Why Is Bitcoin's Value So Volatile? - page 14.

coolcoinz

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Quote from: quedex on October 30, 2017, 12:43:59 PM

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.

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.

quedex

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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.

CODE200

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Quote from: Palmerson on August 06, 2017, 05:52:23 AM

Bitcoin is and always will be very volatile, but this does not mean having to give up his purchase. If you look at the chart of growth rates you will see that every year the price of bitcoin is increasing. This trend will persist for a very long time so you can buy it at any time.

First we should always consider that bitcoin is a form of crypto-currency in which its price is dependent on the flow or on the changes in the stock of the market , where its price is dependent on the support of the people who uses bitcoin in transaction, investments. It is also a good thing because there is always a room for development and changes as people will support bitcoin in terms of transaction and investments.

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Quote from: rortan75 on August 06, 2017, 05:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Maybe because bitcoin is decentralized which means there are no constant value knowing that there is no constant value because the mining is out of the government's hand. This can also lead to the sudden drops of value on a certain nation as the mining of bitcoin there decrease. Another factor can be the growth of the users of bitcoin wherein as the number of investors and users increase, the value will surely do so also.

Watashi Yamashita

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Quote from: rortan75 on August 06, 2017, 05:45:39 AM

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 things that are happening in the market and the conditions of mining in different parts of the world. You may say that it is very disturbing to have bitcoin's value changing every time but it is one of the main reason why more and more investors are going to bitcoin. They think that they will have higher chances to earn larger amount of money as they invest on bitcoin knowing that its value is volatile.

Bitcotalk

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Quote from: julzcoinbit on October 28, 2017, 02:19:01 AM

Quote from: tbterryboy on October 28, 2017, 01:57:07 AM

Quote from: appleffi on October 26, 2017, 02:48:57 AM

Quote from: rortan75 on August 06, 2017, 05:45:39 AM

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.

Exactly. When one currency is decentralized then there is no check and balance from one supreme power about what is going on. Like our local currencies, there are regulating by the National banks and governments, that is why we have a stable price in business in our country. Bitcoin have decentralization and that makes it more volatile because of randomness.

Yes I agree, the decentralized of the bitcoin is of the reason why so volatile,and an speculative asset that makes people attracts bitcoin. Bitcoin value is volatile because there are many who suppports bitcoin, Which invested in continues to buy and sell on bitcoin that make it volatile. So the demand is increasing in bitcoin.

I think the reason of volatility in bitcoin price is due to investment of the people and also the trust. When the people have trust in something they will use or invest in them but if there is anything doubtful then nobody will invest their hard earn money in such doubtful thing.

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.

Siopao

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From the start it have been that way - the value is fluctuating and it's no secret to anyone. The value is based on the supply and demand of bitcoin in the market, when the suupply goes up that is the time that the value also rises. While when the demand is low the value will go down also and that is a good oppprtunity to buy bitcoin. It's volatility is the reason why investors are attracted and choosing bitcoin to put into their hard earned money because they see the potential of getting higher return in the coming years.

pixie85

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Quote from: sorrysteve1 on October 29, 2017, 07:27:53 AM

Quote from: BrendaGee on October 29, 2017, 06:03:21 AM

At the time you posted, rortan75, the volatility was nothing compared to what it is now. For now the volatility is very high because of the hysteria around the price. Price can range of 100$ in a single hour

Well volatility is all relative in fact. It should be thought of in terms of percentage amounts instead of dollar amounts. I do believe the volatility has increased slightly of late but not majorly.

We are on the rise due to growing acceptance and popularity. It's obvious Bitcoin is going to be seen as volatile because it's gaining so much value.
I remember reading about it long ago and it was explained that as time goes by and number of users grow the price is going to go up but volatility will decrease. It's easy to make 1000 people panic and sell because they read a negative opinion from someone they respect. It's much harder to make 1 million do the same.

btcbonanza

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Quote from: MAJICOIN on October 29, 2017, 06:14:33 AM

Bitcoin is so volatile as we knows that it is a currency and the value of it depends upon the demand and supply of this currency so that’s why some time in the market it inflow become more as a result the supply in the market become high which makes the bitcoin value down and the price cheap in a few minutes the value again rise without any major and big happening.

Well, the ongoing increased demand for the bitcoin among the people leads to the fluctuations in its price. Thus, its popularity makes it highly volatile as result of it, its demand increases thereby making its prices sky-rocketed... Thus, volatility is one of the key factors which offers great chances and makes possible to earn some magnificent amount of profit through it...

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Quote from: rortan75 on August 06, 2017, 05:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Bitcoin's volatility is already a part of it and many investors entered bitcoin because of this. They know that there is a big chance of earning a lot in bitcoin because the value is volatile. This just simply means that you should not wait anymore on buying bitcoin because the value is changing so the chances that you will not loose after buying is not that sure. It may be risky but the reward waiting will surely be worth the risk.

Reid

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It is a hard time monitoring every transaction that will happen with the bitcoin world.
There are many users now, because of that you cant trace the the transactions that will happen everytime.
With a group of people who owns a bigger percentage of bitcoin, they can create money easily by shaking the bitcoin price.
They might have done that while the FUD is still upon us.

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Quote from: BrendaGee on October 29, 2017, 06:03:21 AM

At the time you posted, rortan75, the volatility was nothing compared to what it is now. For now the volatility is very high because of the hysteria around the price. Price can range of 100$ in a single hour

Well volatility is all relative in fact. It should be thought of in terms of percentage amounts instead of dollar amounts. I do believe the volatility has increased slightly of late but not majorly.

Spontebob

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Quote from: rortan75 on August 06, 2017, 05:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

I think it is all because of the changes happening in the market everyday. If one day bitcoin is not demanded that much by a lot of people, then surely the value will go down while if it is being demanded a lot, then the value will rise. Another factor on bitcoin's volatility is the big event happening just like what occured with China banning bitcoin, the value of it fell down hard during that time but good thing bitcoin has already recovered and the price is rising once again.

MAJICOIN

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Bitcoin is so volatile as we knows that it is a currency and the value of it depends upon the demand and supply of this currency so that’s why some time in the market it inflow become more as a result the supply in the market become high which makes the bitcoin value down and the price cheap in a few minutes the value again rise without any major and big happening.

BrendaGee

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At the time you posted, rortan75, the volatility was nothing compared to what it is now. For now the volatility is very high because of the hysteria around the price. Price can range of 100$ in a single hour

mornabo

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Quote from: julzcoinbit on October 28, 2017, 02:19:01 AM

Quote from: tbterryboy on October 28, 2017, 01:57:07 AM

Quote from: appleffi on October 26, 2017, 02:48:57 AM

Quote from: rortan75 on August 06, 2017, 05:45:39 AM

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.

Exactly. When one currency is decentralized then there is no check and balance from one supreme power about what is going on. Like our local currencies, there are regulating by the National banks and governments, that is why we have a stable price in business in our country. Bitcoin have decentralization and that makes it more volatile because of randomness.

Yes I agree, the decentralized of the bitcoin is of the reason why so volatile,and an speculative asset that makes people attracts bitcoin. Bitcoin value is volatile because there are many who suppports bitcoin, Which invested in continues to buy and sell on bitcoin that make it volatile. So the demand is increasing in bitcoin.

i don't think that decentralization has a direct effect on fluctuations, because what I see here that plays a direct role in the rapidly changing price of bitcoin (volatile) is from a small marketcap so that every demand and supply of each user exerts a great influence on bitcoin price changes, or it can be said that bitcoin users are still few, then its give effect to the small marketcap and result in very rapid fluctuations

jonatuzc

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Quote from: zeaderza on October 28, 2017, 02:21:20 AM

Quote from: stepwilli on October 26, 2017, 03:59:06 AM

Quote from: nlhuy0905 on October 24, 2017, 06:50:11 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Yeah a lot of the people are thinking that the bitcoin price is very high and the income of the bitcoin will be the best source of the bitcoin so buy bitcoin and then get in the bitcoin for the long time. The price of the bitcoin is increasing more and more so it will be more difficult to buy the bitcoin for the future I love to buy the bitcoin and the future of the money will be more than this.

Bitcoin price is not exactly that high as it should be. If you ask me, we have just seen tip of the iceberg. If we look at the future values, the present one is not a big deal really. Though holding bitcoin must be treasured as compare to holding any other digital currency and it is very expensive than any other asset. Bitcoin demand is increasing and the supply is a scarce one that is the main reason why it is growing so much.

The market price of anything, May it be bitcoin or any other coin in the world of crypto currency greatly depends on the demand of that coin. The main reason behind this much volatile nature of bitcoin is the increasing demand of bitcoin and that in such a short span of time.

The way bitcoin is making progress, almost every one of us actually wants to invest in bitcoin for having better future.

ss890

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Quote from: appleffi on October 26, 2017, 02:48:57 AM

Quote from: rortan75 on August 06, 2017, 05:45:39 AM

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.

Yes because of decentralisation investors can buy and sell bitcoin at any time, and in any amount! That’s very important reason for its market to fluctuate in such wavy pattern. The upwards movement that we see in the bitcoin market is all about new investors coming into play, bitcoin gaining more and more popularity each day and also few of the good news such amazon accepting bitcoin etc. push the bitcoin market a lot. In between we see the fork which are reason why it goes down and so on.

Bitcoinjheta

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Quote from: Ausgewielt on October 28, 2017, 10:44:38 PM

Its because of the supply and demand which now is being played by trader.

I think there are many reasons why bitcoin value is so volatile like the theory of supply and demand and the absence of government policies with regards to digital currencies in some country if not all. The rise and fall of its exchange value depends in its investors who are mostly also its users. As we review its price status for the past years we can really say it's getting higher and the users are getting more motivated thus attracting more people to engage in bitcoin.

PokerStein1

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Bitcoin's market cap is still too low for the entire world economy that is why i think it is so volatile for now. But eventually it will become steady in price but we have too much way to go then.

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