Why is bitcoin so unstable?

[jerrison]

The business as relates to trading and gives bitcoin the so much acclamatized fame within the market sapce lies in the   instability of the financial value of bit. It enables bitcoin trading to be profitable and thereby creating an avenue for people to trade and make money and also encourage massive adoption. Just ensure to gather sufficient skill set adnuse the instability to your advantage.

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[RokokGudangGaram]

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.

Good point. You can always look at this on the negative or the brighter side. As stated by the many its volatility is a factor why many are engaging with it and with the right timing of making decision it becomes profitable.

[yazher]

The difference is only whales who holds a huge amount of BTC and gold are scattered to every country out there. doesn't really matter if one country sold all their golds to some other currencies the price will not budge like what we have seen on bitcoin. Bitcoin on the other hand has some disadvantages because when the whales decide to sell their BTC in one shot, you can see the red blood market at once. not only BTC but the other cryptocurrencies as well. The volatility in Bitcoin is more crucial than gold because only a few have owned it compared to gold. even my grandma has some gold you know 

[Wratheye]

What external factors affect Bitcoin for all other currencies?

[junnar1968]

One reason why bitcoin may fluctuate against fiat currencies is the perceived store of value versus the fiat currency. Bitcoin's price is so volatile because of speculation. While it's possible to buy physical goods with Bitcoin in some places, the large majority of Bitcoin transactions are still investment based. As such, people buy and sell Bitcoins like they would any other investment.

[john_nautica]

Actually other investments are also unstable, even fiat is unstable. But indeed Bitcoin price movements are more volatile,
so some people call it unstable. The reason is Bitcoin adoption is still low and there are still many countries that haven't
legalizing Bitcoin, making Bitcoin's future unclear, this makes Bitcoin price unstable.

Volatility is really the main reason why bitcoin and other cryptocurrencies are unstable and unpredictable, that is why it is hard to say when will the market will go up or down. But even we are in the middle of the pandemic, bitcoin have become stable in the $11,700 price that it doesn't go down below $11,000. It is also the reason why more people are buying and holding their bitcoins today.

Good point. You can always look at this on the negative or the brighter side. As stated by the many its volatility is a factor why many are engaging with it and with the right timing of making decision it becomes profitable.

Indeed, volatility is what makes Bitcoin attractive to other people, because of the possibility of gaining more than what you invested when its value increases. While Bitcoin has the potential of becoming really profitable, its value is dependent within the community it has right now. Any activity of this Bitcoin owners will affect the supply and demand so as the value.

[BITCOIN4X]

Indeed, volatility is what makes Bitcoin attractive to other people, because of the possibility of gaining more than what you invested when its value increases. While Bitcoin has the potential of becoming really profitable, its value is dependent within the community it has right now. Any activity of this Bitcoin owners will affect the supply and demand so as the value.

Right, volatility can cause losses for traders and investors as well as can provide profit. Bitcoin and other crypto asset have never been stable because thats how people trade them. Supply and demand continues to influence the price of this asset and whenever demand increases, the price continues to increase and vice versa.

Bitcoin price is very difficult to predict but every development always gets a positive response on the market. Bitcoin and altcoin trading should be done with caution as it is very risky. Every trader can only minimize risk but can never eliminate it. I thought you knew about this.

[cheezcarls]

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 me, it's because Bitcoin has a finite supply of just 21 million compare to our local currency that has unlimited supply. Plus, no central authority are taking control of this cryptocurrency because it is operating under a decentralized technology in the form of blockchain.

These are some of the factors regarding Bitcoin's unstable price. Anyone, even a kid, can own Bitcoin rather than the traditional stocks which are centralized and limits only to the accredited investors. As we fully control our own decisions, that's where volatility is high depend if it goes high or low.

[kerjakuat]

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 me, it's because Bitcoin has a finite supply of just 21 million compare to our local currency that has unlimited supply. Plus, no central authority are taking control of this cryptocurrency because it is operating under a decentralized technology in the form of blockchain.

These are some of the factors regarding Bitcoin's unstable price. Anyone, even a kid, can own Bitcoin rather than the traditional stocks which are centralized and limits only to the accredited investors. As we fully control our own decisions, that's where volatility is high depend if it goes high or low.

We all aware that bitcoin are completed controlled by our own decision and sometime we also can make a lot of mistake that might losing our own money because of a lot factor like getting scam or losing or private key. Its was a high risk rather then gold that has it own physical values and can be stored in the bank in case we want it to be saved and can be insurance if it get rob. 

[skarais]

We all aware that bitcoin are completed controlled by our own decision and sometime we also can make a lot of mistake that might losing our own money because of a lot factor like getting scam or losing or private key. Its was a high risk rather then gold that has it own physical values and can be stored in the bank in case we want it to be saved and can be insurance if it get rob. 

I think you've said the right thing that bitcoin carries a higher risk than gold. In some cases, gold may be superior but bitcoin is much better as an international payment system. These two asset have their advantages and disadvantages but it is not advisable for anyone to invest in bitcoin if they are not willing to take risks.

[Xembin]

Basically, there are some reasons bitcoin is unstable such are:
1) New: Bitcoin is not to popular like gold, gold has been existing and well  know in the world  stable in all transaction.
2) Population: Bitcoin is unstable because is not to popular compare to gold that many people have been using over many years for business and other things.
3) network: network is one of the reason bitcoin is unstable,bad network can make your Bitcoin unstable.

[HiringYou]

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

In my opinion the main reasons for the volatility of Bitcoin are -:

• It's decentralized nature.There is no single authority to regulate it so no one can decide a ceiling and floor for it's price.
• The second reason is the limited supply and the varying demand of Bitcoin.No matter how high the demand is, the supply will be the same which will automatically increase the price.
• The manipulations done by whales according to their convenience is one more reason for the fluctuations in the price.

On the other hand if we talk about Gold then it is a centralized asset ,less volatile, has a clear demand pattern and the supply is also not limited which makes it more stable.

[Cryptoreflector_666]

Basically, there are some reasons bitcoin is unstable such are:
1) New: Bitcoin is not to popular like gold, gold has been existing and well  know in the world  stable in all transaction.
2) Population: Bitcoin is unstable because is not to popular compare to gold that many people have been using over many years for business and other things.
3) network: network is one of the reason bitcoin is unstable,bad network can make your Bitcoin unstable.

I think you have 1 and 2 points are exactly the same in terms of meaning. However, there is some truth in them-bitcoin compared to gold as a Bush and a big tree. People have been using gold for thousands of years, and bitcoin is just a new fashion phenomenon. Most likely, the situation will change over time, as everything is being digitized.

[Anna138]

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?

There is no point in comparing gold and bitcoin - these are two completely different things. Gold is not even a currency - it is what the currency is backed by. Gold is what gives value for any currency, and accordingly for bitcoin as well. Why doesn't anyone talk about silver or platinum? There are metals much more valuable than gold

[hotwheels798]

Well actually some points are come.
bigwhales
bitcoin miners
Some signal provider channels
some influence youtubers
because of them the price of bitcoin fluctuat a lot. As we all know Big whales play their game by spreading some panic news . BITcoin miners wont get profit from mining, the generated profit only capable to recover the electric bills  so the usually usually trade in heavy amount. As we all know when the buyers wll come in huge number , the price will increasing. So some signal provider channels and some influence youtubers also do the job to get profit. Recenlty we can heard about how dogecoin price pumped because of one TikTok video. So these are some fact Bitcoin is so unstable.

[SomeJasonGuy]

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?

The mistake most people make is think that bitcoin is store of value already. The reality is that i aims to be a store of value something in the future and currently is more in the space of an asset. Gold has been a store of value for thousands of years while bitcoin, relative to it, is in its infancy.

[tabas]

The main reason Bitcoin is volatile is its risky nature. Besides, the coins are finite, while its market capitalization is only a small fraction of traditional asset classes.

I understand it by rephrasing your words. Bitcoin's volatility is part of its nature and that makes it riskier than any of ther traditional assets and investments.
But just like any other investment, the risk that bitcoin gives is better than those. We get a high-risk and high-reward investment through bitcoin. There might some who will understand it incorrectly being defined like that.

[DatKing]

The reason behind why Bitcoin is so unstable is simple and clear. Bitcoin and all of the other cryptocurrencies are volatile and gold is not. There will always be a possibility for a cryptocurrency to fall or rise sharply. This is the main feature of cryptos.

[royalfestus]

The other description for this instability is volatility. Gold is also volatile but it is minimal compare to bitcoin, Gold is also deregulated. Main factor for the volatility is the speculative market which is determined by the market demand and supply. It is a deregulated market that is manipulative, as a decentralized platform it gives chance to a lot of factors for manipulation. Some think the whales, exchanges , the cycle and tokenomics are responsible for the manipulation.

[Pegiz]

Gold is an asset that has existed for many hundreds of years + it has a physical form, but what is bitcoin? It is just a digital asset that depends on many factors influencing it from the outside world.