Why is bitcoin so unstable?

[Rana590]

Bitcoin is not still familiar to all kinds of people. Gold is older and familiar with most of the people where bitcoin is still young. That's why bitcoin is not stable till now.

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[DoubleEdgeEX]

We just have this conversation and perception because we of too many hypeman  on Youtube, Twitter and such that push the idea of "this time to the moon" or "1000%" gains soon" or "BTC to go to 5K?" or similar crap. Without that clutter we just could relax and watch the show knowing that it will rise more sooner than later anyway

[AniviaBtc]

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

People who are holding gold or taking it as an asset for so many years would really have a huge advantage out of it. Bitcoin is only new and more fresh compared to gold, because there's no digital currency present before. They really have a lot of differences and one of it is that bitcoin is much harder to earn and obtain, it is much harder to mine compared to commodity.

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

This is somehow true, compared to BTC's volatility, bitcoin is much harder to make as an asset, it is much harder to control and manipulate in the market, while if you have gold, you will just hold it and you will not interfere with it because it has a lot of potential to increase more from time to time.

While BTC can be manipulated depending on the market situation if it is good to have a transaction.

[pragna]

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?

I think BTC is new in market and also online transaction system that people did not use to like GOLD. On the other hand it has no fully global acceptance yet so that people can not fully trust on BTC. So when any bad news come investors feel fear in mind and they sell their holding BTC in low price so market gone to crash. But in GOLD that not happen anytime and its price is stable always. But we crypto lovers feel that gradually BTC price also will stable and we have to patience in mind.

thanks.

[20kevin20]

I'd say it's so volatile due to the number of people that are still in doubt whether BTC is a safe haven asset or not. If everyone used and looked at it the same way, things would have probably been different right now. And then, add the FOMO created every 4 years with the halvings. It cannot be very stable if we have some numbers changing every almost half a decade - price will always be influenced. Otherwise, a stable price for 8 years straight would result in miners giving up.

[The Cryptovator]

As others said, gold isn't fully stable. You can see a recent bump and crash. Listen, gold is an asset and exist in real life, it's not a currency. Basically, you don't need gold to live. But currency is always needed. The main reason why gold is low volatility is, world population do not attempt to buy it at the same time and don't know buy pressure or sell pressure. But since Bitcoin is a cryptocurrency we can use it in our daily life since it has value. It's most volatile because the world's population could buy it at the same time and sell it at the same time. Holders are monitoring the buy/sell pressure and taking real-time decisions. That's how bitcoin becomes more volatile than gold. That's my opinion, others might not agree.

[LimLims]

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?

Before saying anything, you need to understand how the price of a particular thing affects.
The price of a particular thing (here BTC) affects , when there is a up and down in the supply.
In other words Bitcoin and many altcoins follow the tradition of supply and demand.
When the demand is more the supply of BTC becomes less, for which the price goes up, and when the demand is less and supply is sufficient then the price falls.
This is a general scenario through which we can expect the Price of any coin.
For this reason BTC is so unstable.
Hope this helps you OP.

[jademaxsuy]

We are having same question for I am also interested to.know how the bitcoin market price will be dictated by its users as what they say that investors run the bitcoin system. We know that we have different bitcoin holdings and this is why how could bitcoin make a calculation when one sell part of bitcoin and how much the depreciation of value will apply to the others who are also holding bitcoin. I am really confuse but I know tha bitcoin is same as with money only that its value will vary always.

[arwin100]

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?

Because it is the most traded crypto among those listed in the market, and bitcoin is not deisgn to be stable coin so expect that there are more volatile movement.

We are having same question for I am also interested to.know how the bitcoin market price will be dictated by its users as what they say that investors run the bitcoin system. We know that we have different bitcoin holdings and this is why how could bitcoin make a calculation when one sell part of bitcoin and how much the depreciation of value will apply to the others who are also holding bitcoin. I am really confuse but I know tha bitcoin is same as with money only that its value will vary always.

It the same with money but not controlled by anyone that's why we can see the price suddenly change quickly in single instant but what more unique from bitcoin is we can earn from its volatility and if you compare with fiat bitcoin is more promising since it can offer us more options interms of profitability.

[Tipstar]

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?

For $500, it's also about how much gold you are talking about. There's no exact measure of what amount of gold is to be compared with 1 bitcoin.

If we were to talk about the percentage change, we have seen plenty of days with more than 5% of change in price for gold. In 11th August it dropped by 5%.
Another reason for sharper changes on bitcoin price could be due to it's 24/7 trading time while gold are trader for less than 12 hours a day.

[Kakmakr]

The most controversial reason for the stability of Gold, is the market manipulation that are happening in the background by supposed large Gold cartels. Go read this book about the subject : The Gold Cartel: Government Intervention in Gold, the Mega-Bubble in Paper, and What This Means for Your Future - Author : Dimitri Speck // Publisher: Palgrave Macmillan UK   ( Central banks don’t act on their own, but cooperate
with private institutions. )

I quote from the Book : " ‘We can hold the price of gold very easily.’ - Fed Governor Wayne Angell in July 1993

Now, with Bitcoin things are a little bit different, because the price is determined by actual supply and demand on the open global market. This makes manipulation a bit more complex and more difficult. (not saying it is impossible, because some Whales presumably still manipulate the Bitcoin price.. but this has not been proven yet.)    

[Artemis3]

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?

Because gold has been traded for thousands of years, while bitcoin has existed only for 11. Like gold, bitcoin production is declining; unlike gold, it is with absolute certainty that no new sources will ever be found.

And, unlike gold, your gov cannot seize it from you, like the USA gov did for most of the 20th century.

You say "lose" but you seem to forgot it just "gained" $2000. On the other hand, there is also the thing you are comparing it against, the USD, is also going up and down as well... And, the politicians can duplicate and triplicate the number of existing USD overnight, while nobody can ever do that to bitcoin or gold.

[seramania]

bitcoin has a low volume and high price, bitcoin was created to trade and dominate finance in cryptocurrency, many bitcoin owners prefer to trade bitcoins rather than long term deposits. because the price of bitcoin is very fast and it is too risky for those who store bitcoin long term. that is why bitcoin cannot be as stable as its position in crypto, for bitcoin prices remain unstable at any time

[affandi]

What's up with you, why are you still comparing gold with bitcoin. look at their age, gold has existed since time immemorial and has been well received in the eyes of the world, while bitcoin, he is still young and is looking for a way to win and the world also still doubts its existence. The price of bitcoin changes very quickly, but behind all that, many traders take advantage of the price volatility to profit.

[lebregone]

Bitcoin is designed that way unlike gold or usd, bitcoin can easily decrease it's price pretty bad in just a day and can easily increase also within a day. It's price is
very unstable but if you are looking for stable currencies then there are many that are already existing right now like USDT and etc.

Bitcoin price are base on it's demand, once the demand will skyrocket within that day then it's price will skyrocket also but if some big holders will decide to dump their
holding within that day then the bitcoin price will surely to go down easily. This is the reason why many traders are making it as their opportunity to earn a profit.

[Sanugarid]

Here we are again, gold and bitcoin, why bitcoin is so volatile and gold isn't when they are built for storing values. c'mon peeps.

These two were designed differently but they have the same purpose and that is to store value. Now the difference is how they are created, gold has intrinsic value which can be found in its material composition while bitcoin is powered by money, supply and demand. Don't get me wrong, gold is volatile too, its price moves up and down but the rate is not as the bitcoin has.

If you are considering on buying an of these, try to have a weigh in of which is which that suits your personality. Coz me? I'm a risk taker and will go for bitcoin.

[bayu7adi]

In fact, if you understand an asset that is truly real, proven, real and whatever is included in the nature of gold, then you will believe more. Gold is the highest caste that can be used as a measure of one's wealth in real terms.

If you compare gold with FIAT money, the difference is how to make it. Gold is obtained very hard and is a limited resource on this earth, even gold cannot be made by the money maker. Then, FIAT money, which is currently circulating in your wallet, is an object made by humans using paper media and the amount is unlimited. The more money is printed, the more devastated the price will be.

If you are aware, that it is not the price of gold that has gone up, but the price of USD has gone down. It can be confirmed that it is the result of the large amount of money printed today.

In Saudi Arabia, in ancient times, the price of a goat was 1 Dinar. And 1 Dinar money is made of 22 carat gold weighing 4.25 grams. And if you know, that in Saudi Arabia today the price of a goat is still 1 Dinar.

The dinar is made of gold, and gold is real currency. The quantity is limited, the ingredients are very difficult to find, the intrinsic value is clear.

Bitcoin can be a modern currency under the Dinar and it is very reliable if all BTC in the wallet which is said to belong to Satoshi Nakamoto is burned. The cause of bitcoin is not stable is a lack of trust. The total supply is already limited, but there are still giant wallets that control most of the circulating BTC.

[Kez1817]

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 was already known and used ever since. Gold is a treasure from the nature, a real asset that you can touch and hold with a great value because of limited supply of it. You can't find it easily nor produce using your fiat money because is a natural resources. If we compare to bitcoin,they are both valuable and limited in supply but they are different in creation because bitcoin was created as a digital currency with a volatile elements in terms of it's value that's why it was not stable unlike Gold. But this volatility give us more profit through investing and trading much higher profit than owning one gram of gold. But always be careful because volatility can't only give you profit but also loses.

[ShowOff]

-snip-

Although gold is a limited natural resource, but gold will continue to be produced every day, week, month and year which will make it continue to grow. Whereas bitcoin only has a total supply of 21 million which makes it rare. If limited natural resources such as gold are no longer produced through mining around the world, I believe the volatility will be much higher than it is now.

[kryptqnick]

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?

People who invested in gold in 1900 would be surely dead by now, so not a great investment if is pays off after you die. Moreover, people who invested in Bitcoin 10 years ago would have significantly better returns by now that those who invested in gold and waited for more than a hundred years. So the way I see it, gold is good for keeping a fortune, not making it. You can lose a bit, you can win a bit (if we're talking about reasonable time periods like a few years), so it's a safe bet (if you don't literally keep gold at home and get robbed, of course). With Bitcoin, you can lose a fortune, make a fortune, or end up with more or less what you've initially invested. So it's more risky, but also more rewarding.