Why Bitcoin Is So Volatile

[biascoin]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

[1715223085]

1715223085

[1715223085]

1715223085

[1715223085]

1715223085

[South Park]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

[Zaggeta]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

[peter0425]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

I agree, I scan just the first page and I hear the same reasons all over again. There's nothing new in the article that will stand out. I try to search the first page with the word "speculation", it turns out the author didn't used this term. If he did, then I will tip off my hats to him.

Unfortunately, he didn't understand that everything is really based on speculation, that how the prices moves, if there's some positive news the market will pick up and increase its prices. And supply and demand is the main reason why everything is volatile. No need to explain further as @South Park already did in a nutshell.

[Nellayar]

Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.

[muzica0519]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

Same old argument with the same purpose and that is to bring down bitcoin. All they say is volatility but investors who believe that bitcoin is already volatile yes continue to invest in contrast to the supply and demand aspect in the economy. Which means when investors buy they expect other would invest too and that there will be more demand than supply.

[Nhebu]

I just scanned the article and it seems that the author do not want bitcoin because of its volatility. I agreed when he said that there is market manipulation. The conspiracy of some whales or large investors inflict well to the price of bitcoin. If they want it to decrease then they pulled all of their investment which will cause to a great crash! The controlled the market in a way they know that they will gain lot of profits.

[Bitcoinjheta]

One of the factors that affect bitcoin's volatility is,
INVESTORS ARE INFLUENCED BY NEGATIVE PRESS

News events that scare users include geopolitical events and statements by governments that Bitcoin is likely to be regulated. Bitcoin's early adopters included several mal actors, producing headline news stories that produced fear in investors. All these incidents and the public panic that drove the value of Bitcoins versus fiat currencies down rapidly.  However, Bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of Bitcoins versus the dollar markedly back up in the short period immediately following the news events.

To know more about why is bitcoin value so volatile, you may see this link. https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp#ixzz56kcNu31p

Well, as i read the article of Jay Adkisson about bitcoin is volatile they are commonly a structure of comparing of the past cryptos. This is a form strategic attack to were our believers and investors will scares to leave the industry of cryptos. Only have to do is be passive of what bitcoin is really going because this are different cryptos compared to the old forms, purely it was unsupported by many due to lack of informations. Bitcoin gathers a lot of entries were world wide are happy in it's form were volatile is just normal due to demand and supply in a market.

[Afnan_faizah]

Bitcoin cannot avoid volatility, since its only new currency with relatively liquidity. Bitcoin trader even make this condition even worst. Bitcoin must spread to many people so it can be more stable. Fortunately, there are many new altcoin that comes and makes bitcoin price litle bit more stable.

[supermine]

The volatility of bitcoin is due to its less availability of only 21 million when compared to the fiat money of US dollar,its availability is four trillion.So the difference is very big between the crypto and fiat,so there is a little change in the demand and supply will change the price which resulted in the often price change.
But the price volatility is the main reason that people don't use it as a currency and merchants afraid to accept as a payment because the merchants will lose their profits when the price falls.So we need to support altcoins too to get the stability in price of bitcoin.

[marcuslong]

Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.

I agree with you!Honestly the Bitcoin maximum capacity  was almost 21 million and then because of it's volatile movement it creates for up and down of it's value price.And not only  for that because I believe also why it's volatile movement was most of the Investors tried to sell and buy their bitcoin everyday.This is a big reason and it is really true of all evidence that many Investors now is really interested for cryptocurrency especially for Bitcoin.But despite of that we should be thankful and blessed because until now the bitcoin was still alive and kicking to make as proud continue to our dreams in life together with bitcoin.

[Kwame Genius]

This is a perceptions bitcoin will not collapse completely.  Bitcoin  invested have hope that the value of Bitcoin will increase in the future based on demand.

[Isaacck]

Bitcoin is unstable in light of the fact that there is a constrained supply just and it is only 21 million bitcoins. It is likewise hard to mine bitcoins in light of the fact that to the extent I know it is separated into two following 4 sequential years. I imagine that is the purpose for its unpredictability. Its cost goes up when there is an extraordinary request yet the cost moves toward becoming lower if the request will goes down. It involves rare assets.

[alyssa85]

Bitcoin is volatile simple because it's market cap is relatively small (bitcoin is worth less than Apple). That means it doesn't take much money to move the price. As the market cap gets bigger and bigger, the volatility should reduce.

Meanwhile, volatility is fun for traders 

[Rafar8]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin is one of the first and most popular crypto-currencies that does not have direct competitors at the moment. However, over the past few years, there have been quite enough crypto-currencies in the market for altcoins offering new platform capabilities and increased security. The more new and convenient solutions are offered by digital currencies, the sharper the need for "oldies" of the market (such as bitcoin) in modernization. Otherwise, the coins simply become obsolete.

Perhaps this happened with bitcoin? In fact, there are many internal and external factors that affect the BTC and can play a role in its fall.

Internal factors include:

transaction fees;
block capacity;
infrastructure.
The idea of ​​internal conflicts and overstated commission was especially zealously promoted by Roger Vero, an adept of Bitcoin Cash. The idea of ​​an unnecessarily high commission and a low degree of protection was picked up by many bitcoins-experts. This could not but affect the perception of BTC investors.

[kingragnar]

I think. There are many ways to make the bitcoin a volatile one of the reasons for it is the investers who buy bitcoin at a cheap price and then they hold it only until the time or month comes to raise its price again this way bitcoin price change. This is just one of the reasons for volatile bitcoin

[eternalgloom]

This is just one single counter-argument made towards the claims that Bitcoin has no intrinsic value.

With Bitcoin you essentially buy access to the cryptocurrency ecosystem as a whole, think about it.
Most big exchanges only allow you to to use fiat for buying Bitcoin, so you need Bitcoin to be able to trade with other cryptocurrency.

While there have been a few major exchanges that also allow you to buy Ethereum or other altcoins directly with fiat, most people still opt to buy Bitcoin first.

[Reid]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

Merited and agree all the way.  
He proves he is the one which is detailed in his personal message.

I love the way it was said. It is like everything now is backed by something and only bitcoin is the one who changed it all.
Commodity/currency for me. Since the start that had been the look of bitcoin in my eyes.
It will always depend on the demand. It is the only answer that should be said.

[kimkimkim852]

Same old argument, indeed many of the fiat isnt backed by anything other than states promise.

But it could void anytime - see those bankrupted countries in the world

[Yatsan]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

There's no exact reason behind its volatility in the market. All I know is that, it has to do with the market demand. Furthermore, demand chabges from time to time and given that its market value is proportional with its market demand, what happens with demand, is likewise with the other one vis-a-vis. But you can make profit from its volatility so it is a bit of a downside and advantage at the same time.

[Rhaiyah]

Honestly, I don't know what is the exactly reason on why bitcoin is volatile. The volatility of Bitcoin for me it's a normal and this I know on why, it's because of supply and demand.

[lukejoseph95]

It is a new thing introduced to market. It is not regulated. There are many weak spots like high transaction fee. Huge companies/Investors do not trust bitcoin.

[Gargo]

Bitcoin fluctuates so much, because it is a constantly growing market. As the market will gain a solid foundation, the price will certainly be more stable. Attempts to regulate by governments and banks also have an impact on price fluctuations.

[South Park]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

Merited and agree all the way.  
He proves he is the one which is detailed in his personal message.

I love the way it was said. It is like everything now is backed by something and only bitcoin is the one who changed it all.
Commodity/currency for me. Since the start that had been the look of bitcoin in my eyes.
It will always depend on the demand. It is the only answer that should be said.

Yeah, I will understand people being worried that bitcoin was not backed by anything if this was a new concept never implemented before, but fiat is backed by nothing as well, the only thing that maintains fiat in its place is the trust of the people and when that is lost, and that happens 100% of the time, the fiat goes to zero, so the only new thing bitcoin introduced was in fact a trustless coin.

[atamism]

Bitcoin is so volatile because it has many investors who are investing on it. It is also the most-known by everyone compared to the other coins. Bitcoin became popular because it has already produced many rich people.

[samcrypto]

Its highly volatile due to its decentralized nature.

Its very normal and because of this volatility we can make good money. People are scared of this but if you are good trader you can surely be happy. Volatility is out everywhere, use to lived with it.

[maimainguyen05]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin as well as the cryptocurrencies market are not supported by any individual or organization and are operated by the market supply and demand for cryptocurrencies. So the impact of news from the press is inevitable, and it makes the exchange rate of Bitcoin fluctuate continuously, rarely at a stable level.

[Nunoluck]

Its highly volatile due to its decentralized nature.

Yes, since many traders are tade it everyday. And unfortunatelly most of us are trader and no geverntments that can control the price. Government can control fiat price by issue some policy because it is centralized. Bitcoin price will more stable if it mostly used in online shop than exchange sites.

[Angi]

Its happens that bitcoin volatile every day, months or year because many people are using it they invest or sell if someone invest bitcoin in huge amount like the big investors the bitcoin will rise and those investors sell there bitcoin in the highest price the bitcoin will fall down if someone sell it with huge price bitcoin will drop down 2x so we expect that bitcoin will not longer or stay stable in that amount thats why bitcoin will volatile every single time. Thats my opinion either.

[RudeeTam]

Bitcoin is volatile because of the law of supply and demand. Plain and simple. It depends on people's interest in it which is driven by it's popularity and news if it will go down or up.

[reynilynedago]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin is really volatile it is normal that it will change the value. Like its about the demand and the supply.The more people are been interested and buying the more chance to get high the demand .It really shows that its about how people who priorized the product.

[Bezobraznike]

   I did not like article. He is wrote about Bitcoin bubbles before. In article he continued to talk
about bubbles in alt-coin world.
   Later he stated that Bitcoin has no fundamentals, and will never have fundamentals. That is not
true, I found little line from:
https://www.coindesk.com/bitcoin-traders-know-fundamental-analysis/
-Fundamental analysis is the evaluation of economic, financial and other key variables, known as fundamentals,
to determine a security's true value. This differs from technical analysis (the counterpart to fundamental analysis)
in that the former is more interested in looking at a security's price movements to make better-informed decisions.
   Even more statements about Bitcoin bubble:
-Even as the Bubble deflates, there seems to be quite a bit of bull trapping going on, by key low-volume trades being
made which seem to indicate a price-reversal upwards, and then selling to these fooled investors at the higher price.
   It is not nice that he calls me a fool, I am an investor.

[ASHLIUSZ]

While reading a novel can you ask why this story line is going in such a manner, it is all about the writers fantasy. Same is with volatility of bitcoin. It is purely based on the initial development, we cannot comply this. We can experience the goodness or else can just leave. People who know good about volatility will praise it, others indicate it as an negative part of bitcoin.

[zhelis74]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin is really volatile it is normal that it will change the value. Like its about the demand and the supply.The more people are been interested and buying the more chance to get high the demand .It really shows that its about how people who priorized the product.

Yes, bitcoin volatility is truly depends on how people manage their bitcoin by means of selling and buying. The law of supply and demand can be truly applied for this  that the more the supply of the certain product then the lesser its value and if its more demand than the supply then that thing will increase its value, so obviously bitcoin value fluctuation is likely cause by the crypto user of bitcoin.

[Fantina]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

[Janodevera]

It is worth noting that these losses and the ensuing news about the losses had a double effect on volatility. They reduced the overall float of Bitcoin by approximately, producing a potential lift on the value of the remaining Bitcoin due to increased scarcity.  However, overriding this lift was negative effect of the news cycle that followed. Notably, other Bitcoin gateways looked to the massive failure as a positive for the long term prospects of Bitcoin, further complicating the already complex story behind the currency’s volatility. As early adopting firms are eliminated from the market due to poor management and dysfunctional processes, later entrants learn from their errors and build stronger processes into their own operations, strengthening the infrastructure of the currency overall.

[Gotomoon]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

Definitely bitcoin is so unstable ever since it is well known. People come and invest in bitcoin because they are more attracted on how bitcoin can be fluctuates. The reasons why it is volatile because of the demand were users can buy an sell btc.

[Idrisu]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

we should prepare for the next bitcoin price fluctuations that will come up any moment from next month and thinks are going to get better next month.  In February last year bitcoin has the high dip and in February this year we are having another dip again but Last should be a pattern we should used to know what is going to happen this year.

[Jr.Sasha0209]

Bitcoin is not so stable for one reason only, since it is a tool for trading on the stock exchange, so do not keep in the portfolio not only bitcoins, since in the days of drawdowns certainly not worth selling it

[StarofBTC]

This is a perceptions bitcoin will not collapse completely.  Bitcoin  invested have hope that the value of Bitcoin will increase in the future based on demand.

It’s making no sense, the guy is just repeating the same thing that has been said before by many. This is an old stuff and I’m not going to spend my time reading a post from someone who is just killing himself and calling Bitcoin a scam just to get something he would write about before he gets fired.Yes, we know that Bitcoin fell from $19000 down to $6000 and has been oscillating somewhere between $6000 and $9000, but have we forgotten that Bitcoin was once sold or $0.07? Then why are we all complaining? Bitcoin is volatile and we all know that, VOLATILITY doesn’t mean that the price for stuck will continue to go only up, sometimes it has to go down, that’s a normal thing in every market.

[Erza]

Its highly volatile due to its decentralized nature.

Its very normal and because of this volatility we can make good money. People are scared of this but if you are good trader you can surely be happy. Volatility is out everywhere, use to lived with it.

Yes, this is really true, many of them scare of the volatility because they scare to lose tons of money suddenly, and waiting is not really suit the traders as well, different from invest which is they only need to put their money and never bother it until the exact month or years to withdraw

Bitcoin as well as the cryptocurrencies market are not supported by any individual or organization and are operated by the market supply and demand for cryptocurrencies. So the impact of news from the press is inevitable, and it makes the exchange rate of Bitcoin fluctuate continuously, rarely at a stable level.

Are you for real? So who are going to support the market? And what do you think about this volatility? Market can be this huge fluctuative because of there is somone joining group or even huge company take control of the market

[3la9l_kolbaCa]

well i guess that's the biggest asset of bitcoin today, it is like the reason why bitcoin is now on the top of almost all currency  that uses in this world. it is volatile because no government manipulate the price and all people holds it.

[Finestream]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

Definitely bitcoin is so unstable ever since it is well known. People come and invest in bitcoin because they are more attracted on how bitcoin can be fluctuates. The reasons why it is volatile because of the demand were users can buy an sell btc.

Agreed.Since bitcoin has its decentralized nature,it is expected to fluctuate its price from time to time.I believe it's a matter of supply and demand.The more number of people buy bitcoin during dips,it is said that the demand will increase along with its price.While on the contrary,when a price correction occurs,there will be numerous holders of bitcoin sell their coins and eventually decreasing the demand making its price become lower.

[jinxing]

Unstable bitcoin can be caused by uneven demand. Prices will rise when demand is high and prices will be low when demand falls. The case of using Bitcoin volatility in these countries versus Bitcoin volatility in US dollars. Bitcoin is much more volatile

[di.ako.toh]

Bitcoins becomes known in its volatility, as it changes from its value and prices in the market. Due to people get in and out of the market their holded coins somehow affects its value in the market as it is called volatile.

[GREATLOVE]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Yes I agree bitcoin is volatile. You dont know what will happen in an hour for example this time btc is around $9500 then after 2 hours it will become $8500 just like that. The time of bitcoin today is so fast, so fast to low and so fast to up.

[adolf512]

Yes, Bitcoin is not stable, like all crypto-currencies, but it does not prevent people from believing in it and blockchain technology, while investing with a further prospect of making a profit.

[Dragon5]

Of course, objectively, bitcoin is volatile, but Bitcoin as an asset class is still only, give or take, $200 billion. Cryptocurrency as a whole, including bitcoin, is $600 billion. If you look at just one company, Apple, they're $900 billion. Bitcoin is less than a quarter of an Apple. It's only two Warren Buffetts.

[Altf4]

Of course, objectively, bitcoin is volatile, but Bitcoin as an asset class is still only, give or take, $200 billion. Cryptocurrency as a whole, including bitcoin, is $600 billion. If you look at just one company, Apple, they're $900 billion. Bitcoin is less than a quarter of an Apple. It's only two Warren Buffetts.

Bitcoin is so volatile ,as a cryptocurrency it part of economics all over the world and as a digital currency it will experience inflation and deflation of its value that is why bitcoin is very volatile.

[PatronRH]

The price of a currency depends on the demand and supply thing so if we have abog demand to a small supply the price goes and the other way arround. The problem of volatility is that bitcoin is so limited so any small change in the demand and supply will cause a change in the price.

[A!]

Bitcoin's value depends on some simple relation between demand and supply. Before some days many news about the ban on crypto were spending and so many people sold their crypto and lost trust in bitcoin so the demand of bitcoin e=was reduced and the price went down but people again are started gaining interest in bitcoin as they know that this is the future and can make them rich in the future so they are again investing and the price of bitcoin is rising now. It has reached 10K USD.

[msaiddi]

There are several reasons to define bitcoin (and also other cryptocurrencies) market as volatile such as absence of regulation, lack of a "fundamental price", manipulations etc. However, we MUST consider the hours of exchange availability in the cryptocurrency market. I've watched a video talking about this topic and it was very persuasive for me. To explain: cryptocurrency market is available 24/7 all around the world, on the other hand fx and stock exchanges have definite working hours. If you take hours into consideration, with a basic calculation, crypto-exchanges' 1 day is approximately equal to almost 3,5 days of regular stock exchanges (NYSE, TYO or LSE).

Recently, Dow Jones had plunged around 8% in just 3 days and it is an "index" not just a stock. Of course it was not a normal thing, it was a "crash", but there are not that few stocks in markets throughout the world (especially in less developed exchanges rather than NYSE etc.) which fluctuates as much as BTC and other cryptocurrencies when you make the math regarding the working hours.

I'm not saying that cryptomarket is not volatile. Sure, at some point, it will have to settle down between a price range and find an intrinsic value but the volatility we have now is not a tsunami for sure. It is an asset, looking for its value constantly.

P.S. the video I mentioned in this post is in Turkish language so I'm not posting it. But if anyone is interested, I can PM.

[yrreg ger]

The price of bitcoin is volatile because it depends on the supply and demand that produce by the user. And countries is the big producer to increase the volume and also to decrease. Most of this time the reason why bitcoin price is still so volatile because of countries who banned and invest in this cryptocurrency. In this kind of market we can't assured the time we make a profit.

[FAB_coin]

No solid valuation and there are too many factors that will vary the price like security (potential hack). Too many speculators and the market is purely psychological

[onemoretime8520]

I believe that the volatility is caused because it is so open for manipulation and speculation because it has not any regulation still and it is an open market. I don`t argue with the reason that it is lack of value based

[Jessica2009]

  According to my point of view Bitcoin price is so volatile due to its speculative nature volatile means not only value is growing up  but the price has to go down also the fluctuating nature of Bitcoin says that bitcoin  price is volatile. Bitcoin is a digital decentralized currency and it is an online internet based  currency and so its value may be fluctuating and not stable .  Some countries like Japan adopt Bitcoin as a friendly currency.

[seven2smoke1]

Bitcoin price is so volatile because of the sell/buy of it, It's not stable because of this reason, It's not like a real currency, It is used by all countries in the whole world. So don't expect that it will be stable, even news (good or bad) about cryptocurrencies can affect the price immediately.

[Klausi]

Bitcoin price is so volatile because of the sell/buy of it, It's not stable because of this reason, It's not like a real currency, It is used by all countries in the whole world. So don't expect that it will be stable, even news (good or bad) about cryptocurrencies can affect the price immediately.

Yes true, bitcoin is definitely unstable currency, its stability depends on the supply and demand. Its the amount of bitcoins available versus the number of people wanted to use them for exchanges or people who wanted to save them thinking that its price will be higher than today. But we all know that bitcoin as a digital currency is still very much new and still on its developing stage. There are a lot of problems and issues facing bitcoin today, however being stable is possible but not as early as now.

[LynielZbl]

I think that there's no actually exact reason of why bitcoin is volatile in the market. It really depend with the market demand. If what demand changes from time to time , the top market value is proportional with its demand. But even through it is volatile, you can still make profit of it. Just take the risk and thats what others do. As of now it is at the low value if we compare last december but if you can wait and learn how to hold on it, you can earn and that's the advantage of it.

[evilgreed]

Bitcoin price is so volatile because of the sell/buy of it, It's not stable because of this reason, It's not like a real currency, It is used by all countries in the whole world. So don't expect that it will be stable, even news (good or bad) about cryptocurrencies can affect the price immediately.

Yes true, bitcoin is definitely unstable currency, its stability depends on the supply and demand. Its the amount of bitcoins available versus the number of people wanted to use them for exchanges or people who wanted to save them thinking that its price will be higher than today. But we all know that bitcoin as a digital currency is still very much new and still on its developing stage. There are a lot of problems and issues facing bitcoin today, however being stable is possible but not as early as now.

                    Well i guess these needs to be talked over and over again, since there are plenty or tons of new users of cryptocurrency or should we say those interested and curious about bitcoin and other cryptos. Although this has been talked for almost several years until now, still we cannot deny the fact that more and more newbies and new people wants to learn crypto, and this is one of the most basic needs to be learned before entering crypto world.

[MMS2017]

Bitcoin is the digital currency which is using by most of the countries in the world therefore it has so many benefits beside these benefits there are so many factors which have a good impact over it and that's why bitcoin is highly volatile currency of the world. Like the bitcoin price is more then every thing in the world currencies but the currency system is very strong.

[Notcalculator]

The fundamental price bitcoin falls upon is solution to modern banking.
Arguments such as " There Is Rampant Fraud In Cryptocurrency" and "There Is Rampant Market Manipulation In Cryptocurrency" can be said the same to fiat.
Now i do agree with the last point "Institutional Investors Are Staying Away" but that could change anytime soon when the technology and people are ready for it.

[JCLee]

The Bitcoin and the cryptocurrencies are affected by the news. Therefore, the frequent fluctuations in Bitcoin prices are very common in this market. So instead of worrying, get used to it by updating the news about cryptocurrencies regularly.

[mi56374100]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin is volatile because it is a growing market and it has a lot of investors in it.

More and more people are interested and buy more opportunities to get higher demand.

[nmax21]

Bitcoin is so volatile, because there is no regulation. The market is manipulated by large investors, large falls and rapid growth occur artificially against the background of fake news.

[Kalemder]

I think that bitcoin does not know enough people yet. so the volume is low. will increase over time in the future.

[Rrtt]

The main reason why bitcoin is so volatile is the demand and supply. If there is a huge demand then of course the price will pump and also i am tend to believe on the big whales manipulating the price. They can make a huge impact whenever they dump bitcoin on the market.

[Sled]

Bitcoin is so volatile because it is an open market and it is also decentralized so there is no regulator that is in charged in order to maintain the low volatility and also stable price so i think that there is no chance for the market of bitcoin to become not volatile unless there will be a regulator for the market and a centralized system inside bitcoin.

[gabmen]

The main reason why bitcoin is so volatile is the demand and supply. If there is a huge demand then of course the price will pump and also i am tend to believe on the big whales manipulating the price. They can make a huge impact whenever they dump bitcoin on the market.

Demand and supply doesn't only apply to crypto and bitcoin but also to other markets that are not that volatile. I agree about the fact that whales have a big part in swaying the market but also this market moves to speculations. Fuds, negative and positive news and reviews affect in and its people in a major way

[Byatt]

Everybody that owns bitcoin has the impact of how it works.  It is in between the buyer and the seller.  They can make their price they want and now if the seller trying to sell it below the average of the coinmarketcap it drops the price.  The supply versus demand can cause also rising up the price of bitcoin.  

[South Park]

It is a new thing introduced to market. It is not regulated. There are many weak spots like high transaction fee. Huge companies/Investors do not trust bitcoin.

Lack of centralization is another reason why the price of bitcoin can be so volatile, that why is something we like and it is the whole reason to be of bitcoin but the truth is that without centralized control there is not a way to use some of the measures central banks use in order to stabilize the price of their currencies and bring confidence to the market, so we will have to learn to live with high volatility.

[danim1130]

it is because for its system. no one handles bitcoin i mean there is no such thing as the most powerful in bitcoin but the people who uses it. also the system is not able to hack meaning people trusted it. that's why bitcoin is so volatile for me.

[Cliparts]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Yes I agree bitcoin is volatile. You dont know what will happen in an hour for example this time btc is around $9500 then after 2 hours it will become $8500 just like that. The time of bitcoin today is so fast, so fast to low and so fast to up.

Agree here that no one know what can happen to bitcoin anytime as if price of bitcoin is so high right now the next day it can be more or less, so I think you are right bitcoin never stop to one place, if bitcoin will not change then no one will be agree to invest and fluctuation and volatility is the only thing people hope for profit and they are agree to invest, even now bitcoin has investors and price is increasing so it is not 9500$ now it is almost 20k dollars.

[dioanna]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

There are several factors behind Bitcoins volatility.The supply and demand ,
 The news that scares bitcoin users or most common term is Fake news that gives advantage to large holders.
so much of the volatility will be driven by the market itself.

[South Park]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

There are several factors behind Bitcoins volatility.The supply and demand ,
 The news that scares bitcoin users or most common term is Fake news that gives advantage to large holders.
so much of the volatility will be driven by the market itself.

To this I will add that bitcoin is a new technology, every time a new technology appears it goes through a phase of high volatility, one of the most famous examples is the dot com bubble, now companies related to the Internet are more stable and are some of the best stocks to have, but when the bubble came many were worried the sector will never recover after the bubble burst, and now those companies are one of the most important drivers for the growth of the economy.

[mickeybuddy27]

The main reason why bitcoin is so volatile is the demand and supply. If there is a huge demand then of course the price will pump and also i am tend to believe on the big whales manipulating the price. They can make a huge impact whenever they dump bitcoin on the market.

No one controls bitcoin, it is just the impact of demand in the market. Large investors have to manipulate in order to them get huge profit. Taking advantages to buy coins during dumps will cause to have limited supply. When the market really need it will increase the price so that many will sell the coins which an give high profit for those big investors. We have also do not be afraid to take risk for investment. It is our opportunity to grab for is to not be late and regret and the future.

[Cath0Vic]

Bitcoins are mere virtual currency with no solid demands

[Whoducen]

It is true that btcs are volatile but they can be tamed too as and when required so there is nothing wrong in disbelieving these coins

[Arabella.Theo]

Price discovery! Bitcoins true value isn't known yet. Add to that the drop in the ocean in size the market is to traditional stocks and you have yourself a coin as volatile as BTC

[dynospytan]

Bitcoin is volatile because of us. Because when the supply is high this is the time that the price of bitcoin will decrease but when the demand is low, this will be the time that bitcoin price will rise up. It is normal to have a volatility because it is in the market.

[zhekinsp]

Bitcoin is volatile because of us. Because when the supply is high this is the time that the price of bitcoin will decrease but when the demand is low, this will be the time that bitcoin price will rise up. It is normal to have a volatility because it is in the market.

Bitcoin is so volatile because of its limited quantity when compared to other fiat currencies but the volatility rate keeps increasing with the bitcoin price rise so we never can have stable value with the bitcoin.
But everything is the world has a value depends upon its demand and supply so the value will also change when the demand changes it applies all the things in thw world.

[cafe84178]

I disagree. It is difficult to calculate the value of Bitcoin, but it doesn't mean it does not have value.

[venturivenerable]

Irregularity of mining actions

[Eclipse26]

Honestly, I don't know what is the exactly reason on why bitcoin is volatile. The volatility of Bitcoin for me it's a normal and this I know on why, it's because of supply and demand.

Becuase it was like a supply and demand if there more investor to it the more it price increase. In fact its volatility was normal, there ime that it increase and decrease. It was one characteristic of bitcoin and it was good because as you invest in a low price you can get high profit as bitcoin pump again, you only have to wait for its time and be patience.

[BaraxLo]

It is true that btcs are volatile but they can be tamed too as and when required so there is nothing wrong in disbelieving these coins

It is not a new thing to hear that bitcoin is highly volatile in nature as the market value of the bitcoin greatly depends on the demand and supply principal of the bitcoin in the international market. If the demand of the bitcoin is high, then the resulting market value will also be high and vice versa. I believe this volatility is contributing a major role in healing the people in having greater profit too.

[Yamifoud]

This is how crypto market works. Actually we must be thankful for these trend of price cause it give us chances to gain more profit. It is moving every seconds and its prices are really unpredictable. If you know how to play it will, then you're probably won't get worry if it will fall down.

[rog1121]

There's no correct purpose for its unpredictability in the market. All I know is that, it needs to do with the market request. Besides, request changes now and again and given that its reasonable worth is corresponding with its market request, what occurs with request, is in like manner with the other one opposite. However, you can make benefit from its unpredictability so it is somewhat of a drawback and preferred standpoint in the meantime.

[kokobaba880]

Bitcoin is the volatile currency because of the nature like bitcoin is a digital form of money and when the bad news spreading in the community the bitcoin selling high and due to this the price are affected so bitcoin is good to hold for now and for the future. So in my opinion the bitcoin is affected by so many factors that's why we are saying that it is highly volatile.

[highquA1]

Go and ask them yourselves , why are you so volatile bitcoins? Why are you not stable?

[Ulticon]

Everyone has its own specific properties, which help them to identify someone special. Same is the case of btcs and volatility is its character

[Newbie Wong]

The author basically assume that new economy will never come. For me it is not a good assumption.

The fatal weakness of mature economic system is being revealed, revolution is on the way, no entity can stop it. Personally, I d make this assumption.

[Toukexx99]

I tried to answer from the title of the topic you created, One of the reasons why Bitcoin fluctuates against fiat currencies is the value of assets received versus fiat currencies. Bitcoin has properties that make it similar to gold. Bitcoin volatility is also driven largely by the various perceptions of intrinsic value of cryptocurrency as asset values ​​and value transfer methods. An asset value is a function whereby an asset can be useful in the future with some predictability. The value of an asset can be stored and exchanged with goods or services in the future. The method of value transfer is an object or concept used to transmit property in the form of an asset from one party to another. Bitcoin's current volatility makes it an unclear asset value, but it promises almost no frictional value transfers. Since both Bitcoin spot price movers currently vary against the dollar and other currencies, I see that the value of Bitcoin can be driven based on news events as we observe with fiat currencies.

[anklas]

The volatility of bitcoin as well as the crypto currency market depends on the investors who invests and who sells the coins. The more invest in bitcoin the higher the value it would reach and the more who sell or dump the coins it means the price value would go down even on its peak that causes people to panic. We can relate it in the law of supply and demand.

[BitcoinPanther]

Bitcoin is volatile because of us. Because when the supply is high this is the time that the price of bitcoin will decrease but when the demand is low, this will be the time that bitcoin price will rise up. It is normal to have a volatility because it is in the market.

It seems you are a bit confused, I do agree that with high supply there is this possibility that the price of Bitcoin will decline but even with high supply as long as the demand is higher, the price will keep on increasing.  This means, the demand cannot sustain the supply meaning the demand is low that is why Bitcoin price is going down.  About the volatility, it is so volatile because the market is driven by supply and demand in the market.  There is no central authority so there is no one manipulating the sells except whales if they wanted to hype or FUD themarket.

[rommelo24]

It's scarcity is the main attribute why bitcoin's price is so high. Everybody wants to hold bitcoin so the price will go up and if they want to sell to make some profit then this could cause the price to drop due to supply is high.

[valintino7]

Bitcoin is volatile because of us. Because when the supply is high this is the time that the price of bitcoin will decrease but when the demand is low, this will be the time that bitcoin price will rise up. It is normal to have a volatility because it is in the market.

Yes, that is true. Bitcoin price is only determined by the market. It all depends on the number and the lack of demand and supply. So things like this are very reasonable and should not be surprised.

[chaa123]

Bitcoin's volatility is due to the changing demands of its members. The variation of demand is due to the changing numbers of members who come and go every once in a while...

[Breackup]

Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.

You are right. Bitcoin had the maximum capacity of approximately 21 million. The result is the movement for it. Bitcoin is volatile because of its limited supply. Bitcoin is limited, so its price is much higher. When the price increases, it makes all things look good. But sometimes its value decreases. Bitcoin is our property. At present, Bitcoin becomes expensive at the price of gold. Bitcoin is not a new volatile. Previously used coins that were copper or silver were more volatile. It was common in other countries including America. Bitcoin is progressing at its normal pace and its transactions make investors unstable. Someone recognizes this as an online product. Bitcoin's mine is limited, so Bitcoin has a huge demand that makes Bitcoin volatile.

[Blackhammer321]

I think the reason for bitcoin's volatility is the unbalance demand and supply of bitcoin, if bitcoin has been mined and owned by different person the price will be stable isn't it? Just like how demand and supply on the real market, low demand with high supply  tends to a low price and high demand with low/limited supply tends to a higher price.

[cmacwiz]

Bitcoin is volatile simple because it's market cap is relatively small (bitcoin is worth less than Apple). That means it doesn't take much money to move the price. As the market cap gets bigger and bigger, the volatility should reduce.

Meanwhile, volatility is fun for traders 

Yes the above thing is one of the reasons behind its volatility. Bitcoin was started at the year of 2009 but i comes into mainstream at the year of 2017. At mid 2017 its value was drastically increased and at the end of the 2017 there is decrease in its market value and since that day its value has risen and dropped in regular intervals of time. Its value depend upon the action taking by various government . Like when country like japan start using it and  bank of South Korea testing the Bitcoin technology then the price of Bitcoin increase. But When china, Ecuador and other government baned it in their country then its price was sudden decreased. Its volatility is also depends upon those multinational company who use it for their various purpose. 

[Apaxy]

I think the reason for bitcoin's volatility is the unbalance demand and supply of bitcoin, if bitcoin has been mined and owned by different person the price will be stable isn't it? Just like how demand and supply on the real market, low demand with high supply  tends to a low price and high demand with low/limited supply tends to a higher price.

You are really right, because there probably is a lot of bitcoins on the market to continue. But even at such a price no one will buy it. And what do you say, when the price for example reaches the word $ 20,000. Who will buy it then?

[ajdaj]

I think the reason for bitcoin's volatility is the unbalance demand and supply of bitcoin, if bitcoin has been mined and owned by different person the price will be stable isn't it? Just like how demand and supply on the real market, low demand with high supply  tends to a low price and high demand with low/limited supply tends to a higher price.

You are really right, because there probably is a lot of bitcoins on the market to continue. But even at such a price no one will buy it. And what do you say, when the price for example reaches the word $ 20,000. Who will buy it then?

Apparently, there was a stabilization of the market, because bitcoin at a price of 20,000 dollars is really not needed by anyone. I still do not believe that this is its real price. Although honestly, unlike ETH, Bitcoin does not have its practical value. So whoever has time to make money on Bitcoin, to that and will carry.

[knight20]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

No not really, because I already read the article also that bitcoin has been scammed. Bitcoin are volatile because many investors are using their profit when they want and it will dump up when they invest. Although no one could manipulate the price but the but companies are the effect why it is volatile I guess.

[sachdientugoogle]

Just a little wake-up call for the people who are still planning to sell at this point. The past is gone, but every severe dip in crypto has proven itself to be converted in a stronger eventual upswing. This crash is actually one of biggest, but please think about it for a moment.. all these brilliant ideas's that are still idea's. This is just the beginning. That means, honestly, the market was overhyped and overvalued in December because there were/are no working products yet. Imagine when the winners in the field are going to launch their platforms (e.g. Neo). Blockchain will definitely be integrated into our daily lives people. So if you believe in this, stay in there, or take the opportunity to buy or dollar-cost average the quality coins that were way too expensive in Dec/Jan/Feb. Remember that buying the dips only really seems to work when the market is oversold. It's not a sure thing since some stock prices, in general, are due to negative changes in the underlying company’s fundamentals.

[jeanpadel14]

I conduct researched about volatile of bitcoin because i also dont know the reason.And they said that Little option value to large holders of the currency.Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency.  For Bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market.  Since Bitcoin’s volume resembles a small cap stock, the currency has not hit the mass market adoption rates that would be necessary to provide option value to large holders of the currency.  

[percentelated4]

Because there are still fluctuations in the minds of people about accepting or rejecting btc ecosystem so the ecosystem is still in a whirl

[longhair0418]

There are many reason for volatility of Bitcoin and some other cryptocurrencies.
Mainly because the total supply is not enough. If any institute or individual is powerful enough, then they can influence the market price
relatively easily.( Just imagine if there are only 100 apples in the whole market, and someone is rich enough to buy 20 of 100, then he or she can influence  the market price by buying high and selling low)
The another reason is cyrptocurrencies  don't like the traditional fiat currencies or securities.
There are no back-up and the market price is fully based on transaction.

[Getcoinsite]

I just scanned the article and it seems that the author do not want bitcoin because of its volatility. I agreed when he said that there is market manipulation. The conspiracy of some whales or large investors inflict well to the price of bitcoin. If they want it to decrease then they pulled all of their investment which will cause to a great crash! The controlled the market in a way they know that they will gain lot of profits.

its purely selfishness,author only focus on bitcoins volatility depends on what he wants reason must,but for many of us,bitcoins become volatile because of its capacity to stand in all aspects either trouble or in favor.maybe this same reason why many people nowadays turning to this community that stocks exchange

[meidut]

Bitcoin exchange rate fluctuations in the Bitcoin stock market are driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Bitcoin volatility does not yet have a generally accepted index because cardiac crypto as asset class is still in its nascent stage, but we know that Bitcoin is capable of experiencing volatility in the form of a 10x price change versus the US dollar, relatively short period. time.

[reality18]

The issue of volatility of Bitcoin is no news and no one reason explains that nature. One of the contributing factors for the volatility is the fact that Bitcoin is decentralized and not regulated by any authoritative body. In the absence of regulation, bad actors can act upon the price and manipulate it as they wish.

[destroyer01]

The best bet for bitcoin is that as it becomes more popular and more people buy it, these types of changes in value will go down for two main reasons.First,individual owners have less power over the price of bitcoin, and, second,it creates stability since more people have a stake in the cryptocurrency.

[Rizky Aditya]

The best bet for bitcoin is that as it becomes more popular and more people buy it, these types of changes in value will go down for two main reasons.First,individual owners have less power over the price of bitcoin, and, second,it creates stability since more people have a stake in the cryptocurrency.

You will get to know more about crypto currencies once you will be completely there in this world and at time, when you will be having some sharp knowledge regarding this concept. However, the only reason behind this much volatile nature of bitcoin is none other than that of variation in the demand of the bitcoin in the international market as it keeps on increasing and decreasing most of the time.

[Wildwest]

Do issues affect this volatility? But if seen from some previous issues such as China starts to ban bitcoin the price is also going down but a few days later there is a new issue again making the price of bitcoin back up. I do not know what actually made it happen but that is my opinion. Or this may be due to nature of cryptocurrency.

[Canis Majoris]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

The sad truth is, Bitcoin is volatile because it doesn't have real use in the economy as a currency with which people buy things and pay for services. Uneven demand that you talk about is a straightforward consequence of that. If Bitcoin was used as a means of payment, the demand for it would soon stabilize relative to the amount of goods and the volume of services offered for it. But because the vast majority of demand comes from plain speculation, it is prone to wildest fluctuations leading to extreme volatility.

[HPQ.IO]

Because this market is still based on panic, lack of real information, misinformation from mass media etc., lack of knowledge, and is not backed by enough solid businesses. Mostly speculative.

[bohr]

I think the reason for bitcoin's volatility is the unbalance demand and supply of bitcoin, if bitcoin has been mined and owned by different person the price will be stable isn't it? Just like how demand and supply on the real market, low demand with high supply  tends to a low price and high demand with low/limited supply tends to a higher price.

What really makes the price of bitcoin so volatile is how to demand changes so abruptly, the supply of bitcoin can change but is more or less fixed there is a very limited amount of coins and not every single holder of bitcoin is going to want to sell at the same time, what changes in a very dramatic way is that sometimes there is a huge demand as we saw in December and sometimes the demand is very low like what we're seeing right now.

[Jazvebtc18]

Do issues affect this volatility? But if seen from some previous issues such as China starts to ban bitcoin the price is also going down but a few days later there is a new issue again making the price of bitcoin back up. I do not know what actually made it happen but that is my opinion. Or this may be due to nature of cryptocurrency.

There are a lot of factors why the price of bitcoin is so volatile.Here are just a few of the many factors behind Bitcoin's volatility:

1.Rate of adoption is hampered by bad press= News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated.  Bitcoin's early adopters included several mal actors, producing headline news stories that produced fear in investors.

2.Bitcoin's perceived value fluctuates= One reason why Bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency.  Bitcoin has properties that make it similar to gold.  It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount, 21 million BTC.  Since that differs markedly from fiat currency, which is managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into Bitcoin.

3.Too much variance in perceptions of Bitcoin's store of value and method of value = Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer.  A store of value is the function by which an asset can be useful in the future with some predictability.  A store of value can be saved and exchanged for some good or service in the future.  A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another.  Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer.  Since these two drivers of the current spot price of Bitcoin vary against the dollar and other fiat currencies, we see that Bitcoin's value can swing based on news events much as we observe with fiat currencies.

This is just the few factors why bitcoin price will not stable and it will keep on changing very time.

[Beabtc11]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

This article give us another knowledge for what we need to know more about bitcoin. But there are a lot of factors why bitcoin is very volatile:

1. Little option value to large holders of the currency = Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency.  For Bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market.  Since Bitcoin’s volume resembles a small cap stock, the currency has not hit the mass market adoption rates that would be necessary to provide option value to large holders of the currency.

2.News about security breaches make investors react = Bitcoin can also become volatile when the Bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes.

3.Bitcoin’s high profile losses at are another driver of volatility =
It is worth noting that these losses and the ensuing news about the losses had a double effect on volatility.  They reduced the overall float of Bitcoin by approximately, producing a potential lift on the value of the remaining Bitcoin due to increased scarcity.

4.Bitcoin and foreign direct investment in countries with high inflation =
Bitcoin’s use case as a currency for the developing countries that are currently experiencing high inflation is valuable when considering the volatility of Bitcoin in these economies versus the volatility of Bitcoin in US$.  Bitcoin is much more volatile versus the USD than the high inflation Argentine peso versus the US$.

[Noelbetty12]

First it is the most used coin and serves as the main cryptocurrencies where as thought so other coins are related indirectly. During times bitcoin drops in value, I saw other coins are dropping also in almost the same pattern. It's like a baseline where everything depends. Now because of this massive usage of bitcoin, changes in prices will always be expected from time to time because of it. And also because many invested on it, many would be doing trading from time to time which causes it to become very volatile in nature.

[Majharul Saiif]

Not only Btc but also the other crypto and shares are volatile.Because it's structure is like that.None in the market corporate world can be made fixed.These are influenced by different variables,so it's price is always variable.Sometimes rising, sometimes falling the price.Demand and supply are very important in this case but in additional to the international market, economic recession, consumer purchasing power, intereste and speculative impacts work much more.

[qwertyup23]

I think the reason for bitcoin's volatility is the unbalance demand and supply of bitcoin, if bitcoin has been mined and owned by different person the price will be stable isn't it? Just like how demand and supply on the real market, low demand with high supply  tends to a low price and high demand with low/limited supply tends to a higher price.

The reason on why bitcoin's volatility changes frequently concerns about its lack of government intervention and a limited amount of supply in the market. Be reminded that there exists only a limited 21 million bitcoins on the market. Like what you said, the law of demand and supply also contributes on its high volatility in the market. Not to mention, the demand of bitcoin due to the hype caused by social media have caused an uproar on its price remarkably. But I believe that this volatility can be explained due to the lack of any regulation caused.

[NVCPRO]

Price fluctuations in Bitcoin on the Bitcoin market are due to many factors. such as, being obstructed by bad news, bitcoin's perceived price fluctuations, small value options for large equity bitcoins, bitcoin investments in high inflation countries, tax treatment of Bitcoins are also volatile. Therefore, bitcoin can be evaporated.

[shezu007]

To start with it is the most utilized coin and fills in as the fundamental digital forms of money where as thought so different coins are connected in a roundabout way. Amid times bitcoin drops in esteem, I saw different coins are dropping likewise in nearly a similar example. It resembles a standard where everything depends. Presently in light of this huge utilization of bitcoin, changes in costs will dependably be relied upon every once in a while as a result of it. And furthermore in light of the fact that numerous contributed on it, numerous eventual doing exchanging every once in a while which makes it turn out to be exceptionally unpredictable in nature.

[goku1525]

To start with it is the most utilized coin and fills in as the fundamental digital forms of money where as thought so different coins are connected in a roundabout way. Amid times bitcoin drops in esteem, I saw different coins are dropping likewise in nearly a similar example. It resembles a standard where everything depends. Presently in light of this huge utilization of bitcoin, changes in costs will dependably be relied upon every once in a while as a result of it. And furthermore in light of the fact that numerous contributed on it, numerous eventual doing exchanging every once in a while which makes it turn out to be exceptionally unpredictable in nature.

We can't control the prices on bitcoin due to the fluctuations .Bitcoin was driven by its laws of demand and supply so the prices is so volatile. Some of users here are hackers so definitely the investors are discourage to invest their moneys. The best way to extend the prices in a higher value is to continue spreading good information.

[bobo012]

It is a young asset in a young market. Every asset begins with that. Another thing is that there are a lot of money grabbers, with projects that are not holding ground. All that needs to be cleaned first, and we need to bottom out. Unfortunately, everybody is cashing out through bitcoin so it is suffering right now, even more than natural correction would have done to the price.

[DMiracle1]

Bitcoin's original idea was for it to be a form of peer-to-peer, unregulated cryptocurrency that could be used to pay for any product or service across the entire world. But due to its rapid rise, and the kind of technology and power required to verify transactions, its use as digital currency has waned. That's why large majority of Bitcoin transactions have become investment based that has led to a lot of uncertainty, and that’s why its value keeps changing.

[Newbie Wong]

Trading volume is low and its value is divergence among different investors in the world. If central bank and more n more institution investor hold the position its value will be rocketing and stay on moon

[GREATLOVE]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Actually we already experienced it no need to mention but yes sad to say it is now in the dump situation where all of us are already lose pur profit

[Rrotess]

Bitcoin is volatile simple because it's market cap is relatively small (bitcoin is worth less than Apple). That means it doesn't take much money to move the price. As the market cap gets bigger and bigger, the volatility should reduce.

Meanwhile, volatility is fun for traders 

In this crypto world we accept the fact that the value of crypto coins will increase or decrease it depends on the investor and the people involve for crypto currency.

[Jas18]

Bitcoin is volatile simple because it's market cap is relatively small (bitcoin is worth less than Apple). That means it doesn't take much money to move the price. As the market cap gets bigger and bigger, the volatility should reduce.

Meanwhile, volatility is fun for traders 

In this crypto world we accept the fact that the value of crypto coins will increase or decrease it depends on the investor and the people involve for crypto currency.

There are a lot of factors why bitcoin is so volatile.

1. Rate of adoption is hampered by bad press
2. Bitcoin's perceived value fluctuates
3. Too much variance in perceptions of Bitcoin's store of value and method of value
4. Little option value to large holders of the currency
5. News about security breaches make investors react
6. Bitcoin’s high profile losses at are another driver of volatility
7.Bitcoin and foreign direct investment in countries with high inflation
8. Tax treatment of Bitcoin also affects the volatility

These are just few, but as an investor you should learn and understand all of these for you to be aware about how this business runs.

[romeo23]

Two reasons. Firstly low volumes. Imagine a thought experiment where there were two bitcoin transaction per day. For example if the counterparties to the morning trade settle at $300, and the afternoon counterparties settle at $306, you've got a 2% shift. If those trades were two amongst millions, they wouldn't move the needle.Secondly, the bitcoin price isn't linked to any fundamentals or utility. It's purely priced on sentiment. So if say a news article engenders positive sentiment, people are attracted to buy based on the article, or attracted to buy on the prospect that others will be too. So there is a snowball effect. The two combine, so if there is a positive trend, it's exaggerated by the lack of liquidity. So for example, if sentiment is negative, you're struggling to find buyers at FMV, so are forced to chase the price down...

[Basmic]

I do not agree that the price of bitcoin does not matter. Everyone who says this need to ask what is the significance, such as the dollar. Governments have long used the uncontrolled emission mechanism. If all the dollars in the world are returned to America, this country's economy will collapse in one day. Therefore, the American government supports the theft and withdrawal of capital from other countries. The bitcoin price is more motivated than the dollar price.

[nightfury]

It's bitcoin's nature. It's the demand of the people that's making its market price volatile. We can't control these people's mind and dictate them to buy or sell their holdings any time.

[Inkdatar]

Bitcoin is volatile simple because it's market cap is relatively small (bitcoin is worth less than Apple). That means it doesn't take much money to move the price. As the market cap gets bigger and bigger, the volatility should reduce.

Meanwhile, volatility is fun for traders 

In this crypto world we accept the fact that the value of crypto coins will increase or decrease it depends on the investor and the people involve for crypto currency.

Bitcoin is volatile as far as I know their is demands the buying and selling in the market. The volatility is very normal this means bitcoin has being well known in any users. Yes this is good for traders for the profit that can get, however, this volatility can improve the development of bitcoin's value.

[Canis Majoris]

I do not agree that the price of bitcoin does not matter. Everyone who says this need to ask what is the significance, such as the dollar. Governments have long used the uncontrolled emission mechanism. If all the dollars in the world are returned to America, this country's economy will collapse in one day. Therefore, the American government supports the theft and withdrawal of capital from other countries. The bitcoin price is more motivated than the dollar price.

I think this is a very naive approach. Even in the worst case scenario, that would mean the depreciation of the American dollar only, and not a collapse of the American economy by any means. Money plays an important role but its use and application is still purely utilitarian. When you see hyperinflation break out here and there, it is primarily because of the overall economic debacle and social fracture, not just the collapse of the monetary system itself or it being the main cause of the economic devastation.

[Btcalimie]

I think bitcoin volatility is related to its sky high price. Due to its price supply and demand movement affects it momentum entirely.

[Kambal2000]

I do not agree that the price of bitcoin does not matter. Everyone who says this need to ask what is the significance, such as the dollar. Governments have long used the uncontrolled emission mechanism. If all the dollars in the world are returned to America, this country's economy will collapse in one day. Therefore, the American government supports the theft and withdrawal of capital from other countries. The bitcoin price is more motivated than the dollar price.

I think this is a very naive approach. Even in the worst case scenario, that would mean the depreciation of the American dollar only, and not a collapse of the American economy by any means. Money plays an important role but its use and application is still purely utilitarian. When you see hyperinflation break out here and there, it is primarily because of the overall economic debacle and social fracture, not just the collapse of the monetary system itself or it being the main cause of the economic devastation.

That is right, because the supply is not yet fixed right now as it is increasing as time is passing by, and the demand although it is increasing day by day but still a lot of people are doing buy and sell method or just like day trading so that they can earn daily if possible which we cannot control.

[yunzau]

My opinion The volatile bitcoin level is due to the lack of supervision in the flow. The value fluctuates against the same currency as gold. a large number of storage perceptions in which assets are an important part of the future with some predictability. influenced by holders of large proportions of available currency disposals.

[SixOfFive]

The price fluctuations in Bitcoin are mainly due to the too much variance in the in the investors’ perceptions about Bitcoin as a store of value and method of value. The huge volatility in the price of Bitcoin makes it little unclear as a store of value as against other fiat currencies. Also, the rate of adoption of this currency is affected by bad news coming every day regarding the security breaches or the countries going against this currency.

[0t3p0t]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Bitcoin is volatile for me because it has the biggest community in the crypto community. Since it is a community driven asset volatiiy cn possibly happen because it is dependent on it's own community where enthusiasts, traders and investors are making the market alive and kicking. Pumps and dumps will happen onthe market depending on n individuals activity and situation. Unlike the volatility of Altcoins which is triggered by being too dependent on Bitcoin's market.

[Cedie]

For me the volatility of bitcoin depends mainly on its demand, well obviously. And its demand is controlled by many factors. First is the FUD's that are spreading all over the internet. Second is the banning of bitcoin of certain countries that may lead and/or leads to a very low price. Third, are the whales. Bitcoin has the highest population among all cryptocurrencies but it does not mean its population is big. The population of bitcoin users is quite low that is why the price is easy to control and easy to fluctuate.

[anthinguy21]

Bitcoin rates have fallen sharply recently due to a number of reasons. On this forum, it can be concluded that the Bitcoin exchange rate has been reduced due to too much negative news from the media, and the most likely impact on the Bitcoin exchange rate is the stock market, it continuous slope recently, make the huge impact on Bitcoin and cryptocurrencies market.

[golek upo]

Bitcoin cannot avoid volatility, since its only new currency with relatively liquidity. Bitcoin trader even make this condition even worst. Bitcoin must spread to many people so it can be more stable. Fortunately, there are many new altcoin that comes and makes bitcoin price litle bit more stable.

Same with your opinion. Bitcoin is a currency that can not be control by the government. So, bitcoin is a currency that is controlled by the whales who have big capital to invest in bitcoin.

[Elips1]

I think. There are many ways to make the bitcoin a volatile one of the reasons for it is the investers who buy bitcoin at a cheap price and then they hold it only until the time or month comes to raise its price again this way bitcoin price change. This is just one of the reasons for volatile bitcoin

,,,l also beleived in your opinion that those investors who buy bitcoin at a cheap price is the one reason of the bitcoin volatility, because they hold it and waiting the the price going to soar. Actually, bitcoin is a limited stock not more than 21million$ so, the price is not stable.

[BETAWI]

The main factor why btc price is so volatile  or bubble price is because no underline asset to support it's price and limited stock/supply. This condition also make it so popular besides other factor like no institution as issuer,  no formal authorty as regulator to control it's operation.

[abayan]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

I agree. I have read it and it is not what  I was expecting to read.
To answer, bitcoin is volatile because of the law of demand and supply. Nothing to add more. Besides, bitcoin wont be that interesting if it is not volatile. It will only be compared to a land that is being invested by some.

[Sadlife]

Bitcoin price is backed up by several miners around the globe who mines it's supply as a result the price also increases and it's superior technology the blockchain. That is why bitcoin is a commodity. The volatility is determined by it's high demand and limited supply so saying bitcoin has no value is nothing but a hoax.

[NJB18]

Bitcoin's value is highly volatile simoly because of the unmet demands over the limited supply. In addition to how young bitcoin is on the market, it would really be very unstable. But given the time and support. I'm pretty sure bitcoin will mature and tge price instability will be gone like it never even happened. By then bitcoin's value will become more stabke that it is now suitable of being a currency.

By the time bitcoin stabilizes its price will surely be very expensive already, maybe at $100,000 minimum? That time support will be very heavy and there will be no more heavy pump and dump.  

[LETme]

I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.

[cryptojac17]

I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.

Yeah bitcoin supply never increase nor decreases the supply is always the same if you dump bitcoin it will just simply goes to another wallet. That’s why  it is volatile because there's no artificial manipulation its a natural peer-to-peer transaction that is why the price will soon pump up just don't be panic. Even in traditional black market this will happen that is bitcoin was created because of Lehman brother bankruptcy, Satoshi Nakamoto believe that black market is also a big scam.

[Cita1]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Volatility of bitcoin is because of the fake news putting bitcoin down and the scammers and hackers that making investors to back-off. This is making the high supply and low demand in market which causing the crypto currency values to fluctuate. Some investors are in a panic mode to exchange becs. the value is currently low.

[Sled]

I've done reading this so many article about the volatility of bitcoin, Well to answers this question I should say because of the high demand and we all know bitcoin has a limited supply of 21 million and if bitcoin reach the maximum supply some speculations bitcoin price will become stable that can be used as a global currencies.

Yeah bitcoin supply never increase nor decreases the supply is always the same if you dump bitcoin it will just simply goes to another wallet. That’s why  it is volatile because there's no artificial manipulation its a natural peer-to-peer transaction that is why the price will soon pump up just don't be panic. Even in traditional black market this will happen that is bitcoin was created because of Lehman brother bankruptcy, Satoshi Nakamoto believe that black market is also a big scam.

There is a manipulation that can happen that will trigger the price whether the price will go up or down. That is when the Fudders and other people who have power involved to the topic. They can easily play with the market with their power and that is adding more volatility to the already volatile market of bitcoin.

[qwirtiii]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

Bitcoin is volatile , Just like people  sometimes we have a bad mood and good mood . This what we called "mood swing"  , we need some time to change are mood , we need some time to make the bad mood become good . Like bitcoin it takes time . It has a good value sooner or later it become popular . Learn to wait for a good future with bitcoin.

[MAJICOIN]

There is not only one reason behind the bitcoin volatility as the article which i  read on forbes.com that were really good and the bitcoin which they were described is very interesting the points which i have read in that is about the bitcoin bubble which were in the last month of 2017 a recorded increase in the price and it hit $20,000 So it is highly volatile because of the bad news too.

[KingFisher9]

There's no correct purpose for its unpredictability among the market. All i do apprehend is that, it's to try to to with the market request. Besides, request changes presently and over again and providing its reasonable worth is corresponding with its market request, what happens with request, is in like manner with the other one opposite. However, you will be able to produce show pride in its unpredictability therefore it's somewhat of a draw back and most well liked stand among the in the meantime.

[Crytptomeniac]

I think this is because there was no predefined value placed on bitcoin from the start which means that bitcoin can take on whatever value at anytime and so prices fluctuate so much and are never in a single spot.

[Claudyah]

The first risk is, and this is the most significant, compared to any currency-stock, or gold-bitcoin is very volatile alias unstable. The bitcoin volatility against the US dollar is almost six times the volatility of Rand (South African currency) against the US dollar. While this is exciting in good times, it has the potential to destroy investors in difficult times.

[Blackhammer321]

Bitcoin's value is highly volatile simply because of the unmet demands over the limited supply. In addition to how young bitcoin is on the market, it would really be very unstable. But given the time and support. I'm pretty sure bitcoin will mature and the price instability will be gone like it never even happened. By then bitcoin's value will become more stabke that it is now suitable of being a currency.

[turagsoy123456]

Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.

As my opinion bitcoin is volatile because so many reason one most reason of this is the demand and supply of bitcoin in the market. If more investor selling their bitcoin in the market then we expect the price diclined in a very low price. And if the their is shortage of bitcoin supply in the market then the price will inclined in a very high price. So bitcoin price is like a pendulums in every actions their is an equal reactions. 

[ngano ba]

Bitcoin is so volatile in the coin market it is because it will be base in volume of coins available in the market and these causes the volatility of bitcoin which is high and low in value of this bitcoin.

[mOgliE]

Hi,

Could you explain more? Coud you give your own opinion?

Here are some explanatory factors (but maybe some are missing):
1- prices tend to be chaotic because bitcoin doesn't rely on everything real
2- statement and announcement effects have huge impact on trends
3- period of the year has an impact
4- mass media tend to make the community grow or decrease.. and so do prices
5- people may be a bit more reluctant now, after the huge rise in December 2018

But these are only some factors...

[hitrawal91]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Thanks for sharing such a kind article. I would like to add that bitcoin volatile movement is due to many factors and some of them are like a huge increase in the participation number and because of which the demand and supply behavior changes. The popularity of the bitcoin is also another reason because of which thousands of new traders enter this crypto market daily and because of all these reasons the volatility of the bitcoin is increasing with rapid speed. I am expecting to increase more in upcoming months.

[stayeduptolate]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Volatility of bitcoin has developed due to the dearth of market knowledge amongst it's investors. People investing in bitcoin for a quick cash generally tend to get swayed by market emotions and overambitious claims by the champions of the crypto currency.
The complexity of Blockchain and the esoteric manner in which the currency operates makes it a tough study, this leads to people investing mostly on the basis of little know ledge and hearsay. As a result the market experiences intermittent patterns of sharp rise and fall, this leads to volatility.

[virasog]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

You know Bitcoin is one currecny which can give you eronmous profit. Now how that is possible ? This is only possible because of the volatile  nature of the bitcoins which makes it most profitable. This volatilty also have a negative side that in case of loss, the loss will also be high.

[MCVXYZ]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Not really I read it and it is the same old argument, saying that bitcoin does not have value at all, but maybe we are all imagining the huge amount of money invested by the miners to mine bitcoin and the technology behind bitcoin which solved several problems that until that point were not solved, the volatility comes from mainly two factors the uneven demand for bitcoin and its limited supply.

The sad truth is, Bitcoin is volatile because it doesn't have real use in the economy as a currency with which people buy things and pay for services. Uneven demand that you talk about is a straightforward consequence of that. If Bitcoin was used as a means of payment, the demand for it would soon stabilize relative to the amount of goods and the volume of services offered for it. But because the vast majority of demand comes from plain speculation, it is prone to wildest fluctuations leading to extreme volatility.

You are right...In additional,Today despite the fact that bitcoin has a developing nature we don't have enaugh grounds to use it for buying goods in real life and to use for our special purposes,Of course it doesn't mean that bitcoin is not first in its work but we need more decisions from business makers and tendences,Less fees and other supporting factors to integrate it in our society and I hope it will be very soon.Anyway I think that bitcoin tendences from different private sectors are the main factor in this case because there will be more competitive environment,therefore price will be much more than today.

[redsap]

yeah bitcoin is just like a finshed product don't have any fundamental intrensic
and the price are made because of the supply and demand rule
because the natural itself can kill bitcoin if there is still people use it not wisely

[Granxis]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Thanks for sharing such a kind article. I would like to add that bitcoin volatile movement is due to many factors and some of them are like a huge increase in the participation number and because of which the demand and supply behavior changes. The popularity of the bitcoin is also another reason because of which thousands of new traders enter this crypto market daily and because of all these reasons the volatility of the bitcoin is increasing with rapid speed. I am expecting to increase more in upcoming months.

I think that the increase in the price of bitcoin depends on the admission and advertising. Some companies have Bitcoin reserves, these companies keep these Bitcoins as a payment method, but there are customers who do not use Bitcoin as a payment method. For this reason, these companies are selling Bitcoin in their hands, only 5k Bitcoin has been sold on a stock exchange today.

[yanlap]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

I have even come across people who told that there was time when they had the chance to buy bitcoin free of cost. Then there was a time when bitcoin was only 12 dollars’ worth. But with the increasing interest of investors and fame it got from millionaires, bitcoin started growing up at amazing rate. The reason was its limited supply and very high demand. Big investors prefer this coin over others. All is well that ends well and this fluctuation is damn adorable.

[ajdaj]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

I have even come across people who told that there was time when they had the chance to buy bitcoin free of cost. Then there was a time when bitcoin was only 12 dollars’ worth. But with the increasing interest of investors and fame it got from millionaires, bitcoin started growing up at amazing rate. The reason was its limited supply and very high demand. Big investors prefer this coin over others. All is well that ends well and this fluctuation is damn adorable.

Of course, if you have the means to buy cheaper coins, as well as cheap Bitcoin, then today you will be lucky. At least I see that Bitcoin will rise in price and it means that the profit will be enormous.

[Starone1]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Actually we already experienced it no need to mention but yes sad to say it is now in the dump situation where all of us are already lose pur profit

No it is no need to say no to bitcoin in any situation, as if it is time to dump in price then it is important to hold your bitcoin, most of time people buy bitcoin at time of dump price, red market means price is going to be low but at the time of green in market you can sell to have profit, no body want lose because price get high once again when it get down, we will have to wait for price of bitcoin to be high, take the benefit of bitcoin volatility no need to sell it, hold it and be patient.

[Sum24]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Volatility of bitcoin has developed due to the dearth of market knowledge amongst it's investors. People investing in bitcoin for a quick cash generally tend to get swayed by market emotions and overambitious claims by the champions of the crypto currency.
The complexity of Blockchain and the esoteric manner in which the currency operates makes it a tough study, this leads to people investing mostly on the basis of little know ledge and hearsay. As a result the market experiences intermittent patterns of sharp rise and fall, this leads to volatility.

Agree with you bitcoin is volatile and it does not have fixed value because in market bitcoin price use to change because of change in market value, people are developing trust for bitcoin which is making bitcoin noticeably high now. Bitcoin is very easy to understand now as it is no more complicated and no more risky, people in market make blockchain promoted and well used currency,  with every moth the ratio of investment and speculation decide the value and the price of bitcoin, so bitcoin use to increase and decrease which creates twist in bitcoin community every months.

[Vibr56]

I think we are in a period of uncertainty just like during the early days of the internet where there were many skeptics and when its future was uncertain. The world will adapt to it sooner or later imo.

[liamnorthcoins]

I think we are in a period of uncertainty just like during the early days of the internet where there were many skeptics and when its future was uncertain. The world will adapt to it sooner or later imo.

This is what i think too..Anything that is new and has a high potential to overcome the conventional ways is called CHANGE and people more often than not will have a hard time to accept or cope up because they get used of the things they usually do Or atmost for the lack of Knowledge about this new advancement. But soon enough with the right media exposure and we as human being who are in constant of finding ways to make life more better for living must help to spread the importance and how efficient the use of bitcoin. Nowadays in our advance technology and with the internet it is much better to do transactions using bitcoin.

[alex M]

Normally, bitcoin price is volatile because it is dependent on the supply which is limited and demand which are increasing.

[19spawnfeed]

Normally, bitcoin price is volatile because it is dependent on the supply which is limited and demand which are increasing.

Well, there are multiple contributory factors to note. In conventional markets, a volatility index is used to scale volatility. However, bitcoin is still much too primitive to have its own generally applicable index. Below are some contributors of the volatility of the bitcoin price.

1.Negative Publicity.
2.Perceived Value Also Fluctuates.
3.Highly Variable Perspectives Concerning Store Value and Method of Value for Bitcoin (BTC).
4.Tiny Option Value to Large Holders of the Currency.
5.Security Breaches Trigger Reactions from Investors.

[jademacoy]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

You know what even if you will not read that article you could still explain in simple things on why bitcoin is so volatile in terms or its market price. The market price for bitcoin are moving constantly and no once could pin down the exact amount or value of bitcoin. We can only describe the bitcoin market price but not the exact value. Why does this happen? In simple explanation bitcoin has a lot of investors. As its demand increases its market price also increases. So everytime an investors around the world invest in bitcoin it adds up to the demand and thus market price for bitcoin move. And after a certain period of time another investor also will going to sell the bitcoin holdings especially if that someone has already the profit to earn bitcoin. So bitcoin demand will decrease so as the bitcoin market price. This the main reason why bitcoin market price value is volatile.

[nur rochid]

bitcoin is unstable because there is no regulator as soon as it appears and these movements have already begun we will see some stability , but my opinion this will not happen soon

I have even come across people who told that there was time when they had the chance to buy bitcoin free of cost. Then there was a time when bitcoin was only 12 dollars’ worth. But with the increasing interest of investors and fame it got from millionaires, bitcoin started growing up at amazing rate. The reason was its limited supply and very high demand. Big investors prefer this coin over others. All is well that ends well and this fluctuation is damn adorable.

Of course, if you have the means to buy cheaper coins, as well as cheap Bitcoin, then today you will be lucky. At least I see that Bitcoin will rise in price and it means that the profit will be enormous.

i think so, indeed with high volatile this can utilized to gain a great advantage. at the moment btc price is very low so it's a good time to buy it, so that later we will get big profit

[anntlevel]

I have always been asking myself the same question on why Bitcoin is so volatile. I compared it to Ethereum which is the second best Cryptocurrency and Bitcoin Cash. I came to notice something, and that is, despite Ethereum being steps ahead of Bitcoin Cash in the market and having a huge market cap, Bitcoin Cash was still more volatile than it. I just concluded that the reason Bitcoin itself was very volatile is because there are lots of demand for it and the supply rate is low. But after reading this article, I’m a little bit confused.

[webdevmastery]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

The price of the market is always depending on the supply and demand of every coin so you can always expect the market to be unpredictable, another thing is that, the value of other cryptocurrency is also based on bitcoins so there will be different prices every time.

[leexhin]

It is because of the investors we are the ones who are making it volatile,
We are the one who is responsible for the price of the crypto currencies because we are the ones who are investing in it and it depends on the demand.

[Zeque02]

I have always been asking myself the same question on why Bitcoin is so volatile. I compared it to Ethereum which is the second best Cryptocurrency and Bitcoin Cash. I came to notice something, and that is, despite Ethereum being steps ahead of Bitcoin Cash in the market and having a huge market cap, Bitcoin Cash was still more volatile than it. I just concluded that the reason Bitcoin itself was very volatile is because there are lots of demand for it and the supply rate is low. But after reading this article, I’m a little bit confused.

One factor that makes bitcoin volatile are the investors who decided to cash out their investment in the reason of they want to get some of their losses and some are because they are contented of the amount or emergency purposes.

[BennyK]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Yeah, it is the volatility nature of Bitcoin that made it rise massively to $23K some few months ago. This is a good property of Bitcoin as it makes the market demand goes up and create more market niche for the crypto world. Let's appreciate the good side of the volatility nature for once.

[INGOT Brokers]

Bitcoin has value and that is because people gave it value when they decided to invest in it. The pereception of alternative investment for people has changed from traditional to the new Crypto universe

[Epimetheus]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Yeah, it is the volatility nature of Bitcoin that made it rise massively to $23K some few months ago. This is a good property of Bitcoin as it makes the market demand goes up and create more market niche for the crypto world. Let's appreciate the good side of the volatility nature for once.

It is very simple to explain.Bitcoin's price depends on the forces of demand and supply.If the demand is high then the prices will definitely rise.On the other hand if the supply is more then prices will fall down.Prices also depend on how much people invest in bitcoin.If more people invest in it then for sure its price will rise or otheriwse vice versa will happen if investment is less.Another reason is if people hold or release their bitcoins in the market.Bitcoin has a very huge market too compared to any other cryptocurrency.

[Safebit.io]

Clueless article. I wonder if they intentionally mislead the public as to how financial markets work.

The stock market doesn't have a baseline. The stock market has regulators with the tools to control it, to a certain degree. The FED, government and banks have the power to keep the prices of assets above a certain threshold especially in times of crisis. This often happens at a great cost. But that's what keeps the markets stable for most of the time.

Bitcoin is volatile because it is unregulated and not controlled by any specific institution. That's also why price manipulation is as rampant as it is for BTC.

[S4roZa]

Because bitcoin presents various opportunities that did not exist prior to its development. But it has failed to turn investors who are concerned about the extent of its potential adoption as an alternative currency.

[Dudeperfect]

I am not expecting Bitcoin to remain stable more than a month anywhere in next 5 to 10 years. At this point, not even 10% of the world's population is using Bitcoin so considering the small sustainable growth, the user base and indirectly the price will keep increasing. On the other hand if something goes wrong in the core area then price and user base will fall down and we won't have the stability at any given point.

[tambok]

The advantage and disadvantage that I am seeing here why bitcoin is so volatile is because it is decentralized, no one owns and handling it, no one will care how much you are going to invest and how much, as well as in withdrawing your investment there is no limit nor maximum in withdrawing your funds.

[OrangeSeller]

Not only Btc but also the other crypto and shares are volatile.Because it's structure is like that.None in the market corporate world can be made fixed.These are influenced by different variables,so it's price is always variable.Sometimes rising, sometimes falling the price.Demand and supply are very important in this case but in additional to the international market, economic recession, consumer purchasing power, intereste and speculative impacts work much more.

If you are there in the world of crypto currencies and that you understand all the things related to any of the crypto currency and the way they work, then I think so you will have no problem in understanding this volatile nature of any of the crypto currency, this volatile nature of bitcoin is just because of the reason that its market value is very much dependent on the demand and supply rate.

[shinchan123]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

I think bitcoin is so volatile because of the fact that there are many factors contributing to it, such as demand from the people the other cryptocurrencies that it beats. The more there are competitors for bitcoin, the more it’s value rises. In an economics class there are theories for this scenarios, although I have forgotten the exact term for it.

[Harleybtc01]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

I think bitcoin is so volatile because of the fact that there are many factors contributing to it, such as demand from the people the other cryptocurrencies that it beats. The more there are competitors for bitcoin, the more it’s value rises. In an economics class there are theories for this scenarios, although I have forgotten the exact term for it.

There are a lot of factors that would make bitcoin volatile. Few are as follows:

1. Rate of adoption is hampered by bad press
2. Bitcoin's perceived value fluctuates
3. Too much variance in perceptions of Bitcoin's store of value and method of value
4. Little option value to large holders of the currency
5. News about security breaches make investors react
6. Bitcoin’s high profile losses at are another driver of volatility
7.Bitcoin and foreign direct investment in countries with high inflation
8. Tax treatment of Bitcoin also affects the volatility

In the near time, much of the volatility will be driven by investors perception of the ability of gateways to safeguard individual holdings and provide for a reliable store of value as adoption increases.

 

[DPrillio]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

I think bitcoin is so volatile because of the fact that there are many factors contributing to it, such as demand from the people the other cryptocurrencies that it beats. The more there are competitors for bitcoin, the more it’s value rises. In an economics class there are theories for this scenarios, although I have forgotten the exact term for it.

Certainly the factors affecting bitcoin volatility is the changes of market demands and supply because the fact that bitcoin market capacity is having a limited amount so it easily to fluctuate with respect to market changes, therefore its truly like the significance of the law for the supply and demand.

[kyucryp]

The volatility of bitcoin is due to its less availability of only 21 million when compared to the fiat money of US dollar,its availability is four trillion.So the difference is very big between the crypto and fiat,so there is a little change in the demand and supply will change the price which resulted in the often price change.
But the price volatility is the main reason that people don't use it as a currency and merchants afraid to accept as a payment because the merchants will lose their profits when the price falls.So we need to support altcoins too to get the stability in price of bitcoin.

yes I agree with you the cause of bitcoin volatility is its limited amount. the volume of bitcoin present on the market today is about 16.7 million coins this is much different from the amount of US dollars in circulation. because of the bitcoin bit circulation volume then when someone buys or sells bitcoin in a large price then the price will move extremities. and bitcoin volatility is also affected by demand and supply.

[DaftAjax]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

I would disagree. Digital currency and earlier form of currency like tobacco has huge difference from now and then. The argument is about "why Bitcoin is volatile?" so we already assumed that it is volatile. First, volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. Well since that cryptocurrencies are decentralized, every coin would just be flying around the blockchain. And because no one is responsible for the sudden changes in its price, there is a very high chance of having a dramatic increase or decrease of prices overtime, without any relation to other factors such as season.

You're right, all currencies are volatile, but the type of volatility that other currency have like fiats - they have low volatility meaning their value changes very slowly and the growth is somewhat steady. Unlike cryptocurrency they're high volatility.

[Marina17]

I think no one knows exactly how to evaluate bitcoin. In addition, a certain number of people manipulate its price. It's not fair to the rest of us.

[naidray]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

This is an old stuff, I have read a hundred times and sick of reading it over and over again. Every author just keeps saying whatever nonsense it is that comes to their mind just to gain whatever it is they plan for. Yes we know that Bitcoin is volatile because of people invest a lot of money and withdraws when they have made huge profits. Well, it’s a normal thing in this business and can also be found in most business out there.

Bitcoin is volatile, and being volatile is what helps most of us make profit. Those who are quick and smart will always invest at the right and also withdraw when it’s right to avoid losing their money. There are always people manipulating the price. It’s left for you to play the game smart, if you can.

[tbterryboy]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Actually we already experienced it no need to mention but yes sad to say it is now in the dump situation where all of us are already lose pur profit

There is another side of coin as well. We have to be sharp minded when things are going against our plans. Once the prices are going down, and if you have luckily invested in Bitcoins already, you got best chance to buy more. You need to be profit oriented and for that you must be vigilant and wise enough to see your hidden profits. Rest, leave everything on the luck and skill.

[BTCappu]

I have always been asking myself the same question on why Bitcoin is so volatile. I compared it to Ethereum which is the second best Cryptocurrency and Bitcoin Cash. I came to notice something, and that is, despite Ethereum being steps ahead of Bitcoin Cash in the market and having a huge market cap, Bitcoin Cash was still more volatile than it. I just concluded that the reason Bitcoin itself was very volatile is because there are lots of demand for it and the supply rate is low. But after reading this article, I’m a little bit confused.

Perfect, it is about fluctuations that made it easy for us to invest in this business and earn profit for ourselves. These are the arguments of the past and now everything is changed. Its volatility helps us to buy and after jumping the price due to demand increases make profit when we sell. Invest when its value is low and do not invest when its value is high would be in your benefit.

[bohr]

I have always been asking myself the same question on why Bitcoin is so volatile. I compared it to Ethereum which is the second best Cryptocurrency and Bitcoin Cash. I came to notice something, and that is, despite Ethereum being steps ahead of Bitcoin Cash in the market and having a huge market cap, Bitcoin Cash was still more volatile than it. I just concluded that the reason Bitcoin itself was very volatile is because there are lots of demand for it and the supply rate is low. But after reading this article, I’m a little bit confused.

The low supply of bitcoin makes bitcoin very volatile, after all when governments begin to see that the currency begin to revaluate and becomes too valuable they can just print more of it and it is something that is impossible to do with bitcoin and with must cryptocurrencies, that is one of the advantages of fiat but that advantage is also disadvantage since the governments can print as much currency as they want.

[so98nn]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

The article is not worth reading at all because it rolls out the same old thing time and again because it started with the thing that btc is overvalued and has no value of its own as it is not backed up by any assest.The volatility can't be avoided in this case as liquidity in the market is too low and the prices are not stable.The more people when will know about bitcoin the more the prices will become stable with time. Unless we cant avoid this volatility.

[vudeptraihpv]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Thank you for this article. 

So Why Is Bitcoin's Value So Volatile?
 - By Jonathan Todd Barker
 
Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors.  Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX).  Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time (See the Investopedia Bitcoin Center for current updates on the price of bitcoin).

Here are just a few of the many factors behind Bitcoin's volatility:

1. Rate of adoption is hampered by bad press
News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated.  Bitcoin's early adopters included several mal actors, producing headline news stories that produced fear in investors. Headline-making Bitcoin news includes the bankruptcy of Mt. Gox in early 2014 and more recently that of the South Korean exchange Yapian Youbit, and others like the high-profile use of Bitcoin in drug transactions via Silk Road that ended with the FBI shutdown of the marketplace in October 2013. All these incidents and the public panic that ensued drove the value of Bitcoins versus fiat currencies down rapidly.  However, Bitcoin-friendly investors viewed those events as evidence that the market was maturing, driving the value of Bitcoins versus the dollar markedly back up in the short period immediately following the news events.

2. Bitcoin's perceived value fluctuates
One reason why Bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency.  Bitcoin has properties that make it similar to gold.  It is governed by a design decision by the developers of the core technology to limit its production to a fixed amount, 21 million BTC.  Since that differs markedly from fiat currency, which is managed by governments who want to maintain low inflation, high employment, and satisfactory growth through investment in capital resources, as economies built with fiat currencies show signs of strength or weakness, investors may allocate more or less of their assets into Bitcoin.

3. Too much variance in perceptions of Bitcoin's store of value and method of value
Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer.  A store of value is the function by which an asset can be useful in the future with some predictability.  A store of value can be saved and exchanged for some good or service in the future.  A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another.  Bitcoin’s volatility at the present makes it a somewhat unclear store of value, but it promises nearly frictionless value transfer.  Since these two drivers of the current spot price of Bitcoin vary against the dollar and other fiat currencies, we see that Bitcoin's value can swing based on news events much as we observe with fiat currencies.

4. Little option value to large holders of the currency
Bitcoin volatility is also to an extent driven by holders of large proportions of the total outstanding float of the currency.  For Bitcoin investors with current holdings above around $10M, it is not clear how they would liquidate a position that large into a fiat position without severely moving the market.  Since Bitcoin’s volume resembles a small cap stock, the currency has not hit the mass market adoption rates that would be necessary to provide option value to large holders of the currency. 

5. News about security breaches make investors react
Bitcoin can also become volatile when the Bitcoin community exposes security vulnerabilities in an effort to produce massive open source responses in the form of security fixes.  This approach to security is paradoxically one that produces great outcomes, with many valuable open source software initiatives to its credit, including Linux.  Bitcoin developers must reveal security concerns to the public in order to produce robust solutions.  It was a hack that drove the Yapian Youbit to bankruptcy, while NiceHash too reported $70 million worth of Bitcoin stolen in a recent attack on the platform.  In April 2014, the OpenSSL vulnerabilities attacked by the Heartbleed bug and reported by Google security's Neel Mehta drove Bitcoin prices down by 10% in a month.  Bitcoin and open source software development are built upon the same fundamental premise that a copy of the source code is free for users to examine and modify at will.  This concept makes it the responsibility of the community to voice concerns about the software design, and when the community does so, the value of Bitcoin reflects the level of confidence in the protocol design as a whole.  It is only natural then that the value would fluctuate with news events about security breaches. 

6. Bitcoin’s high profile losses at are another driver of volatility
It is worth noting that these losses and the ensuing news about the losses had a double effect on volatility.  They reduced the overall float of Bitcoin by approximately, producing a potential lift on the value of the remaining Bitcoin due to increased scarcity.  However, overriding this lift was negative effect of the news cycle that followed.  Notably, other Bitcoin gateways looked to the massive failure at Mt Gox as a positive for the long term prospects of Bitcoin, further complicating the already complex story behind the currency’s volatility.  As early adopting firms are eliminated from the market due to poor management and dysfunctional processes, later entrants learn from their errors and build stronger processes into their own operations, strengthening the infrastructure of the currency overall. 

7.Bitcoin and foreign direct investment in countries with high inflation
Bitcoin’s use case as a currency for the developing countries that are currently experiencing high inflation is valuable when considering the volatility of Bitcoin in these economies versus the volatility of Bitcoin in US$.  Bitcoin is much more volatile versus the USD than the high inflation Argentine peso versus the US$.  That being said, the near frictionless transfer of Bitcoins across borders makes it a potentially highly attractive borrowing instrument for Argentineans, as the high inflation rate for peso denominated loans potentially justifies taking on some intermediate currency volatility risk in a Bitcoin denominated loan funded outside Argentina.  Similarly, funders outside Argentina can earn a higher return under this scheme than they can using debt instruments denominated in their home currency, potentially offsetting some of the risk of exposure to the high inflation Argentine market.   

8. Tax treatment of Bitcoin also affects the volatility
Recent announcements by the IRS stating that the currency is actually an asset for tax purposes had mixed effects on volatility.  On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency.  Conversely, on the downside, the decision by the IRS to call it property had two negative effects.  The first was the added complexity for users who want to pay with it.  Under the new tax law, users would have to record the market value of the currency at the time of every transaction, no matter how small.  This can understandably slow adoption as it seems to be too much trouble for what it is worth for many users.  Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later.  Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point where it is not able to achieve the mass adoption that is critical for its overall utility in society.  Recent moves by the IRS are not clear as to their signaling motives and therefore have mixed signals to the market for Bitcoin.

The Bottom Line
Bitcoin presents a variety of opportunities that did not exist prior to its development.  Yet, it has failed as yet to convert investors concerned about its potential rate of adoption as an alternative currency.  Recent acknowledgement by the IRS that Bitcoin is an asset for tax purposes has clarified the situation for investors, and the promise of frictionless value transfer suggests innovative use cases in foreign direct investment.  In the near term, much of the volatility will be driven by investor perception of the ability of gateways to safeguard individual holdings and provide for a reliable store of value as adoption increases.
 

[jakoylantern]

For me, bitcoin is so volatile because of the market. We all know that bitcoin doesn’t have a constant amount even at the beginning. When bitcoin’s demand increase the amount of it also increase and when the bitcoin’s demand decrease the price of it too decrease. It happens because, for some reason like the issue of bitcoin, some influential person speak about bitcoin and acceptance of some company this is the typical things why bitcoin’s amount is fluctuating too much. 

[Bagaji]

Bitcoin is so volatile because it has not reach its real value yet and at the same time its demand is increasing on a daily basis because it is a new form of currency that is yet to be accepted world over.

[Qungis]

Bitcoin is very volatile because many large investors use it as a speculative tool. The more volatility, the easier it is to earn.

[holden4591]

Because Bitcoin has no intrisic value. Despite any other companies, cryptocurrencies don’t create a products, earn revenue, employ thousands of people or even return dividents - Because of this is it really hard to value them, we often rely on market sentiment which is influenced by the media. Also it's because of lack of regulations.

[LeonardRiggort]

The price of Bitcoin can also change drastically as countries and financial institutions adapt to the idea of cryptocurrencies. For example, when the largest banks in South Korea tested the technology, its value increased. On the other hand, when China announced its plans to take measures against the ICOs (a crowdfunding or collective financing based on cryptocurrencies) without complete information, its value decreased. The same happened when a South Korean government official said the country could ban cryptocurrencies altogether.

[maarx]

Pumps and dumps are common with crypto currencies. One of the reasons would be of insufficient supply of bitcoin in the currency market. Bitcoin are being held now with the investors as it would lead to loss if they sell them. So the market is being in silent then roaring up. I am sure if the bitcoin price reaches $9000, we can expect last December's environment around crypto. Just relax a bit. This is the right time to invest more if you have. If not hold back the coins you already have to take a great return.

[varun bee]

while the article came out in feb and i am writing this in april, i cannot ignore the sort sightedness of the article so, one of the heading in the article reads that "Institutional Investors Are Staying Away" which leads me to post this link https://www.newsbtc.com/2018/04/09/george-soros-turning-bullish-on-cryptocurrency-is-all-part-of-the-bigger-picture/ and also https://www.newsbtc.com/2018/04/08/soros-rothschild-big-institutional-investors-entering-bitcoin-market/ is i think shows us that everything written in forbes should not be taken as a gospel and every time mainstream media tries to pull their little stunts with some edgy journalism, it looses portion of its credibility.

[TTITA]

It has limited supply that make it volatile. With less supply around 3M Btc less that can be mined from network and distributed into market, of course the fluctuation will going to more happen. There is none party that controlled Bitcoin fluctuation, although pump-dump activity by some groups is often done, but all of them will end when there is panic selling or panic buying taking on market.

[ooeygooeygold]

well i guess that's the biggest asset of bitcoin today, it is like the reason why bitcoin is now on the top of almost all currency  that uses in this world. it is volatile because no government manipulate the price and all people holds it.

[tylerderden]

Like any other crypto currency Bitcoin is also volatile in nature. And there are many factors influence its price and make it more volatile in nature. Mainly negative news spread by media and different regulatory statement given by many government put an a negative affect on the investors and make it more volatile. Another factor which influence its price is  its production and distribution. Due no central control authority their is no stability in its production and distribution and this thing create an bad impact on its price. Like this their are also other factors which influence its price. 

[Fedrey]

Like any other crypto currency Bitcoin is also volatile in nature. And there are many factors influence its price and make it more volatile in nature. Mainly negative news spread by media and different regulatory statement given by many government put an a negative affect on the investors and make it more volatile. Another factor which influence its price is  its production and distribution. Due no central control authority their is no stability in its production and distribution and this thing create an bad impact on its price. Like this their are also other factors which influence its price. 

the network has a lot of information that large whales have thrown a large amount of Bitcoin onto the market. This, in turn, sacked the market and provoked Bitcoin's big offer on the market.

[Aladdino]

It still takes very little time circulating to control its volatility, when more people invest will begin to settle and that is when you can see the fruit of a whole mind as it is the creator of this potential virtual currency that is almost considered a commercial asset.

[luckyluigi]

Who actually knows, huh. But I will say, if we would like to use bitcoin in a common life, as a payment method, it needs to be more stable after all.

[ICOcapital]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

cliff notes?

[LongerBitcoin]

Like any other crypto currency Bitcoin is also volatile in nature. And there are many factors influence its price and make it more volatile in nature. Mainly negative news spread by media and different regulatory statement given by many government put an a negative affect on the investors and make it more volatile. Another factor which influence its price is  its production and distribution. Due no central control authority their is no stability in its production and distribution and this thing create an bad impact on its price. Like this their are also other factors which influence its price. 

It is the natural facts that when the demand is high and the supply is less, the price will grow and when the demand is less and supply is more the price will fall. The same is here is bitcoin. That is the main reason of the volatility in the price. Volatility also affects the market value and importance of bitcoin.

[ASHLIUSZ]

Being speculative is the real reason that causes volatility in the value of bitcoin. Governments indicate volatility to be one among the negative factor and fluctuate the market. Users who have been into bitcoin and has experienced the goodness feel volatility to be the best of bitcoin.

[Btcwashu]

Being speculative is the real reason that causes volatility in the value of bitcoin. Governments indicate volatility to be one among the negative factor and fluctuate the market. Users who have been into bitcoin and has experienced the goodness feel volatility to be the best of bitcoin.

Bitcoin presents a variety of opportunities that did not exist prior to its development.  Yet, it has failed as yet to convert investors concerned about its potential rate of adoption as an alternative currency. 

Here are just a few of the many factors behind Bitcoin's volatility:

1. Rate of adoption is hampered by bad press.
2. Bitcoin's perceived value fluctuates.
3. Too much variance in perceptions of Bitcoin's store of value and method of value.
4. Little option value to large holders of the currency.
5. News about security breaches make investors react.
6. Bitcoin’s high profile losses at are another driver of volatility.
7.Bitcoin and foreign direct investment in countries with high inflation.
8. Tax treatment of Bitcoin also affects the volatility.

[ihsanskanzaone]

because bitcoin prices are influenced by how much market demand will be bitcoin if the demand is large then bitcoin prices will go up and vice versa. bitcoin prices also tend to be unpredictable due to very fast price changes so you are expected to quickly observe bitcoin market share to predict the rise and fall in bitcoin prices.

[XCANA]

Bitcoin value is so volatile because of so many factors such as government ban on ICO activities, not fully adopted by all countries, forces of demand and supply and other related factors that usually affect Bitcoin price positively and negatively.

[HiringYou]

Bitcoin is known for it's volatile nature.Sometimes the price  is low and sometimes the price is high so these fluctuations are quite common in case of Bitcoin.Bitcoin is type of cryptocurrency which is affected by even a small statement due to which it's price get affected.Whenever a country takes a decision about Bitcoin whether it is a postive one or a negative one,it effects the price all over the world.For example when China banned Bitcoin, a huge drop was seen in it's price.That JP Morgan's statement about Bitcoin also affected the price.Recently we saw a drop in the price when India banned Bitcoin.This is because such decisions make investors to sell or invest more in Bitcoin which further affects it's price.These are the reasons due to which Bitcoin is volatile.

[bohr]

Bitcoin is so volatile because it has not reach its real value yet and at the same time its demand is increasing on a daily basis because it is a new form of currency that is yet to be accepted world over.

That is another reason, bitcoin has the potential of being extremely valuable and when you look at the potential price of bitcoin and at its current value you see that there is a big difference and until bitcoin does not reach its potential then the price still will move very abruptly, so the only thing we can do is to wait for the day in which bitcoin is adopted all over the world and hope that the volatility goes away.

[dx_twisted]

Governments indicate volatility to be one among the negative factor and fluctuate the market.

It only causes a negative feel because of the fact that they are not being regulated, its market value can be manipulated by those people who are in capable to transact at a higher volume. Also, another reason why the government warns people to take precautions is because of Bitcoin being digital, which is a clear sign that it may only be temporary as no physical sign to support that it will not fluctuate gradually, and the fact that it can be a tool for money laundering schemes.

[Sitipxz]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

[Sled]

Governments indicate volatility to be one among the negative factor and fluctuate the market.

It only causes a negative feel because of the fact that they are not being regulated, its market value can be manipulated by those people who are in capable to transact at a higher volume. Also, another reason why the government warns people to take precautions is because of Bitcoin being digital, which is a clear sign that it may only be temporary as no physical sign to support that it will not fluctuate gradually, and the fact that it can be a tool for money laundering schemes.

I agree to your statement because that is exactly what they are into and that is the reason why they are telling people that they should not trust the bitcoin because of its volatility that can lead them to lose and also it is not permanent since the government can ban it anytime because of the risk of the anonymity that can lead to be used as a tool for illegal transactions.

[reyblack]

For me i think many of us invest bitcoin in a short term investments that bitcoin may go down and rise instantly. For me it's best for all of us and bitcoin itself if we hold our coins not to sell them right away in just little rise of price at the market. We should trust bitcoin because that's what i do and bitcoin never fails thru patience.

[jostorres]

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

I feel that false statement and some government decision are the reasons for volatility in bitcoin price. You are right that bitcoin is not back by anyone but some people wants to hold a large quantity of bitcoin and for that they regularly attack the image of bitcoin, so that people sell their holdings and they found the opportunity to buy them on low price.

[gamalzour]

Governments indicate volatility to be one among the negative factor and fluctuate the market.

It only causes a negative feel because of the fact that they are not being regulated, its market value can be manipulated by those people who are in capable to transact at a higher volume. Also, another reason why the government warns people to take precautions is because of Bitcoin being digital, which is a clear sign that it may only be temporary as no physical sign to support that it will not fluctuate gradually, and the fact that it can be a tool for money laundering schemes.

The worst thing is that many countries have banned bitcoin like my country and this became the reason for volatility in the price. When the good image goes on about bitcoin more people invest in bitcoin and the price rise and when someone gives false statement and create negative image of bitcoin, the people withdraw their money and price falls.

[Irvinn]

Bitcoin is unstable because it is not provided with anything and there is no body that regulates its price, as Central Banks do with national money. Since bitcoin is decentralized, volatility will seem to be inherent in it always. And, I think, volatility with the growth of the price of the bit is going to increase.

[faceoff97]

Bitcoin is volatile simply because the demand changes from time to time. People tend to stop holding and just dropping, Bitcoin's value is all dependent on the people's decision. No one has the full control over Bitcoin's price, its decentralized which means it has no one who intervene over it. The value may change drastically when whales intervene, the actions of whales actually cause sudden but short term changes in values.

[Apaxy]

Bitcoin is volatile simply because the demand changes from time to time. People tend to stop holding and just dropping, Bitcoin's value is all dependent on the people's decision. No one has the full control over Bitcoin's price, its decentralized which means it has no one who intervene over it. The value may change drastically when whales intervene, the actions of whales actually cause sudden but short term changes in values.

in some situations the price of Bitcoin is not at all dependent on market demand, as it has already been observed more than once when the supply and demand were at the same level, but the price had huge fluctuations.

[Fedrey]

Bitcoin is volatile simply because the demand changes from time to time. People tend to stop holding and just dropping, Bitcoin's value is all dependent on the people's decision. No one has the full control over Bitcoin's price, its decentralized which means it has no one who intervene over it. The value may change drastically when whales intervene, the actions of whales actually cause sudden but short term changes in values.

in some situations the price of Bitcoin is not at all dependent on market demand, as it has already been observed more than once when the supply and demand were at the same level, but the price had huge fluctuations.

some experts spoke about the current situation on the market and offered users of crypto currencies to provoke a rise in the price for Bitcoin precisely the opportunities for increasing Bitcoin's demand in the market. Thus, Everyone had to give his opportunity to invest some funds in Bitcoin. But something this call did not live up to its expectations.

[Froloff92]

Bitcoin is so volatile because of its limited quantity when compared to other fiat currencies but the volatility rate keeps increasing with the bitcoin price rise so we never can have stable value with the bitcoin.

[pthnmj]

I think the most basic answer is because the Bitcoin market is actually really small. It’s also almost completely unregulated. A market being small means that it’s subject to wild fluctuations when people buy or sell large amounts of BTC.

[Britanshio]

For me bitcoin was so volatile because of supply and demand section that investors and holders that if they sell their crypto coins the movement qill goes up and down.

[NoNetwork]

Its pretty obvious. Having a very high price also comes a very high chance of fluctuation in its price, thus volatility. It will also depend on the demand, if there's a low demand then it will tend to have a lower price than expected, and if does have a higher demand then the price comes along.

[rejekinomplok99]

Bitcoin is volatile because there is a limited supply only and it is just 21 million bitcoins. It is also difficult to mine bitcoins because as far as I know it is divided into two after 4 consecutive years. I think that is the reason behind its volatility. Its price goes up when there is a great demand but the price becomes lower if the demand will goes down. It is a matter of scarce resources.

yes, thats right. there is a limited suplly of bitcoin. it can affect the bitcoin is so volatile.

[Bdstar]

I think the reason goes to the decentralized system, some big fishes are playing this type of role and they are always making this market volatile. on the other hand, Limited supply would be a great reason for this issue. But For me, acceptability around the world is the main culprit for this issue.

[jagmrx]

Honestly, I don't know what is the exactly reason on why bitcoin is volatile. The volatility of Bitcoin for me it's a normal and this I know on why, it's because of supply and demand.

Wow, what the hell is that suppose to mean ? I think the most basic answer is because the Bitcoin market is actually really small. Hahaha, I guess you misunderstand something. It’s also almost completely unregulated. Or am I the only one who does not know it. A market being small means that it’s subject to wild fluctuations when people buy or sell large amounts of BTC. Maybe you are right. Bitcoin is so volatile because of its limited quantity when compared to other fiat currencies but the volatility rate keeps increasing with the bitcoin price rise so we never can have stable value with the bitcoin. But that is the purpose of btc creation.

[swallovwvile8]

Heaven knows, I let it worked its way, its impossible to understamd btcs LOL

[Bugcoin5]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Speculation and rumors also wreak havoc as well. Lack of regulation, while not necessarily a bad thing in itself, also drives fear and concern which can create a spiraling effect.

[Ushono]

The whole cryptocurrency is quite volatile, then it depends on the change in the balance of supply and demand.

[carlisle1]

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

Nope just a waste of time reading,i wish i dont give such time reading this nonsense though i have heard this from a friend and try to check for my self and surprisingly,nothings new another argument that putting bitcoin in badshape..

Bitcoin is worthy in every single matter,and a really place to give trust