Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It is all because of the happenings that are occuring within the market wherein if there's a sudden increase on the demand of bicoin with the people, then the value will rise. While if bitcoin is not being demanded by the people, then the value will decrease. Another factor is if there is a major events happening with the system of bitcoin just like what happened when China banned bitcoin in their country. 
Topic: Why Is Bitcoin's Value So Volatile? - page 13. (Read 11256 times)
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin's Value is volatile due to its decentralized structure that is why an irregular rising and falling of its value is felt frequently. Though its status so irregular, it seems that it's current status is going all the way up which makes it more recognizable now a days.
Some statements defame bitcoin a lot and the price which was about 4600 dollars dropped to almost 2900 dollars I just a few days. The reason was the false statement from somebody about bitcoin.
The main reason is bitcoins are no regulated, no one would audit this particular 'stock' or whatsoever, it could go up and down and there is no third party to control its pricing, perhaps a group of the biggest whale would only be possible. On the other hand BTC is listed for exchange on hundreds of platform, 24/7, non-geographic locations with various type of national/crypto currencies, which means that everyone in the can participate and their diverse decisions resulted in a highly speculative market, it's risky and highly rewarding judging from its current position.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin Value is volatile. It depends on the supply and demand factor, it may rise or drop anytime. Just like the value of dollars or any kind of money, it could be rise or drop based on the investor who buy and sell in the market. If im not mistaken, I saw it with PHP83,000 last 2010 price but see it now it will rise up to PHP325,000. Now, the value of bitcoin rising up so lets do try this one.
The reason why bitcoin value so volatile its because of purely base speculation over its value that depends on the movement of the market which is supply and demands. Since the demand of people is highly, the price of bitcoin is rapidly increasing. Therefore we can not control the demand of bitcoin, as well as the supply.
in fact, bitcoin is not that volatile relative to its small market cap. Bitcoin is a value transfer system, so the price of 1 BTC is fundamentally a function of how much value flows though the network and speculation of the future value of the flow. And when the network grows bigger, the changes in the flow will be smaller and less uncertain.
A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies: http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/
Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.
A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies: http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/
Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.
Penny stocks are much more volatile. What is happening to Bitcoin is 100% normal when you compare it to new, small companies. Once a company like that makes an announcement that they're reaching a breakthrough their shares go up and when the competition spreads FUD they go down.
I'm sure it will decrease with time. We can already see it starting to decrease with dips getting much shallower.
If anything, this doesn't look very convincing
I'm curious where you see "dips getting much shallower". Just a few weeks ago the price went down below 4,000 dollars per coin, while yesterday Bitcoin seems to have made a new ATH at over 6,300 dollars. This is an increase of more than 50%, just in case. I don't know about you, but personally, I wouldn't call that as dips getting shallower, let alone much shallower. So what is the basis for your claims that Bitcoin price is becoming more stable? I'm really interested in hearing that. Maybe, I don't know something which you do
You're looking at USD value and that's why you can't see it. You should start looking at percents because it's all in the proportions not the amount of USD lost.
You need to go back a couple years and compare to what's going on now. In early 2014 it lost 800$ on the average in 3 months and reached a low of $100 on some exchanges. This was a loss of over 80% of value in less than 4 months, so yes I think that losing 30% of value right after a short spike is nothing compared to a gradual loss of 80%.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin Value is volatile. It depends on the supply and demand factor, it may rise or drop anytime. Just like the value of dollars or any kind of money, it could be rise or drop based on the investor who buy and sell in the market. If im not mistaken, I saw it with PHP83,000 last 2010 price but see it now it will rise up to PHP325,000. Now, the value of bitcoin rising up so lets do try this one.
That is because the market doesn't have any regulator that will regulate the price and control it. It is a complete freedom and it is very awesome for me because with that capability of being free and volatile, a lot of people are already making thousand of dollars by just taking risk and investing in bitcoin no matter even it is volatile.
If you mean that bitcoin is not a liability of any entity and thus it is not a claim to anyone's balance sheet then yes, but it is a weird way to state so.
If you mean that no state supervisory authority rules over it and if it did, it would be more stable, then it's wrong squared. Most regulators have noticed the presence of Bitcoin (and thus regulated it in their domains, even by simply allowing unrestricted use of it) and it scarcely brings any additional price stability, perhaps except removing some regulatory uncertainty, which is not a most significant factor.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin Value is volatile. It depends on the supply and demand factor, it may rise or drop anytime. Just like the value of dollars or any kind of money, it could be rise or drop based on the investor who buy and sell in the market. If im not mistaken, I saw it with PHP83,000 last 2010 price but see it now it will rise up to PHP325,000. Now, the value of bitcoin rising up so lets do try this one.
That is because the market doesn't have any regulator that will regulate the price and control it. It is a complete freedom and it is very awesome for me because with that capability of being free and volatile, a lot of people are already making thousand of dollars by just taking risk and investing in bitcoin no matter even it is volatile.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin Value is volatile. It depends on the supply and demand factor, it may rise or drop anytime. Just like the value of dollars or any kind of money, it could be rise or drop based on the investor who buy and sell in the market. If im not mistaken, I saw it with PHP83,000 last 2010 price but see it now it will rise up to PHP325,000. Now, the value of bitcoin rising up so lets do try this one.
The reason why bitcoin value so volatile its because of purely base speculation over its value that depends on the movement of the market which is supply and demands. Since the demand of people is highly, the price of bitcoin is rapidly increasing. Therefore we can not control the demand of bitcoin, as well as the supply.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin Value is volatile. It depends on the supply and demand factor, it may rise or drop anytime. Just like the value of dollars or any kind of money, it could be rise or drop based on the investor who buy and sell in the market. If im not mistaken, I saw it with PHP83,000 last 2010 price but see it now it will rise up to PHP325,000. Now, the value of bitcoin rising up so lets do try this one.
Volatility is one major factor why investor invest in bitcoin because they just invest it in short term and after that they will buy/sell and repeat.Also it is volatility because no one knows the real value of bitcoin so people just doing some speculation.
You are right the current price is very high but many people say that the current price is not high because they believe that bitcoin will be value much more in next few years. The main question is about your strategy, long or short term? If long you don 't have to look for the best price because bitcoin should grow in next few months, if you want to trade the current price is in my opinion too high.
It is volatile because there are a lot of people speculating on its price at the moment, and because the market cap is relatively small when compared to forex stocks and other investment venues. Once it grows larger and larger the price will be increasingly more stable and the peaks/dips will be less dramatic.
I think the bitcoin factor volatile because the decentralization system, in contrast to stocks that mostly have a majority owner so that it can intervene in price but bitcoin has never been known so it looks volatiled.
Everyone knows what fiat money is and use it daily since his childhood. They see that all the others use it also every day and everyone speaks about money and you can buy things for it everywhere and the public press also speaks positive about it. That results in a relative constant demand with low swings.
Bitcoin is exactly the opposite! It is new for many people, they do not use it daily, they did not learn about in the school, the banks also do not offer it and the public press mostly do not promote it. If there are negative reports in the public press then many people get feared and try to sell and that is why there are so huge swings!
Bitcoin is exactly the opposite! It is new for many people, they do not use it daily, they did not learn about in the school, the banks also do not offer it and the public press mostly do not promote it. If there are negative reports in the public press then many people get feared and try to sell and that is why there are so huge swings!
It is volatile because there are a lot of people speculating on its price at the moment, and because the market cap is relatively small when compared to forex stocks and other investment venues. Once it grows larger and larger the price will be increasingly more stable and the peaks/dips will be less dramatic.
in fact, bitcoin is not that volatile relative to its small market cap. Bitcoin is a value transfer system, so the price of 1 BTC is fundamentally a function of how much value flows though the network and speculation of the future value of the flow. And when the network grows bigger, the changes in the flow will be smaller and less uncertain.
A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies: http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/
Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.
A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies: http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/
Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.
Penny stocks are much more volatile. What is happening to Bitcoin is 100% normal when you compare it to new, small companies. Once a company like that makes an announcement that they're reaching a breakthrough their shares go up and when the competition spreads FUD they go down.
I'm sure it will decrease with time. We can already see it starting to decrease with dips getting much shallower.
If anything, this doesn't look very convincing
I'm curious where you see "dips getting much shallower". Just a few weeks ago the price went down below 4,000 dollars per coin, while yesterday Bitcoin seems to have made a new ATH at over 6,300 dollars. This is an increase of more than 50%, just in case. I don't know about you, but personally, I wouldn't call that as dips getting shallower, let alone much shallower. So what is the basis for your claims that Bitcoin price is becoming more stable? I'm really interested in hearing that. Maybe, I don't know something which you do
because bitcoin is still young despite it was around 2011. news and speculations can affect bitcoin's value especially the news that can affect people that invests in bitcoin.
Bitcoin is volatile because it is totally depending on no of investor investing in it as investor demand become high this coin start giving boost to its prices and as some of incident occurs that has an impact on its market its prices start falling and more of it nowadays prices are high just because user demand is high and more of the regions across the world is accepting now and volatility is its advantage for user.
it is better to invest on bitcoin because bitcoin graph gone toward to high point. the investment on bitcoin is the best investment for investors. it is an outstanding opportunity for investors.
Looking at the time being a bitcoin on the market and its popularity and the number of users its price for this moment is one of the most reliable and not as volatile as people think in my opinion.
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