Why is bitcoin so unstable? - page 6.

HiringYou

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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?

In my opinion the main reasons for the volatility of Bitcoin are -:

It's decentralized nature.There is no single authority to regulate it so no one can decide a ceiling and floor for it's price.
The second reason is the limited supply and the varying demand of Bitcoin.No matter how high the demand is, the supply will be the same which will automatically increase the price.
The manipulations done by whales according to their convenience is one more reason for the fluctuations in the price.

On the other hand if we talk about Gold then it is a centralized asset ,less volatile, has a clear demand pattern and the supply is also not limited which makes it more stable.

Xembin

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Basically, there are some reasons bitcoin is unstable such are:
1) New: Bitcoin is not to popular like gold, gold has been existing and well know in the world stable in all transaction.
2) Population: Bitcoin is unstable because is not to popular compare to gold that many people have been using over many years for business and other things.
3) network: network is one of the reason bitcoin is unstable,bad network can make your Bitcoin unstable.

skarais

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Quote from: kerjakuat on September 06, 2020, 01:04:20 PM

We all aware that bitcoin are completed controlled by our own decision and sometime we also can make a lot of mistake that might losing our own money because of a lot factor like getting scam or losing or private key. Its was a high risk rather then gold that has it own physical values and can be stored in the bank in case we want it to be saved and can be insurance if it get rob.

I think you've said the right thing that bitcoin carries a higher risk than gold. In some cases, gold may be superior but bitcoin is much better as an international payment system. These two asset have their advantages and disadvantages but it is not advisable for anyone to invest in bitcoin if they are not willing to take risks.

kerjakuat

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Quote from: cheezcarls on September 06, 2020, 12:44:33 PM

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?

For me, it's because Bitcoin has a finite supply of just 21 million compare to our local currency that has unlimited supply. Plus, no central authority are taking control of this cryptocurrency because it is operating under a decentralized technology in the form of blockchain.

These are some of the factors regarding Bitcoin's unstable price. Anyone, even a kid, can own Bitcoin rather than the traditional stocks which are centralized and limits only to the accredited investors. As we fully control our own decisions, that's where volatility is high depend if it goes high or low.

We all aware that bitcoin are completed controlled by our own decision and sometime we also can make a lot of mistake that might losing our own money because of a lot factor like getting scam or losing or private key. Its was a high risk rather then gold that has it own physical values and can be stored in the bank in case we want it to be saved and can be insurance if it get rob.

cheezcarls

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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?

For me, it's because Bitcoin has a finite supply of just 21 million compare to our local currency that has unlimited supply. Plus, no central authority are taking control of this cryptocurrency because it is operating under a decentralized technology in the form of blockchain.

These are some of the factors regarding Bitcoin's unstable price. Anyone, even a kid, can own Bitcoin rather than the traditional stocks which are centralized and limits only to the accredited investors. As we fully control our own decisions, that's where volatility is high depend if it goes high or low.

BITCOIN4X

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Quote from: john_nautica on September 06, 2020, 11:17:22 AM

Indeed, volatility is what makes Bitcoin attractive to other people, because of the possibility of gaining more than what you invested when its value increases. While Bitcoin has the potential of becoming really profitable, its value is dependent within the community it has right now. Any activity of this Bitcoin owners will affect the supply and demand so as the value.

Right, volatility can cause losses for traders and investors as well as can provide profit. Bitcoin and other crypto asset have never been stable because thats how people trade them. Supply and demand continues to influence the price of this asset and whenever demand increases, the price continues to increase and vice versa.

Bitcoin price is very difficult to predict but every development always gets a positive response on the market. Bitcoin and altcoin trading should be done with caution as it is very risky. Every trader can only minimize risk but can never eliminate it. I thought you knew about this.

john_nautica

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Quote from: RokokGudangGaram on August 25, 2020, 07:51:09 AM

Quote from: Kong Hey Pakboy on August 25, 2020, 06:08:09 AM

Quote from: Shasha80 on August 24, 2020, 06:56:14 PM

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.

Good point. You can always look at this on the negative or the brighter side. As stated by the many its volatility is a factor why many are engaging with it and with the right timing of making decision it becomes profitable.

Indeed, volatility is what makes Bitcoin attractive to other people, because of the possibility of gaining more than what you invested when its value increases. While Bitcoin has the potential of becoming really profitable, its value is dependent within the community it has right now. Any activity of this Bitcoin owners will affect the supply and demand so as the value.

junnar1968

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One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin's price is so volatile because of speculation. While it's possible to buy physical goods with Bitcoin in some places, the large majority of Bitcoin transactions are still investment based. As such, people buy and sell Bitcoins like they would any other investment.

Wratheye

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What external factors affect Bitcoin for all other currencies?

yazher

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The difference is only whales who holds a huge amount of BTC and gold are scattered to every country out there. doesn't really matter if one country sold all their golds to some other currencies the price will not budge like what we have seen on bitcoin. Bitcoin on the other hand has some disadvantages because when the whales decide to sell their BTC in one shot, you can see the red blood market at once. not only BTC but the other cryptocurrencies as well. The volatility in Bitcoin is more crucial than gold because only a few have owned it compared to gold. even my grandma has some gold you know Grin

RokokGudangGaram

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Quote from: Kong Hey Pakboy on August 25, 2020, 06:08:09 AM

Quote from: Shasha80 on August 24, 2020, 06:56:14 PM

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.

Good point. You can always look at this on the negative or the brighter side. As stated by the many its volatility is a factor why many are engaging with it and with the right timing of making decision it becomes profitable.

jerrison

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The business as relates to trading and gives bitcoin the so much acclamatized fame within the market sapce lies in the instability of the financial value of bit. It enables bitcoin trading to be profitable and thereby creating an avenue for people to trade and make money and also encourage massive adoption. Just ensure to gather sufficient skill set adnuse the instability to your advantage.

Kong Hey Pakboy

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Quote from: Shasha80 on August 24, 2020, 06:56:14 PM

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.

Shasha80

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Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

FlightyPouch

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Quote from: ?? on ??

we cannot compare bitcoin with gold or other currencies due to some reasons. All countries around the world have their reserve in terms of Gold and gold is a real asset But Bitcoin is an internet currency. unless Regulations are made in Bitcoin, it will remain unstable. After regulation in world we may expect its stability.

Bitcoin is not just an internet currency, it is a digital currency. Regulations may seem pretty good but it will not tell us how stable the price will be in the near future. It will secure the users in that country, it may boost adoption and that also means having great price changes. Because of bitcoin being decentralized, I don't think we will be seeing it not volatile.

Sebas.tian

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Bitcoin is not stable because is wan designed in such a manner, although things can be slow when global adoption set in. Bitcoin being a speculative asset can't be find stable like gold, good isn't a speculative asset like Bitcoin, so, don't be surprise at their level of volatility. Also remember that, gold itself isn't stable because its curve isn't straight. Gold is less volatile than Bitcoin but comparing their existence, gold has been around and Bitcoin just came into play and can be stable as time goes on.

Xembin

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Because is not too popular like gold,gold has been in market over a years, stable in investment. Bitcoin is not too popular like gold,bitcoin can go up anytime and drop value anytime.

azmirihaque

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How you compare gold with bitcoin now. Gold is used all over the world as a valuable metals and as a store of value from hundreds of years ago. Bitcoin is a new comer and it has come to the market only few years ago. One day will come when Bitcoin will lead all the market and its value will be more stable

kerjakuat

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bitcoin is very volatile mean while gold is more stable right now as the demand are always high. the supply of gold are very high but still they can manage the gold demand in top because the government are ready to backup gold if falling down. Bitcoin are more independent it has it own market and mostly or likely the market are being controlled by whales. Never know if it real or not but yeah who know if it real or not.That why the price are very volatile. Buy and sell are in hand of the investors totally..

roadrunnerjaiv2025

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Quote from: LeGaulois on August 12, 2020, 11:30:50 AM

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 Cheesy

)

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

This is quite helpful. Thanks for this. I'll have to read further on stability and volatility to better understand their relationship. ;-)

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