Why is bitcoin so unstable? | Bitcointalksearch.org

Tingtong

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Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

Gold price can not huge Increase in a day but bitcoin price can be moon in a day. Bitcoin and gold currency is different. When you need gold you buying but a trader regularly trade pump or dump.

fishbonez11

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Quote from: fauzan123 on December 08, 2020, 07:48:09 AM

Quote from: Tingtong on December 07, 2020, 10:57:44 AM

Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

If you go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

This instability is due to the amount of supply held by several large investors, so that the movement of bitcoin can rise very high and fall rapidly. Of course this is different from gold, where the value is taken from the price of mining oz, so that the movement is not too far away.

The price is all dependent to the supply and demand from the holders. There are also whales who can easily manipulate the price. Bitcoin also is still at its early stage to we can't expect a stable value. Bitcoin is volatile and thats how it works over the year. There are lot of available stable coins in the market if anyone need. Bitcoin's volatility is actually what other holders are taking advantage, they profit a lot from playing the price.

fauzan123

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Quote from: Tingtong on December 07, 2020, 10:57:44 AM

Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

If you go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

This instability is due to the amount of supply held by several large investors, so that the movement of bitcoin can rise very high and fall rapidly. Of course this is different from gold, where the value is taken from the price of mining oz, so that the movement is not too far away.

sayaya17

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Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Bitcoin can lose 500$ within one night. Gold can't. Why that?

Because we use it as an investment asset of speculation, the increase in the price of Bitcoin is indeed remarkable, but when it declines, the fall is also very deep.
So daily fluctuations in hundreds of dollars are common in Bitcoin. In contrast to the price of Gold, the most severe daily fluctuations are only a few tens of dollars.
Demand for Gold from thousands of years ago until now is very much. Besides individuals, a lot of demand from the industrial sector as well.
While Bitcoin is still new, and so far they have only used it as a means of payment and investment assets of speculation. Then the selling action against bitcoin is very high. It’s only natural that the value becomes very volatile. Thus, gold price movements are more stable than Bitcoin.

FlightyPouch

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Quote from: Tingtong on December 07, 2020, 10:57:44 AM

Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

If you go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

Gold is not as stable as you think. Gold is also volatile even in the past but the thing is that bitcoin is much more volatile than Gold. It will not always go up, it has its times when it is going down. It could also be affected by certain situations like what happened this year with the pandemic affecting millions and millions of people and businesses. You could lose some with Gold and you could also lose huge with bitcoin.

Tingtong

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Quote from: BlackHatCoiner on August 12, 2020, 10:53:56 AM

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

If you go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

FlightyPouch

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Quote from: Dsdaq on October 15, 2020, 05:11:49 AM

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

I disagree. I think the wider the adoption is, the higher the volatility will become. We never know what will happen but I hope that the wide adoption that we are talking about is already starting with Paypal accepting bitcoin. With a lot of users and transactions happening in the future, the price could fluctuate more hence making it more volatile.

cheezcarls

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It’s pretty simple. No one can control Bitcoin. Market is unpredictable and the volatility is very high. Unless if you want something stable, you can go with stablecoins that are backed by real assets such as gold, etc.

Banulit

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I think the main reason why bitcoin is so unstable not like gold is because of the market wherein it is being sold and traded. Crypto-market is very volatile that makes cryptos and most especially bitcoin to be more unstable not like gold. Also, bitcoin is an online asset and not tangible not like gold which makes potential investors to still have doubt and fear whether it is really worth to invest in bitcoin that also makes it stability so fluctuate unsteadily.

talshachar

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bitcoin is unstable because it's a stock behavior and not a coin, it's not a currency like everyone thinks. It's just like any stock in the stock market, in bitcoin you invest in computer power, that is the energy of the bitcoin. This is why Bitcoin has the highest value of all cryptocurrencies, because computer processing power is what backing it up, that computer processing power is sold secretly to governmental agencies as a cloud super computer.

catur123

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If you ask why?
This affects several existing problems, for example gold has a physical form and bitcoin does not. And one more thing gold and bitcoin have different markets.

Walterhank

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There are a lot of reasons why this is the case. Gold has been regarded as the best store of value for a long time and bitcoin was introduced not more than a decade ago. Gold is regarded as the stable source of income while bitcoin isn't, the market is also not properly regulated. The most important point according to me is that people still don't treat bitcoin as a currency but is being treated as a trading source and the profit is then converted back to fiat currency or other resources.

Crptomagma

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Gold is natural and it’s won’t be fair to compare Gold to a technology created in 2008 whereas Gold has been the store for value since since the beginning of the world. Gold is a natural mineral and is also controlled by the centralized government so Gold is basically not affected by the normal factors that affect bitcoin.

Bitcoin is not to be compared to Gold looking at the time, many people in some rural and even urban areas are not familiar with bitcoin and some still don’t know bitcoin and how it works but are very knowledgeable about Gold and it’s value. Gold is as old as man on earth while bitcoin as a technology is barely two decades.

Smeet

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Thats a really interesting point. In my opinion, I think BTC is a lot more unstable than precious metals because there is a lot more speculation and ease of transaction going on in bitcoin. If someone was to invest in gold and hold for a bit, they have to physically go to a buyer and hand it off in person in order to transact it. However in Bitcoin, everything is much easier to transact, which could lead to more volatility in the market?

I have heard that long term if / when bitcoin reaches higher prices, the volatility in the market should go down significantly.

shane_gr

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It can be said that bitcoin, gold, oil and dollars are each a separate thing and we can not compare them with each other.
Bitcoin has a separate identity and anyone can invest wherever they want.

sarmrakib

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Quote from: Gozie51 on August 12, 2020, 03:55:55 PM

Quote from: NeuroticFish on August 12, 2020, 02:16:03 PM

Gold is not stable. It's just low volatility.

You are right and indeed no trading commodity or even product can be stable because if it is stable, it won't have that trading attraction and therefore won't be traded. Bitcoin is highly volatile because of majorly no proper regulation.
Also, all of the point you raised in your postage good reason for bitcoin high volatile.

Bitcoin is always volatile that's why we love bitcoin .Crypto is a great platform and strong market as well which is better than Gold i think .So that the volatile market can give us a huge amount profit within a sec .that's why crypto and bitcoin is the best platform for investment .

Wisbrown

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Instability of Bitcoin make it a business because Bitcoin oscillate against fiat currencies, is the recognize store of value versus fiat currency

bryant.coleman

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Quote from: Dsdaq on October 15, 2020, 05:11:49 AM

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

Bitcoin can't be considered as some asset in the early phase of adoption. It is 12 years old, and we already have a user base of tens of millions of active users. May be it is time to admit that the volatility is an integral part of Bitcoin. There are several reasons for this volatility. The lack of a centralized authority is one of them. But should we be concerned about the volatility? IMO, we shouldn't.

ichi

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Bitcoin is unstable and it can go as high as it can expedite and the other way around. In any case, that quality of bitcoin is the thing that makes it essentially astounding.

You purchase low, hold it, and stand by until you see the value you need to sell. Also, another valid justification for having it is that you can be essentially calm. No one will realize that you have bitcoins and its stockpiling is anything but difficult to keep and bring wherever you need. In contrast to gold, it burns-through space and weight.

Alamin1444

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Dear sir, you can't compare Bitcoin with Gold cause both are Different. Gold Value increasing So slow you know that & gold is So Old, But BTC just Release on 2008 & In 10/12 year it’s increase so much even Satoshi Nakamoto Can't even imagine that! That's why we see so Volatility in BTC market. But Don't worry in a few years the Problem will fix, when Every GOV hold/Accept BTC or start work with BTC.

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