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Topic: Why Is Bitcoin's Value So Volatile? - page 15. (Read 11256 times)

newbie
Activity: 12
Merit: 0
October 28, 2017, 11:18:52 PM
Bitcoin is volatile because the value of Bitcoin was increase and sometimes it decrease.The price goes flactuation.
Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer. A store of value is the function by which an asset can be useful in the future with some predictability. A store of value can be saved and exchanged for some good or service in the future. A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another. Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer. Since these two drivers of the current spot price of Bitcoin vary against the dollar and other fiat currencies, we see that Bitcoin's value can swing based on news events much as we observe with fiat currencies.
full member
Activity: 453
Merit: 104
October 28, 2017, 09:44:38 PM
Its because of the supply and demand which now is being played by trader.
full member
Activity: 658
Merit: 102
October 28, 2017, 08:25:37 PM
No one is in control of a decentralized virtual currency so the  bitcoin is naturally high in volatility. Its value will fluctuates rapidly if there's an event happened related to bitcoin
full member
Activity: 204
Merit: 100
October 28, 2017, 02:11:30 PM
Demand and finite supply are always something that do affect the price, however, from my view, major events have a great effect on Bitcoin's price, such as forks for example. Similar to stock trading, when something adverse happens in a company, its stock's price falls at a great degree.
I agree that some events actually affect the volatility of bitcoin i think it is because people who holds bitcoin or uses it significantly affects his/her decision base on events and even statements from big personalites.
hero member
Activity: 1750
Merit: 904
October 28, 2017, 02:05:54 PM
Demand and finite supply are always something that do affect the price, however, from my view, major events have a great effect on Bitcoin's price, such as forks for example. Similar to stock trading, when something adverse happens in a company, its stock's price falls at a great degree.
full member
Activity: 156
Merit: 100
October 28, 2017, 12:34:00 PM
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

A lot of people want Bitcoin, that is why the price is going everywhere.
newbie
Activity: 10
Merit: 0
October 28, 2017, 12:22:39 PM
I think the reason is that there is no government who is backing up this currency. In contrast, most governments do not like cryptocurrency for it is too hard to monitor right now.
full member
Activity: 364
Merit: 100
October 28, 2017, 11:59:06 AM
Yes the bitcoin value is very volatile and the reason is that it is decentralized nature and it is currency which may change its value through the pressure of market forces like demand and supply. The value is volatile and still very popular and famous among the other altcoins it is highly trading currency and good option for secure and profitable investment.
legendary
Activity: 2478
Merit: 1360
Don't let others control your BTC -> self custody
October 28, 2017, 11:40:31 AM
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.


Bitcoin's price will keep on changing from time to time because no one determines its price. You can buy a coin anytime it's price will eventually go higher in time.

This is one of the dumbest explanations i've seen. If there would be no external influence the coin would remain stable or would continue to move in one direction. The price is volatile precisely due to the fact that it's being influenced by events or news about them (sometimes fake).
Your second statement is also false. Nobody can predict with certainty what will happen to BTC in a year or two.
full member
Activity: 952
Merit: 107
October 28, 2017, 11:30:30 AM
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.
I agree. The big cause of being volatile of the price of bitcoin is the number of user that demanded on it. Volatility is the characteristic which attract investors to invest because it gives opportunity for them to get more profit instead of investing their money on local currency that has fixed value and get small profit unlike in bitcoin value when you hold it for long time.
legendary
Activity: 3514
Merit: 1280
English ⬄ Russian Translation Services
October 28, 2017, 11:10:05 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.
i think the fluctuation occurs because bitcoin market still has a small marketcap so that any policy from the community or some users will give effect to the price and it makes the price quickly changeable, and in the future when bitcoin marketcap is very big because bitcoin is used by everyone of course price change on bitcoin will become slow and no longer fluctuate

This is not a given

If Bitcoin remains primarily a vehicle for speculation as it has been for the last few years, then the growth in its market cap will mean only increased volatility. This is a common mistake or misconception to assume that Bitcoin price will stabilize at higher figures (which is what a bigger market cap in effect means). That could potentially work out if Bitcoin were to be adopted by the real economy across the world as a means of payment, but if it remains to be used mostly for speculation purposes, then there is not a single reason to think that the rise in price could lower volatility. In fact, it will only increase it, even in relative terms (not even speaking of absolute values)
hero member
Activity: 1022
Merit: 538
October 28, 2017, 03:58:42 AM
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.
hero member
Activity: 1148
Merit: 504
October 28, 2017, 01:39:18 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.
i think the fluctuation occurs because bitcoin market still has a small marketcap so that any policy from the community or some users will give effect to the price and it makes the price quickly changeable, and in the future when bitcoin marketcap is very big because bitcoin is used by everyone of course price change on bitcoin will become slow and no longer fluctuate
hero member
Activity: 896
Merit: 502
October 28, 2017, 01:21:20 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.
newbie
Activity: 8
Merit: 0
October 28, 2017, 01:20:34 AM
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.


Bitcoin's price will keep on changing from time to time because no one determines its price. You can buy a coin anytime it's price will eventually go higher in time.
full member
Activity: 434
Merit: 105
October 28, 2017, 01:19:01 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.
newbie
Activity: 9
Merit: 0
October 28, 2017, 01:14:28 AM
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.


Because the value of the coin only depends on the demand of it from users and it changes from time to time.
sr. member
Activity: 2030
Merit: 323
October 28, 2017, 12:57:07 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.
full member
Activity: 430
Merit: 100
October 26, 2017, 12:02:53 PM
The news have huge impact on bitcoin. It determines the price accordingly. When we hear some country banning Bitcoin, price tumbles when some country legalize it, price appreciates. That was just an example of how news can effect price. Sometimes bulk hodlers deliberately bring drop or rise and control the market. Right now, Bitcoin has demand. Whatever happens in short term, price remain bullish in long term. So at whatever price you buy today, you won't have loss in long term.
full member
Activity: 315
Merit: 100
Investing in the future development of blockchain
October 26, 2017, 11:58:19 AM
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Well, being volatile is the most common and the most obvious characteristic that bitcoin have that somewhat pissed off many users and at the same time make it as a blessing for the long time users. Well, talking about the volatility of bitcoin, it is volatile because of the existing changes within the market which is somewhat inevitable and cannot be controlled because the movement of the price is based upon the situation of the sudden changes happening in the market in which the demands and supplies varies which is just a normal scenario.

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