Topic: Why Is Bitcoin's Value So Volatile? (Read 11256 times)

In my opinion, I find that today, Bitcoin prices are heavily affected by the news related to cryptocurrency. And the value of Bitcoin is very volatile probably also partly due to the above. In fact, it has shown us that some of the negative news in the past has made Bitcoin fall down. Negative news continues to happen and Bitcoin has not shown any positive signs. In addition, a decrease in supply may also result in volatile Bitcoin values

It is highly volatile as it is still young and its circulation is limited to 21 million BTC. The value of bitcoin changes with the advent of new technology that propels the the computational speeds. As it is still unknown to the large section of people in the World, its value may gradually increase as it finds popularity. It's value may also depends on its purchasing power, the companies facilitating trade through BTC are increasing day by day. Additionally, as its value depends on supply and demand, it is definitely very volatile

You are absolutely right mate, because of banning the bitcoin of some countries the price of the bitcoin will goes down and I think if some countries are continuing banned the bitcoin its hard to predict when the price of bitcoin back to the highest price.

Today, you should not wait the popularity of Bitcoin to helps its value increases again.
Bitcoin has been banned by India banks today, the value of Bitcoin dumped below $6,000 to $5,800.
The bitcoin value is really need the whale keep its value still high, because the government are trying to kill it by the FUD.

Despite of the popularity of bitcoin, it is still young. It did not reach it's peak performance yet were it will settle. Then another big factor of it's volatility is the law of supply and demand. We all knew about this law. Its very normal that prices in any commodity is being controled by this.

The market's supply and demand is not really stable because there are seasons where everyone is hoard bitcoins and sometimes they are also selling their coins so we can expect a volatile value and it will not change forever.

Well joining in bitcoin is like the playing in casino, you should gamble and trust to yourself when you invest or buying in bitcoin. No one else knows when the value of bitcoin is high or low. You should feel if the bitcoin you buy is at lower price or higher price. It maybe depends on your luck. 
[/quote]

The lack of institutional investors, with their buy-and-hold views, is one of the biggest reasons for the extreme volatility of cryptocurrencies. And the original pitch for Bitcoin was a frictionless version of money that you could send to anyone all over the world: cash for the internet. However, because Bitcoin’s value rose so dramatically, and because each transaction takes a ton of computing power (and electricity) to process, it doesn’t actually work very well as a form of spendable money. That’s created uncertainty, which leads to rapid changes in its value.

[quot ;e author=rortan75 link=topic=2069000.msg20657959#msg20657959 date=1502012739]
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

[/quote] Well joining in bitcoin is like the playing in casino, you should gamble and trust to yourself when you invest or buying in bitcoin. No one else knows when the value of bitcoin is high or low. You should feel if the bitcoin you buy is at lower price or higher price. It maybe depends on your luck. 

The reason which mostly affect bitcoin is trader, there are so many trader makes panic selling and buying. Bitcoin must adopted by more people to minimize it's volatility.  A big trade will have a smaller price impact, hence a smaller price volatility.who get some profit from it they try to book the price and try to sell their bitcoin and so the supply increases and thus the price decrease and i think that this will continue for a long time because still a lot of people have o join the world of bitcoin.

Question, do you think bitcoin having limited supply also affects it's volatility?

Bitcoin is not stable because it depends on volatility, on demand and on offers. Bitcoin is a virtual currency and is therefore more susceptible to external and internal factors than others. It is worth buying at the correction stage when it is in the sag

Actually bitcoin is currently becoming more popular, and therefore people are joining the world of bitcoin which is in fact increasing the demand of bitcoin, on other side the old investors who get some profit from it they try to book the price and try to sell their bitcoin and so the supply increases and thus the price decrease and i think that this will continue for a long time because still a lot of people have o join the world of bitcoin.

The reason why bitcoin value is volatile because some of investor cash out their investment. Volatility is normal in bitcoin, there are different reason affects it, I already mentioned earlier other reason is that lack of popularity and investor.

The reason maybe is yhat Bitcoin is dependent with the demand and since the demand in thearket changes a lot, same thing happens with the market value of Bitcoin. Volatility still is a natural phenomenomwhen it comes with cryptocurrencies so basically, it is not only experienced by Bitcoin but also by other cryptos in the market. Volatility also is profitable. So it is not totally a bad thing in terms of investment.

Bitcoin users' population is still a little bit low even though we see so many investors. The number of population matters because when there are certain changes about bitcoin, whether a country banned bitcoin or an artist starts to commercialize it, it will make a drastic change in its demand and thus, will make bitcoin's price skyrocket or dump depending on the situation.

Market is living his own life but when price correction is coming we thinking that price is volatile. Big guys just want to sell bitcoin per 20K and buying per nothing.

Well, you have to keep in mind, that first of all, bitcoin is a decentralized currency, and due to this decentralized structure of bitcoin, it is not dependent upon any one economy, and like almost everything else, this coin too has two sides. The benefit of not being dependent upon one economy is that if that economy suddenly goes bankrupt, the value of bitcoin wont drop radically, it will still stay supported by the other economies in the world. However, the thing is that any world news, like wars, pumping dumping, drastic reduction in prices in any country, famines, droughts, all these affect the value of bitcoin, and many of these are common matters of today, with the growing population, the demand for land, food and water has drastically increased, thus resulting in drought and famine. These may drop the price of bitcoin significantly.

Another thing is that, bitcoin is an asset and like other assets, its value is determined by trading, and that depends upon peoples trust and faith on the asset, on the concept of support and resistance, where people are mentally prepared to buy and sell respectively. Bitcoin, being a virtual currency totally, is much more drastically affected by it than others due to its ease of buying and selling.
I think those are the main factors that really show why bitcoin is so volatile.

Its volatile because bitcoin of supply and demand. There are still bitcoin need to be mine and people keep on selling and buying. So these are the factors that really affecting the bitcoin price/volatility.

Because of the demand that is so high and then suddenly went down. Price of bitcoin never stayed as in. It changes as time passes by. Demand always affects as to whatever status of bitcoin value in the market.

Because the cryptocurrencies are ruled by the Demand and Supply law , higher demand tends to increase in price and decreases when supply is not enough. The market of crypto is like a glass full of water that tends to overflow when added (mined) , now every movement in cryptocurrency can affects to its value.