Why Is Bitcoin's Value So Volatile?

[Beign1979]

there is no central authority to regulate, hence the price swings are so wild

[dreamer81]

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 the price is so low. Imagine what a bank with 200 billion dollars could do to the price if they wanted to try something.
Once bitcoun reaches 1 million dollar, the price will be more stable.

Yeah just laugh, i know what you're thinking, but 5 years from now, when people stumble upon this post, they will say "damn, that dude was right".

[olliedickman]

the main reason is that bitcoin is not only a type of money, it is also a kind of investment and therefore, investors buy bitcoin in order to multiply their money in the future. And there are also many traders who sell and buy bitcoin frequently to make money. Therefore, the price of bitcoin easily be affected and it is volatile.

[omonuyak]

Bitcoin is still at the infancy stage and we expect alot of price manipulations and pump and dump group. We should also expect new unprofessional investors to jump into the market which influence bitcoin price and also people see bitcoin now as one of the best investment opportunities and of a truth they perception is right. Buying bitcoin now is the advise I give people and in 2018 you will also will testify the results of your trade too.

[JCO05]

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

Bitcoin is volatile because its market value relies on the market demand. And since the demand changes from time to time, expect that its market value will also too. If the demand will continuously rise, Bitcoin will be highly stable. Don't be confused ro buy Bitcoin just for that reason, make money out of it instead. Wait for its price to dump before buying Bitcoin and sell it during the pumps. In that way, you'll earn big profit.

[ss890]

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

Bitcoin is decentralised and the market fluctuates very easily once the trading volume changes drastically. People have no limits on how much they spend on bitcoin or much they sell on it which leads to chain of events and the price fluctuates a lot. There is no limits that's why the whole thing is happening. However you need not to be worried about it because this fluctuation in the price is also the power factor for bitcoin to rise in the future. Once the price drops many big investors start putting us their money on it increasing its trade volume. So you can learn to take the opportunity soon.

[Wingo]

The volatility of bitcoin is because of the big changes in the supply and demand. This cannot be controlled as bitcoin is decentralized, people can freely trade bitcoin as much as they want. This results to a constant and big fluctuations in the value of the bitcoin.

[x8currency]

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[Ctn]

It is volatile because there is no fixed investment in the bitcoin. People can drive crazy themselves at one point and won't do much at another point. This makes the most of the ups and downs in the bitcoin market leading to its volatile nature. Don't forget altcoins are based on the bitcoin itself and vice versa when we speak about the trading volume. Just take example of segwit situation where bitcoin was dumped into altcoins for security reasons and that led to tremendous pump in altcoins value while dropping the value of bitcoin itself. So same thing keeps happening with bitcoin everyday which gives the volatility to it. It's safe to invest at this high too.

[OneUnderBridge]

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

Me too! But I've been waiting and waiting for the price to come down. I've been watching for awhile but it keeps going up and up so I still don't own any bitcoin. I wish I could turn back the clock a few years to go back to the beginning. I should have listened to those insane fools when bitcoin was cheap.

[Rajamuda]

Basically it is influenced by the small volume of Bitcoin scattered in the network, a situation where more Bitcoin traders than Bitcoin users, globally dispersed news affecting people's closeness with bitcoin / affect people's panic for selling bitcoins. Indeed, the current price movement is doubtful to buy it, better wait for a slightly decreased and use that moment opportunity to buy it, i'm sure for the future the price will continue to increasing.

[PalindromemordnilaP]

There are factors that affects the fluctuation of bitcoins. You can read bitcoin's volatility issue here:

http://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp

Hope that helps!

[kevpantof]

Supply and demand are factors that makes bitcoin value volatility. A lot of investors and traders getting involve with bitcoin nowadays and the demand is high but have limited supply that cause it's value fluctation anytime.

Yes, this is the reason why the people are badly running after bitcoins. The high demand also makes the bitcoins every time rise high after very pump. Indeed when the people start dumping their bitcoins, value do decrease leading to dumping of the bitcoins and thus making them volatile in nature.

[barhavsky]

I think bitcoin is currently undergoing a thriving transition period and there are still many countries that have not recognized bitcoin as a currency officially so when a country recognizes bitcoin officially impacts its ever-changing prices.

[speedy963]

I think bitcoin is currently undergoing a thriving transition period and there are still many countries that have not recognized bitcoin as a currency officially so when a country recognizes bitcoin officially impacts its ever-changing prices.

One of the reasons why most investors love bitcoin ia because of its volatility, despite all this happenings and news they knew or we knew that it would still rise again, there are so many projects existing because of bitcoin, that makes the crypto world and by that phenomenon was being lead by bitcoin, and if that volatility would be gone, therefore those other projects and other coins would never existed or i think it would still existed but its value is not like what we are expecting.

[Harlot]

I think bitcoin is currently undergoing a thriving transition period and there are still many countries that have not recognized bitcoin as a currency officially so when a country recognizes bitcoin officially impacts its ever-changing prices.

One of the reasons why most investors love bitcoin ia because of its volatility, despite all this happenings and news they knew or we knew that it would still rise again, there are so many projects existing because of bitcoin, that makes the crypto world and by that phenomenon was being lead by bitcoin, and if that volatility would be gone, therefore those other projects and other coins would never existed or i think it would still existed but its value is not like what we are expecting.

I think that is only one of the minor reasons why Bitcoin is a volatile currency. Bitcoin's demand is also volatile even if there are countries that don't officially recognize Bitcoin yet. One of the major reasons why Bitcoin is so volatile is because big players are controlling it and they can start a panic selling or a massive pump die to their position the can influence the market greatly.

[CarnagexD]

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.

Bitcoin price can obtain volatile stock in terms of multiple transaction and balance on having more option for people to deal with transaction, investments and even tradings for you earn and to have profit out of bitcoinm but always keep in mind that trend of Bitcoin also rely on the management band the good decision of a particular trader.

[doomloop]

the main reason is that bitcoin is not only a type of money, it is also a kind of investment and therefore, investors buy bitcoin in order to multiply their money in the future. And there are also many traders who sell and buy bitcoin frequently to make money. Therefore, the price of bitcoin easily be affected and it is volatile.

there is nothing so uncertain in the value of the bitcoin. Because the bitcoin value is indeed volatile. If you are not so much sure about your investing process in bitcoin then you should go for learning first instead of investing without knowledge. Having fine knowledge about bitcoin and having hard work nature can make you earn good profit so bitcoin is volatile and it is good to have bitcoin indeed.

[Gotottack]

the main reason is that bitcoin is not only a type of money, it is also a kind of investment and therefore, investors buy bitcoin in order to multiply their money in the future. And there are also many traders who sell and buy bitcoin frequently to make money. Therefore, the price of bitcoin easily be affected and it is volatile.

there is nothing so uncertain in the value of the bitcoin. Because the bitcoin value is indeed volatile. If you are not so much sure about your investing process in bitcoin then you should go for learning first instead of investing without knowledge. Having fine knowledge about bitcoin and having hard work nature can make you earn good profit so bitcoin is volatile and it is good to have bitcoin indeed.

Value and prices are quite different things. The value of bitcoins is so hard to ascertain that is why the price is volatile. Bitcoins just have a fix amount of supply however the demand jumps up and down depending on the times. That is why prices does not remain the same, since this is a freemarket people pay for bitcoins with the price they think it is worth.

[Coffee135]

States have in their hands an instrument such as the national Bank. He can manually adjust the amount of working capital and to change the interest rate on loans. This affects the exchange rate. Bitcoin has no such mechanisms, so it will always be unstable.