Why is bitcoin so unstable?

[ilovealtcoins]

I think bitcoins have a low market cap and not many large institutions own them. Bitcoins trade on exchanges lower than the bitcoins stored in wallets so they are more susceptible to manipulation. The gold market is very large, countries own gold, investment funds own gold. Above all, gold is not as easily stolen as bitcoin. Bitcoin has been taken away from cryptocurrency exchanges in large numbers over the years. As long as news of a cryptocurrency exchange is stolen, bitcoin will instantly depreciate.
The problem here is that bitcoin's liquidity is lower than gold.

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[UserU]

On comparing the Bitcoin with gold, it is crystal clear that gold is being used from ancient times also in the form of currency, whereas bitcoin was being invented around 2008. Every type of commodity needs time to stabilize its value in market. We can not surely say that bitcoin will never stabilize, it will take much time to settle and make itself exist in the market. To conclude, I would like to say that bitcoin will also become stable one day but only thing it require is time nothing else, so we should give it sufficient time and also to people who invest in it to recognize this currency.

That would take years, since the supply of the 21 million hasn't been fully reached yet.

[imstillthebest]

On comparing the Bitcoin with gold, it is crystal clear that gold is being used from ancient times also in the form of currency, whereas bitcoin was being invented around 2008. Every type of commodity needs time to stabilize its value in market. We can not surely say that bitcoin will never stabilize, it will take much time to settle and make itself exist in the market. To conclude, I would like to say that bitcoin will also become stable one day but only thing it require is time nothing else, so we should give it sufficient time and also to people who invest in it to recognize this currency.

That would take years, since the supply of the 21 million hasn't been fully reached yet.

does it means all btc must be mined for that stability to happen ? why this doesnt  apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .

 gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.

[Rafiqul]

I think the cryptocurrency market is always volatile; This is a normal thing. Bitcoin as a digital currency has no regulatory authority, its supply is limited, its price is determined by the market based on demand. There is also positive news and negative news that greatly influences the rise and fall of bitcoin prices in the market through social media.
Gold, on the other hand, is a store of visible wealth. Governments in many countries reserve gold as a reserve. Like the fuel oil, the gold market is also regulated internationally. Governments play a role in controlling the price of gold.

[UserU]

does it means all btc must be mined for that stability to happen ? why this doesnt  apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .

 gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.

My guess is that it still remains as a highly speculative product since it's still not widely adopted like gold. In my country, I have yet to see a merchant that accepts Bitcoin.

But who knows once the supply starts dwindling (and hopefully it would see more usage by then), things might settle down because those lost Bitcoins could never be recovered and people start taking it more seriously.

[kerjakuat]

Bitcoin still can be controlled by a big whales that can be manipulated the market while the gold has a stable market then bitcoin where the price can go up and down very fast.. I prefer more to gold in a stable investment but it will take a very long time to reach financial freedom. So bitcoin will be good to get fast income as it was high risky gameplay but a big profit in return..

[TedMosby]

According to onlygold.com - history of gold,
the first use of gold as money occurred around 700 B.C.

meanwhile

satoshi nakamoto designed the original bitcoin protocol in 2008 and launched the network in 2009.

 

[skarais]

Bitcoin still can be controlled by a big whales that can be manipulated the market while the gold has a stable market then bitcoin where the price can go up and down very fast.. I prefer more to gold in a stable investment but it will take a very long time to reach financial freedom.

You are free to choose the best instrument you want to invest between bitcoin and gold. Bitcoin is very volatile because of its total supply and many people continue to speculate about its price. I think gold has had its up and down, but not as big as bitcoin. The price of gold is more stable than bitcoin even though gold is a finite natural resource. You dont need to force yourself to invest in bitcoin or altcoin if you don't dare to take the risk of loss.

[lumeire]

does it means all btc must be mined for that stability to happen ? why this doesnt  apply to gold ? when gold is supply is unknown or it can be much more than to bitcoin but gold now is stable .

 gold is much accepted so that must be the reason while btc , hmm not really ? but btc is divideable and there is no need to wait for all that btc to be mined just to spread the btc and its use.

Gold is much older than bitcoin and also is wayyyy more trusted and also been there for centuries than bitcoin, so the general public always trusts gold more than bitcoin.
Bitcoin will also become more stable once enough number of the users are present in the system. Also by that time I believe that bitcoin price would have reached at least $100k for sure. Still a very long way to go for the price to become more stable.

[Ridwan Fauzi]

Bitcoin's price movement history has made many investor afraid to keep holding bitcoin from their investment place. As you can remember when bitcoin's price touched its all time high $20.000 and fell to $3500 as its all time low has made the investor believe that he may need to think a thousand time to sell them when he has got profit.

It would be different in gold who didn't have the history's bitcoin price movement and also some factors like gold has been considered as safe heaven place to store money will make its investor comfortable to hold their gold in any situation. But, we just need a few time again to see it in bitcoin, after many instutional start to invest in bitcoin and also future market will make bitcoin more stable.

[nonconformist]

Well, all assets started as unstable. But in reality there's no stable asset class. Even fiat is not stable. But the reason bitcoin is not stable is simply because it is a new asset class. People are still finding it's real value, it is called price discovery. Since it is very new, it is still finding it's stability. But overtime, maybe after all the coins were mined, it will become stable. When most people are using it. But such is the nature of bitcoin, it is still speculation. Even though it has use case -- transfer of value, it is still speculation currency. Who knows. Maybe hundred years from now, it will become the defacto currency of the world or maybe it will lose it's value and  go down to zero. Who knows right? But in the next coming halvings, I think it will reach it's relative stability. As of now, if that is what you are looking for. You're not in luck. Better yet, play with it's instability as long as you can, you can earn from the spread.

[soulripper]

I believe when the first gold has found peoples still not interested to buy high as they do not know what gold can be used for. Back on it ages gold just like bitcoin where the community support the used of gold and long time past peoples now accepted the used of gold and what it can offer to the society. It just like bitcoin where now bitcoin still new and peoples still do not know what is the truth used for bitcoin tech. They scared to use bitcoin because they still doesnt know how to used bitcoin but this will be changed as the new generation will adapt to this tech and start to used this tech for their daily life which mean will bring a mass adopt to all over the world. its just a matter of time bitcoin will be accepted to the whole world.

[roadrunnerjaiv2025]

If the gold's price was stable, a chart would be like this all the time.



(Yep, I'm a charts expert, glad you noticed it  )

But that isn't the case at all.
There is a big difference between something stable and something less volatile. The fact is, gold is not so stable but has much less volatility compared to Bitcoin.

While you say gold doesn't lose $500 as it does with Bitcoin, that's not entirely true. Firstly $500 for BTC is not the same for gold as they don't have the same value basically. You need to talk with percentages, not monetary value.

Now continuing with your argument, you're wrong, as it happened gold has taken a big plunge, just like it did in 2013. On Comex, the fall in 1 session was close to 10%, the biggest drop in 30 years by the way.

Perhaps it happens less often than BTC but it really happens

This is quite helpful. Thanks for this. I'll have to read further on stability and volatility to better understand their relationship. ;-)

[kerjakuat]

bitcoin is very volatile mean while gold is more stable right now as the demand are always high. the supply of gold are very high but still they can manage the gold demand in top because the government are ready to backup gold if falling down. Bitcoin are more independent it has it own market and mostly or likely the market are being controlled by whales. Never know if it real or not but yeah who know if it real or not.That why the price are very volatile. Buy and sell are in hand of the investors totally..

[azmirihaque]

How you compare gold with bitcoin now. Gold is used all over the world as a valuable metals and as a store of value from hundreds of years ago. Bitcoin is a new comer and it has come to the market only few years ago. One day will come when Bitcoin will lead all the market and its value will be more stable

[Xembin]

Because is not too popular like gold,gold has been in market over a years, stable in investment. Bitcoin is not too popular like gold,bitcoin can go up anytime and drop value anytime.

[Sebas.tian]

Bitcoin is not stable because is wan designed in such a manner, although things can be slow when global adoption set in. Bitcoin being a speculative asset can't be find stable like gold, good isn't a speculative asset like Bitcoin, so, don't be surprise at their level of volatility. Also remember that, gold itself isn't stable because its curve isn't straight. Gold is less volatile than Bitcoin but comparing their existence, gold has been around and Bitcoin just came into play and can be stable as time goes on.

[FlightyPouch]

we cannot compare bitcoin with gold or other currencies due to some reasons. All countries around the world have their reserve in terms of Gold and gold is a real asset But Bitcoin is an internet currency. unless Regulations are made in Bitcoin, it  will remain unstable. After regulation in world we may expect its stability.

Bitcoin is not just an internet currency, it is a digital currency. Regulations may seem pretty good but it will not tell us how stable the price will be in the near future. It will secure the users in that country, it may boost adoption and that also means having great price changes. Because of bitcoin being decentralized, I don't think we will be seeing it not volatile.

[Shasha80]

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

[Kong Hey Pakboy]

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.