.
Hi,
Could you explain more? Coud you give your own opinion?
Here are some explanatory factors (but maybe some are missing):
1- prices tend to be chaotic because bitcoin doesn't rely on everything real
2- statement and announcement effects have huge impact on trends
3- period of the year has an impact
4- mass media tend to make the community grow or decrease.. and so do prices
5- people may be a bit more reluctant now, after the huge rise in December 2018
But these are only some factors...
Could you explain more? Coud you give your own opinion?
Here are some explanatory factors (but maybe some are missing):
1- prices tend to be chaotic because bitcoin doesn't rely on everything real
2- statement and announcement effects have huge impact on trends
3- period of the year has an impact
4- mass media tend to make the community grow or decrease.. and so do prices
5- people may be a bit more reluctant now, after the huge rise in December 2018
But these are only some factors...
Bitcoin is so volatile in the coin market it is because it will be base in volume of coins available in the market and these causes the volatility of bitcoin which is high and low in value of this bitcoin.
Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.
As my opinion bitcoin is volatile because so many reason one most reason of this is the demand and supply of bitcoin in the market. If more investor selling their bitcoin in the market then we expect the price diclined in a very low price. And if the their is shortage of bitcoin supply in the market then the price will inclined in a very high price. So bitcoin price is like a pendulums in every actions their is an equal reactions.
Bitcoin's value is highly volatile simply because of the unmet demands over the limited supply. In addition to how young bitcoin is on the market, it would really be very unstable. But given the time and support. I'm pretty sure bitcoin will mature and the price instability will be gone like it never even happened. By then bitcoin's value will become more stabke that it is now suitable of being a currency.
The first risk is, and this is the most significant, compared to any currency-stock, or gold-bitcoin is very volatile alias unstable. The bitcoin volatility against the US dollar is almost six times the volatility of Rand (South African currency) against the US dollar. While this is exciting in good times, it has the potential to destroy investors in difficult times.
I think this is because there was no predefined value placed on bitcoin from the start which means that bitcoin can take on whatever value at anytime and so prices fluctuate so much and are never in a single spot.
There's no correct purpose for its unpredictability among the market. All i do apprehend is that, it's to try to to with the market request. Besides, request changes presently and over again and providing its reasonable worth is corresponding with its market request, what happens with request, is in like manner with the other one opposite. However, you will be able to produce show pride in its unpredictability therefore it's somewhat of a draw back and most well liked stand among the in the meantime.
There is not only one reason behind the bitcoin volatility as the article which i read on forbes.com that were really good and the bitcoin which they were described is very interesting the points which i have read in that is about the bitcoin bubble which were in the last month of 2017 a recorded increase in the price and it hit $20,000 So it is highly volatile because of the bad news too.
Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.
Bitcoin is volatile , Just like people sometimes we have a bad mood and good mood . This what we called "mood swing" , we need some time to change are mood , we need some time to make the bad mood become good . Like bitcoin it takes time . It has a good value sooner or later it become popular . Learn to wait for a good future with bitcoin.
I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.
Yeah bitcoin supply never increase nor decreases the supply is always the same if you dump bitcoin it will just simply goes to another wallet. That’s why it is volatile because there's no artificial manipulation its a natural peer-to-peer transaction that is why the price will soon pump up just don't be panic. Even in traditional black market this will happen that is bitcoin was created because of Lehman brother bankruptcy, Satoshi Nakamoto believe that black market is also a big scam. Volatility of bitcoin is because of the fake news putting bitcoin down and the scammers and hackers that making investors to back-off. This is making the high supply and low demand in market which causing the crypto currency values to fluctuate. Some investors are in a panic mode to exchange becs. the value is currently low.
I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.
Yeah bitcoin supply never increase nor decreases the supply is always the same if you dump bitcoin it will just simply goes to another wallet. That’s why it is volatile because there's no artificial manipulation its a natural peer-to-peer transaction that is why the price will soon pump up just don't be panic. Even in traditional black market this will happen that is bitcoin was created because of Lehman brother bankruptcy, Satoshi Nakamoto believe that black market is also a big scam.
I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.
Bitcoin's value is highly volatile simoly because of the unmet demands over the limited supply. In addition to how young bitcoin is on the market, it would really be very unstable. But given the time and support. I'm pretty sure bitcoin will mature and tge price instability will be gone like it never even happened. By then bitcoin's value will become more stabke that it is now suitable of being a currency.
By the time bitcoin stabilizes its price will surely be very expensive already, maybe at $100,000 minimum? That time support will be very heavy and there will be no more heavy pump and dump.
Bitcoin price is backed up by several miners around the globe who mines it's supply as a result the price also increases and it's superior technology the blockchain. That is why bitcoin is a commodity. The volatility is determined by it's high demand and limited supply so saying bitcoin has no value is nothing but a hoax.
Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.
I agree. I have read it and it is not what I was expecting to read.
To answer, bitcoin is volatile because of the law of demand and supply. Nothing to add more. Besides, bitcoin wont be that interesting if it is not volatile. It will only be compared to a land that is being invested by some.
The main factor why btc price is so volatile or bubble price is because no underline asset to support it's price and limited stock/supply. This condition also make it so popular besides other factor like no institution as issuer, no formal authorty as regulator to control it's operation.
I think. There are many ways to make the bitcoin a volatile one of the reasons for it is the investers who buy bitcoin at a cheap price and then they hold it only until the time or month comes to raise its price again this way bitcoin price change. This is just one of the reasons for volatile bitcoin
,,,l also beleived in your opinion that those investors who buy bitcoin at a cheap price is the one reason of the bitcoin volatility, because they hold it and waiting the the price going to soar. Actually, bitcoin is a limited stock not more than 21million$ so, the price is not stable. Jump to: