Why is bitcoin so unstable?

[Wesleyeric]

Yes this is a good question, I will be able to contribute to my knowledge on how bitcoin works, first of all some class of people see bitcoin as a scam because of some scammers do use bitcoin to scam, Such people if they are convinced to buy bitcoin, If they experience any Shaking or decreased in bitcoin markets, they will all think that they thought as much, that this is scam, they will immediately sell off their coins, Now in bitcoin so many people think this way! We also have to not that dollar affect bitcoin market. Bitcoin is for any trade,buy when it low sell when it high,that is only when you understand the flow of market. All this  makes Bitcoin unstable

[Vatimins]

     The reason for this would probably be the supply and demand of bitcoin and gold. You see, while gold has no definite number of supply but only estimations, bitcoin has a certain number of supply. Just with that alone we can easily understand why. Plus the fact that bitcoin is still young and only has a few investors all over the world compared to gold. With these we can conclude that the price will be far from being less volatile in the coming years.

[noumankk]

The Bitcoin could potentially be forming a new downtrend as now the price dropped below $7,000 after hitting a resistance of $7500.

Media reports said that this fall comes amid coronavirus pandemic as findings by new research shows that clear regulation has a direct effect on Bitcoin price volatility.

Bitcoin (BTC) price seen its talk and analysis sharply rise almost making some forget we are amidst a deadly coronavirus pandemic.

With 2020 halving just around 3 weeks to go, its price monitored very closely, owing to the number of both retail and institutional investors betting on the asset.

At the time of reporting, the Bitcoin U.S. dollar derivative was trading at around $6,880 after being unable to push beyond the last two months all-time high.

This is approximately 4% in regards to the day’s opening, whereby the asset was trading slightly above $7,100.

Reports also said that Bitcoin’s new decline trend, which formed after the bulls unable to fix the price above $8,000, confirms that the asset headed towards $4030.

[CasherUp]

Hi! How are you? Well, we are not going to say that gold is stable, it also has its fluctuations in the market but what happens is that they are not as notable as bitcoin and the other also that bitcoin is since 2008 and gold for many years, greetings @casherup

[maldini]

Bitcoin is a cryptographic money in it's earliest stages. Adjustment will require some serious energy. It might turn out to be all the more broadly received, it might deteriorate and continue being a specialty apparatus for specific gatherings, it may even lose clients with time. It additionally may get restricted by greater government, or possibly more governments will manage it and permit to utilize. The unsteady idea of Bitcoin is because of the way that everyone in the bitcoin environment can impact the market esteem so far as they have enough of Bitcoin. Decentralization of the Bitcoin environment is the reason for the insecure idea of Bitcoin.

[seoincorporation]

If we compare bitcoin with gold, we will see an enormous difference in the market capitalization. That's why gold is much more stable than bitcoin. Because to move the market is really hard, we need a big amount of money to move the markets on gold, but with a 'small amount' you can move the bitcoin market.

[Averda]

Bitcoin is a cryptographic money in it's earliest stages. Adjustment will require some serious energy. It might turn out to be all the more broadly received, it might deteriorate and continue being a specialty apparatus for specific gatherings, it may even lose clients with time. It additionally may get restricted by greater government, or possibly more governments will manage it and permit to utilize. The unsteady idea of Bitcoin is because of the way that everyone in the bitcoin environment can impact the market esteem so far as they have enough of Bitcoin. Decentralization of the Bitcoin environment is the reason for the insecure idea of Bitcoin.

Yes, Bitcoin is not secure, but there is no money or storage medium that is 100% secure. Cryptocurrency has not existed for so long, it requires development and it will develop: a lot of people and countries see the future in cryptocurrency, and the level of security will also increase.

[Xembin]

Bitcoin can lose 500$ within one night. Gold can't. Why that?

Because gold is older than bitcoin. I believe with time bitcoin will be more popular than gold. And the way bitcoin is improving in the areas of exchange show that it will over come gold in profit making.

[Traderbtcc]

There are several reasons why bitcoin can lose 500$ in one night and gold can't, one of the reason is because bitcoin has just been around for only a decade now and it hasn't gained the trust from alot of investors, since its still not been accepted by so many governments in the world, some investors see it as a bubble that will get burst anytime soon , unlike gold that has been around for so many years and has gained the trust of so many investors around the world, alot of countries even have gold reserves so that's why the price is somewhat stable, but for bitcoin I'm not sure it's gonna be stable for now, maybe after the remaining bitcoins have been mined maybe then the price will finally become stable.

[Jayrmalakas]

because bitcoin is not a stable price ,its depend on how people to buy and to sell bitcoin its form investors ,sometimes they will panic selling cause of changing his price ,there is no asurance about the price of bitcoin

[BorisXY]

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

Gold has been in use for ages,  while Bitcoin came up in the 20th century.  And gold is a Fiat currency, its globally accepted as a means of exchange, while most countries don't know what Bitcoin is.

[Janation]

Volatility of bitcoin is the best feature of it. That's why many people want to invest in bitcoin to earn much bigger than a gold in just one night if they are lucky. But Gold is a safe investment compared to bitcoin that you can earn big but if you don't have knowledge about it you will also loss big.

I'd still pick Bitcoin over Gold though.

Gold doesn't have the volatility Bitcoin has, with the recent changes I could take advantage of that and use that time to sell, reinvest, or trade to other cryptocurrencies. But as you said, if you don't have knowledge about it, you will be screwed. We are also taking big risks by investing in Bitcoin, that goes with other investments or assets as well.

[3meek]

Gold is another store of value, but not that unstable. It reached 2000$ recently and was above 1000$ for many years. Those who invested in gold back in 1900 would have made a great choice since it costed only 20$ back then if I'm not wrong. (Although dollar was way more strong than now)

Bitcoin can lose 500$ within one night. Gold can't. Why that?

Gold has been in use for ages,  while Bitcoin came up in the 20th century.  And gold is a Fiat currency, its globally accepted as a means of exchange, while most countries don't know what Bitcoin is.

Correction - Bitcoin came up in the 21st century!

Bitcoin is volatile because it has no regulation, and all existing exchanges at the moment resemble Wild West! Huge holders can manipulate the price as they want!

[shoreno]

I think it's a lot like the stock market.This is the nature of the price increase.So you have to trade inside it.Gold's case is completely different. I think so.As such, it will be very difficult to compare it with Gold.

not familiar on how stock market works but can you explain it ? since you already explained it . how can you say that btc works like a stock or stock market  . im only aware that btc is mainly compare with gold .

i know how gold works and i can agree to those comparisons . you said trade inside it , you mean trade btc inside the stock market ? but both are just seperated .btc has its own market and stocks too  but i remember there was an exchange before , its mainly built for btc and crypto but you can also trade stocks with it .

[Leviathan.007]

Comparing to the age of Bitcoin it's not unstable at all. Because, the bitcoin market is very young and there is not too much funds invested on it comparing to the other markets such as stocks and forex. Also in the other hand, a huge part of the current available bitcoins are owned by bitcoin wallets and this huge amount of bitcoin will make the price move really high and low whenever they sell or buy. However, this problem will be solved over the time when more people start to buy bitcoins.

[jaresmerel001]

Bitcoin value continues to decrease as the group exposes security vulnerabilities in order to make security improvements. In April 2014, reported vulnerabilities contributed to a 10% decline in bitcoin prices. If you lose your cryptocurrency, or you get robbed, there is no way to get it back.

In December 2016, a hack resulted in $70 million of NiceHash's bitcoin being stolen. Security breaches are a major concern for bitcoin and the lack of insurance is exacerbating the issue.

As of April 2018, more than $670 million was stolen from bitcoin. This cause bitcoin to be more unstable.

[jiellenw]

That's the way cryptocurrency is built. Not only Bictoin changes its value almost every second. All dipends on stock market.

[Celebrityfarmer]

Because Bitcoin was created in 2008 whereas gold has been a store of value for thousands of years.

i disagree with you that because bitcoin was created in 2008 while gold has been in existence long before then hence it affects the stability of bitcoin reason being that you can not accredit the instability of bitcoin to just the year of creation because bitcoin is another form of currency which despite its recent year of creation has gained so much popularity and usage and it’s widely used in forex which involves the buying and selling of other currencies

[Zilon]

Just like every other commodity in the world bit coin with its current demand and traded value is not expected to remain static. Looking at its current global value and the rate at which it fluctuates we can state that the demand of it is gradually depreciating considering the introduction of altcoins

[tanjiran]

Just like every other commodity in the world bit coin with its current demand and traded value is not expected to remain static. Looking at its current global value and the rate at which it fluctuates we can state that the demand of it is gradually depreciating considering the introduction of altcoins

Bitcoin is just like any other investment product, but bitcoin is decentralized. The more volatile the price of an investment is, the greater the risk if you decide to invest, on the other hand, your chances of profit are getting higher too. In time, the price of Bitcoin has stopped fluctuating as much as it did in the beginning. Even if there are extreme changes, it must be due to certain news or rumours affecting the market.
The strength of the bitcoin market is quite strong, even though there are many new altcoins with new innovations, bitcoin still dominates the crypto market, let alone was adopted first. So in my opinion, the decreasing demand for bitcoin is not an impact of the emergence of altcoins, but only because of a certain time or news or rumours that make it so.