Topic: Why is bitcoin so unstable? - page 7. (Read 1987 times)
I believe when the first gold has found peoples still not interested to buy high as they do not know what gold can be used for. Back on it ages gold just like bitcoin where the community support the used of gold and long time past peoples now accepted the used of gold and what it can offer to the society. It just like bitcoin where now bitcoin still new and peoples still do not know what is the truth used for bitcoin tech. They scared to use bitcoin because they still doesnt know how to used bitcoin but this will be changed as the new generation will adapt to this tech and start to used this tech for their daily life which mean will bring a mass adopt to all over the world. its just a matter of time bitcoin will be accepted to the whole world.
Well, all assets started as unstable. But in reality there's no stable asset class. Even fiat is not stable. But the reason bitcoin is not stable is simply because it is a new asset class. People are still finding it's real value, it is called price discovery. Since it is very new, it is still finding it's stability. But overtime, maybe after all the coins were mined, it will become stable. When most people are using it. But such is the nature of bitcoin, it is still speculation. Even though it has use case -- transfer of value, it is still speculation currency. Who knows. Maybe hundred years from now, it will become the defacto currency of the world or maybe it will lose it's value and go down to zero. Who knows right? But in the next coming halvings, I think it will reach it's relative stability. As of now, if that is what you are looking for. You're not in luck. Better yet, play with it's instability as long as you can, you can earn from the spread.
Bitcoin's price movement history has made many investor afraid to keep holding bitcoin from their investment place. As you can remember when bitcoin's price touched its all time high $20.000 and fell to $3500 as its all time low has made the investor believe that he may need to think a thousand time to sell them when he has got profit.
It would be different in gold who didn't have the history's bitcoin price movement and also some factors like gold has been considered as safe heaven place to store money will make its investor comfortable to hold their gold in any situation. But, we just need a few time again to see it in bitcoin, after many instutional start to invest in bitcoin and also future market will make bitcoin more stable.
It would be different in gold who didn't have the history's bitcoin price movement and also some factors like gold has been considered as safe heaven place to store money will make its investor comfortable to hold their gold in any situation. But, we just need a few time again to see it in bitcoin, after many instutional start to invest in bitcoin and also future market will make bitcoin more stable.
does it means all btc must be mined for that stability to happen ? why this doesnt apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .
gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.
Gold is much older than bitcoin and also is wayyyy more trusted and also been there for centuries than bitcoin, so the general public always trusts gold more than bitcoin. gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.
Bitcoin will also become more stable once enough number of the users are present in the system. Also by that time I believe that bitcoin price would have reached at least $100k for sure. Still a very long way to go for the price to become more stable.
Bitcoin still can be controlled by a big whales that can be manipulated the market while the gold has a stable market then bitcoin where the price can go up and down very fast.. I prefer more to gold in a stable investment but it will take a very long time to reach financial freedom.
You are free to choose the best instrument you want to invest between bitcoin and gold. Bitcoin is very volatile because of its total supply and many people continue to speculate about its price. I think gold has had its up and down, but not as big as bitcoin. The price of gold is more stable than bitcoin even though gold is a finite natural resource. You dont need to force yourself to invest in bitcoin or altcoin if you don't dare to take the risk of loss.
According to onlygold.com - history of gold,
the first use of gold as money occurred around 700 B.C.
meanwhile
satoshi nakamoto designed the original bitcoin protocol in 2008 and launched the network in 2009.
the first use of gold as money occurred around 700 B.C.
meanwhile
satoshi nakamoto designed the original bitcoin protocol in 2008 and launched the network in 2009.
Bitcoin still can be controlled by a big whales that can be manipulated the market while the gold has a stable market then bitcoin where the price can go up and down very fast.. I prefer more to gold in a stable investment but it will take a very long time to reach financial freedom. So bitcoin will be good to get fast income as it was high risky gameplay but a big profit in return..
does it means all btc must be mined for that stability to happen ? why this doesnt apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .
gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.
My guess is that it still remains as a highly speculative product since it's still not widely adopted like gold. In my country, I have yet to see a merchant that accepts Bitcoin.
But who knows once the supply starts dwindling (and hopefully it would see more usage by then), things might settle down because those lost Bitcoins could never be recovered and people start taking it more seriously.
I think the cryptocurrency market is always volatile; This is a normal thing. Bitcoin as a digital currency has no regulatory authority, its supply is limited, its price is determined by the market based on demand. There is also positive news and negative news that greatly influences the rise and fall of bitcoin prices in the market through social media.
Gold, on the other hand, is a store of visible wealth. Governments in many countries reserve gold as a reserve. Like the fuel oil, the gold market is also regulated internationally. Governments play a role in controlling the price of gold.
Gold, on the other hand, is a store of visible wealth. Governments in many countries reserve gold as a reserve. Like the fuel oil, the gold market is also regulated internationally. Governments play a role in controlling the price of gold.
On comparing the Bitcoin with gold, it is crystal clear that gold is being used from ancient times also in the form of currency, whereas bitcoin was being invented around 2008. Every type of commodity needs time to stabilize its value in market. We can not surely say that bitcoin will never stabilize, it will take much time to settle and make itself exist in the market. To conclude, I would like to say that bitcoin will also become stable one day but only thing it require is time nothing else, so we should give it sufficient time and also to people who invest in it to recognize this currency.
That would take years, since the supply of the 21 million hasn't been fully reached yet.
does it means all btc must be mined for that stability to happen ? why this doesnt apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .
gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.
On comparing the Bitcoin with gold, it is crystal clear that gold is being used from ancient times also in the form of currency, whereas bitcoin was being invented around 2008. Every type of commodity needs time to stabilize its value in market. We can not surely say that bitcoin will never stabilize, it will take much time to settle and make itself exist in the market. To conclude, I would like to say that bitcoin will also become stable one day but only thing it require is time nothing else, so we should give it sufficient time and also to people who invest in it to recognize this currency.
That would take years, since the supply of the 21 million hasn't been fully reached yet.
I think bitcoins have a low market cap and not many large institutions own them. Bitcoins trade on exchanges lower than the bitcoins stored in wallets so they are more susceptible to manipulation. The gold market is very large, countries own gold, investment funds own gold. Above all, gold is not as easily stolen as bitcoin. Bitcoin has been taken away from cryptocurrency exchanges in large numbers over the years. As long as news of a cryptocurrency exchange is stolen, bitcoin will instantly depreciate.
The problem here is that bitcoin's liquidity is lower than gold.
The problem here is that bitcoin's liquidity is lower than gold.
On comparing the Bitcoin with gold, it is crystal clear that gold is being used from ancient times also in the form of currency, whereas bitcoin was being invented around 2008. Every type of commodity needs time to stabilize its value in market. We can not surely say that bitcoin will never stabilize, it will take much time to settle and make itself exist in the market. To conclude, I would like to say that bitcoin will also become stable one day but only thing it require is time nothing else, so we should give it sufficient time and also to people who invest in it to recognize this currency.
Since the beginning of the world, gold has been very effective in usability, usefulness, and determination of money. Being a natural resource, people are not yet aware of its demand and supply. But there is no doubt that it is a valuable asset. Bitcoin - online-based money and it's management system are not well yet and its values are not risk-free. So it has not still become stable.
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?
You should first understand that Gold is a mineral (natural resource) and Bitcoin is a digital entity based on a decentralized ecosystem where its market value is determined by the entire people on the platform or blockchain network. The unstable nature of Bitcoin is due to the fact that everybody in the bitcoin ecosystem can influence the market value so far as they have enough of Bitcoin. Decentralization of the Bitcoin ecosystem is the cause of the unstable nature of Bitcoin.
2. Bitcoin cannot be as stable as gold because it has not been generally accepted. Until bitcoin is accepted by everyone can it be as stable as gold. Until then, we'd have to make do with the volatility of bitcoin.
It is starting to be accepted by many people and the acceptance is the same as gold, being a store of value. Just like the early days of gold, being a means of transfer and payment but turned out into an asset and store of value. We are seeing the transition of bitcoin as the same as gold.More of today, it is being considered as an investment and store of value than a payment although it's not ignored as a payment because we're still using it as it is.
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?
It's too new, the more people adopt it the more stable it becomes. We're still in the early adopters stage
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?
You have to take into account many factors, although bitcoin has a lot of similarity to gold.
1) Gold has been used for hundreds of years as a value asset, in recent years it has become a liability but its value is stable basically because its market is already mature.
2) Although bitcoin is perhaps at its highest peak since its creation, it has not yet diversified enough to be stable, for example if you look at more than 65% of circulating bitcoin are in the first 50 wallets. What does this mean? that large holders move the price to their advantage, so probably once you find a fair distribution the market will be "stable".
Bitcoin is still unstable unlike gold because of certain factors.
1. Gold has been here for thousands of years while bitcoin and crypt I currencies are relatively still very young.
2. Bitcoin cannot be as stable as gold because it has not been generally accepted. Until bitcoin is accepted by everyone can it be as stable as gold. Until then, we'd have to make do with the volatility of bitcoin.
1. Gold has been here for thousands of years while bitcoin and crypt I currencies are relatively still very young.
2. Bitcoin cannot be as stable as gold because it has not been generally accepted. Until bitcoin is accepted by everyone can it be as stable as gold. Until then, we'd have to make do with the volatility of bitcoin.
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.
This is very interesting, I have previously expressed an opinion like thisbut in my opinion the price of bitcoin will never remain stable like gold unless bitcoin is recognized by all countries in the world and can be used anywhere
There is also a possibility that bitcoin cannot be used as a daily transaction tool due to too expensive fees and slow transaction speeds
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