Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It is volatile because it is dependent with its market demand such that if the demand is high, its value be expensive. And since the demand changes from time to time, its market value will also too. But you don't need to hesitate wheether to biy or not because if you have patience you will earn huge profit in the future since Bitcoin is continuously growing in all aspects from its market demand upto its market price.
Topic: Why Is Bitcoin's Value So Volatile? - page 23. (Read 11256 times)
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
As many others have said here, the decentralized nature of the bitcoin is part of the reason for the extreme volatility. There's no centralized entity, like a reserve bank, that can act to dampen the price swings. Traders/speculators that are constantly buying and selling have an impact on the hour-to-hour price. And the general lack of liquidity exacerbates the moves.
But one thing that I think most people are missing here is that there's no good way to determine the actual value of a bitcoin. The value of other currencies is determined by the economies they represent. The value of commodities (oil, gold, etc.) can be estimated from the amount of time/effort/resources/money that's required to obtain them. But bitcoin doesn't have anything like that backing it, so there's no way to form a consensus on what it's value should be. Without that, price is going to continue to swing wildly.
What a good question! It is obviously a case of supply and demand, but perhaps the world wide nature of bitcoin and the speed at which information spreads (this forum being a case in point) creates more volatility than the spread of information in a conventional economy (where the noise of the Kardashian's alone interferes with the speed of economic signals).
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It is volatile because its market demand changes from time to time. Bitcoin together with other cryptocurrency are dependent with the demand in terms of its market price. Such that if the demand is low, its price will fall. Also it doesn't have a physical market value which I think affects it as an open source system. But the biggest factor that affects its volatility is its demand on the market. 
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Bitcoin's price rate is really volatile because it is also a type of currency that undergoes into pumps and dumps in the market but the only difference is it was a cryptocurrency generated online but still same thing applies into the price rate like the real money rate changes. The volatility of it happens because of the demand rate changes in the market of the consumers and potential investors that have been working on it.
Well bitcon is so volatile because is a currency that the volume or market capitalisation is still low as compare to most of the currencies in the world whose volume are so high to extent that no single event has significant effect on it value.
I think that he reason behind the bitcoins being volatile is the increasing number of investors and people who are taking interest in bitcoins and investing in them.Also that bitcoin's value highly depends on demand of people which contribute to it's volatile nature.Bitcoins are still in developing phase that means it doesn't have full completed it is still being developed.And this volatile is one of the main reason of bitcoins success.
Speculative is the main reason make the price of Bitcoin always has strong volatility. Just some rumors about China banned Bitcoin in their country, it has makes a huge number of traders on market sell their Bitcoin and created panic seller in past days. 
I think that he reason behind the bitcoins being volatile is the increasing number of investors and people who are taking interest in bitcoins and investing in them.
If we look through all the speculation and stuff, then the extremely poor orderbooks have been the major reason of why the volatility that we experience is this bad/severe/heavy. It's insane that a relatively low number of coins in current days, can get the market to sink with 10% in a matter of seconds - yes, you read that well, seconds. If we would be having one single orderbook, just like stocks are having, we wouldn't experience this level of volatility. Imagine how things will be when the entire world buys and sells through one single orderbook - it will make sure that the volatility that we experience with current severity, will be something of the past. It's practically impossible to force through such regulations to achieve this, but if people are looking for stability, this would be a convenient way of doing it.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Whenever people invest a big amount of money in bitcoin it rises up, and when people withdraw a big amount of money it drops. This is the effect of investing and withdrawing bitcoin. The more investment in bitcoin the higher the price gets. There are some people who manipulate the price of bitcoin the entice people to invest.
bitcoin is a form of investment.
makes its market still young and so small so it is not real value of it may be get 7500$ by the end of 2017 so buy and buy more
I think that he reason behind the bitcoins being volatile is the increasing number of investors and people who are taking interest in bitcoins and investing in them.Also that bitcoin's value highly depends on demand of people which contribute to it's volatile nature.Bitcoins are still in developing phase that means it doesn't have full completed it is still being developed.And this volatile is one of the main reason of bitcoins success.
The number of people who are interested in bitcoin has increased which has made them buy more and more bitcoin. That is why the price of bitcoin is always volatile. Moreover, there are many traders and whales. They keeps buying and selling their coins everyday. FUD and rumors are also the main reasons which make bitcoin unstable. Bad news will make people sell their bitcoin and good news will encourage more people to buy it
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
There are a lot of factors thatmakes bitcoin is so volatile. Bitcoin is so volatile because most of bitcoin users are trader, this is a new concept of a payment system and bitcoin still not spread evenly. But it is not a problem because it is also a positive thing for trader to gain profit. The price of bitcoin will be more and more stable in the future. 
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
It is volatile because it is dependent with its market demand such that if the demand is high, its value be expensive. And since the demand changes from time to time, its market value will also too. But you don't need to hesitate wheether to biy or not because if you have patience you will earn huge profit in the future since Bitcoin is continuously growing in all aspects from its market demand upto its market price. 
Well,bitcoin is still at its premature position,you should still expect huge dispositions in its price.
We even do not know if the volatility of bitcoin would stop at any stage or not because volatility is among its main aspects of demand and use.
We even do not know if the volatility of bitcoin would stop at any stage or not because volatility is among its main aspects of demand and use.
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
Well, the reason why bitcoin is volatile is because bitcoin's main characteristic that I usually see and have observed since the day that I have got engaged with it was bitcoin is a fast growing cryptocurrency that is really competitive internationally which was now widely use across the world. Its volatility was caused by the sudden changes happening in the market wherein the demands of the consumers and potential investors varies within a period of time. Price do really moves anytime on bitcoin because there are sellers and there are buyers and when theres a lot of demand on this coin then expect for the price to rise up even more because the higher the demand the higher the value of it. Volatility of price is the thing why most investors and traders do really like on it. They can able to make money on it when the price moves. If you are a trader you will surely know what i mean.
Based on my opinion bitcoin value is volatile due to flactuating price of money and due to decreasing /increasing investment of others in bitcoin so thats why sometimes bitcoin value is low and sometimes its very high.
The main reason is that many big whales aka big Chinese investors are investing their money in bitcoin. And I do believe that they are holding about 5 to 10% number of bitcoin which exist on the world. Therefore, they can easily control the market and make it volatiles. Moreover, more people are learning about bitcoin and some of them are buying more bitcoin right now
Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.
As many others have said here, the decentralized nature of the bitcoin is part of the reason for the extreme volatility. There's no centralized entity, like a reserve bank, that can act to dampen the price swings. Traders/speculators that are constantly buying and selling have an impact on the hour-to-hour price. And the general lack of liquidity exacerbates the moves.
But one thing that I think most people are missing here is that there's no good way to determine the actual value of a bitcoin. The value of other currencies is determined by the economies they represent. The value of commodities (oil, gold, etc.) can be estimated from the amount of time/effort/resources/money that's required to obtain them. But bitcoin doesn't have anything like that backing it, so there's no way to form a consensus on what it's value should be. Without that, price is going to continue to swing wildly.
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