Topic: Why is bitcoin so unstable? - page 10. (Read 1987 times)

Simple.

Bitcoin = Digital currency/ not backed by government/ Decentralized / not considered as asset,stocks etc.

Gold = Precious metal/ Does have physical form.

You can compare the two but you cant really able to push that they are similar.Bitcoin price movement does always signify about supply and demand but we can actually
able to see the difference about price volatility.

Bitcoin is cryptocurrency. we use it from last some years.Other Hand gold  use from   many many years ago.so, gold is stable.

The whole concept of Bitcoin was not for it to be pegged to fiat or any stablecoin but to create a digital value that is void of interfernece from government agencies and international financial policies. The deccentralised technology leaves everything about the technology in the hands of the traders who at every point in time choose what to do and what to sell of their digital property, hence, the volatility of Bitcoin price.

With your argument, it can be added that gold are being use in more other things unlike bitcoin which mostly
use as store asset and payment transaction process.


More on speculations where bitcoin get its value, investors trust and adoptions coming from businesses make
more newcomers to have interest to invest
with this investment currency, the value depends from people who trusting the system unlike gold where it's
been decade far from the value that it have now.

Bitcoin was designed to have its price regulated by market forces adn not peged to any particular fiat or commodity. It is therefore at the mercy of traders to regulate the price and therefore expose it to volatile market forces. It will remain volatile thereby keeping the price unstable for a very long period of time and also proving to be a worthy investment for traders.

According to this website (link), $20 in 1900 is worth around $617 today so gold was indeed a good investment (inflation-adjusted) as it is priced close to $2000 today. The real price of gold is at a 3x premium currently since 1900. It is a great investment but not as much as you think as the dollar is a fiat currency prone to constant devaluation through excess printing and inflation.



Gold is a nine trillion dollar market currently. Losing 25% of its value would require a massive event that would result in liquidations of reserves of Central Banks.

Bitcoin's market cap is currently just a fraction of gold. Still, if you look close to Bitcoin's chart from the beginning the dips are less frequent and to a less extent as in the past. It is believed that in case Bitcoin manages to reach gold's market cap (~$450,000 per BTC) price will have way less fluctuation.

Perhaps a macroeconomist can shed light on this.

Bitcoin is a recent product of technology, an online entity, made with a volatile nature.
Gold, on the other hand, is an entity existing for centuries, which is much valuable.
These two cannot be really compared since their origin is very different.

Gold and BTC both have limited supplies but the only difference is that we are aware about bitcoins total supply in the world while we don't have any idea about the total number of gold.

Du to that awareness about their count, I must say that bitcoin is much volatile and can become more profitable in a short-period of time. While Gold is good for a long-term investment or holding because it is true that it has a changes in its price but not as huge as bitcoin. But if I will choose between the two, I will try to invest on them and prioritize the use of bitcoin much more.

That is actually good right? Since Bitcoin being unstable can provide lots of opportunities for us users investing on it. Some are saying that Bitcoin is the equivalent of Gold in the Digital world but we are now seeing some Alternate Cryptocurrencies that is being backed by Gold and that is some advancement in the Cryptocurrency Industry.

There are many reasons why bitcoin has become unstable, one of which is because Bitcoin is a new technology that is still unknown to ordinary people. The new technology will go through a hype cycle which at first was only known and used by a handful of people, then slowly the new technology is used by the general public and suddenly there will be some opinions that appear or with exaggerated statements about the new technology.

This is what makes bitcoin price very volatile, investing in Bitcoin will also affect emotions. A lot of good and bad news will be scattered around trying to influence the price of bitcoin.

I agree that Gold is also unstable like Bitcoin, but Gold is less volatile. Many people consider Gold stable, but the reality is not like that.
The price of Bitcoin is very volatile and unstable because it is new, so Bitcoin holders not as much as Gold. More and more Bitcoin holders
should be making less volatile, moreover many countries that legalize Bitcoin should the Bitcoin price be more stable.

Gold and bitcoin is not same thing here. Gold is familiar and running from ancient where bitcoin is new and many people are not familiar with bitcoin. That's why bitcoin is unstable.

Basically, there is a lot of speculation with Bitcoin. Everyone can be considered a speculator. It would just depend on what approach the person would do. Examples are

• Trader - Speculating always depending on the market trend
• HODLer - speculating that the price would go up
• Bounty Hunter - speculative approach to different projects
• Watcher - just spreading the news on what goes by with the crypto world, helping the hype

Depending on who you are would contribute the smallest amount on the market, but most of the movement comes from whales and trading bots for sure.

People who invested in gold in 1900 would be surely dead by now, so not a great investment if is pays off after you die. Moreover, people who invested in Bitcoin 10 years ago would have significantly better returns by now that those who invested in gold and waited for more than a hundred years. So the way I see it, gold is good for keeping a fortune, not making it. You can lose a bit, you can win a bit (if we're talking about reasonable time periods like a few years), so it's a safe bet (if you don't literally keep gold at home and get robbed, of course). With Bitcoin, you can lose a fortune, make a fortune, or end up with more or less what you've initially invested. So it's more risky, but also more rewarding.

Although gold is a limited natural resource, but gold will continue to be produced every day, week, month and year which will make it continue to grow. Whereas bitcoin only has a total supply of 21 million which makes it rare. If limited natural resources such as gold are no longer produced through mining around the world, I believe the volatility will be much higher than it is now.

Gold was already known and used ever since. Gold is a treasure from the nature, a real asset that you can touch and hold with a great value because of limited supply of it. You can't find it easily nor produce using your fiat money because is a natural resources. If we compare to bitcoin,they are both valuable and limited in supply but they are different in creation because bitcoin was created as a digital currency with a volatile elements in terms of it's value that's why it was not stable unlike Gold. But this volatility give us more profit through investing and trading much higher profit than owning one gram of gold. But always be careful because volatility can't only give you profit but also loses.

In fact, if you understand an asset that is truly real, proven, real and whatever is included in the nature of gold, then you will believe more. Gold is the highest caste that can be used as a measure of one's wealth in real terms.

If you compare gold with FIAT money, the difference is how to make it. Gold is obtained very hard and is a limited resource on this earth, even gold cannot be made by the money maker. Then, FIAT money, which is currently circulating in your wallet, is an object made by humans using paper media and the amount is unlimited. The more money is printed, the more devastated the price will be.

If you are aware, that it is not the price of gold that has gone up, but the price of USD has gone down. It can be confirmed that it is the result of the large amount of money printed today.

In Saudi Arabia, in ancient times, the price of a goat was 1 Dinar. And 1 Dinar money is made of 22 carat gold weighing 4.25 grams. And if you know, that in Saudi Arabia today the price of a goat is still 1 Dinar.

The dinar is made of gold, and gold is real currency. The quantity is limited, the ingredients are very difficult to find, the intrinsic value is clear.

Bitcoin can be a modern currency under the Dinar and it is very reliable if all BTC in the wallet which is said to belong to Satoshi Nakamoto is burned. The cause of bitcoin is not stable is a lack of trust. The total supply is already limited, but there are still giant wallets that control most of the circulating BTC.

Here we are again, gold and bitcoin, why bitcoin is so volatile and gold isn't when they are built for storing values. c'mon peeps.

These two were designed differently but they have the same purpose and that is to store value. Now the difference is how they are created, gold has intrinsic value which can be found in its material composition while bitcoin is powered by money, supply and demand. Don't get me wrong, gold is volatile too, its price moves up and down but the rate is not as the bitcoin has.

If you are considering on buying an of these, try to have a weigh in of which is which that suits your personality. Coz me? I'm a risk taker and will go for bitcoin.

Bitcoin is designed that way unlike gold or usd, bitcoin can easily decrease it's price pretty bad in just a day and can easily increase also within a day. It's price is
very unstable but if you are looking for stable currencies then there are many that are already existing right now like USDT and etc.

Bitcoin price are base on it's demand, once the demand will skyrocket within that day then it's price will skyrocket also but if some big holders will decide to dump their
holding within that day then the bitcoin price will surely to go down easily. This is the reason why many traders are making it as their opportunity to earn a profit.

What's up with you, why are you still comparing gold with bitcoin. look at their age, gold has existed since time immemorial and has been well received in the eyes of the world, while bitcoin, he is still young and is looking for a way to win and the world also still doubts its existence. The price of bitcoin changes very quickly, but behind all that, many traders take advantage of the price volatility to profit.