Why Is Bitcoin's Value So Volatile?

[Hexah]

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.

[princesocapuyo]

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.

[fredo123]

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.

[Paecga129]

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.

[bololord]

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 .

[GeniusAko]

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.

[Sidas_Crew669]

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 volatile

Well, 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

[cpfreeplz]

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.

[StarofBTC]

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.

[deisik]

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)

[newlone]

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

[Wintersoldier]

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.

[oegarod]

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.

[Tubig]

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.

[Tubig]

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.

[lanyounanhai]

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.

It is about the belief. The number of people who believe in bitcoin is still small and most of investors are new in this playground. They do not 100% believe in bitcoin and what bitcoin can do to our world. Moreover, the lack of knowledge is also the main reason why they sell bitcoin after a bad news.

[Clover_Faith]

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.

[fullhdpixel]

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.

In fact it is the nature of every crypto currency to be volatile because of continuous trading and investments from all over the world. Although bitcoin too have a volatile nature but it has capability to retain its worth in the market, one day it will be out reach of those who have never invested in bitcoins.

[Kiweikoo]

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.

[Fretcy]

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.