Why Is Bitcoin's Value So Volatile? - page 31.

skorupi17

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Quote from: rortan75 on August 06, 2017, 04:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

The volatility is a result of Bitcoin being decentralized. And since Bitcoin is decentralize, the only thing that dictates the price is the demand for Bitcoin with respect to the total supply of BTC available in the market. The law of demand and supply should suffice for the explanation but I'll try to make it easier. The price varies depending on the supply and demand and since we cannot control the demand for bitcoin, as well as its supply, then if a person bought some Bitcoins then we will see a price change, that is also when someone sells his/her coins to an exchange.

The demand and supply is uncontrollable which then results to volatility.

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Quote from: rortan75 on August 06, 2017, 04:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Bitcoin is a decentralized cryptocurrency and one of the first cryptos to introduce a new ideology of money and also new peer to peer blockchain technology which at the time, was probably considered as revolutionary.

The important thing about Bitcoin and what makes it so volatile is the fact that it is a decentralized currency, which means that it is now controlled by any banks or the government. The price of Bitcoin depends on the community and that is why the price of it often goes up and down, also known as being volatile.

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Because it's purely based on speculation and there's no centralized management. Unlike organizations or companies in the stock market, there's no ruling body that can produce news or developments affecting the price movements of bitcoin as an asset. Even certain centralized bodies that have some influence on bitcoin don't have any power on bitcoin because there are markets running 24/7 worldwide for it and there's no way a decision affects all users in the world to change the price enough thanks to bitcoin's decentralized nature.

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And the advice is you should not buy bitcoin at this point. Bitcoin is at its peak value and it would be too high to get any kind pf margine from the trade. You will end up in panic situation really and could not think of anything at that time. You may sell loosing profits.

What you can do is go for altcoins which are at their lpw prices right now. Once the price increases you can take advantage of your compound amount to buy bitcoins and that would be like investing free fiat into it which is your profit only.

You need strategies amd long term plans for this to work out for you. Because leaving this strategy in between will not make you succesful in this. So buy altcoin cheap, earn profits and spend this compound amount in bitcoin and earn even more.

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bitcoin value is volatile for a couple reasons :
1) When there is coming a change for the bitcoin blockchain, it will become volatile because no one knows how bitcoin will be affected after the changes.
2) The more people knowing it will make it less volatile. The growth of bitcoin will still be huge, because many people don't know, or on't really understand how it works.

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Quote from: rortan75 on August 06, 2017, 04:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Price Volatility is one of the characteristics of bitcoin on which we cant really change it since price would really vary depending on the supply and demand of bitcoin. If you are a Trade on bitcoin you will surely find a hard time on executing orders because you wont really know on when it would pump or rise up.Just for example on past few days when price stays up on 2800-2900 range and then suddenly pump on 3150 atleast then for sure it was a profit for those who bought on 2900 but these kind of movements aren't permanent.

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Quote from: rortan75 on August 06, 2017, 04:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

Bitcoin is very volatile since its value depends on the movement of the market which is the supply and demand. If the demand from the people is high then the price of bitcoin will go up easily since there are many buyers but if there are more sellers than buyers then it has the tendency to climb down. Bitcoin has a limited supply of 21 million coins and thus as more people are purchasing bitcoin its value will go up. If you do not buy bitcoin right now you will be left behind when its value is twice the value today. If you do not decide today when will you decide, if you continue doubting you will be surprised that bitcoins value will be 10k dollars in the future.

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I think I should wait a month for reduce bitcoin value.

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Quote from: rortan75 on August 06, 2017, 04:45:39 AM

Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

It seems that you are totally new to Bitcoin world. Bitcoin is never stable, you need to look at current events and read around the forum and draw conclusion whether prices will rise or drop, see it depends on the demand and supply factor. Then the global events also play a important role in the price supply.

Quote from: rortan75 on August 06, 2017, 06:08:21 AM

Quote from: Palmerson on August 06, 2017, 04:52:23 AM

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.

so i should buy bitcoin at this point or when the value reduce.

Every one will give you a mix reply, as one can see from the price, it's coming down, but then again Aug 8th event may push it up, watch it around for a while, it may just shoot up, and later come a little down.

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Quote from: rortan75 on August 06, 2017, 06:08:21 AM

Quote from: Palmerson on August 06, 2017, 04:52:23 AM

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.

so i should buy bitcoin at this point or when the value reduce.

Try to wait for the price to decrease a little. Last month is the best time to buy bitcoin because it dumps back to one thousands. It is so rare to see the bitcoin price to go back to that kind of price especially with a lot of users. I think you are late buying some bitcoin, maybe wait a month or longer.

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Quote from: Palmerson on August 06, 2017, 04:52:23 AM

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.

so i should buy bitcoin at this point or when the value reduce.

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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.

talkbitcoin

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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.

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Why Is Bitcoin's Value So Volatile? I am confused to buy bitcoin now when it's value is too high.

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