Why is bitcoin so unstable?

[Crptomagma]

It’s wont be fair enough to compare the activities of bitcoin to that of gold. Gold as a natural resource  has been the store for value since ancient time and at one point used as a means of purchasing power/Currency. It’s uses and purpose increases to man in different ways,Gold are used for beautification/Ornaments, for making jewelry’s etc.Gold is as old as man on earth and bitcoin is barely two decades in existence. The value or stability of gold will be at higher advantage for now because the world is still getting to know more about bitcoin.

The future of bitcoin is not known yet but looking at the daily market analysis it is believed that there is hope and better chances of bitcoin in the next generations . The rise and fall of bitcoin can be linked with so many issues among which are the bad economy ,Different systems of government around the world , natural disasters, pandemic, war and many more, with all these the price of bitcoin will continue to rise and fall. It is also key to note that gold appears in it physical form and can be transformed to different shapes and purpose by a goldsmith whereas bitcoin is an electronic currency.

Instability of bitcoin as a currency  will not  be the first in the history of man because just like every  other currency even the price of dollars are also affected sometimes and we experience changes in dollar rate.

[Sapphire915]

You have to keep in mind that Gold has been around and used as a form of currency for thousands of years.  It's been used by modern day governments as a back to their currency.  Gold has physical real world uses to boot.  Bitcoin is a cryptocurrency in it's infancy.  Stabilization will take time.

Its true. Gold has been around for millions of years being used by the old age/old Government as back up currency or as payment method when they are running out of money. As for bitcoin, its really unstable because its a decentralized cryptocurrency and its volatile by nature. The changes and movement of bitcoin in the market is uncontrollable while Gold has been so stable in its value, since it was already proven useful million years ago, up to present.

[gamer4156]

Bitcoin we realize the number of coins will actually exist and except if there is a fork that changes this that sum will never show signs of change, this implies when there is an adjustment in the interest the gracefully side can't stay aware of it and this builds the instability. The cost goes here and there, however less unstable contrasted with bitcoin. Where as any news or occasion would influence the cost of bitcoin since the fate of bitcoin itself isn't clear. You should take a gander at the since quite a while ago run outcomes.

[1GUARDIAN]

Bitcoin price volatility is caused by the fact that it has not yet reached its true stable price, and I have no doubt that its price will continue to grow in leaps and bounds every year for many decades. This is not surprising for a currency that may one day replace all other existing currencies in the world because most of the useful uses for bitcoin have not yet been invented. After all, we all understand that a means of accumulation is far from its only role.

[Serious475]

Bitcoin price volatility is caused by the fact that it has not yet reached its true stable price, and I have no doubt that its price will continue to grow in leaps and bounds every year for many decades. This is not surprising for a currency that may one day replace all other existing currencies in the world because most of the useful uses for bitcoin have not yet been invented. After all, we all understand that a means of accumulation is far from its only role.

Bitcoin still has a high volatility because the demand and supply must move so that bitcoin users and traders may earn because if it has a stable value, it will be like a local currency and we wont be able to earn big amount of money with that so we must take our chance while the bitcoin still doesn't have a stable price. It's value may not be perfectly stable and might move but not too much like other local currency and it will force us to find another unstable coin to trade.

[Donchingonverga]

Oh my

[The cure]

Gold was used a thousand years ago, it is a stable asset and over time its value increases even more. Bitcoin is a cryptocurrency and it is volatile the value is so unstable so it is traded because it is made that way and they are different. Yes in Bitcoin you can lose a hundred or even thousand dollars but it can also be reversed and you can earn that amount in just a whole night.

[Sadlife]

Bitcoin is only 11 years old, and still in beta phase we are still in an adoption phase but we're getting there. Recently, Institutional investors are moving into BTC one of the latest company that bought BTC is Stone ridge with the amount of $115M. Surely Gold has its ups and down just like what's currently happening to BTC market, if you're a real investor, you should know this basic things.

[Darooghe]

Bitcoin is still a young asset and every asset begins with high volatility. This market is influenced by different variables. Demand and supply are very important in this case but in addition, the international market and economic recession, consumer purchasing power, bank interests, bad news or good news, the tax treatment of Bitcoiners, rate of Bitcoin investments in high inflation countries, and speculative impacts work much more in this market.

[Dsdaq]

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

[Sirait]

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

there is no guarantee Bitcoin will be stable when adoption is widespread because Bitcoin is a decentralized coin.

I am alone can interfere with the price of Bitcoin if I have millions of Bitcoin and then sell them all in the market.

Bitcoin is a decentralized coin and it has been recognized that what controls its price is the amount of market demand.

[CasherUp]

For the simple reason that gold is a stable mineral that does not have billions of influencer behind it and bitcoin does and has more crazy fluctuations in the market

[Alamin1444]

Dear sir, you can't compare Bitcoin with Gold cause both are Different. Gold Value increasing So slow you know that & gold is So Old, But BTC just Release on 2008 & In 10/12 year it’s increase so much even Satoshi  Nakamoto Can't even imagine that! That's why we see so Volatility in BTC market. But Don't worry in a few years the Problem will fix, when Every GOV hold/Accept BTC or start work with BTC.

[ichi]

Bitcoin is unstable and it can go as high as it can expedite and the other way around. In any case, that quality of bitcoin is the thing that makes it essentially astounding.

You purchase low, hold it, and stand by until you see the value you need to sell. Also, another valid justification for having it is that you can be essentially calm. No one will realize that you have bitcoins and its stockpiling is anything but difficult to keep and bring wherever you need. In contrast to gold, it burns-through space and weight.

[bryant.coleman]

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

Bitcoin can't be considered as some asset in the early phase of adoption. It is 12 years old, and we already have a user base of tens of millions of active users. May be it is time to admit that the volatility is an integral part of Bitcoin. There are several reasons for this volatility. The lack of a centralized authority is one of them. But should we be concerned about the volatility? IMO, we shouldn't.

[Wisbrown]

Instability of Bitcoin make it a business because Bitcoin oscillate against fiat currencies, is the recognize store of value versus fiat currency

[sarmrakib]

Gold is not stable. It's just low volatility.

You are right and indeed no trading commodity or even product can be stable because if it is stable, it won't have that trading attraction and therefore won't be traded. Bitcoin is highly volatile because of majorly no proper regulation.
Also, all of the point you raised in your postage good reason for bitcoin high volatile.

Bitcoin is always volatile that's why we love bitcoin .Crypto is a great platform and strong market as well which is better than Gold i think .So that the volatile market can give us a huge amount profit within a sec .that's why crypto and bitcoin is the best platform for investment .

[shane_gr]

It can be said that bitcoin, gold, oil and dollars are each a separate thing and we can not compare them with each other.
Bitcoin has a separate identity and anyone can invest wherever they want.

[Smeet]

Thats a really interesting point. In my opinion, I think BTC is a lot more unstable than precious metals because there is a lot more speculation and ease of transaction going on in bitcoin. If someone was to invest in gold and hold for a bit, they have to physically go to a buyer and hand it off in person in order to transact it. However in Bitcoin, everything is much easier to transact, which could lead to more volatility in the market?

I have heard that long term if / when bitcoin reaches higher prices, the volatility in the market should go down significantly.

[Crptomagma]

Gold is natural and it’s won’t be fair to compare Gold to a technology created in 2008 whereas Gold has been the store for value since since the beginning of the world. Gold is a natural mineral and is also controlled by the centralized government so Gold is basically not affected by the normal factors that affect bitcoin.

Bitcoin is not to be compared to Gold looking at the time, many people in some rural and even urban areas are not familiar with bitcoin and some still don’t know bitcoin and how it works but are very knowledgeable about Gold and it’s value. Gold is as old as man on earth while bitcoin as a technology is barely two decades.