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Topic: why bitcoin is volatility? (Read 1958 times)

hero member
Activity: 980
Merit: 500
August 09, 2018, 01:30:16 PM
Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.
Bitcoin is volatile because of the fact that it is being traded all over the world 24 hours every day of the week even on government holidays too unlike the traditional stock market that is closed after certain hours, also the various news does affect bitcoin price, if there is a positive news being circulated in the media then price rises and if a bad news comes up then the price falls.
sr. member
Activity: 779
Merit: 250
August 09, 2018, 12:21:10 PM
Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Volatility of the market is necessary in order for the price of cryptocurrency to be profitable and that is the reason why traders are earning so much profit in the market.
newbie
Activity: 11
Merit: 0
August 09, 2018, 03:11:17 AM
because demand and supply affect the value of bitcoin and bitcoin is very sensitive to negative news about the crypto currency
copper member
Activity: 497
Merit: 0
July 13, 2018, 12:23:31 PM
Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Bitcoin is different from fiat money. The market that determines the bitcoin price, the market is never stable due to demand and supply.
member
Activity: 322
Merit: 10
July 13, 2018, 11:34:25 AM
Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Volatility is normal on bitcoins because the market prices are depending on supply and demand so you should always expect for the market price to always change drastically.
legendary
Activity: 1162
Merit: 1008
July 13, 2018, 11:24:29 AM
Unregulated markets are in high volatillity. Thats why bitcoin is freedom.
Whales can sell and buy when they want and nobody will block them for trading.
newbie
Activity: 154
Merit: 0
July 13, 2018, 11:20:01 AM
The reason for bitcoin fluctuations is that bitcoin is affected by many factors including labor supply and demand as well as the impact of government by certain policies applied to the digital money market
newbie
Activity: 28
Merit: 0
July 13, 2018, 11:13:55 AM
I think because of this main reason is that Bitcoin has no intrinsic value .Despite company sized valuations, cryptocurrencies don’t sell a product, earn revenue or employ thousands of people. They generally don’t return dividends, and just a tiny amount of the total value of the currency goes into evolving it. Because of this, it is hard to value. How do we know if it is overbought or oversold? When is it a good value or overpriced? Without any fundamentals to base this information off of, we can only rely on market sentiment, often dictated by the media that makes money on viewership.
newbie
Activity: 196
Merit: 0
July 13, 2018, 10:37:55 AM
Bitcoin volatolity can largely be traced to the fact that we have a lot of whales in the market who can easily influence the price.Prices dip when they sell and   rises when they sell
newbie
Activity: 48
Merit: 0
July 13, 2018, 10:33:44 AM
In addition to your explanation, price manipulation may be responsible for Bitcoin fluctuation. I've read some news about that. Big sharks use illicit trade tactics known as spoofing and wash trading which create false selling and buying orders with a view to attracting others to put money into , and then actually sell to earn profit.
newbie
Activity: 39
Merit: 0
July 13, 2018, 10:32:47 AM
I agree with you and I want to share my own opinion about Bitcoin's high volatility. Unlike regular money whose price is stablized by the Central Bank through some methods, Bitcoin is under no regulation, which means it's freely traded. That causes its price to greatly fluctuate. The beginers who have vague knowledge about the reasons why Bitcoin is unstable contributes to panic selling, causing it even more volatile.
member
Activity: 392
Merit: 10
July 12, 2018, 02:05:02 AM
I think the bitcoin fluctuations are determined by the number of transactions and there is no sales limit and low buying interest and this is unpredictable, because bitcoin is crypto money because every second, minute and hour the bitcoin price is always up and down continuously
newbie
Activity: 52
Merit: 0
July 06, 2018, 12:23:46 PM
 Bitcoin isn’t really like anything else thanks to the blockchain technology that powers it. It’s also treated differently than other types of currencies and commodities because we’re still not sure what it’s actually for. That leads to a lot of instability. Unlike other types of investments, like stocks or gold, Bitcoin trading never stops, either. There are no market hours. Instead, you get non-stop 24/7 trading, which means even more fluctuations in Bitcoin’s value and less stability day-to-day.
member
Activity: 308
Merit: 10
July 06, 2018, 11:56:03 AM
The basic economic law of supply and demand. When there's so much demand for bitcoin in the market, the price shoots up and then vice versa. That's one major factor why the price is so volatile that it can change in a matter of minutes. Another factor I can see that is the news, positive and negative news drove the price to go down and up. However, if you look at the bright side, volatility has its advantage as well specially for daily traders. Most of them takes advantages of the wild price swings and uses their TA go look for opportunities. Price volatility can cause irritation to most of us, but if you look at the positive of it, anyone of us can take advantage and make a lot of profits.
Many have adopted Bitcoin as a mode of payment and have been accepted by regulators as a legitimate means of investment. With a wide range of potential, Bitcoin has the potential to become a major asset. Even in some countries like Japan, Bitcoin is legally accepted as a method of payment. That's what causes more and more users and more investors.
full member
Activity: 434
Merit: 105
ADAB ICO
July 06, 2018, 11:37:31 AM
Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

The market of cryptocurrency is volatile because prices is always depending on supply and demand of every coin so you should always expect drastic changes and try to study the market before investing a huge amount.
newbie
Activity: 60
Merit: 0
July 06, 2018, 11:32:42 AM
Because bitcoin has no intrinsic value , many institutional investors dislike this form of investment. So bitcoin can not access that huge asset, and must rely on individual investors around the world. The problem is that individual investors rarely "buy and hold" and the investment vision is often short-term, unlike institutional investors who can hold their assets for years before launching. . The lack of organized investors is one of the biggest reasons for the volatility of bitcoin.
legendary
Activity: 1877
Merit: 1396
The Last Cryptocoin Burner
July 06, 2018, 11:17:03 AM
There is too much manipulation for bitcoin, and manipulators need volatility for to gain profit , so they create these intense movements.
newbie
Activity: 62
Merit: 0
July 06, 2018, 11:06:37 AM
Electronic money has no intrinsic value. The only way to make profit is to hope that the amount of "demand" is greater than the amount of "supply". And the value of electronic money becomes higher than the initial amount.
In general, if you do not know the real value of Bitcoin or any electronic currency, you will not know whether you are paying too much or too low, and this has made electronic money very volatile.
newbie
Activity: 20
Merit: 0
July 06, 2018, 10:39:42 AM
Volatility is a derivative product of an underlying financial instrument and it can be traded via options. Options are products that pay when a certain  price condition is met (for example when the price of the underlying product hits an upper barrier).
newbie
Activity: 22
Merit: 0
July 06, 2018, 10:30:21 AM
The effects of  foreign direct investment in countries is that Bitcoin’s use case as a currency for the developing countries that are currently experiencing high inflation is valuable when considering the volatility of Bitcoin in these economies versus the volatility of Bitcoin in US$. Bitcoin is much more volatile versus the USD than the high inflation Argentine peso versus the US$.
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