Topic: Why is bitcoin so unstable? - page 11. (Read 1987 times)
bitcoin has a low volume and high price, bitcoin was created to trade and dominate finance in cryptocurrency, many bitcoin owners prefer to trade bitcoins rather than long term deposits. because the price of bitcoin is very fast and it is too risky for those who store bitcoin long term. that is why bitcoin cannot be as stable as its position in crypto, for bitcoin prices remain unstable at any time
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?
Bitcoin can lose 500$ within one night. Gold can't. Why that?
Because gold has been traded for thousands of years, while bitcoin has existed only for 11. Like gold, bitcoin production is declining; unlike gold, it is with absolute certainty that no new sources will ever be found.
And, unlike gold, your gov cannot seize it from you, like the USA gov did for most of the 20th century.
You say "lose" but you seem to forgot it just "gained" $2000. On the other hand, there is also the thing you are comparing it against, the USD, is also going up and down as well... And, the politicians can duplicate and triplicate the number of existing USD overnight, while nobody can ever do that to bitcoin or gold.
The most controversial reason for the stability of Gold, is the market manipulation that are happening in the background by supposed large Gold cartels. Go read this book about the subject : The Gold Cartel: Government Intervention in Gold, the Mega-Bubble in Paper, and What This Means for Your Future - Author : Dimitri Speck // Publisher: Palgrave Macmillan UK ( Central banks don’t act on their own, but cooperate
with private institutions. )
I quote from the Book : " ‘We can hold the price of gold very easily.’ - Fed Governor Wayne Angell in July 1993
Now, with Bitcoin things are a little bit different, because the price is determined by actual supply and demand on the open global market. This makes manipulation a bit more complex and more difficult. (not saying it is impossible, because some Whales presumably still manipulate the Bitcoin price.. but this has not been proven yet.)
with private institutions. )
I quote from the Book : " ‘We can hold the price of gold very easily.’ - Fed Governor Wayne Angell in July 1993
Now, with Bitcoin things are a little bit different, because the price is determined by actual supply and demand on the open global market. This makes manipulation a bit more complex and more difficult. (not saying it is impossible, because some Whales presumably still manipulate the Bitcoin price.. but this has not been proven yet.)
Gold is another store of value, but not that unstable. It reached 2000$ 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?
Bitcoin can lose 500$ within one night. Gold can't. Why that?
For $500, it's also about how much gold you are talking about. There's no exact measure of what amount of gold is to be compared with 1 bitcoin.
If we were to talk about the percentage change, we have seen plenty of days with more than 5% of change in price for gold. In 11th August it dropped by 5%.
Another reason for sharper changes on bitcoin price could be due to it's 24/7 trading time while gold are trader for less than 12 hours a day.
Gold is another store of value, but not that unstable. It reached 2000$ 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?
Bitcoin can lose 500$ within one night. Gold can't. Why that?
Because it is the most traded crypto among those listed in the market, and bitcoin is not deisgn to be stable coin so expect that there are more volatile movement.
We are having same question for I am also interested to.know how the bitcoin market price will be dictated by its users as what they say that investors run the bitcoin system. We know that we have different bitcoin holdings and this is why how could bitcoin make a calculation when one sell part of bitcoin and how much the depreciation of value will apply to the others who are also holding bitcoin. I am really confuse but I know tha bitcoin is same as with money only that its value will vary always.
It the same with money but not controlled by anyone that's why we can see the price suddenly change quickly in single instant but what more unique from bitcoin is we can earn from its volatility and if you compare with fiat bitcoin is more promising since it can offer us more options interms of profitability.
We are having same question for I am also interested to.know how the bitcoin market price will be dictated by its users as what they say that investors run the bitcoin system. We know that we have different bitcoin holdings and this is why how could bitcoin make a calculation when one sell part of bitcoin and how much the depreciation of value will apply to the others who are also holding bitcoin. I am really confuse but I know tha bitcoin is same as with money only that its value will vary always.
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?
Bitcoin can lose 500$ within one night. Gold can't. Why that?
Before saying anything, you need to understand how the price of a particular thing affects.
The price of a particular thing (here BTC) affects , when there is a up and down in the supply.
In other words Bitcoin and many altcoins follow the tradition of supply and demand.
When the demand is more the supply of BTC becomes less, for which the price goes up, and when the demand is less and supply is sufficient then the price falls.
This is a general scenario through which we can expect the Price of any coin.
For this reason BTC is so unstable.
Hope this helps you OP.
As others said, gold isn't fully stable. You can see a recent bump and crash. Listen, gold is an asset and exist in real life, it's not a currency. Basically, you don't need gold to live. But currency is always needed. The main reason why gold is low volatility is, world population do not attempt to buy it at the same time and don't know buy pressure or sell pressure. But since Bitcoin is a cryptocurrency we can use it in our daily life since it has value. It's most volatile because the world's population could buy it at the same time and sell it at the same time. Holders are monitoring the buy/sell pressure and taking real-time decisions. That's how bitcoin becomes more volatile than gold. That's my opinion, others might not agree.
I'd say it's so volatile due to the number of people that are still in doubt whether BTC is a safe haven asset or not. If everyone used and looked at it the same way, things would have probably been different right now. And then, add the FOMO created every 4 years with the halvings. It cannot be very stable if we have some numbers changing every almost half a decade - price will always be influenced. Otherwise, a stable price for 8 years straight would result in miners giving up.
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?
Bitcoin can lose 500$ within one night. Gold can't. Why that?
I think BTC is new in market and also online transaction system that people did not use to like GOLD. On the other hand it has no fully global acceptance yet so that people can not fully trust on BTC. So when any bad news come investors feel fear in mind and they sell their holding BTC in low price so market gone to crash. But in GOLD that not happen anytime and its price is stable always. But we crypto lovers feel that gradually BTC price also will stable and we have to patience in mind.
thanks.
Because Bitcoin was created in 2008 whereas gold has been a store of value for thousands of years.
People who are holding gold or taking it as an asset for so many years would really have a huge advantage out of it. Bitcoin is only new and more fresh compared to gold, because there's no digital currency present before. They really have a lot of differences and one of it is that bitcoin is much harder to earn and obtain, it is much harder to mine compared to commodity.
Gold is not stable. It's just low volatility.
This is somehow true, compared to BTC's volatility, bitcoin is much harder to make as an asset, it is much harder to control and manipulate in the market, while if you have gold, you will just hold it and you will not interfere with it because it has a lot of potential to increase more from time to time.
While BTC can be manipulated depending on the market situation if it is good to have a transaction.
We just have this conversation and perception because we of too many hypeman on Youtube, Twitter and such that push the idea of "this time to the moon" or "1000%" gains soon" or "BTC to go to 5K?" or similar crap. Without that clutter we just could relax and watch the show knowing that it will rise more sooner than later anyway
Bitcoin is not still familiar to all kinds of people. Gold is older and familiar with most of the people where bitcoin is still young. That's why bitcoin is not stable till now.
do not equate the value of bitcoin with the value of gold especially with a stable currency, gold and currencies may have an unlimited supply, in contrast to bitcoin also because of its limited value. usually the price of bitcoin fluctuates just like stocks
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?
Try look at this situation from your own position. If you wanted to preserve value of you funds, what would you choose, an asset that has proven to be strong store of value, or new digital cryptocurrency, future of which is still uncertain albeit looking interesting and promising. If you choose gold than bitcoin is not ready to become store of value whatsoever. If you can't decide whether you should be conservative or risky, then you are in the process of understanding the current situation, this is a good sign. If you choose bitcoin over conservative and relatively safe asset, bitcoin is already store of value for you. When vast majority of people recognize bitcoin as store of value, meaning chose third option, bitcoin will no longer volatile. Other options make bitcoin like it looks now, most people are still in doubt. Decide for yourself what you want bitcoin to be for you and it will be so, don't wait for others because it might be too late to buy bitcoin when everyone already decide that bitcoin is good for storing value. Bitcoin can lose 500$ within one night. Gold can't. Why that?
Bitcoin and the cryptocurrency market are in their infancy compared to all other markets. First of all, bitcoin's widespread use in payments, in the reserves and application of the entire Crypto market is new and only being noticed.
Bitcoin is volatile in the 10% range and is heavily influenced by news. Besides, the manipulation of bitcoin investors greatly affects the value of bitcoin as well as the variation in the various derivative markets.
Bitcoin is volatile in the 10% range and is heavily influenced by news. Besides, the manipulation of bitcoin investors greatly affects the value of bitcoin as well as the variation in the various derivative markets.
Gold has been here for a long time already compared to bitcoin. Majority of country has gold reservers thats why gold was way more stable, volatility of gold is nothing compared to bitcoin bitcoin is decentralized plus the fact that bitcoins supply decrease ( by means of lost wallet) and increase in daily basis affects its volatility thats why bitcoin is really unpredictable.
Bitcoin is still currently increasing in supply, hence there's still changes with its price, not to mention that demand for it is currently increasing with more and more people learning about it, compared to how gold has been there for years already. Also, I wouldn't call gold stable, but rather less volatile than Bitcoin, by a LOT. It's like how there's already a steady foundation for Gold, so even if you lose some of it, the price would still remain around the same, and even if you add more of it, the same issue would occur, unless a great amount was added or reduced, which wouldn't happen due to its already strong foundation. Bitcoin on the other hand, something like a feeble foundation but the support, and the item it supports still continuously changes, hence why it's a lot more volatile.
~
Volatility.Gold has been here for a long time already so many investors have it already. Compare it to the investors of Bitcoin, gold has way more investors than Bitcoin thus it affects the volatility of the 2. Bitcoin can lose 500$ in one night yes because there are times where the only buyers are those rich people and institutions and they can pump and dump it if they want too unlike in Gold where there are many buyers so it is distributed.
Both are entirely different by the way of valuation. Gold through its rare availability got its value having years and years of history. This means it grew in a much slower phase, with no value during the early days. This is the reason why it is less volatile. Further it got its importance and the demand led to growth. This in turn is preferred as the reserve by most of the countries.
When we talk about bitcoin. It is technology based, and is completely manipulative. What it has reached in a short time period is much big compared to the gold. Fixed supply is another reason for the market volatility of bitcoin. Gold is spread around, with bitcoin there are whales who hold a big volume and manipulate the market which reflects as high volatility.
When we talk about bitcoin. It is technology based, and is completely manipulative. What it has reached in a short time period is much big compared to the gold. Fixed supply is another reason for the market volatility of bitcoin. Gold is spread around, with bitcoin there are whales who hold a big volume and manipulate the market which reflects as high volatility.
Jump to: