Why Bitcoin Is So Volatile

[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.