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Topic: Why is bitcoin so unstable? - page 8. (Read 1987 times)

legendary
Activity: 2450
Merit: 4415
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August 17, 2020, 12:06:22 PM
#92
Also, there are many whales controlling the bitcoin market with huge amount of bitcoins they got years ago with ten dollars or even less.
What made you think early adopters of bitcoin would be pumping and dumping the price of bitcoin? That fact that they bought bitcoin when it was cheap rather speaks for their foresight, they were believing bitcoin would succeed and they have been right so far. I doubt the goal was to speculate and manipulate the market when bitcoin is valuable enough. My guess is we have unstable market nowadays is mostly because very few people have the same confidence as early adopters had. They are still uncertain if bitcoin will be demanded in the future. Moreover, it may be the most people are wrong and the time for early adoption is not over yet. People still have plenty of time to buy cheap bitcoin and become early adopters in case it stays here for centuries.
hero member
Activity: 1764
Merit: 722
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August 17, 2020, 11:30:32 AM
#91
Because Bitcoin and crypto market both are still too young and the total marketcap is not high enough. That's why anyone with million dollars of money can easily dump or pump the price. Also, there are many whales controlling the bitcoin market with huge amount of bitcoins they got years ago with ten dollars or even less. By the way, in my own idea after a few years, maybe we will see bitcoin in more stable situation.
sr. member
Activity: 1400
Merit: 269
August 16, 2020, 08:09:48 PM
#90
Gold is an established asset, many Institutional investors and Governments trust it given its been around for more than thousands of years.
While Bitcoin is a child asset and only been around for more than 20 years, surely with its new innovative technology and much harder concept to understand by the old business men, in their perspective its nothing but a bubble asset, that will pop anytime soon.
sr. member
Activity: 1274
Merit: 261
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August 16, 2020, 05:11:28 PM
#89
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.

   Nonconformist you are right, there isn't a stable asset, every asset fluctuate according to supply and demand. Except the reasons
you mentioned there is one more thing, crypto-market is a free market! In free market you will have fluctuations, where anyone
will create buy and sell orders as they pleased.
   As long-term holder I am not obsessed with daily and weekly changes. Traders will speculate, holders will hold!
hero member
Activity: 1666
Merit: 502
August 16, 2020, 04:59:14 PM
#88
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?
Because it is based on supply and demand, this has become the market logic of how much demand but limited supply. Especially bitcoin is decentral where there is no special organization that has the power to make bitcoin stable. Gold has a government behind it because and the price is indirectly based on the economic conditions of the country.
sr. member
Activity: 1162
Merit: 450
August 16, 2020, 11:29:22 AM
#87
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)
Just also think those people who invested on bitcoin when it's value is below 70 dollars  and decided to hold it for a long term until it reached thousands of dollars in value.
How much do you think they profited? The Return Of Investment is so high if you will think of it. Gold's ROI is compared to the ROI of BTC.

Quote
Bitcoin can lose 500$ within one night. Gold can't. Why that?
It is because bitcoin is much much volatile than gold in fact it can also gain more than that or even lose more than that.
sr. member
Activity: 1246
Merit: 261
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August 15, 2020, 07:27:57 PM
#86
Gold is much more ahead compared with Bitcoin and technically we couldn't be paired it because the distance between each value of resistance is not the same with a normal stage due to the interval. Instantly, the position of gold already has a synchronize motion as a physical source as well it also remains an unstable and limited collaboration. Normally, Bitcoin is unstable with the caused of volatility system, but financially it is ready to pair and working faster to each process which seems with the unlimited transaction even though it is totally young.
full member
Activity: 332
Merit: 103
August 15, 2020, 06:39:01 PM
#85
Why do you ask such dumb assey questions? >.< Do you really need to know this or are you just doing it for the sake of making a post?

Crypto is new. (only 10 years old) gold is ancient. This is enough in itself to answer you.

There simply are not enough people using crypto like there are fiat that is why it price rocks like that. TO change the price of fiat you will have to make a massive amount of money that can offset an entire worlds trading currencies. TO make the dollar go up or down you will effect every other currency too and that is a massive capital. Bitcoin has a much lower capital so a few whales can manipulate the price.
legendary
Activity: 2296
Merit: 1014
August 15, 2020, 06:37:16 PM
#84
Bitcoin can lose 500$ within one night. Gold can't. Why that?
Bigger market capitalization in short and goverments store their value in gold currently.
This is simple answer, in reality Bitcoin is not as violatile as people see watching price graph 30 times daily.
If you would check price of gold in similiar way of bitcoin it would turn out very closer as you would think.
brand new
Activity: 0
Merit: 0
August 15, 2020, 04:33:12 PM
#83
It is too difficult to compare bitcoin and gold. Gold has been used for a long time while bitcoin is an innovation.
full member
Activity: 726
Merit: 100
August 15, 2020, 06:32:10 PM
#83
The increase in gold is very long and even though gold has increased, you cannot directly pump it to a price above 10%, only a few percent. and most people prefer gold for long term investment not for trading, so I think gold is different from bitcoin. because bitcoin is basic for short-term trading and the price is fast changing
full member
Activity: 798
Merit: 100
August 15, 2020, 11:16:51 AM
#82
Bitcoin isn't Gold, mate. Why do you compare Bitcoin price with Gold value? Anyway, as an investor, I prefer to buy a coin with high volatility than buy a coin that has a stable price. The stability in price means a small chance to get a bigger profit. I think instability in Bitcoin's price isn't something bad at all. Not only about the decrease, but the price also can increase significantly only in a short time. So, you actually can take advantage of the instability in Bitcoin price to a high profit, not only a risk.
for some people compare bitcoin with gold because they are the same for investment. but the difference is stable investment gold and unstable bitcoin. yes as you said if we choose stable coins our profit is small but low risk. However, if you choose a coin with high volatility you will get a big profit but a high risk. and gold is at low risk, while bitcoin is at high risk
hero member
Activity: 2128
Merit: 532
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August 15, 2020, 08:55:54 AM
#81

I taught bitcoin was established in 2009 instead of 2008, although gold has been into existence before creation or discovery of bitcoin, and them gold has more values.

It was invented in 2008 but started to circulate in 2009.
member
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August 15, 2020, 08:31:09 AM
#80
Why bitcoin is unstable? It's because it was created with that feature or characteristic. And everyone earn profit because of that. We can't compare bitcoin in Gold because they are far different. Gold is from the nature and it is already exist from the beginning while bitcoin was just created by a person last 2009. They have both limited supply but still they are different.
sr. member
Activity: 1638
Merit: 300
August 15, 2020, 08:01:54 AM
#79
Because Bitcoin was created in 2008 whereas gold has been a store of value for thousands of years.

...although gold has been into existence before creation or discovery of bitcoin, and them gold has more values.

And that length of time that gold existed can also prove how it is also unstable. Bitcoin is still a newborn comparing to the years gold is used but even though with its instability, in the long run, it is also giving stable profits to people that is why more and more people are drawn to it. Gold may be stable in the long run too but bitcoin can give more profit from it but with a higher risk.
hero member
Activity: 1498
Merit: 711
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August 15, 2020, 05:58:18 AM
#78
Because Bitcoin was created in 2008 whereas gold has been a store of value for thousands of years.

I taught bitcoin was established in 2009 instead of 2008, although gold has been into existence before creation or discovery of bitcoin, and them gold has more values.
legendary
Activity: 2226
Merit: 1086
duelbits.com
August 14, 2020, 04:47:31 PM
#77
Bitcoin isn't Gold, mate. Why do you compare Bitcoin price with Gold value? Anyway, as an investor, I prefer to buy a coin with high volatility than buy a coin that has a stable price. The stability in price means a small chance to get a bigger profit. I think instability in Bitcoin's price isn't something bad at all. Not only about the decrease, but the price also can increase significantly only in a short time. So, you actually can take advantage of the instability in Bitcoin price to a high profit, not only a risk.
sr. member
Activity: 1638
Merit: 278
August 14, 2020, 03:00:19 PM
#76
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?
You are talking about those who invested in Gold at the rate of $20 in 1900, and you forgot that the Bitcoin you’re seeing today that is worth well over $11,000 was once sold for even less than a dollar, so those that invested in Bitcoin then were not lucky?

I know that if you were among those you would not say that Bitcoin is not good, because you will have a thousand profit.

Another thing you have to remember is that gold has been since whatever time it came to be, which we can’t really, but we all know that bitcoin was created in 2009 by some mysterious guy, so chill man. Bitcoin is volatile and it goes down at any time, but there are also times it goes up.
legendary
Activity: 2338
Merit: 1084
zknodes.org
August 14, 2020, 01:11:38 PM
#75
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.
Observers will give hype which is very influential on the price of bitcoin. a lot of good and bad news spread. Of course, these are several reasons why bitcoin is unstable. FUD is scattered everywhere, Good News always comes and makes prices go up.

Whales take advantage of all opportunities to have an immediate effect on the bitcoin market. whales control everything.
hero member
Activity: 2170
Merit: 530
August 14, 2020, 12:07:07 PM
#74
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?

If you compare the price movement of Bitcoin in gold you can see why you can't lose 500$ within one night. Bitcoin's price is affected by news and can pump or dump easily because of that. While gold can go up and down but can't dump too much. Bitcoin is a high risk investment compare in Gold, and Gold is a long term investment to earn that much not compare to bitcoin that you can lose or win easily.
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