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Topic: why bitcoin is volatility? - page 20. (Read 1958 times)

member
Activity: 350
Merit: 11
May 17, 2018, 02:38:47 AM
the main reason for bitcoin volatility because of limited supply and huge demand because of these 2 reason bitcoin price depends
In addition to the perceptual factor of asset value and bitcoin value, bitcoin volatility is also driven by holders of a large proportion of the total currency in circulation. Because, for bitcoin investors with more than $ 10 million in ownership, it is not clear how they will liquidate a large portion of bitcoin and turn it into a fiat currency without moving the market.
newbie
Activity: 106
Merit: 0
May 17, 2018, 12:19:11 AM
I think there are many factors .. and what I know about the unstable factor of bitcoin is. Strongly Affected By Various News
One factor that affects the instability of bitcoin values ​​and prices is the presence of news that seems to frighten bitcoin users, including geopolitical events and government statements that bitcoin is likely to be regulated. Here, there are many headlines in finance and finance that generate fear for investors. One of the headlines that severely affected the bitcoin price was the news of the bankruptcy of Mt. Gox in early 2014. In addition, there is also news about the use of bitcoin for drug trafficking transactions through Silk Road which ended with the closing of the market by the FBI in October 2013. From these two incidents eventually led to a public panic that ensured the value of bitcoin fell to the eye fiat money or dollars very quickly. But behind all that, investors who still like bitcoin see that both events are just proof that bitcoin market is mature.

Perceive Palue of Bitcoin Fluctuates
One of the reasons why bitcoin fluctuates against fiat currencies is the value of perceived palue 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, in order 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. Here, the government wants to maintain low inflation, high employment and satisfactory growth through investment in capital resources.

Too Many Factors in the Perception of Asset Value and Value of Bitcoin
Bitcoin price instability is also driven by various perceptions of intrinsic value of cryptocurrency as a store of value and value transfer methods. The function of bitcoin as a store of this value is to store assets that can be useful in the future by considering several possibilities. Later, the storage value can be stored or transacted with goods or services in the future. Whereas, the value transfer method is an object or concept used to transmit property in the form of an asset from one party to another. Because of these two factors, the bitcoin spot price varies against the dollar and other fiat currencies.

Small Option Value for Currency Class Investors Kakap
In addition to the perceptual factor of asset value and bitcoin value, bitcoin volatility is also driven by holders of a large proportion of the total currency in circulation. Because, for bitcoin investors with more than $ 10 million in ownership, it is not clear how they will liquidate a large portion of bitcoin and turn it into a fiat currency without moving the market.

Tax Implementation Affecting Price Volatility
The IRS (United States tax agency) states that the currency is one of the objects of taxation purposes that have a mixed effect on volatility, especially negative effects. On the negative side, the IRS says property has 2 negative effects. First, additional complexity for users who want to pay via Bitcoin.co.id. Under the latest tax laws, users should record the currency market value of each transaction and no matter how small. In fact, this is what can cause some problems for its users. Second, the decision to mention bitcoin as a property for tax purposes could be a signal to some market participants and stated that the IRS is preparing and implementing stronger rules in the future. Given this stronger regulation, it will cause the rate of currency adoption to be slow to the point where it can not achieve massive adoption that is essential to overall utility in society.
newbie
Activity: 224
Merit: 0
May 17, 2018, 12:05:48 AM
I do not believe Bitcoin is volatile. Bitcoin made the beginning of a new era. It's been a long time since we've been banking on digital money.
Crypto money is so valuable that a crypto stock exchange has been created. It was the most important and valuable stock market in the world. I think it will continue to be in our lives for many years.
newbie
Activity: 28
Merit: 0
May 16, 2018, 11:59:25 PM
yeah , I totally agree with your statement . Bitcoin is volatility .  there are only 21 million Bitcoins that can be mined in total. Once miners have unlocked this many Bitcoins, the planet's supply will essentially be tapped out . so the bitcoin is limited but the traditional money isn't .
newbie
Activity: 112
Merit: 0
May 16, 2018, 11:32:58 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.

Yes, It is true. the volatility of bitcoin is primarily due to the fact that its price is not regulated as ordinary money. In each state, the central bank monitors the stable rate of national money, throwing out additional bills on the market or withdrawing them from circulation.I think in the future, Bitcoin will accept all contries, The market demand will stable.
copper member
Activity: 266
Merit: 0
May 16, 2018, 11:27:06 PM
There are many reasons for the instability of bitcoin. One country talks about restricting bitcoin. The value of bitcoin falls, if the second country accepts bitcoin then the value of bitcoin increases, the second investor buys more in the bitcoin, the price increases, the less the invest.
newbie
Activity: 147
Merit: 0
May 16, 2018, 11:23:41 PM
Yes I would agree that volatility are happening due to fast paced transaction of demand and supply another thing, it is decentralize and not being controlled is what makes it more and more subject to volatility. News and some articles also contribute to its popularity that influence to its demand.
full member
Activity: 434
Merit: 101
Bounty Detective
May 16, 2018, 11:22:59 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.
because every percentage of Drop price via Dolar or Rate of Change  has a huge Movement for Bitcoin.
many people easily control bitcoin. because There is what we call panic sellers who will make the BTC price Continue to drop and the People who has a Pride on Not buying bitcoin because they will think that it is Overprice and it will be just Stuck on a dump price.
so We wont know how  we will people Control The price of BTC to go up.
full member
Activity: 345
Merit: 100
May 16, 2018, 11:19:04 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.

Is it true that bitcoin is volatile and its volatility has been ever since it first came out of the industry. Many of us could give enought conclusion that it is a disadvantage yet for some is the contrast. Well, I go for the it as an advantage. I believe that bitcoin wouldn't be a bitcoin now if volatility isn't part of it. It is what it is.
newbie
Activity: 266
Merit: 0
May 16, 2018, 11:03:28 PM
Value vacillations in the Bitcoin spot rate on the Bitcoin trades is driven by numerous elements. Unpredictability is estimated in conventional markets by the Volatility Index, otherwise called the CBOE Volatility Index (VIX). Sometime trading makes the volatility as well. Rapid buying and selling for an example.
sr. member
Activity: 966
Merit: 275
May 16, 2018, 10:55:26 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.

Do you mean Bitcoin is volatile? I think because it's decentralize? No one is behind Bitcoin but only all the people that are using it.

Bitcoin’s price keeps changing so drastically because Bitcoin is still extremely new and misunderstood. The crypto king was born in 2009 but only gained its popularity in 2017. In one news I've read it says that most of the Bitcoin in the world are owned by a tiny group of people. It also stated that as of late 2017, about 95 percent of the cryptocurrency was owned by just over four percent of people with Bitcoin. So, if it's true these people have full control in the crypto market, in any moment they could release huge amounts of Bitcoin that will result in the value of Bitcoin.

Other factors that affect Bitcoin volatility, are fake news, FUD, reports on the crackdown of ICOs, regulations and banning Bitcoin in different countries.

hero member
Activity: 1008
Merit: 501
May 16, 2018, 10:13:23 PM
the main reason for bitcoin volatility, because there is limited supply of them and huge demand because of these 2 reason bitcoin price depends

indeed the bitcoin price is influenced by the developments and conditions of government that have an opinion about bitcoin, because at this time indeed bitcoin is changing every day, and all that is the right of government, whether the government approves the circulating bitcoin or vice versa.
I think the government has nothing to do with the fluctuations of bitcoin. it is true that the government may have an effect on bitcoin prices because of their policies but the government does not play a direct role in price volatility. I think fluctuations occur because the amount of demand and supply differs greatly
member
Activity: 532
Merit: 17
May 16, 2018, 09:43:14 PM
it is volatile because some countries doesn't allowed using bitcoin or cryptocurrency.
the uncertain regulations about cryptocurrency can fluctuates crypto price on the market.
full member
Activity: 551
Merit: 100
May 16, 2018, 04:39:51 PM
the main reason for bitcoin volatility, because there is limited supply of them and huge demand because of these 2 reason bitcoin price depends

indeed the bitcoin price is influenced by the developments and conditions of government that have an opinion about bitcoin, because at this time indeed bitcoin is changing every day, and all that is the right of government, whether the government approves the circulating bitcoin or vice versa.
newbie
Activity: 98
Merit: 0
May 16, 2018, 11:46:33 AM
#99
Well, I think BTC volatility can be explained in ECON study which is the most basic factor the supply and demand. Btc is already very popular which make up the growing population. As the time goes by the BTC demand goes beyond the target market while the supply is still as ease the  this factor brought a large impact to BTC volatility.
jr. member
Activity: 210
Merit: 1
May 16, 2018, 11:07:25 AM
#98
bitcoin is volatility / unstable there are several reasons:
1. Circulating his news
With the presence of its news factor factors whose impressions scare away bitcoin users could have an effect on bitcoin prices, such as government statements that Bitcoin is likely to be regulated.
2.ban / illegal bitcoin in a country
3. Market demand and its limited bitcoin,
whatever the reason for rising, falling, steady its price is not far from the trading system (its a lot of demand from the stock of goods / on the contrary) .
member
Activity: 215
Merit: 21
May 16, 2018, 10:56:10 AM
#97
the main reason for bitcoin volatility, because there is limited supply of them and huge demand because of these 2 reason bitcoin price depends
newbie
Activity: 29
Merit: 0
May 16, 2018, 10:44:00 AM
#96
Volatility is the only reason why it has not become popular as a currency. Only a limited people use it as a currency currently.
newbie
Activity: 184
Merit: 0
May 16, 2018, 09:48:54 AM
#95
When a measure of how much the price of a financial asset varies over time is what we call volatility. And the more volatile an asset, the more people will want to limit their exposure to it. Volatility is measured in traditional markets and volatility in bitcoin does not yet have a generally accepted index but we know that bitcoin is capable of volatility.
full member
Activity: 180
Merit: 102
dApps Development Automation Platform
May 16, 2018, 09:42:32 AM
#94
The only reason why bitcoin is so volatile in the market because we have holders out there that have a huge amount of bitcoin that doesn't want the majority of the people around the world to acquire them. I call that Selfishness to the highest level.
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