Is bitcoin volatility here to stay?

[MonsterV]

From the beginning of the emergence of Bitcoin, the volatility of Bitcoin is very high. Many were happy and some were sad because they lost their funds. Actually no loss or loss of funds. It's just that their funds only change hands. For daily traders and short-term investors (not annual traders), the volatility of Bitcoin provides a great opportunity to make a profit. By predicting short-term trends in Bitcoin correctly, these traders can make large profits, far more than investors who have a buy-and-hold strategy.

I think the beginning of the emergence of bitcoin, the volatility has not been high. Bitcoin's volatility began to increase when bitcoin became known in the wider community, especially when bitcoin could be mined and more and more miners made the popularity of bitcoin increase. In 2013, the high volatility of bitcoin began, until now.

Maybe the high volatility of bitcoin can be reduced when there is a better substitute for bitcoin, but I think that sounds impossible to replace bitcoin because bitcoin is the beginning of everything.

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[Betwrong]

Volatility is here to stay, that's for sure. The question is, what volatility, though? Volatility within a relatively narrow range, like within 2% daily, is perfectly bearable for for vendors who want to accept BTC, but it's obvious that it's difficult to do business when the price jumps up and down over 10% within one day. I agree with posters above that volatility will decrease with wider adoption, and I hope some vendors will find it possible to trade even with daily volatility close to 5%. After all, it's not that rare to see a 5% discount, so why not to sell these items for BTC agreeing in advance to the loss of 5%?

[Herros]

Volatility depends heavily on information if there is negative news about Bitcoin, such as rumors of China that would halt the operation of cryptocurrency exchanges in his country, some Bitcoin holders/bagholders begin to sell Bitcoin and price can go down quickly.

But it is different if Bitcoin is already widespread in the future, and many people are starting to hold Bitcoin, the price of Bitcoin is even volatility will be reduced and will move substantially.

[bryant.coleman]

I think I made a statement regarding this a few years back... will just repeat it.

According to the coinmarketcap website, the daily trade volume for Bitcoin is $16.3 billion, which amounts to more than 9% of its market cap. I know that some of the exchanges inflate their trade volumes, so let's take a conservative figure of 5%. One-twentieth of all the coins in circulation are being traded every day. This is extremely high, when compared to that of other assets. In case of gold, this proportion is less than 0.1% (I am talking about actual gold, not derivatives). In case of real estate, the proportion is even lower.

The main reason for volatility is clear. The vast majority of the coins in circulation are in free-float and are actively traded. Unless this proportion drops from 5% per day to somewhere around 0.5% per day, we'll continue to witness a lot of volatility as far as the exchange rates are concerned.

[beatzcoin123]

Bitcoin volatility is here to stay because what we call volatility is actually a distinctive feature of bitcoin. As an investor in bitcoin, one will expect price to continually go up while we sit down and smile, but reverse tends to be the case. Volatility nature of bitcoin tends to always ensures there is even balancing and regulations in price.

[freedomgo]

Bitcoin volatility is here to stay because what we call volatility is actually a distinctive feature of bitcoin.

Exactly, people has to understand and know that.

As an investor in bitcoin, one will expect price to continually go up while we sit down and smile, but reverse tends to be the case. Volatility nature of bitcoin tends to always ensures there is even balancing and regulations in price.

IF there's a reversal of price, people panic when it's coming from a big pump.
Things work like that and only when they understand and mature where they can make the right judgement.

There are people who panic, we can't stop them, but the moment they learn from their mistake, that will reduce the volatility.

[The Sceptical Chymist]

imagine if a billionaire buys bitcoin using any exchange? Imagine if someone who has many bitcoins decides to sell everything at once in an exchange?

I think your points nail it exactly, and this is the reason why penny stocks are so much more volatile than, say, Microsoft stock.  I think a big component of volatility is market cap.  Another big one is the amount of speculators and how much money they're putting in and taking out of the market. 

Bitcoin's market cap is relatively small, and I think that's why we're not seeing hedge funds and other Wall Street-type investment institutions buying it.  They can't really buy or sell large amounts without moving the market--or getting stuck when there's little liquidity.  Plus bitcoin is a new thing, only 10 years old at this point.

Anyway, I don't expect bitcoin's volatility to flatten out anytime soon.  We might get periods of stagnation, like when the price was pinned at $3500 or $500, but when it moves it's pretty dramatic.  And IMO that's part of the appeal of bitcoin and I'm sure traders wouldn't want it any other way.  They make a lot of money when the price swings up or down.

[robelneo]

I am a strong believer in HODL. I expected bitcoin volatility decreases as time goes by, I totally didn't expect such big price change in the past several days.

Is bitcoin volatility here to stay and not decrease?

I don't know how it's going to end, the supply is very limited and people are preaching to hodl it as long as they can, if Bitcoin is fully adopted we will it's price seldom to come down and always go up maybe then the volatility will stabilize but now we have to get used Bitcoin going up and down.

[Vishnu.Reang]

We are not getting affected by the volatility, right? So why we should care about it? It doesn't matter for long-term investors like us. If may affect someone, who want to use BTC for direct payments. But even in such cases, the majority of the websites have the pricing in USD or some other fiat currency, although they allow the payments to be made in BTC.

[Moshaid]

Bitcoin volatility is among what makes cryptocurrency be what it is today also those that involves in the trading activities beyond crypto, I don't expect any kind of volatility in bitcoin, if you're looking for a volatile market then I guess USDT ir USDC will be your best bet.

[Krislaw]

We are not getting affected by the volatility, right? So why we should care about it?

It will be matter by daily trader as beginner, I was look at market yesterday other FUD sell btc when price only correction to move down. It's just Traumatic trader as beginner, then really affected for price movement on may exchange.

[freedomgo]

We are not getting affected by the volatility, right? So why we should care about it? It doesn't matter for long-term investors like us. If may affect someone, who want to use BTC for direct payments. But even in such cases, the majority of the websites have the pricing in USD or some other fiat currency, although they allow the payments to be made in BTC.

I agree. I don't think it is a problem when making payments with bitcoin, even though it has fluctuations that change, of course for the price of an item it can adjust at the time of the transaction. moreover I think bitcoin is only an alternative currency. and we can choose the payment method

Volatility would only become a risk if a business does not know how to manage the risk.
I like to give you an example, in a certain local exchange that I'm using, you can convert your bitcoin in fiat but their rates are not based on standard rates or to preev rates which is widely use in the forum for conversion. To manage the risk, they add like 5% over the standard price of bitcoin.

[BennyK]

Bitcoin price instability is what makes investors and traders their profit. Without the volatility, how then can we expect Bitcoin to make a percentage rise of more than 100%? Bitcoin price in instable because it is affected by lots of factors including news, traders activities on the market, miners etc.

[michellee]

Bitcoin volatility will always happen no matter if bitcoin is at a lower price or the higher price. With the volatility, I think that will be a way for us to make a profit by buying bitcoin at a low price and sell the high price. Although we don't always see the price can increase too high as we want, but still, we could make a profit.

[brotherwood12]

volatile is the unique thing of bitcoin rather than other , also that thing that make bitcoin getting big risk on it . but also yeah BIG RISK = BIG profit .
but yeah what people upon me said , this because the people who have bitcoin still little .

[Betwrong]

Bitcoin price instability is what makes investors and traders their profit. Without the volatility, how then can we expect Bitcoin to make a percentage rise of more than 100%? Bitcoin price in instable because it is affected by lots of factors including news, traders activities on the market, miners etc.

It's traders who profit from Bitcoin volatility, but for investors it would be better if BTC were less volatile. Less volatility means wider adoption. Wider adoption means higher price in the future. For traders it doesn't matter whether the price is going to be higher or lower than today, in the future, because they will be still able to make their money on price fluctuations. Not all traders are like that, of course, only the lucky ones ( or "knowledgeable and experienced", as some might correct me).

[MidnightWolf]

There is a time when I try to guess what will happen with Bitcoin, when it reaches its maximum value and remains at a stable price.  What will users of cryptocurrency do then?  Who will need a bitcoin with a huge price if it is not used anywhere.  It seems to me that it will be very good if Bitcoin is used to transfer money in a business where transactions with large amounts of money take place.

[Betwrong]

There is a time when I try to guess what will happen with Bitcoin, when it reaches its maximum value and remains at a stable price.  What will users of cryptocurrency do then?  Who will need a bitcoin with a huge price if it is not used anywhere.  It seems to me that it will be very good if Bitcoin is used to transfer money in a business where transactions with large amounts of money take place.

Just think of it a bit more. How can something be highly priced and stable at that price if it's not used anywhere? I know it's a popular opinion that Bitcoin is just a speculative asset, but, in fact, this is not the case. Crypto gambling industry alone has a large volume of usage, and of course it's not the only place where BTC is used currently. Read a fresh article from the link below to learn more.

https://www.lifewire.com/big-sites-that-accept-bitcoin-payments-3485965

Many people, including me, believe that Bitcoin will be used much more in the future, and that with wider adoption the price of BTC will rise. But it will never be stable because Bitcoin is not regulated by banks and governments, and that's rather a good thing.

[seraph_the_wise]

I am a strong believer in HODL. I expected bitcoin volatility decreases as time goes by, I totally didn't expect such big price change in the past several days.

Is bitcoin volatility here to stay and not decrease?

Yes, here to stay for a long while. Bitcoin volatility is a result of Bitcoin fundamental value drivers (varying supply and demand on an open market).
This is no stablecoin with pegged value, nor a stock tied to a company's future revenues.
How much volatility? Hard to predict. There is no reliable VIX to Bitcoin, but could change if ETFs are introduced (feel free to correct me if wrong here).
Long-term (10 to 20yr plus) is likely the volatility could be lower, due to block reward halving and stabilization of new supply vs existing supply.

[Ozero]

There is a time when I try to guess what will happen with Bitcoin, when it reaches its maximum value and remains at a stable price.  What will users of cryptocurrency do then?  Who will need a bitcoin with a huge price if it is not used anywhere.  It seems to me that it will be very good if Bitcoin is used to transfer money in a business where transactions with large amounts of money take place.

So far, there is no chance that Bitcoin will become less volatile in price in the future than now. This is a huge advantage of bitcoin and other decentralized cryptocurrencies and at the same time its biggest disadvantage. The great volatility of bitcoin really prevents its widespread use in business, especially where transactions are long-term in time. At the same time, the volatility of Bitcoin is not too pronounced where the transaction from the moment of the agreement to the transaction and before the implementation occurs relatively quickly.
Bitcoin and other cryptocurrencies are still in a state of development and we still cannot say how it will end.