We know that Gold is a real asset that has always been an investment for the majority of people in the world. The price of gold continues to increase from year to year. Even though the price has increased only slightly, gold is still a safe investment option because its price has never dropped sharply. And the supply of gold on earth from ancient times can still be mined until today.
Meanwhile, Bitcoin is a digital asset that has a limited total supply, and is hard to come by. As well as in its use in the digital world, Bitcoin is very useful in various crypto transactions. Meanwhile, the Bitcoin price itself is volatile, depending on the buying and selling transactions of these Bitcoin traders.
Topic: Why is bitcoin so unstable? - page 12. (Read 1987 times)
Most countries back up with Gold as their reserve which will make its volatility to be minimal. Few people control Bitcoin price in time of movement, until their is a widely adoption where we have equilibrium distribution, this craziness will not end soon. Gold is less volatile and it happen on a rear occasions but BTC is unpredictable due to lack of regulation which makes reporting from most exchanges questionable.
Bitcoin is very volatile and it can go as high as it can overnight and vice versa. But that characteristic of bitcoin is what makes it simply amazing.
You buy low, hold it, and wait until you see the price you want to sell. And another good reason of having it is that you can be simply low-key. Nobody will know that you have bitcoins and its storage is easy to keep and bring everywhere you want. Unlike gold, it consumes space and weight.
You buy low, hold it, and wait until you see the price you want to sell. And another good reason of having it is that you can be simply low-key. Nobody will know that you have bitcoins and its storage is easy to keep and bring everywhere you want. Unlike gold, it consumes space and weight.
It's unstable because of many reasons.
Only small amount of all bitcoins in existence is traded and prices depend on the average from a few biggest exchanges.
Bitcoin is still following trends in global economy. If stocks fall cryptocurrencies will follow like they did during the pandemics.
Only small amount of all bitcoins in existence is traded and prices depend on the average from a few biggest exchanges.
Bitcoin is still following trends in global economy. If stocks fall cryptocurrencies will follow like they did during the pandemics.
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?
Why are people still comparing bitcoin with gold! Bitcoin is new over here. It is still in its infant stage. So much to develop. People have adopted the usage of gold. We are yet to adopt cryptocurrencies and make it main stream. Gold isn't stable. The price does go up and down, but less volatile compared to bitcoin. Where as any news or event might affect the price of bitcoin since the future of bitcoin itself isn't clear. You should look at the long run results. If bitcoin ever gets accepted like gold, we will be seeing that bitcoin is less volatile. Bitcoin can lose 500$ within one night. Gold can't. Why that?
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.
Gold is not stable. It's just low volatility.
Bitcoin volatility is indeed high. Altcoins' is even higher.
Why? This is a difficult question. It is a combination of multiple "problems":
- Bitcoin is still young
- the market is not properly regulated
- the exchanges don't report correctly the volumes
- rich entities, trading bots and social media manipulation can affect the price heavily
- possibly other problems I didn't think of
Bitcoin volatility is indeed high. Altcoins' is even higher.
Why? This is a difficult question. It is a combination of multiple "problems":
- Bitcoin is still young
- the market is not properly regulated
- the exchanges don't report correctly the volumes
- rich entities, trading bots and social media manipulation can affect the price heavily
- possibly other problems I didn't think of
Basically, Bitcoin's future is very unclear. It may become more widely adopted, it may stagnate and keep being a niche tool for certain groups, it might even lose users with time. It also may get banned by more government, or maybe more governments will regulate it and allow to use. This uncertainty makes it nearly impossible to make a good prediction about Bitcoin's future, so people are just guessing, and guessing causes these speculative bubble cycles. It's a feedback loop, because speculation fuels more speculation, a lot of investors come to Bitcoin to simply ride the waves of bull/bear cycles.
With gold, there's nothing to speculate about. Stocks can be analyzed with calculations. Commodities can be analyzed too. Currencies have central banks to support their price.
With gold, there's nothing to speculate about. Stocks can be analyzed with calculations. Commodities can be analyzed too. Currencies have central banks to support their price.
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?
Another reason besides the one stated above is that the supply of bitcoin is inelastic, what does this means? In the case of gold we do not really have an idea of how much gold is still buried underground, we have estimations but now thanks to new technology we can extract gold from below the sea, and as such you have virgin territory that could be full of gold.Bitcoin can lose 500$ within one night. Gold can't. Why that?
In the case of bitcoin we know how many coins will ever exist and unless there is a fork that changes this that amount will never change, this means that as soon as there is a change in the demand the supply side is unable to keep up with it and this increases the volatility, and when you add that there is only a few million people using bitcoin in a world of seven billion this means that the volatility is nowhere close to come to an end and you must accept this even if it seems as if you do not like it that much.
If the gold's price was stable, a chart would be like this all the time.
(Yep, I'm a charts expert, glad you noticed it
)
But that isn't the case at all.
There is a big difference between something stable and something less volatile. The fact is, gold is not so stable but has much less volatility compared to Bitcoin.
While you say gold doesn't lose $500 as it does with Bitcoin, that's not entirely true. Firstly $500 for BTC is not the same for gold as they don't have the same value basically. You need to talk with percentages, not monetary value.
Now continuing with your argument, you're wrong, as it happened gold has taken a big plunge, just like it did in 2013. On Comex, the fall in 1 session was close to 10%, the biggest drop in 30 years by the way.
Perhaps it happens less often than BTC but it really happens
(Yep, I'm a charts expert, glad you noticed it
)But that isn't the case at all.
There is a big difference between something stable and something less volatile. The fact is, gold is not so stable but has much less volatility compared to Bitcoin.
While you say gold doesn't lose $500 as it does with Bitcoin, that's not entirely true. Firstly $500 for BTC is not the same for gold as they don't have the same value basically. You need to talk with percentages, not monetary value.
Now continuing with your argument, you're wrong, as it happened gold has taken a big plunge, just like it did in 2013. On Comex, the fall in 1 session was close to 10%, the biggest drop in 30 years by the way.
Perhaps it happens less often than BTC but it really happens
You have to keep in mind that Gold has been around and used as a form of currency for thousands of years. It's been used by modern day governments as a back to their currency. Gold has physical real world uses to boot. Bitcoin is a cryptocurrency in it's infancy. Stabilization will take time.
Because Bitcoin was created in 2008 whereas gold has been a store of value for thousands of years.
Gold is another store of value, but not that unstable. It reached 2000$ 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?
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