Topic: Why Is Bitcoin's Value So Volatile? - page 16. (Read 11234 times)
Bitcoin has properties that make it similar to gold. It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount, 21 million BTC. But is not admitted by a lot of governments, so its value can fluctuate volatilely
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
I think, its because of its investors and buyers. There are so many of them now, and they're just getting larger everyday. For me, people are just buying and selling bitcoin everyday and I think that is the main reason why bitcoin is very volatile.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
This is usually because if bitcoin millionaires are letting go some of their coins to fund an investment or even go on a fancy vacation just because they can. These are called whales who sell most of their coins for profit and this causes a ripple in the trend of price in bitcoins. Other related news such as a development of a similar coin as bitcoin may distort the price by a margin.
By design, a total of 21 million Bitcoins will be created over 100 years according to a logarithmic release function. At the time of writing, just over 13 million bitcoins are in circulation, meaning that an additional 8 million bitcoins will be mined over the next 95 years 
. Given this timescale and the decelerating rate of increase of the coinbase, the supply of bitcoin can, for practical purposes, be assumed to be constant. 
But you didn't explained why Bitcoin is a volatile currency, you might have explained why Bitcoin is expensive now as there is only 13 million in circulation. Having a limited supply does not explain the volatility but the buying and selling pressure can, every transaction of buying and selling will be reflected to its price chart in which we can determine the price trend. . Given this timescale and the decelerating rate of increase of the coinbase, the supply of bitcoin can, for practical purposes, be assumed to be constant.
By design, a total of 21 million Bitcoins will be created over 100 years according to a logarithmic release function. At the time of writing, just over 13 million bitcoins are in circulation, meaning that an additional 8 million bitcoins will be mined over the next 95 years . Given this timescale and the decelerating rate of increase of the coinbase, the supply of bitcoin can, for practical purposes, be assumed to be constant.
. Given this timescale and the decelerating rate of increase of the coinbase, the supply of bitcoin can, for practical purposes, be assumed to be constant.
Based on my online research I learned that one reason for bitcoin price volatility is the factors that affect investors to disregard bitcoin like what happen in 2013 because of the defamation news for bitcoin, and even tax treatment of bitcoin can affect also the volatility of its price, in the recent announcements by the IRS, they state that the currency is actually an asset for tax purposes had mixed effects on volatility. and lastly demand also can affect bitcoin price to fluctuate, because the demand of bitcoin is always increasing, the demand of bitcoin and its price is directly proportional so it means that if price increase its demand also will rise and if it decreases other one will affect too.
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.
This is because the Bitcoin's demand is also volatile. Basically the direct affect of the increase and decrease of price is based on the demand. And what affects the demand is the different external factors like news and updates, regulations, other ICOs etc. Bitcoin is one of the risky investments which is why it is well monitored and analyzed.
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.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
In broader terms, Bitcoin or for that matter the alt-crypto markets are unrestricted, uncontrolled, without any regulations. The kind of regulations stock market puts on to curb the market manipulations. The regulations like upper circuit, lower circuit etc etc. Limits on how much percent of a stock could be purchased by one entity/company. In bitcoin there are no such restrictions.
If you have money you could purchase bitcoins with that amount. One with enough bitcoins could literally create pumps and dumps at will. This kind of manipulation is pretty common in the bitcoin world. However stock market or commodity exchanges do not work like that. There are grave punishment for these kind of manipulations.
End result is unrestricted market having free run to all giving the volatile nature.
One notable exception was mt. gox incident where a bot from that exchange single handedly manipulated the majority of bitcoin prices and crashed in due coarse. At that time it is major bitcoin exchange and there were no plethora of bitcoin exchanges we see like today.
Bitcoins value has always been volatile and probably will be volatile in the future too.The value of bitcoin depends on the buyers and sellers.If people hold their bitcoin and invest them then the price will increase.But if people start selling it the price will fall.In a recent event China had banned ICOs and caused panic in people and all of them sold their bitcoins which caused a great downfall in the value.But then after a few months bitcoin gained back it's value and even reached a great milestone of $5000.So bitcoins will always be volatile,. It's up to you to buy bitcoins at the right time.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It's because of the supply and demand condition. The supply now is lower than its demand so the price is high. When the supply goes up and lesser demand then the price is lower also. I think it would be better to wait for the right timing when the supply will increase. The more people needing to buy it but there is no sufficient supply that makes the price increase. So might as well hold and wait to decrease the number of demand and to accomodate the supply needed.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin start at 2009 and survive more than 7 years and get trust that make it’s value rise till this high number so you came later must pay more
It is not a problem that currency is volatile for each and every currency there is a time span and then the prices are some time goes up and some time goes down. There are so many other reasons because of that the prices are volatile like demand and supply are the market forces which affect the prices. The macro factors like country inflation also affect the prices of crypto currencies.
The volatility of bitcoin is bigger than any fiat currency pair and bitcoin is the least volatile cryptocurrency. Country inflation will makes bitcoin price go up, but it is not the reason of bitcoin volatility. 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. 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. 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.
Bitcoin has to grow it's demand since it is known for few people in past few years. If bitcoin is not volatile then many investors and traders will not spend their money buying bitcoin and use it for doubling the income. Yes bitcoin is too expensive eventually but how much more for the coming months or years it will become more expensive. Decision for buying bitcoin is a must. Should you wait or not? Double or nothing? Take it or Leave it.
It is not a problem that currency is volatile for each and every currency there is a time span and then the prices are some time goes up and some time goes down. There are so many other reasons because of that the prices are volatile like demand and supply are the market forces which affect the prices. The macro factors like country inflation also affect the prices of crypto currencies.
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 because of the changes that are occuring within the markey. Just take a look when China banned bitcoin in their country. The value of bitcoin dropped hard and many people started to become scared but after a few while, bitcoin has already recovered up until now. This just simply shows how the changes in the market affect the value of bitcoin in a good way or bad.
Bitcoin is becoming a stable currency day by day, but after some period of time we are experiencing Bitcoin price volatile, there are some concrete reasons for this volatility. I think that major reason is the controlling of bitcoin, Basically, Bitcoin market is controlled by the Bitcoin holders, so when a major portion of holders wants to gamble in the Bitcoin market then they create that type of situation. I also think that Credibility is one of the main reasons behind this issue when people will get fully convinced about the system then they don't get scared of selling Bitcoin.
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