Topic: why bitcoin is volatility? - page 10. (Read 1958 times)
Bitcoin is volatile beacause of the fact that its market price is based on the demand of people. So everytime that people sell (be it selling at a hig price or low) their bitcoin, a small or even big fluctuation of price will occur.
I think that the reason why bitcoin is so volatile is because it was being used as a trading platform and not as a form of currency. because many people is selling and buying bulk of bitcoins its price goes up and down easiely depending on the current market demand.
Bitcoin volatility is actually driven by a lot of factors;
Non regulation;
Manipulation by high profile investors/whales;
News- hampered by bad press;
Varying perceptions of users;
amongst other factors
Non regulation;
Manipulation by high profile investors/whales;
News- hampered by bad press;
Varying perceptions of users;
amongst other factors
One of the reasons why bitcoin is volatility and fluctuates against fiat currencies is the perceived value versus fiat currency. This, making bitcoin has properties that make it similar to gold. This statement has been regulated and decided by bitcoin core technology developers, to limit production to a fixed amount of 21 million BTC. Of course this is very much different from fiat currency managed by the government.
Bitcoin is decentralised and no one person can control it. Unlike fiat currency where prices of items in exchange for fiat are fixed, it is not same for bitcoin. Anyone can decide to sell their bitcoin at any price and these have contributed the volatility of bitcoin. This is a unique feature of bitcoin and it will remain that for long.
Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class just came into existence and beginning to display signs of future potential, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time
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.
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.
No worries, your opinion is pretty much on point and is also what I believe the reason why bitcoins are volatile. The only thing that bugged me is your usage of the word volatility but it is all good, you were still able to get your thoughts out and was still pretty understandable.
Now, I honestly like the volatility of bitcoins and other cryptos out there to be honest since it enables me to really get lots of profits just by buying and selling from one coin to another or from bitcoin to usd etc. I think a lot agrees with this also.
The value of 'Bitcoin' depends upon the rules of demand and supply. If the demand for 'Bitcoin' increases, then the price will also increase. On the contrary side, the decrease in demand for the 'Bitcoin' will lead to decreased demand. In simple words, we can say that the price is determined by what amount the trading market is agreed to pay. If a large number of people wish to purchase 'Bitcoin's, then the price will rise. If more folks want to sell 'Bitcoin's, then the price will come down.
Everyone talks about market manipulation when the market is in the red. Where were you when we saw 60% gains every day for 2-3 weeks straight?
People always find something to complain about when the market is correcting. Yes these things happen, no these things dont dictate the market.
Instead of complaining, try to understand the market and adapt to it instead of blaming whales and what not.
Note: this wasn't aimed at you personally but at most people who think whales/ manipulation are to blame here. This is a decentralized world so things like these are bound to happen
People always find something to complain about when the market is correcting. Yes these things happen, no these things dont dictate the market.
Instead of complaining, try to understand the market and adapt to it instead of blaming whales and what not.
Note: this wasn't aimed at you personally but at most people who think whales/ manipulation are to blame here. This is a decentralized world so things like these are bound to happen
Bitcoin is known for it's volatility.Even a small news or a statement regarding it can effect it in either a positive way or a negative way which causes a rise and fall in it's price.That is why it is volatile in nature.The price of Bitcoin totally depends upon it's demand or may be we can say the number of users investing in it or selling it.If large number of users invest in it,a rise is seen in it's price and if large number of users sell their BTC's a fall is seen in it's price.For example we saw a huge rise in it's price in December 2017 because there was an increase in it's demand but when China banned Bitcoin and when JP Morgans CEO gave a statement against it ,we saw a huge drop in it's price because people started selling their BTC's because they were in a thought that Bitcoin will fall and they will have to face huge loss.So Bitcoin is volatile because there is a rapid increase and decrease in it's demand.
The Bitcoin algorithm, although it was created based on the new generation technology, is not perfect. This implies a situation in which Bitcoin is only the basis of the digital global currency. all cryptocurrencies have enormous potential, Bitcoin also. Bitcoin, due to simplified and too weak for the present times, technological solutions can not become a global cryptocurrency. It is one of the most imperfect projects that needs to be developed.
Because its nature itself of being volatile. The price rise and fall all the time in the market it could be because of the increasing amount of users of bitcoin.
Cryptocurrency prices are extremely volatile that they have capabilities to rise and fall sometimes in a way unpredictable. That depends on the investors and crypto users, that means us. When the demand is very high there's likely increased possibilities for them to rise in price.
There are some things that make the bitcoin volatility such as being heavily influenced by various media and government, the ever-changing and uncertain demand, the deliberate pump and dump of whale, and because bitcoin itself is an 'asset', if bitcoin were the main currency in a country, I'm sure bitcoin can also be stable.
it's right if just like dollar bitcoin were currency of a country it will be stable but its not like that bitcoin is the currency of the world and decentralized no one pay any taxes in bitcoin to their country that's why all over the world people are doing trade easily and peoples invest in bitcoin just for profit.when they get profit they sell bitcoin and then buy again in low price. 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.
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.
Customers are affected of the fact that bitcoin price could drop in no specific day that caused panic waves and volatility. Bitcoin is a digital currency that's why it's prices are unstable.
There are some things that make the bitcoin volatility such as being heavily influenced by various media and government, the ever-changing and uncertain demand, the deliberate pump and dump of whale, and because bitcoin itself is an 'asset', if bitcoin were the main currency in a country, I'm sure bitcoin can also be stable.
The price of bitcoin is not permanent like the paper money, price is the main fact of variance and the amount of bitcoin mined is also a great factor of price.
I think of course there are factors causing factors that become bitcoin instability that influenced many people choose bitcoin to invest. yes I think that's the cause.
If volatility was that bad, theoretically we shouldn't see bitcoin constantly rising. But it is. I think that suggests that people using that argument should go back to the drawing board.
Furthermore, a population has various risk appetites. Naturally, the ones that are willing to take the risk step in first. But them stepping in, lowers the risk for the next group. And this process repeats until full adoption occurs.
Furthermore, a population has various risk appetites. Naturally, the ones that are willing to take the risk step in first. But them stepping in, lowers the risk for the next group. And this process repeats until full adoption occurs.
Bitcoin is a decentralized currency with no regulatory over watch which means that whales are free to manipulate the markets as they please. Also the Bitcoin market is open 24 hours every day which makes the volatility even more. But as the market cap will increase the volatility will decrease as high amounts of money will be required to move the prices than.
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