Why Is Bitcoin's Value So Volatile?

[sapnu]

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

Because the market demand is also changing from time to time and since Bitcoin's value is dependent with the demand in the market, as the demand increases, same thing will happen to Bitcoin also when its value falls. But you don't need to hesitate to invest in Bitcoin because it will continue rising. It is just that fluctuations are expected. But still, profit will be assured because the rate of increase is greater than the rate of decrease.

[Silberman]

Bitcoin is volatile because it is decentralized, there are no laws or rules that limits its usage. The market is growing and proportional to its growth is the increased volatility.

Decentralization plays a role but not in the way you imagine, since there is no central authority when it comes to bitcoin the price of bitcoin is left to its own devices, even if countries say they do the same to their currencies this is not exactly correct, if a national currency is losing ground against the dollar then is not rare for a country to defend the value of its currency by selling dollars in the market in exchange of their currency but we cannot do this with bitcoin, because there is not a central authority with billions of dollars to pull off those maneuvers.

[Theb]

Well the fact that it is a decentralized currency where no government has control with it. Making Bitcoin be controlled by big holders of it, influencing its price in many ways. The volatility is caused by people trying to profit from it and it is cause by the big players who will start to sell at the top first and will start the chain for the other sellers the same can be said on players trying to push the price upwards.

[moinul018]

Gosh ! I had the same question in mind.

[mozillaspez]

Don't be confused to buy bitcoin if the price now looks high in your opinion. Bitcoin's volatile because it's depending to it's supply and demand, try to understand how the law of supply and demand works and you'll finally understand why bitcoin's value is so volatile. And with the different speculations from big personalities are also affecting it's price, good and bad news as well.

Don’t be confuse to buy bitcoin if you looks the price are high. Then look what is the value of bitcoin and how many are people demand for bitcoin for example you buy one 1 bitcoin for $4332 and your bitcoin value become a $5322 how many profit do you earn don’t be confuse to buying bitcoin .

[TomUyamot]

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

It might be too high from your point of view right now. But it will become ever higher in the future so I guess the best thing to do is to act now and buy some bitcoin. When you look back to the price of bitcoin as of today, say 1 year from now, you will just smile and say to yourself, the price if bitcoin is so cheap back then. 

[jayhawk1]

I think this is because bitcoins are still new and that the use of it has not yet been mainstream. There are only a few players to work with and that just one player that suddenly decides to quit or sell would result to a big drop down in the number of players already. And because the market capitalization is low as well, even a medium sized bank could buy the whole bitcoin economy.

I don't think I can agree for your words that bitcoins is new since this is the most oldest coin made and yet the strongest one since it is more adopted well by the crypto guys. But maybe its not on the mainstream yet since there are so many people,business and countries doesn't know about this so I think bitcoins need more advertisement and exposure so that we can maximize its potential.

It has been a few years now since bitcoins were born but the period is not a long one. I think it is just 9 or 10 years in total so bitcoin is still considered to be in its infancy. Regardless of the time, this digital coin is capable of doing great things but every new change takes time to get adopted by common people. The abrupt change in its price is due to the number of supporters it has at any time. People come and go that is why it is so volatile but things have started to settle down now.

[EdenHazard]

Its volatile because there is no consensus on how to prie a bitcoin. And the fact that half the folks that have traded bitcoin, absolutely suck at it its more the investor maturity however, people react in this space on the slightest news. this lack of investor education is also evident by the amount of scams that are able to proliferate here.

for reasons different that what have already been expoused in this thread; regulation will fix this. but I dont think folks will ike the "fix" (a lower, more stable price).

yes decentralization make bitcoin volatile that is the most simply answer .

and sometimes it is drive to a bubble , everybody love that moment but forget to anticipate on a correction which usually makes people struggle to get the money loss back. volatile could be mean a high risk market, nobody knows the exact price will be.

[Bohxz M4p4gm4h4l25]

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

I think thats because of the supply and demand for the bitcoin is generally rekative on wmanypeole ho works here or even using tokens from the bounties that we are also involed. Bitcoin price is so volatile because it was made naturaly like that , and it makes bitcoin more unique due to the fact that we can be able to have a double amount of proft without doing anything it means that the more you sav the more profit you can increase,even it dumps it wilk come again soon.

[lvincent]

Sometimes it depends in the present new's that is affecting btc just like when china ban bitcoin it has a great affect in the price of btc and the basic thing in economics the supply and demand btc price and every other coins depends on it..

[macchiato]

That is bitcoin's nature. It is volatile and unstable. They say one way to beat this volatile market is to start trading now where its value is significantly low compared to its future value. Wait for its value to be reduced and don't hesitate buy.

[cryptokitty]

Yes, that is true, bitcoin is so volatile. Most of the time it is very hard to predict what will be the price for the next hours and what should i do. Sometimes i need to think more before i proceed with my investment.

[WannaCry]

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

Actually, when you think of it. It is the same as the other currencies. Like dollars for example. There are times that the rate of dollar decreases and increases. So, the same principle applies in bitcoin. It just so happens that it’s value is very big.

[bacardibacani]

There are many factors that can affect the value of Bitcoin.

1. Market
Not only is it a fresh market, but a growing one, too. Meaning, its still growing and it can easily get diminished by manipulation or bad reputation.

The price of bitcoin is dependent on the number of users involved, and anyone can just as easily leave the community, as well as to join.

2. Politics
It's the first of its kind, and many, including governments still don't understand it. The regulation of Bitcoin in a certain country then affects factor #1.

3. Market Cap
Another factor would be that Bitcoin is limited. There can only be 21 million BTC in existence, and not all of it has been mined, yet.

There are many more, but here are just three to light the event.

[VFabio]

Because of more investors than users.

[Domenc]

No one can control the value of Bitcoin as bitcoin is a decentralized system and no organisation got the power to regulate it's price it is simply dependent upon the buyers and sellers, due to which it's value becomes so volatile. Now only, when BTG is released its price is going up and down simply because it is controlled by the buyers and sellers, so the point is nearly every crypto currency is volatile.

[Magic Sarap]

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

Maybe it has something to do with the Bitcoin's market demand since its market value is only dependent with the demand that it is getting from the market, such that as its demand is getting higher, its market vakue is bexoming more expensive. But there's no need to hesitate whenever its value is high because surely, it will be higher so the increase never stops as well as the profit.

[jahmes123]

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

It's because bitcoin price is based on the amount of bitcoin that was bought on the market. In short, the more bitcoin circulating the higher the price gets. Bitcoin price depends on market demand.

[santi_09]

Even it is still volatile. I still wait for the right time to buy, at least lesser in price even a little

[Kr8os]

It might be cryptocurrency has introduced very new investors into the market because it's more or less self managed. With Bitcoin still being very new to the market, it's very likely for newcomers to react to every bit of news and sell / buy at unpredictable rates.