Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
PArtly because it is new, partly because it is poorly understood. There is also the fact that while it is big, it is still small compared to Gold or other fiat currencies, therefore it is easier to see wild sways in the price as it doesnt have (yet) the huge weight of the bigger asset classes. It will in 5 years time.
Topic: Why Is Bitcoin's Value So Volatile? - page 20. (Read 11234 times)
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
I volatility in crypto markets happens by two reasons. First, most people that get into it right now, are doing it to trade, so it's normal that everyone keeps buying and selling based on their interpretation of the market, so it's normal to see the price going up and down. Secondly, crypto is still very recent, and it's not "well distributed" among users. Only when there is a lot people using it, the volatility will slowly disappear, because even the guys with most coins wont really have that much compared to what the entire community holds, so their actions in the market can't influence the price that much (kind of what happens with fiat).
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
PArtly because it is new, partly because it is poorly understood. There is also the fact that while it is big, it is still small compared to Gold or other fiat currencies, therefore it is easier to see wild sways in the price as it doesnt have (yet) the huge weight of the bigger asset classes. It will in 5 years time.
Don't be confused to buy bitcoin if the price now looks high in your opinion. Bitcoin's volatile because it's depending to it's supply and demand, try to understand how the law of supply and demand works and you'll finally understand why bitcoin's value is so volatile. And with the different speculations from big personalities are also affecting it's price, good and bad news as well.
Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility.
Reason Bitcoin's Volatile
1.Rate of adoption is hampered by bad press
2. Bitcoin's perceived value fluctuates
3.Too much variance in perceptions of Bitcoin's store of value and method of value
4.Little option value to large holders of the currency
5.News about security breaches make investors react
6.Bitcoin and foreign direct investment in countries with high inflation
7.Tax treatment of Bitcoin also affects the volatility
Reason Bitcoin's Volatile
1.Rate of adoption is hampered by bad press
2. Bitcoin's perceived value fluctuates
3.Too much variance in perceptions of Bitcoin's store of value and method of value
4.Little option value to large holders of the currency
5.News about security breaches make investors react
6.Bitcoin and foreign direct investment in countries with high inflation
7.Tax treatment of Bitcoin also affects the volatility
The value of bitcoin is so volatile because the market is controlled by the whales or the manipulators who have a lot of bitcoin in their wallet and they are all focused in manipulating the market so they can control and make a lot of profit even the market is falling down or not.
Bitcoin’s value is so volatile because of China’s ban on bitcoin market. People are getting panic from this crisis and exchanging their bitcoins for other crypto currencies, this causes the rise and fall in the prices of bitcoins. Another major cause of the volatility of the bitcoin is that it is not legalized till now.I think this will not last so long and Bitcoin will again rise in the very similar fashion as we have seen in the past. We only need to hold our Bitcoins and we need to have patience.
There are many factors which causes fluctuation of bitcoin like demand and supply. There are only limited number of bitcoins available which means it can either go to a critical situation on other hand it can increase in value over time, the value of the cryptocurrencies will be decided by its users, with increase in number of users the value of bitcoin rises, most of the people are accepting this innovation while a few are not ready to accept this technology. There are high chances for bitcoins to increase its value as time passes.
The emission rate of bitcoin is a stabilizing factor, we know more or less how many coins are going to be mined in this year alone that is something that no other currency in the world has since they print currency as they see fit and according to their convenience, the problem is that the demand is getting very high and that will cause the price to explode in the future.
Bitcoin’s value is dependant on the intensity of demand and supply there is. The demand is a market factor. The intensity with which the market needs the commodity fuels the demand aspect. Supply however is a limited factor within the Bitcoin economy since the number of bitcoins there can exist within the network is limited to 21 Million. This often causes a difference between the buying and the selling price. To answer your question, there isn’t any actual set price for a Bitcoin. The price of Bitcoin is a balance between what price someone is willing to trade with to part from the Bitcoin and what someone is ready to pay to acquire it.
Bitcoin exchanges and companies that transact using bitcoins determine a lower and a upper limit around what a person in possession of Bitcoin is willing to sell it for and what a person is willing to pay in order to acquire it.
A price is determined after setting upper and lower limits between a seller and a buyer. A price is determined between the limits based on a pricing strategy that the company(exchange) employs.
Bitcoin exchanges and companies that transact using bitcoins determine a lower and a upper limit around what a person in possession of Bitcoin is willing to sell it for and what a person is willing to pay in order to acquire it.
A price is determined after setting upper and lower limits between a seller and a buyer. A price is determined between the limits based on a pricing strategy that the company(exchange) employs.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Because bitcoin is still at its early stages, the US dollar is very old and the same is true for almost all the fiat with the only exception of the euro, however the concept of fiat money has been with us for hundreds of years already while bitcoin is only 10 years old, so unlike fiat, people still do not get used to the idea of this new kind of money and we do not know the possible repercussions this is going to have all around the world.
There is volatility and then there is bitcoin volatility, it is one of the most discuses topic on the forum and you will find many reasons behind the volatile nature of the coin like it effected by news and rumors, security breaches, official statements by Bank official and many more. But when no of these thing happen then what. The main reason I find behind this nature is,Demand and Supply rule, which is as simple that if the market is willing to pay then more people buy and hence it prices increases and when people start dumping it or start selling due to fear created by numerous resources its price starts falling down.
Bitcoin Value is volatile because it is decentralized and beyond the central authority control. It's price changes as per demand-supply law. Price is getting continuously high because of its limited supply but high demand. But sometimes crashed down because of some negative news against it.
Bitcoin is volatile because the most of people don;t trust on it. More the trust of the peoples more will be the value of this fixed up to some extent. There are too many other ways that can provide the less volatility of a currency.
I think this is because bitcoins are still new and that the use of it has not yet been mainstream. There are only a few players to work with and that just one player that suddenly decides to quit or sell would result to a big drop down in the number of players already. And because the market capitalization is low as well, even a medium sized bank could buy the whole bitcoin economy.
I don't think I can agree for your words that bitcoins is new since this is the most oldest coin made and yet the strongest one since it is more adopted well by the crypto guys. But maybe its not on the mainstream yet since there are so many people,business and countries doesn't know about this so I think bitcoins need more advertisement and exposure so that we can maximize its potential.
I think this is because bitcoins are still new and that the use of it has not yet been mainstream. There are only a few players to work with and that just one player that suddenly decides to quit or sell would result to a big drop down in the number of players already. And because the market capitalization is low as well, even a medium sized bank could buy the whole bitcoin economy.
There are many factors which causes fluctuation of bitcoin like demand and supply. There are only limited number of bitcoins available which means it can either go to a critical situation on other hand it can increase in value over time, the value of the cryptocurrencies will be decided by its users, with increase in number of users the value of bitcoin rises, most of the people are accepting this innovation while a few are not ready to accept this technology. There are high chances for bitcoins to increase its value as time passes.
The value of bitcoin is so volatile because the market is controlled by the whales or the manipulators who have a lot of bitcoin in their wallet and they are all focused in manipulating the market so they can control and make a lot of profit even the market is falling down or not.
Bitcoin’s value is so volatile because of China’s ban on bitcoin market. People are getting panic from this crisis and exchanging their bitcoins for other crypto currencies, this causes the rise and fall in the prices of bitcoins. Another major cause of the volatility of the bitcoin is that it is not legalized till now. 
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin value so volatile because of the many bitcoin user thaat's why bitcoin is out of control to spared of all people who are interested to join and to seek job.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin value so volatile because of the many bitcoin user thaat's why bitcoin is out of control to spared of all people who are interested to join and to seek job.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It's based on bitcoin demand. Whenever there is a high demand of bitcoin with few sellers the value gets higher. And whenever there is panic in the heart of the people, people will start selling Bitcoins with less buyers and the value drops.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It is dynamic because of the state of the economy, the supply and demand affects the price of x product.Similarly, bitcoins price is rising because of the supply and demand is high. Jump to: