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Author Topic: why bitcoin is volatility?  (Read 1953 times)
levvv
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May 17, 2018, 02:43:14 AM
 #101

it is volatile because some countries doesn't allowed using bitcoin or cryptocurrency.
the uncertain regulations about cryptocurrency can fluctuates crypto price on the market.
deppil
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May 17, 2018, 03:13:23 AM
 #102

the main reason for bitcoin volatility, because there is limited supply of them and huge demand because of these 2 reason bitcoin price depends

indeed the bitcoin price is influenced by the developments and conditions of government that have an opinion about bitcoin, because at this time indeed bitcoin is changing every day, and all that is the right of government, whether the government approves the circulating bitcoin or vice versa.
I think the government has nothing to do with the fluctuations of bitcoin. it is true that the government may have an effect on bitcoin prices because of their policies but the government does not play a direct role in price volatility. I think fluctuations occur because the amount of demand and supply differs greatly
ruthbabe
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May 17, 2018, 03:55:26 AM
Last edit: May 17, 2018, 04:11:37 AM by ruthbabe
 #103

Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Do you mean Bitcoin is volatile? I think because it's decentralize? No one is behind Bitcoin but only all the people that are using it.

Bitcoin’s price keeps changing so drastically because Bitcoin is still extremely new and misunderstood. The crypto king was born in 2009 but only gained its popularity in 2017. In one news I've read it says that most of the Bitcoin in the world are owned by a tiny group of people. It also stated that as of late 2017, about 95 percent of the cryptocurrency was owned by just over four percent of people with Bitcoin. So, if it's true these people have full control in the crypto market, in any moment they could release huge amounts of Bitcoin that will result in the value of Bitcoin.

Other factors that affect Bitcoin volatility, are fake news, FUD, reports on the crackdown of ICOs, regulations and banning Bitcoin in different countries.


Currencyguide
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May 17, 2018, 04:03:28 AM
 #104

Value vacillations in the Bitcoin spot rate on the Bitcoin trades is driven by numerous elements. Unpredictability is estimated in conventional markets by the Volatility Index, otherwise called the CBOE Volatility Index (VIX). Sometime trading makes the volatility as well. Rapid buying and selling for an example.
Thecryptocurrency09
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May 17, 2018, 04:19:04 AM
 #105

Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Is it true that bitcoin is volatile and its volatility has been ever since it first came out of the industry. Many of us could give enought conclusion that it is a disadvantage yet for some is the contrast. Well, I go for the it as an advantage. I believe that bitcoin wouldn't be a bitcoin now if volatility isn't part of it. It is what it is.
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May 17, 2018, 04:22:59 AM
 #106

Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.
because every percentage of Drop price via Dolar or Rate of Change  has a huge Movement for Bitcoin.
many people easily control bitcoin. because There is what we call panic sellers who will make the BTC price Continue to drop and the People who has a Pride on Not buying bitcoin because they will think that it is Overprice and it will be just Stuck on a dump price.
so We wont know how  we will people Control The price of BTC to go up.

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paulo29
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May 17, 2018, 04:23:41 AM
 #107

Yes I would agree that volatility are happening due to fast paced transaction of demand and supply another thing, it is decentralize and not being controlled is what makes it more and more subject to volatility. News and some articles also contribute to its popularity that influence to its demand.
ritiktakyan01
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May 17, 2018, 04:27:06 AM
 #108

There are many reasons for the instability of bitcoin. One country talks about restricting bitcoin. The value of bitcoin falls, if the second country accepts bitcoin then the value of bitcoin increases, the second investor buys more in the bitcoin, the price increases, the less the invest.
Elrozaq
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May 17, 2018, 04:32:58 AM
 #109

Why bitcoin is votality compare to fiat money. Many say bitcoin is not a good investment because it is votality.

What is votality?
liability to change rapidly and unpredictably, especially for the worse. this is the fast price change.

Why is the votality of bitcoin high?
Bitcoin is a low supply at the time of its growing number of users and it has become a demand for the masses. Many want to buy, Many want to sell in easy-word multiple transactions. When many bitcoin transactions are fast market movements and we do not know what might happen because of the emotion of the seller and the buyer may have the price increase or decrease. So the bitcoin is votality because of the small supply and in-demand.

Why is fiat money not too volatility?
Because the government is able to regulate a traditional money, they can make new money and just increase its supply so that it does not have a votality compare to bitcoin.

Note: This is my only opinion, if you have any opinion you can also share it.

Yes, It is true. the volatility of bitcoin is primarily due to the fact that its price is not regulated as ordinary money. In each state, the central bank monitors the stable rate of national money, throwing out additional bills on the market or withdrawing them from circulation.I think in the future, Bitcoin will accept all contries, The market demand will stable.
goymas
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May 17, 2018, 04:59:25 AM
 #110

yeah , I totally agree with your statement . Bitcoin is volatility .  there are only 21 million Bitcoins that can be mined in total. Once miners have unlocked this many Bitcoins, the planet's supply will essentially be tapped out . so the bitcoin is limited but the traditional money isn't .
pekcoin01
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May 17, 2018, 05:05:48 AM
 #111

I do not believe Bitcoin is volatile. Bitcoin made the beginning of a new era. It's been a long time since we've been banking on digital money.
Crypto money is so valuable that a crypto stock exchange has been created. It was the most important and valuable stock market in the world. I think it will continue to be in our lives for many years.
Al Muhaimin
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May 17, 2018, 05:19:11 AM
 #112

I think there are many factors .. and what I know about the unstable factor of bitcoin is. Strongly Affected By Various News
One factor that affects the instability of bitcoin values ​​and prices is the presence of news that seems to frighten bitcoin users, including geopolitical events and government statements that bitcoin is likely to be regulated. Here, there are many headlines in finance and finance that generate fear for investors. One of the headlines that severely affected the bitcoin price was the news of the bankruptcy of Mt. Gox in early 2014. In addition, there is also news about the use of bitcoin for drug trafficking transactions through Silk Road which ended with the closing of the market by the FBI in October 2013. From these two incidents eventually led to a public panic that ensured the value of bitcoin fell to the eye fiat money or dollars very quickly. But behind all that, investors who still like bitcoin see that both events are just proof that bitcoin market is mature.

Perceive Palue of Bitcoin Fluctuates
One of the reasons why bitcoin fluctuates against fiat currencies is the value of perceived palue versus fiat currency. This, making bitcoin has properties that make it similar to gold. This statement has been regulated and decided by bitcoin core technology developers, in order to limit production to a fixed amount of 21 million BTC. Of course this is very much different from fiat currency managed by the government. Here, the government wants to maintain low inflation, high employment and satisfactory growth through investment in capital resources.

Too Many Factors in the Perception of Asset Value and Value of Bitcoin
Bitcoin price instability is also driven by various perceptions of intrinsic value of cryptocurrency as a store of value and value transfer methods. The function of bitcoin as a store of this value is to store assets that can be useful in the future by considering several possibilities. Later, the storage value can be stored or transacted with goods or services in the future. Whereas, the value transfer method is an object or concept used to transmit property in the form of an asset from one party to another. Because of these two factors, the bitcoin spot price varies against the dollar and other fiat currencies.

Small Option Value for Currency Class Investors Kakap
In addition to the perceptual factor of asset value and bitcoin value, bitcoin volatility is also driven by holders of a large proportion of the total currency in circulation. Because, for bitcoin investors with more than $ 10 million in ownership, it is not clear how they will liquidate a large portion of bitcoin and turn it into a fiat currency without moving the market.

Tax Implementation Affecting Price Volatility
The IRS (United States tax agency) states that the currency is one of the objects of taxation purposes that have a mixed effect on volatility, especially negative effects. On the negative side, the IRS says property has 2 negative effects. First, additional complexity for users who want to pay via Bitcoin.co.id. Under the latest tax laws, users should record the currency market value of each transaction and no matter how small. In fact, this is what can cause some problems for its users. Second, the decision to mention bitcoin as a property for tax purposes could be a signal to some market participants and stated that the IRS is preparing and implementing stronger rules in the future. Given this stronger regulation, it will cause the rate of currency adoption to be slow to the point where it can not achieve massive adoption that is essential to overall utility in society.
KorakPawon
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May 17, 2018, 07:38:47 AM
 #113

the main reason for bitcoin volatility because of limited supply and huge demand because of these 2 reason bitcoin price depends
In addition to the perceptual factor of asset value and bitcoin value, bitcoin volatility is also driven by holders of a large proportion of the total currency in circulation. Because, for bitcoin investors with more than $ 10 million in ownership, it is not clear how they will liquidate a large portion of bitcoin and turn it into a fiat currency without moving the market.
Marlo0619
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May 17, 2018, 09:06:03 AM
 #114

because no one can predict what will going to happen in bitcoin for the next days, years and in the next generation. bitcoin is sometime has a high rates, but sometimes it has low. bitcoin users now is increasing rapidly. due to the fact that bitcoin makes user's lives better than before. many investors in bitcoin are now millionaires, and some are just in the middle. but don't expect too much because i told you, expect  the unexpected. bitcoin changes rates depending on some reason. that is why bitcoin is volatility.

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May 17, 2018, 09:41:19 AM
 #115

idk
akshayp
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May 17, 2018, 09:59:55 AM
 #116

Just like most currencies, the price of Bitcoin changes every day. The only difference is that the price of Bitcoin changes on a much greater scale than local currencies.

Bitcoin’s value is based on how valuable the market (the people buying and selling Bitcoin) thinks it is. Think about some of the more physical things you can currently invest in, such as Gold. The price of Gold depends on its supply and demand. For example, when a new Goldmine is discovered, the price drops. This is because more Gold becomes available and so it is no longer as rare. So the rarer Bitcoin is, the higher Bitcoin price predictions are.

However, the price of Bitcoin usually changes because of the news that is published about it. Here’s how it works:
When there is bad news published about Bitcoin, there are a lot more people selling Bitcoin than buying Bitcoin. These people sell their Bitcoin for lower prices than the current value so that they can sell it quicklThis causes the price to drop.
When there is good news about Bitcoin, there are more people buying Bitcoin than there are people selling it. These people buy Bitcoin for higher prices than the current values so that they can buy it quickly. This causes the price to rise.
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May 17, 2018, 10:14:43 AM
 #117

In each state, the central bank monitors the stable rate of national money, throwing out additional bills on the market or withdrawing them from circulation. Also, the rate of national money is strengthened by buying or selling foreign currencies.
However, I believe that unregulated market and lack of maturity are biggest reasons for it. The market is unregulated so anyone can trade with any amount from any corner of the world and he can do it at any time of the day so a big volume affects the price. On the other hand, there is lack of mass maturity in the market and hence most of the newbies take decisions based under the effect of fear of missing out and that's what create panic trade waves and volatility.
Bitcoin, no one regulates, its rate is determined only by the ratio of supply and demand, and these parameters are very variable. It will be fun when the cost of bitcoin reaches high price values ​​and the degree of volatility then increases.
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May 17, 2018, 10:18:07 AM
 #118

Volatility is simply caused because BTC price is driven by hype, news and people sentiment.
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May 17, 2018, 11:11:57 AM
Last edit: May 17, 2018, 09:38:31 PM by brylle34
 #119

The number one cause of volatility is the media because of negative or positive news bitcoin always affected by it just like what happened this january it drops because of a lot of FUD (fear, uncertainty and doubt, usually evoked intentionally in order to put a competitor at a disadvantage.), events, governments like as always China news about bitcoin, statements of big people who spread negative things (FUD) or positive things about bitcoin to get them a high profit by buying cheap and selling high. Bitcoin volatility is also to an extent driven by large proportions of holders that creates a huge impact when they sell, the price drops very fast.
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.
Read more: Why Is Bitcoin's Value So Volatile? | Investopedia https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp#ixzz5FnVFT2nB
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May 17, 2018, 11:28:00 AM
 #120

Bitcoin volatility is also driven in large party by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer.It's volatility has its advantage as well specially for daily traders.Most of them takes advantages of the wild price swings.Anyone of us can take advantage and make a lot of profits.
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