Why is bitcoin so unstable?

[UserU]

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.

It was invented in 2008 but started to circulate in 2009.

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[bandungan]

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.

for some people compare bitcoin with gold because they are the same for investment. but the difference is stable investment gold and unstable bitcoin. yes as you said if we choose stable coins our profit is small but low risk. However, if you choose a coin with high volatility you will get a big profit but a high risk. and gold is at low risk, while bitcoin is at high risk

[mksundip]

The increase in gold is very long and even though gold has increased, you cannot directly pump it to a price above 10%, only a few percent. and most people prefer gold for long term investment not for trading, so I think gold is different from bitcoin. because bitcoin is basic for short-term trading and the price is fast changing

[Velkro]

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

Bigger market capitalization in short and goverments store their value in gold currently.
This is simple answer, in reality Bitcoin is not as violatile as people see watching price graph 30 times daily.
If you would check price of gold in similiar way of bitcoin it would turn out very closer as you would think.

[Lizzie_Girl]

Why do you ask such dumb assey questions? >.< Do you really need to know this or are you just doing it for the sake of making a post?

Crypto is new. (only 10 years old) gold is ancient. This is enough in itself to answer you.

There simply are not enough people using crypto like there are fiat that is why it price rocks like that. TO change the price of fiat you will have to make a massive amount of money that can offset an entire worlds trading currencies. TO make the dollar go up or down you will effect every other currency too and that is a massive capital. Bitcoin has a much lower capital so a few whales can manipulate the price.

[DeadCoin]

Gold is much more ahead compared with Bitcoin and technically we couldn't be paired it because the distance between each value of resistance is not the same with a normal stage due to the interval. Instantly, the position of gold already has a synchronize motion as a physical source as well it also remains an unstable and limited collaboration. Normally, Bitcoin is unstable with the caused of volatility system, but financially it is ready to pair and working faster to each process which seems with the unlimited transaction even though it is totally young.

[Insanerman]

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)

Just also think those people who invested on bitcoin when it's value is below 70 dollars  and decided to hold it for a long term until it reached thousands of dollars in value.
How much do you think they profited? The Return Of Investment is so high if you will think of it. Gold's ROI is compared to the ROI of BTC.

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

It is because bitcoin is much much volatile than gold in fact it can also gain more than that or even lose more than that.

[ufaiz50]

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 based on supply and demand, this has become the market logic of how much demand but limited supply. Especially bitcoin is decentral where there is no special organization that has the power to make bitcoin stable. Gold has a government behind it because and the price is indirectly based on the economic conditions of the country.

[Bezobraznike]

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.

   Nonconformist you are right, there isn't a stable asset, every asset fluctuate according to supply and demand. Except the reasons
you mentioned there is one more thing, crypto-market is a free market! In free market you will have fluctuations, where anyone
will create buy and sell orders as they pleased.
   As long-term holder I am not obsessed with daily and weekly changes. Traders will speculate, holders will hold!

[Sadlife]

Gold is an established asset, many Institutional investors and Governments trust it given its been around for more than thousands of years.
While Bitcoin is a child asset and only been around for more than 20 years, surely with its new innovative technology and much harder concept to understand by the old business men, in their perspective its nothing but a bubble asset, that will pop anytime soon.

[Leviathan.007]

Because Bitcoin and crypto market both are still too young and the total marketcap is not high enough. That's why anyone with million dollars of money can easily dump or pump the price. Also, there are many whales controlling the bitcoin market with huge amount of bitcoins they got years ago with ten dollars or even less. By the way, in my own idea after a few years, maybe we will see bitcoin in more stable situation.

[witcher_sense]

Also, there are many whales controlling the bitcoin market with huge amount of bitcoins they got years ago with ten dollars or even less.

What made you think early adopters of bitcoin would be pumping and dumping the price of bitcoin? That fact that they bought bitcoin when it was cheap rather speaks for their foresight, they were believing bitcoin would succeed and they have been right so far. I doubt the goal was to speculate and manipulate the market when bitcoin is valuable enough. My guess is we have unstable market nowadays is mostly because very few people have the same confidence as early adopters had. They are still uncertain if bitcoin will be demanded in the future. Moreover, it may be the most people are wrong and the time for early adoption is not over yet. People still have plenty of time to buy cheap bitcoin and become early adopters in case it stays here for centuries.

[taufik0911]

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.

This is very interesting, I have previously expressed an opinion like this
but in my opinion the price of bitcoin will never remain stable like gold unless bitcoin is recognized by all countries in the world and can be used anywhere
There is also a possibility that bitcoin cannot be used as a daily transaction tool due to too expensive fees and slow transaction speeds

[goldade]

Bitcoin is still unstable unlike gold because of certain factors.
1. Gold has been here for thousands of years while bitcoin and crypt I currencies are relatively still very young.
2. Bitcoin cannot be as stable as gold because it has not been generally accepted. Until bitcoin is accepted by everyone can it be as stable as gold. Until then, we'd have to make do with the volatility of bitcoin.

[ArcheAdvertising]

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 have to take into account many factors, although bitcoin has a lot of similarity to gold.
1) Gold has been used for hundreds of years as a value asset, in recent years it has become a liability but its value is stable basically because its market is already mature.
2) Although bitcoin is perhaps at its highest peak since its creation, it has not yet diversified enough to be stable, for example if you look at more than 65% of circulating bitcoin are in the first 50 wallets. What does this mean? that large holders move the price to their advantage, so probably once you find a fair distribution the market will be "stable".

[kemoglo]

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?

It's too new, the more people adopt it the more stable it becomes. We're still in the early adopters stage

[tabas]

2. Bitcoin cannot be as stable as gold because it has not been generally accepted. Until bitcoin is accepted by everyone can it be as stable as gold. Until then, we'd have to make do with the volatility of bitcoin.

It is starting to be accepted by many people and the acceptance is the same as gold, being a store of value. Just like the early days of gold, being a means of transfer and payment but turned out into an asset and store of value. We are seeing the transition of bitcoin as the same as gold.
More of today, it is being considered as an investment and store of value than a payment although it's not ignored as a payment because we're still using it as it is.

[minersday]

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 should first understand that Gold is a mineral (natural resource) and Bitcoin is a digital entity based on a decentralized ecosystem where its market value is determined by the entire people on the platform or blockchain network. The unstable nature of Bitcoin is due to the fact that everybody in the bitcoin ecosystem can influence the market value so far as they have enough of Bitcoin. Decentralization of the Bitcoin ecosystem is the cause of the unstable nature of Bitcoin.

[Majharul Saiif]

Since the beginning of the world, gold has been very effective in usability, usefulness, and determination of money. Being a natural resource, people are not yet aware of its demand and supply. But there is no doubt that it is a valuable asset. Bitcoin - online-based money and it's management system are not well yet and its values are not risk-free. So it has not still become stable.

[Jatin thapar 01]

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.