Why Is Bitcoin's Value So Volatile?

[phuclzu12]

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

Maybe it has to do with the volume in the market that is also related with the demand that it is getting. Bitcoin is volatile for the fact that its market price changes everytime. Fluctuations is natural that its value sometimes decrease and sometimes increases Don't be confused into buying and investing to Bitcoin just because its value someimes fall, because its value is as of this moment, is continuously increasing.

Depend the cycle, you can not buy Bitcoin just because it dumps 10% or 20% from the highest price, maybe, it has started the bearish market and will make you lose your money. Therefore, be careful before buy Bitcoin at high price, especially the current price just good to take profit.

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[Mobshady24]

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

the supply and demand chain explains it all, the limited number of bitcoin in the market and the great demand for it makes it very volatile and there are other factors like events that take place around the globe with regards to crypto currencies, laws made by governement, statements from popular individuals and many more.

[Casmania]

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

Bitcoin's value depends on the investors and users. The more people investing and holding bitcoin, the higher the price goes. It really depends on market demand. So, expect bitcoin to rocket-up because more and more people are getting interested in bitcoin because it is really profitable.

Yes it's merely profitable because people thought that they will earn lots of money for it. That's how other view it as a source of money, so more of them had cause the price to fluctuates in an unpredictable situations, and made the value volatile and it could change up to lower or higher value anytime. More people will be holding bitcoin now because it gained its popularity eversince the start of this year.

[justspare]

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

Bitcoin's value depends on the investors and users. The more people investing and holding bitcoin, the higher the price goes. It really depends on market demand. So, expect bitcoin to rocket-up because more and more people are getting interested in bitcoin because it is really profitable.

Bitcoin is an asset, and as usual they always start up with a low amount and a very low market cap. Its price fluctuates to any direction depending on investors, how much they invest and how much they withdraw. But sometimes, I get confused when I’m trying to compare gold and Bitcoin.

Unlike Bitcoin, gold is always less volatile and makes little changes, despite the fact that millions (or possibly billions) of people from around the world invests on it.

[cah ndablek]

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

You do not need to bother thinking about it because usually the price can be affected from the demand of many people.You should be patient first to wait for the price to buy bitcoin decreased.So you can earn a great income later.

[goku1525]

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

You do not need to bother thinking about it because usually the price can be affected from the demand of many people.You should be patient first to wait for the price to buy bitcoin decreased.So you can earn a great income later.

Yes I agree, Bitcoin Value is volatile because it is decentralized and beyond the central authority control. It's price changes as per demand-supply law. And it's price is getting continuously high because of its limited supply but high demand. But sometimes suddenly crashed down is it because of some negative news against of it.

[Flodemaga]

Bitcoin is very volatil due to news and their investors and supporters, since Japan entered into bitcoin and crypto world we had see an amazing ride, China looks like is coming into legalization as well, their position to regulate ICO and exchanges did had a big impact into the value, Venezuale  had found into bitcoin and crypto in the general a way to store their money, soo they can handle the hiperflation.

[coolcoinz]

in fact, bitcoin is not that volatile relative to its small market cap. Bitcoin is a value transfer system, so the price of 1 BTC is fundamentally a function of how much value flows though the network and speculation of the future value of the flow. And when the network grows bigger, the changes in the flow will be smaller and less uncertain.

A year ago Woo Bull predicted that soon the volatility of BTC will match those of central-bank-issued currencies: http://woobull.com/bitcoin-volatility-will-match-major-fiat-currencies-by-2019/
Of course, his (and Vinny Lingham's) target prices have turned out to be massively wrong, but the central point still stands.

Penny stocks are much more volatile. What is happening to Bitcoin is 100% normal when you compare it to new, small companies. Once a company like that makes an announcement that they're reaching a breakthrough their shares go up and when the competition spreads FUD they go down.
I'm sure it will decrease with time. We can already see it starting to decrease with dips getting much shallower.

If anything, this doesn't look very convincing

I'm curious where you see "dips getting much shallower". Just a few weeks ago the price went down below 4,000 dollars per coin, while yesterday Bitcoin seems to have made a new ATH at over 6,300 dollars. This is an increase of more than 50%, just in case. I don't know about you, but personally, I wouldn't call that as dips getting shallower, let alone much shallower. So what is the basis for your claims that Bitcoin price is becoming more stable? I'm really interested in hearing that. Maybe, I don't know something which you do

You're looking at USD value and that's why you can't see it. You should start looking at percents because it's all in the proportions not the amount of USD lost.
You need to go back a couple years and compare to what's going on now. In early 2014 it lost 800$ on the average in 3 months and reached a low of $100 on some exchanges. This was a loss of over 80% of value in less than 4 months, so yes I think that losing 30% of value right after a short spike is nothing compared to a gradual loss of 80%.

You are just trying to distort the facts so they better fit your idea

First of all, I think you should check the price charts for yourself. If you do that, you will see that Bitcoin had been declining from its 2013 highs for over year with a minimum of around 180 dollars in February, 2015. So I don't think you could easily compare this decline with the volatility we see today, where prices crash and spike dozens of percentages within just a few days. Further, you might have missed that part of my post where I talk specifically about percentages, where I say that the plunge from 6,000 down to below 4,000 and subsequent growth to over 6,000 dollars (now above 7,000) is over 50%, just in case (though it depends on what you take as the base). And last but certainly not least, there is a good theoretical explanation that with the price growth we will see an ever increasing growth in volatility. Yes, in percentages, not just in absolute terms, mind you

I'm not distorting anything just looking at the charts.
Take a look at bitfinex in the early 2014, February to be exact. There was a low of $100!
On Bitstamp the low in February was below $400, which is still a big deal. Bitcoin lost over 60% of value in 2 months. If that isn't volatile to you then I don't know what is.
I'll continue to defend my point that the volatility isn't rising. It has always been there and should decrease with time.

[PokerFace3]

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

Bitcoin's value depends on the investors and users. The more people investing and holding bitcoin, the higher the price goes. It really depends on market demand. So, expect bitcoin to rocket-up because more and more people are getting interested in bitcoin because it is really profitable.

Bitcoin is totally dependent on the market and the way we perceive it every certain point in time. The high level of volatility would always be there for now since there are a lot of people trying to invest due to the fear of missing out and also we still have some who could panic as their hands are probably still very weak.

Bitcoin is an interesting valuable asset which has a lot of features and that feature is what people are buying and some people are also letting go either through trading or because they just do not understand the features.

[bentong talong]

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

Bitcoin became famous because of its volatility. This volatility has brought many people a lot of benefits. If we are going to look at it carefully, we will notice that the value of bitcoin is increasing as the demand of the people grow. Meanwhile, it decreases whenever the demand fall. This just simply show how the usage of bitcoin among ever individual affect its value so the best thing to do is to keep on supporting it for the greater good of everyone.

[Watashi Yamashita]

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

The volatility of bitcoin depends on the happenings in the market. You can not blame anyone about the changes of its value instead you should carefully watch out for the things that is happening in the market. If you think the value is low, then go buy ahead but if you are hesitating because you think the value will still fall down, then be patient. In order to be successful here, you should be smart and patient, it is what most of the successful people have here.

[asriloni]

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

Bitcoin's value depends on the investors and users. The more people investing and holding bitcoin, the higher the price goes. It really depends on market demand. So, expect bitcoin to rocket-up because more and more people are getting interested in bitcoin because it is really profitable.

The more people were using the bitcoin will divide the bitcoin into a lot of the parts. That makes the bitcoin will be rarely and expensive. The more money was flowing to the bitcoin. The point was in the adoption.
More people need more bitcoin but the supply was limited.

[AltCoinProject]

Because it has not got any balancing mechanism.

[spinach98]

Bitcoins value will always be volatile but it doesn't mean bitcoin will gone because as you can see bitcoin's value as of now always increase so its good to hear especially to those people who earn bitcoin like in this site or forum your earning bitcoin so its good to hear that bitcoin is increasing rapidly.

[khaled0111]

Bitcoin is still in early stages thus its price is related to demand and sepply law. In last months, bitcoin community started growing significantly in result the price went so high. I believe that in next years the price will be less volatile when there will be less traders and more regular users using bitcoin to make daily purchases.

[Ctn]

Too many factors man. On professional level now Wall Street is interfering with it by adding up the CMF products and shit like that which id not really understand. The current jump is due to that manipulation that I understand from the forum itself.


Rest things are like people are shitting for fork situation into bitcoin and making it fat ass. They want all the free money that will be credited for holing equivalent bitcoin and things like that. So I’m pretty sure you understand this is not just about one thing but many.


Anyway its always safe to invest into bitcoin but just make sure that you don’t make entry point which is very high. For example, current rate is 7000 USD. Which is too high.

[websoftwareengineer]

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

The basic principles of marketing is with high demand and low of supply then the value will increase this simple concept will explain your entire question. There will be no accurate predictions if you want to know when the price will rise or decrease it will always be depends on the flow of the market.

[yvesp110]

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

The basic principles of marketing is with high demand and low of supply then the value will increase this simple concept will explain your entire question. There will be no accurate predictions if you want to know when the price will rise or decrease it will always be depends on the flow of the market.

Yeah the bitcoin is being unique because the bitcoin is being famous and the bitcoin price will increase more and more I hope this will be the fame of the bitcoin that will make the bitcoin volatile as the value of the bitcoin will increase more and more, I can see how fast the value of the bitcoin is now increasing at the high level and the time is not far when all the people will start buying the bitcoin because of the highly increasing price.

[naidray]

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

Maybe it has to do with the volume in the market that is also related with the demand that it is getting. Bitcoin is volatile for the fact that its market price changes everytime. Fluctuations is natural that its value sometimes decrease and sometimes increases Don't be confused into buying and investing to Bitcoin just because its value someimes fall, because its value is as of this moment, is continuously increasing.

An economist was telling me that we even haven't seen anything yet in the value of bitcoin. We are just having some few players heading in and over time, there would be so many development that would make the usage of bitcoin and other cryptocurrency even more useful than just being an asset which would make more people to be aware and see that value at that point as a very lovely thing to get.

With that, volatility will always keep on until maybe we are able to find a balance at some point. However, volatility can never be stopped, cause even normal currencies are.

[Afnan_faizah]

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

Maybe it has to do with the volume in the market that is also related with the demand that it is getting. Bitcoin is volatile for the fact that its market price changes everytime. Fluctuations is natural that its value sometimes decrease and sometimes increases Don't be confused into buying and investing to Bitcoin just because its value someimes fall, because its value is as of this moment, is continuously increasing.

An economist was telling me that we even haven't seen anything yet in the value of bitcoin. We are just having some few players heading in and over time, there would be so many development that would make the usage of bitcoin and other cryptocurrency even more useful than just being an asset which would make more people to be aware and see that value at that point as a very lovely thing to get.

With that, volatility will always keep on until maybe we are able to find a balance at some point. However, volatility can never be stopped, cause even normal currencies are.

An expert said that bitcoin volatility will be less happen if bitcoin become more mature and has high liquidity. There are big volume of bitcoin are being trade in exchange, wide scale selling of bitcoin is affect a sharp decline in price. Thats why panic selling is closely related with volality, traders are just want to get profit from their invesment anytime they have chance.