Why is bitcoin so unstable?

[Rafiqul]

Gold has been used as a store and luxury item since ancient times. Yet most countries in the world keep gold as a backup of their reserves which minimizes its volatility. Gold prices are regulated in the international and domestic markets. As a result, the gold market is less likely to be volatile.

Bitcoin, on the other hand, is a digital currency with limited supply and no regulator. Its price fluctuates on the market demand. Bitcoin as a digital currency can be traded in the fastest time at low cost, so its use increases a lot. There are also whales with bitcoin who live in large quantities and manipulate the market which reflects high volatility.

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[dansus021]

There's lot of factor i think

one of it
I think the bitcoin price is unstable because everyone can mine it
when everyone can mine the coin, one person or corporate can dumped it at any time  that my thought

[Assface16678]

Bitcoin is one of the very first coins which is conquering the whole market price of the cryptocurrency we all know that only a few people support this coin but by the time goes by they see the potential of this coin to make a good market profit and some of the people encourage to support this coin.


Why is the market price of the bitcoin is unstable the reason is many people make an investment with this coin and some of then are making trades,  how about the large movement is the coin? It's because of the whales all known as one of the biggest investors sometimes they are the manipulators, even this is a decentralized coin if you are one of the biggest investments you can really manipulate the market price of the coin.

[hulla]

Gold is being used as a reserve of the countries, the potential of it increasing is so high. Bitcoin is decentralized, and that is the reason why it is volatile. We investors and users are the ones that control the movement of the price of bitcoin, without anyone controlling it, our every move in the market ripples making an effect to the price.

The decentralized in nature of Bitcoin was not the reason why its price is unstable and what I understand is that everything items that its price was determined by the demand and supply stance in the market will be unstable in price. Meanwhile, Gold was also unstable in price despite that it was used as a federal reserve but it not volatile in nature as bitcoin.

There are many reasons why bitcoin has become unstable, one of which is because Bitcoin is a new technology that is still unknown to ordinary people. The new technology will go through a hype cycle which at first was only known and used by a handful of people, then slowly the new technology is used by the general public and suddenly there will be some opinions that appear or with exaggerated statements about the new technology.

This is what makes bitcoin price very volatile, investing in Bitcoin will also affect emotions. A lot of good and bad news will be scattered around trying to influence the price of bitcoin.

There are many reason why Bitcoin is unstable but it not because it seems to be a new technology or unknown by most people and everything that is assest, commodity or currency is expected to be unstable in price. Understand, that gold have been around for decades and it price is also unstable. 

[kevinzxz]

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 every big profit has a big risk too, so if you look at the price movement of bitcoin then you will see that the price of Bitcoin is increasing faster than Gold, so that the profit you get will be faster if you invest in Bitcoin rather than Gold, but it makes the risk of investing in Bitcoin higher than you are investing in Gold, because the price of Bitcoin can fall very quickly than the price of Gold.

[Yamifoud]

Don't get bothered that mate, the volatility feature that Bitcoin has makes a lot of things different from how it looks and how it is getting far from the rest of cryptocurrencies and the gold as well. If we are asking when it become stable? You'll probably aren't be getting the answer coz it is actually what Bitcoins since before and we can never change that looks.

And besides, people love it not because of its price but because of its being more volatile than you've compared to gold. Accepted to have a high risk in Bitcoin investment but this is also a way it makes people become profitable than investing (less volatile) gold

[Eugenar]

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?

Both Bitcoin and Gold are not stable. It is just that Gold has a less volatile market value compared to Bitcoin and other cryptocurrencies. The reason why a market value of someything moves up and down is because of the demand-supply relation.

This is just subjective a subjective opinion. But if we would compare Bitcoin and Gold, Gold existed for decades already while bitcoin is in 20's if I'm not mistaken this may also be a factor since it took years before its market price to be less volatile. Another thing is that Gold is being used before as a store of value, daily purposes such as making merchants and the likes, and also for trading goods across countries before and up to this point. Given that Bitcoin is not being used to most of the countries as of now as a medium for services and other daily use, except for being an investment or store of value. That I think is also playing a role why the market price of Bitcoin is too volatile. But this is just a guess.

[FlightyPouch]

Gold is being used as a reserve of the countries, the potential of it increasing is so high. Bitcoin is decentralized, and that is the reason why it is volatile. We investors and users are the ones that control the movement of the price of bitcoin, without anyone controlling it, our every move in the market ripples making an effect to the price.

The decentralized in nature of Bitcoin was not the reason why its price is unstable and what I understand is that everything items that its price was determined by the demand and supply stance in the market will be unstable in price. Meanwhile, Gold was also unstable in price despite that it was used as a federal reserve but it not volatile in nature as bitcoin.

It is, you said that it was determined by the demand and supply stance in the market that is why I said that we users and investors are the one controlling it since every movement of bitcoin in the market can affect the price. I can say that decentralization is the root of it since without a body actually controlling the price, it is affected by those who holds the most, sometimes huge hacks and scams.

Also, I didn't say that gold is not unstable. I just said that the potential of it increasing in terms of price are high. It is also volatile but as you've said it, it is not as volatile as bitcoin.

[Twentyonepaylots]

There's lot of factor i think

one of it
I think the bitcoin price is unstable because everyone can mine it
when everyone can mine the coin, one person or corporate can dumped it at any time  that my thought

So basically what you are trying to say is that because of the decentralization bitcoin so unstable and it is simply works. There are available bitcoins always and any one can move freely in and out the market making the instability of bitcoin at its finest. It starts of with mining, they can just sell it out once they mined it but I doubt they are really doing that during these days coz bitcoin can potentially reach its ATH this year.
And yes, gold, uhmm we can assume that it won't lose its value even if the world economy is disastrously bad.

[CryptopreneurBrainboss]

For an asset/commodity/currency or whatever you choose to call it, with very high speculation ongoing in its market backed by lots of developing yet been this stable (especially) in the past couple of months irrespective of it trading between a certain amount is unfair to compare it with an asset that have been around for centuries. Gold has has been around since BC if I still remember my Bible stories correctly.

It's just a matter of time before bitcoin gets the that level of stability but until then we just have to enjoy the ride. Bitcoin is unstable because it has real value, and low supply coupled with very high demand so you don't expect a new hot asset ti he boring. Gold is just boring if you have tested what bitcoin can offer.

[femi-yoghurt]

If we were to put gold and btc to be created ar the same time
I can be so sure that bitcoin would beat gold in terms of value
Bitcoin was created 2008 and see how far it reached unlike gold which was created tens of years ago

If I was to choose between gold and bitcoin
I would pick bitcoin

[#dhabitamartha]

Bitcoin is an object that is invisible and cannot be held but has a nominal value that can be exchanged for tangible goods or money, unlike gold that can be used daily in the form of jewelry but bitcoin also easily jumps high and falls drastically because bitcoin is like world stocks which is not statistical but cumulative, it is the advantages and disadvantages of bitcoin that make many people curious every day

[Agios]

Gold has been used by people as a safe heaven, while bitcoin is not currently used as a store of value but as an investment (make profit). Bitcoin is also very easily influenced by news, and the state of the global economy.

[molsewid]

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?

If you compare the price movement of Bitcoin in gold you can see why you can't lose 500$ within one night. Bitcoin's price is affected by news and can pump or dump easily because of that. While gold can go up and down but can't dump too much. Bitcoin is a high risk investment compare in Gold, and Gold is a long term investment to earn that much not compare to bitcoin that you can lose or win easily.

[AakZaki]

Basically, there is a lot of speculation with Bitcoin. Everyone can be considered a speculator. It would just depend on what approach the person would do. Examples are

• Trader - Speculating always depending on the market trend
• HODLer - speculating that the price would go up
• Bounty Hunter - speculative approach to different projects
• Watcher - just spreading the news on what goes by with the crypto world, helping the hype

Depending on who you are would contribute the smallest amount on the market, but most of the movement comes from whales and trading bots for sure.

Observers will give hype which is very influential on the price of bitcoin. a lot of good and bad news spread. Of course, these are several reasons why bitcoin is unstable. FUD is scattered everywhere, Good News always comes and makes prices go up.

Whales take advantage of all opportunities to have an immediate effect on the bitcoin market. whales control everything.

[coinfinger]

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?

You are talking about those who invested in Gold at the rate of $20 in 1900, and you forgot that the Bitcoin you’re seeing today that is worth well over $11,000 was once sold for even less than a dollar, so those that invested in Bitcoin then were not lucky?

I know that if you were among those you would not say that Bitcoin is not good, because you will have a thousand profit.

Another thing you have to remember is that gold has been since whatever time it came to be, which we can’t really, but we all know that bitcoin was created in 2009 by some mysterious guy, so chill man. Bitcoin is volatile and it goes down at any time, but there are also times it goes up.

[kawetsriyanto]

Bitcoin isn't Gold, mate. Why do you compare Bitcoin price with Gold value? Anyway, as an investor, I prefer to buy a coin with high volatility than buy a coin that has a stable price. The stability in price means a small chance to get a bigger profit. I think instability in Bitcoin's price isn't something bad at all. Not only about the decrease, but the price also can increase significantly only in a short time. So, you actually can take advantage of the instability in Bitcoin price to a high profit, not only a risk.

[GeorgeJohn]

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

I taught bitcoin was established in 2009 instead of 2008, although gold has been into existence before creation or discovery of bitcoin, and them gold has more values.

[FlightyPouch]

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

...although gold has been into existence before creation or discovery of bitcoin, and them gold has more values.

And that length of time that gold existed can also prove how it is also unstable. Bitcoin is still a newborn comparing to the years gold is used but even though with its instability, in the long run, it is also giving stable profits to people that is why more and more people are drawn to it. Gold may be stable in the long run too but bitcoin can give more profit from it but with a higher risk.

[Alert31]

Why bitcoin is unstable? It's because it was created with that feature or characteristic. And everyone earn profit because of that. We can't compare bitcoin in Gold because they are far different. Gold is from the nature and it is already exist from the beginning while bitcoin was just created by a person last 2009. They have both limited supply but still they are different.