Topic: Why Bitcoin is volatile and will it progress in future like in stable way (Read 200 times)

Great points here.
A person should himself give Bitcoin a try on paper, learn about it, think broadly about it, and then make a decision based on facts he gathered and understood.
No one in the world would be eager to get you without your own determination into something, unless it's a rug 

I'm to believe that you've been given tips of orientations on the volatile movements of bitcoin and its potentials benefits.
Gone are those days when we've to just stock our monies which we don't have anytime usage plans for in the bank as it's stable in the fiats amount figures but can be diminished in values of exchange due to economy inflations.
Bitcoin is a source which when having your funds stocked in, it's there by performs potential value fluctuations in respect of its volatile potentialities.
So you've definitely got it a good thought of not just weighing your funds on a  stable valuable source of bitcoin but has out formed it potential increase of values that's is investment which could give you alternative of earning aside your agricultural farming.
You've really mentioned a huge some of money with the value of $10,000 which if you get it invested on bitcoin and holds patiently within this current market situation, you're sure of greeners harvest at the wrap base and wrap up of the bull run which would give you least 40% of interest within the exercise.
I don't know if bitcoin would go Dip of bearish enough again to say you if we considers your accumulating of bitcoin with the Dcas otherwise, I'd suggest you invest as much as you can bear to hold patiently while you either not panic of using the fund soon nor worried about the markets fluctuations.

That means you're better to invest in bonds instead of Bitcoin, bonds give average return 4%-5% per year, if the inflation rate in your country is 4%, so technically the return are enough to hedge against inflation.

No one in this world can control your decision, even your colleagues ask you to join them, but if you don't want to invest in Bitcoin, it's completely fine.

Speaking from my experience, I DCA-ing Bitcoin from the last 4 years and now my money doubled from my capital, which mean the average return I get is 20% per year.

Don't invest, at least not yet. Don't get into something you don't know. Spend hours getting to know Bitcoin. Don't be in a hurry. If you're convinced it has a good potential, proceed to learn the technicalities associated with it. Don't invest until you're sufficiently informed about wallets, private keys, backups, and what not.

They're pre-requisites to Bitcoin investing. They're a must. If you don't pass through them, you're more likely duped into scams. Your funds will more likely be stolen from you. You'd come back here crying, asking for help, clueless as to what happened.

I've recently started a discussion here about newbies like you who bought Bitcoin only to donate them to scammers. Don't be too eager like them. Take your time. Learn from the mistakes of other newbies like keeping a wallet's backup in a cloud or sharing it to strangers.

I hope you will indeed take time reading the replies here. If your so-called friends just advise you to buy Bitcoin without explaining to you what it is and the dos and don'ts about it, don't listen to them. They just want everybody to buy so that their holdings will increase in value.

Don't worry about volatility for now. It's not the concern of any newbie. You'll understand it in due time. If Bitcoin is volatile, learn Bitcoin first before it being volatile.

Bitcoin is not so volatile like other coins, again you cannot call Bitcoin stable. Bitcoin tends to grow slowly. Since, you keep your money in the bank, it is better to invest in Bitcoin than to keep money in the bank. If you invest in Bitcoin and hold it for a long period, you can make good profits. Day by day Bitcoin is gaining popularity and its demand is also increasing day by day and will increase more in future. However, those who have found success in Bitcoin have held for the long term. Now I won't say that Bitcoin is risk free, but long term investing is very low risk. Now if you can hold for long term, you can invest anytime. You can invest in Bitcoin by DCA method, the best method to invest in Bitcoin is DCA. Finally, you don't invest all your money, keep the fund for urgent needs.

basically if you want to invest in Bitcoin try to buy it gradually or with DCA techniques, before buying make sure you understand what you are buying, research that makes you curious about anything about Bitcoin, so you will be more confident and understand how the real benefits of Bitcoin in the future that makes various countries compete to adopt it.

If you think Bitcoin is very volatile, it means you have never bought a meme coin or altcoin whose ups and downs are much wilder, until now Bitcoin is the safest and is always the number one to be recommended to others who want to invest.

since it seems like you do not want to focus a lot on something then i would say bitcoin really is the best thing you can invest right now it is usually for the best if an individual does not keep checking on bitcoin's price then getting anxious for every single movement of the market

if you just leave your holdings alone, eventually it will rise
bitcoin is not as volatile as it used to be however it is still volatile anyway but if you plan to invest for the long term meaning you want to hold for years from now then you do not have to be scared of volatility because either way your money will grow anyway

With the name of Allah Almighty and Assalam o Alaikum to my respected readers,

    I want to say that Bitcoin is volatile due to its use-case and market cap.
The different sources have told that its market cap is 2.14 Trillion USD. Its circulating supply being 19812587BTC shows that it has great use-case.
 Its price exceeding 100000USD says that Bitcoin is most valuable asset of today and it will be even more and stronger than today as it has surpassed the historic most valuable asset gold (Au) and all other present crypto assets also.

    The large variety of its use-case, market cap and circulation all these three surpassing factors are clear indication of Bitcoin future progress as when such a mega asset moves it moves like a rail that becomes difficult to stop.

Best of luck

KINGs100

bitcoin is not stable as its an international currency..
its main bases of supporting the value and premium is that the mining costs vary wildly due to the massive difference of electric costs around the planet.
at the moment the mining costs across the planet range from $60-$350k meaning the market speculates between these

after all no one can mine or acquire bitcoin for less than $60k on the planet so no one wants to sell for a break even/loss so the bottomline support is strong to hold the price above the value

after all everyone can mine or acquire bitcoin for less than $350k on the planet so no one wants to buy above $350k if they can acquire it for less, giving the market the topline resistance which is strong to hold the price below that premium

over time mining costs(both value and premium maxims) will increase as the hashrate increases so the window would move in a upward motion.. unless(extreme case) bitcoin got a code bug added that broke the function and economics to cause mass panic and also a decline in mining which would cause a lowering of the underlying mining costs via a drop in hashrate

so as long as bitcoin works as it should the window will remain wide due to wide mining costs(volatile), and the window would move up(deflation) due to increasing costs

This is not surprising anymore for newbies to entertain a lot of questions in their mind, and we can relate actually since we also started from a scratch. However, FYI OP, volatility is never a threat for bitcoin and for us investors, it’s even a great advantage for us to make a perfect entry in the market when bitcoin price drops low. And we won’t be seeing btc price consistently dropping its price since there’s even a lot of chances that we will see its price going to the moon.

My point is, price volatility is an asset, not a threat. Without it, we will never witness btc price reaching $50k or $100k. And we’re bound to witness more of its new ATH price when bitcoin becomes more globally adopted, wherein bigger financial institutions will adapt bitcoin as their new investment.

Volatility can be either a plus or a minus nevertheless  it's an important factor that determines the growth of an asset and most especially a coin. What I like to call positive volatility is when A volatile cryptocurrency ends up being profitable over a particular period of time especially years. Sometimes adoption tells what kind of volatility a particular coin or token will exhibit. The more genuine the adoption is the better the volatility will work in favor of the growth of that cryptocurrency.
Everyone looks to invest in a cryptocurrency that will appreciate properly over a given period of time. Meme coins to have strong volatility also but the problem is their adoption is not actually a genuine one unlike that of Bitcoin.

Volatility is already decreasing. See the volatility chart of the past years. The volatility decrease is however not uniform: in years where the price peaks happen, volatility is still high. The last two peaks were in 2017 and 2021. In addition, there was a volatility peak in March 2020 when Bitcoin price crashed due to the COVID-19 pandemic but it recovered fast.

I would be however cautious in 2025: we have already experienced a bull market since late 2022, with the price having increased 650% since then ($15,000 to $100,000 approximately). This means it is not unlikely that we will hit a new peak just in 2025 or 2026. If you invest near such a peak you will probably have to wait years for a positive return.

I think Bitcoin will evolve into a more stable asset very slowly and gradually. Perhaps in 5 or 6 years BTC will experience a volatility close to gold today (the Bitbo chart I linked above allows you to compare BTC volatility with gold's), and it will take decades until it is as stable as more stable assets (like bonds).

There are several theories, but mine is that the reason is the short term investment horizon of most investors.

In simpler words: People invest to make short term profits, and then they sell as fast as possible. This leads to "herd" behaviour -- many try to either buy or take profit at the same time, creating big FOMO waves and crashes -- and thus very pronounced cycles of bullish and bearish phases. Fears of a big crash are also a factor contributing to volatility.

If people had more confidence in Bitcoin moving in a more stable way, and invest with longer time horizons and without this exaggerated fear of a crash, then also this could further lower Bitcoin's volatility.

Bitcoin will never cease from being volatile, so volatility is one of the measures that determines for it profitability, all you may need to do is in knowing the various seasons as well as the appropriate time for you to invest, hold and sell.


Afterall, bitcoin is not like the ponzi schemes that promise a sudden fortune over its investment overnight, except you're going for trading and this too will require your time in getting to know how to trade better and avoid making loss.

There's some theory that Bitcoin will stop to be volatile when adoption gets to it's peak but I don't completely think so. Bitcoin will continue to be volatile because that's what it's know for and it'll only stop being volatile when it's no longer existing for investors to buy. Bitcoin investors are more interested in Bitcoin because of it's volatility and the profits that they can make than the purpose that it's an exception currency. Don't be afraid of investing in Bitcoin because when the price falls, you haven't lost money if you keep hodling. You're only going to lose when you sell at a loss than what you bought but when you keep hodling, you'll be glad that you did that instead of selling. Bitcoin is volatile because it's a currency with more of speculators and doesn't have a large market to reduce the volatility. The market is also very new hence alot of things, will improve in the future.

Bitcoin will probably remain volatile for decades, although the higher the number of users the more stable it will become. As companies and funds start to allocate for the long term, bitcoin will become more stable because these funds will not be able to react to every single piece of news. They will need to vote on whether and how much they want to move from cold storage.

The largest percentage is held by these co called diamond hands, the less volatility we will experience, because institutions are rarely driven by fear and greed. They do the math, calculate everything and discuss it at meetings, while the largest bitcoin moves are often driven by the media, like it was with the supposed China bans, covid pandemic news, or the recent situation with US applying to sell bitcoin.

Again back to originally where it was posted? Huh?

Anyway hope you get what you expected...

Some people will just do polls or ask others for advice on their personal investments because they are not sure about the research they can even do on their own. Accepting other people's advice is not bad, but it will be bad advice when it comes to investing.

As you said, conducting in-depth research and exploration can be done first before seeing how other people's responses and suggestions are,
so that there will be a comparison of how the intervention will be carried out whether it is appropriate or not.

OP was also wrong in responding to Bitcoin because Bitcoin will never develop steadily in the future, because Bitcoin is a volatile coin and so on.

Bitcoin is not regulated by anyone and with a high price volatility that makes bitcoin different from other investment instruments,
this can be used to benefit from every price fluctuation that occurs.

Bitcoin is less volatile compared to some other cryptocurrency out there. It's unique and has distinctive features making it's own volatility profitable on a long run.. you shouldn't compare it with stable coins as stable coins are fixed, most investors who wants to make profits prefer something that can increase profitability over Time. I'll tell you to invest in Bitcoin if you know that you can take the risk. Don't risk money that you might need anytime soon.

My suggestion is that since you are a newbie in Bitcoin, why not explore and do deep research first before you invest in Bitcoin that you just heard from your friends?
That's not a good idea if you invest in Bitcoin without any knowledge. We are not a financial advisor to push you to invest in Bitcoin, and we can't guarantee your investment will gain profit. Since Bitcoin is unpredictable, we don't know if the price will increase more or might become stable as you expected.

Why not do some other business instead? and then only invest a small amount that you can afford to lose so that it won't hurt your finances if the price is against your will.
Honestly, I don't think it's a good idea to take any advice from anyone; if I am you, I will do deep research and explore first before I invest.

well that is nice and interesting to hear, i will advise you to keep up the farming work while you still invest in bitcoin. i.e  you can combine the both of them because agriculture is a lucrative business. for the aspect of not being well knowledgeable about bitcoin, of course that is not a problem as that will be taken care of. its just a matter of time you will understand what you ought to know about bitcoin.

you shouldn't be afraid of volatility because that is what makes bitcoin what it is. if not volatility bitcoin would have been a stable coin.

there you got it all wrong, bitcoin is not a stable coin. stable coin as the name implies means it is stable and not volatile, while bitcoin is the opposite end is  volatile. without volatility, no one would have invested in bitcoin.