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. 
Topic: Why Is Bitcoin's Value So Volatile? - page 21. (Read 11234 times)
The entire cryptocurrency network is speculative in nature and based on these facts it can't be controlled even if someone holds the central control. This keeps bitcoin to be volatile and its the one that makes bitcoin to be a successful asset. Very few users feel bad about bitcoin volatility.
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 thing to look up on Bitcoins votality is its system itself. We all know that Bitcoin follows the stand of the principle of law of price and demand. And the inevitable changes, brought by the development which could be the best thing for people to invest becasue it is the reason why people invest to bitcoin becasue there is always a possibility to earn and to have a profit. 
Because it is the center of the traders and it is so well known to king of the crypto market.
The more people trade it, the more it grows but it is also affected if a large community renounce it like china
The more people trade it, the more it grows but it is also affected if a large community renounce it like china
Since Bitcoin isn't yet adopted in most places, a large part of its supply and demand is based on price speculation. So as the confidence changes, the price fluctuates a lot. As its adoption increases and people send or receive payments for commerce instead of speculating on its price, it should be less volatile.
Even if adoption would help price stability, bitcoin is caught in a paradox. More stability may require more adoption, but more adoption (especially with respect to using it for commerce) will require more stability. It's very hard to use a currency for retail purchases that can change value with respect to fiat by 1% in a minute. Why would I use btc to buy something when there's a significant chance that it could cost a couple percent more by the time I actually complete the purchase?
This is not a paradox
I guess it should rather be called a vicious circle of sorts, where cause and effect depend on each other and intensify each other. In this case, merchants aren't accepting Bitcoin because it is too volatile while it is volatile because its adoption among merchants is too low.
That's what a logical paradox is. Catch-22 would be another way of describing this (please see https://en.wikipedia.org/wiki/Catch-22_(logic)). A won't happen until B does, but B can't happen until A does
I guess we should not trust Wikipedia here
Note that I in no case deny the situations described there, I just think that the term paradox doesn't properly describe the cases in question. I'd rather stick to Collins' definition of what makes a paradox, i.e. "you describe a situation as a paradox when it involves two or more facts or qualities which seem to contradict each other". Basically, paradox is an impossible situation or combination of things given the available knowledge. I don't think that a vicious circle could or should be called a paradox since there is nothing contradictory about it in respect to our understanding it. In other words, paradox is a state of mind confronted with something which shouldn't be there or can't be explained. Regardless, how are you going to make people agree on a specific value of Bitcoin? As to me, that would instantly destroy the whole idea behind it even if it were possible in the first place (which it ain't)
Bitcoin's Value is volatile because there is a marketcap will decided how valuable bitcoin is, and that marketcap is effected by the investors all over the world, who owns bitcoin, if there is a new that disadvantage for Bitcoin, many investors will sell Bitcoin for real fiat so the price of bitcoin is down. If there is a new that advantage for bitcoin, more people know about bitcoin and they will buy Bitcoin, so the price of Bitcoin is up.
Well explained! There is no doubt that the prices and volatility of bitcoins is ultimately controlled by bitcoins investors. If the people who are having bitcoins in their wallets are not wasting them and selling them off in low prices, the prices are going to stay high and vice versa. Panic selling in my opinion is the key for dumping.
Bitcoin's value is "volatile" but we're still up 200 or 300% this year. Who gives a crap? Honestly? Like at all? Hold on longer. Then the volatility will make no difference to you.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
if theres so many people investing here in bitcoin or also promote some campaign here they will going to buy bitcoin that is why bitcoin going high or down(volatile) this is not only the answer because in transaction also here they will going to create a movement to sell and buy thats why its volatileWell, that is the cause why bitcoin is always faced with the increase and decrease of the prices are so high in some time. Because it is true many people who begin to make sales and purchases, there price of bitcoin will act in accordance with what is happening. So if you want to see high prices then surely we must make a purchase in larger quantities from sale going on. Because it will surely provide a lot of benefits for us, because it is the price of the bitcoin is always set on them which does have a big effect. Than have to figure out it would be much better to think about getting a lot of bitcoin
Because bitcoin os cryptocurrency and I can say that one of the characteristics of cryptocurrency is volatile. All of the value of coins in the cryptocurrency os always changing because of the fluctuations.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
For me one is the reason why the bitcoin is volatile becuase of this demand and supply on the market so sometimes the bitcoin going increase and sometime the value of bitcoin will decrease . Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
BTC's value is volatile because it is still in it's infancy stages. It has a long way to go before ~2050 when all the bitcoins have been distributed.
Bitcoin are so volatile because it depends mostly in supply and demand, and the market of bitcoins operating 24/7 , seven days a week, variation of its value time to time are different. we can say value of bitcoins is uprising for some factors such as popularity rate, bitcoins are soaring up by means of media, and most of the country now a days appreciate the significance in terms of processing payments.
I think bitcoin value is really volatile and it is in his nature because speculation is the one that determines its price and for that volatility of bitcoin it has some advantages and disadvantages. Some of its advantages for example a trader may think its in a positive way that he can speculate when is the next up and down of price. But the only disadvantage of price volatility of bitcoin is that if you have such big investments through it, then that would be very risky to handle and sometimes your profit will be vary, on the other hand if it increases then that is a good chance also to earn.
Good points, for me Bitcoin is volatile because it is still so new and not that many people in the world have converted their FIAT money into it.
I think bitcoin value is really volatile and it is in his nature because speculation is the one that determines its price and for that volatility of bitcoin it has some advantages and disadvantages. Some of its advantages for example a trader may think its in a positive way that he can speculate when is the next up and down of price. But the only disadvantage of price volatility of bitcoin is that if you have such big investments through it, then that would be very risky to handle and sometimes your profit will be vary, on the other hand if it increases then that is a good chance also to earn.
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.
I think it´s a very young investment with small real life use cases. So being a speculative asset it´s normal to have very big variations in price. That what makes it fun and is atracting so many people:) well bitcoin is still young despite being around for a while. and that makes its market still young and small too. because of it, this market can be easily affected or manipulated even with different news which sometimes makes people uneasy and causes wild reactions to the price, which then you see as the volatility.
but this doesn't make bitcoin any more unpredictable than it should be. we can still speculate about its future or even the short term fluctuations.
but this doesn't make bitcoin any more unpredictable than it should be. we can still speculate about its future or even the short term fluctuations.
And its because people on crowd controlling bitcoin. It and other cryptocurrencies need more time to find their original-stable value. As we know Bitcoin start distribute on market since 2009, 9 years is short duration. Even if comparize for human age, its still Elementary School.
And Because there is no Father/government (decentralized), the price is volatile untill bitcoin reach teenagers or adult Age. Maybe 10 or 20 years, even more.
Since Bitcoin isn't yet adopted in most places, a large part of its supply and demand is based on price speculation. So as the confidence changes, the price fluctuates a lot. As its adoption increases and people send or receive payments for commerce instead of speculating on its price, it should be less volatile.
Even if adoption would help price stability, bitcoin is caught in a paradox. More stability may require more adoption, but more adoption (especially with respect to using it for commerce) will require more stability. It's very hard to use a currency for retail purchases that can change value with respect to fiat by 1% in a minute. Why would I use btc to buy something when there's a significant chance that it could cost a couple percent more by the time I actually complete the purchase?
This is not a paradox
I guess it should rather be called a vicious circle of sorts, where cause and effect depend on each other and intensify each other. In this case, merchants aren't accepting Bitcoin because it is too volatile while it is volatile because its adoption among merchants is too low.
That's what a logical paradox is. Catch-22 would be another way of describing this (please see https://en.wikipedia.org/wiki/Catch-22_(logic)). A won't happen until B does, but B can't happen until A does.
I do mean this somewhat loosely, of course. If enough merchants are willing to take on the risk of volatility now in the hopes of promoting future stability, then it could work.
But ultimately, the real cause of this self-sustaining loop is low competitiveness of Bitcoin in comparison with fiat currencies. If it could offer something really valuable which fiat monies can't, it would quickly get accepted and its volatility would diminish significantly
I guess it would depend on what it ends up offering. I can't see price stabilizing without some way of getting everyone to agree on a specific value for a bitcoin. It needs to be tied to something. Otherwise speculators will just keep jerking the price around.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
I think it´s a very young investment with small real life use cases. So being a speculative asset it´s normal to have very big variations in price. That what makes it fun and is atracting so many people:)
Bitcoin's value is very volatile, the fact that it is decentralize and not regulated is one of the reasons for its unstable value. It also depends with the supply and demand of users, if investors sell their bitcoin then there will be huge supply that can affect and make the price low and that is a good time to trade until the supply is low that eventually will make the price goes up again. It just like a cycle, so if for a time the value hits low, don't fret because surely it's value will rise again.
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