Why is bitcoin so unstable?

[Shimmiry]

Bitcoin is different from gold, it is a digital currency while the other one is a precious physical object though some called bitcoin as "digital gold". Gold is known for centuries or more already while bitcoin is still growing and making its own name be known to everyone. Still, we are in the pace that slowly embracing the works of technology so bitcoin value may depend with future value of different online transactions.

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[verita1]

I think that the volatility of Bitcoin is due to the fact that large investors are not interested in the potential that Bitcoin has but they use it at their convenience and they get richer and richer by manipulating the price. Maybe this is a mistake. Another point such as a technology that allows you to make fast transactions and the cryptocurrency market is growing exponentially, the funds that were initially from Bitcoin have been transferred to other cryptos.

[Renampun]

how can you compare the change in the price of Gold with Bitcoin...
gold is a symbol of wealth not only for the person but also for the state, gold has a tangible form & centralized. indirectly that regulates the price of gold is the world's powerful countries like the US. whereas Bitcoin is a decentralized asset that has no form where what makes the price change is the whale & demand that occurs in the market.

[Amel]

Has the introduction of bitcoin ever been equal to the introduction of gold ? If you do a little research you will find that many people have not heard of Bitcoin yet. If you talk about gold all around, it has been around for thousands of years, gaining people's trust and people consider it an asset. Where Bitcoin's journey began barely in 2008. Give a little time and you will see that bitcoin has become a stable coin all over the world.

[Ayiranorea]

how can you compare the change in the price of Gold with Bitcoin...
gold is a symbol of wealth not only for the person but also for the state, gold has a tangible form & centralized. indirectly that regulates the price of gold is the world's powerful countries like the US. whereas Bitcoin is a decentralized asset that has no form where what makes the price change is the whale & demand that occurs in the market.

Yes, the demand makes bitcoin more and more valuable. In recent years bitcoin is gaining more and more stability making its value growth get compared with that of gold. As of now countries haven't started to have bitcoin as reserve to back the economy. There are few exceptions like Bulgaria holding bitcoin in large volume than gold to back its economy.

[marlo1001]

Actually, there are not so much traders in the industry. Every big trader could affect the price

[BuNga_cute]

I don't agree if Gold is said to have a stable price, because Gold is also volatile like Bitcoin. But Gold is less volatile, while Bitcoin is
high volatile. As an example based on the data I got from google, Gold price for October 1, $ 1905 and October 2, the price has
decreased to $ 1899. From here we can see the Gold price also continues to move in price, now back to the question why Bitcoin is
high volatile. There are several possibilities in my opinion, including whales manipulation, not yet legalized in many countries,
Bitcoin is young, and supply is limited. Those are some of the reasons that make the price of Bitcoin high volatile, I believe that in
the future Bitcoin will be less volatile like Gold.

[MShow]

I don't agree if Gold is said to have a stable price, because Gold is also volatile like Bitcoin. But Gold is less volatile, while Bitcoin is
high volatile. As an example based on the data I got from google, Gold price for October 1, $ 1905 and October 2, the price has
decreased to $ 1899. From here we can see the Gold price also continues to move in price, now back to the question why Bitcoin is
high volatile. There are several possibilities in my opinion, including whales manipulation, not yet legalized in many countries,
Bitcoin is young, and supply is limited. Those are some of the reasons that make the price of Bitcoin high volatile, I believe that in
the future Bitcoin will be less volatile like Gold.

If gold is less volatile, doesn't that mean it is less stable? Yes, bitcoin is very young unlike gold and this is the reason why people still don't trust it. But how can they change their attitude to this?

[coolbaughandrew]

Don't compare Bitcoin to gold. They have completely different natures. Bitcoin is too young to be so stable.

[Peanutswar]

The bitcoin is more active and unstable because there are a lot of users, member, investors, and business are using the bitcoin for their transaction. Also because of the demand. The same with the gold why it becomes expensive. The gold is commonly used for the transactions before, and because of the demand, it increases rapidly and uses for trading or payment. Next is the bitcoin because of the demand. We have a different sets of examples.

Bitcoin use for gambling
Bitcoin for investment
Bitcoin for payment
Bitcoin for trading

These are the common things we usually use with the bitcoin and it becomes volatile. Buy and sell.

[kotajikikox]

Simple answer?because this is volatile currency and at any chance it will go up or down depend on the demand from the people
 who uses this.

Like other currencies(fiat Specifically) this can be use in everything like what fiat is,though in limited country only because
adoption is still at waiting.


And you must love the idea of this not being stable because in same manner why people here are investing for a chance of gaining more than what
 normal trading platform can offer.

[jamesde]

Bitcoins is unstable since bitcoins does not have any physical value.
The US government  is standing behind the US currency, and there's no government standing behind bitcoins. Despite what some bitcoin supporters say, having governments standing behind a currency makes it more stable than having no governments behind it.

[witcher_sense]

The bitcoin is more active and unstable because there are a lot of users, member, investors, and business are using the bitcoin for their transaction. Also because of the demand. The same with the gold why it becomes expensive.

It is true that higher demand will cause an increase of the price of both bitcoin and gold, but their prices will fluctuate differently. Given that gold is relatively scarce asset, if demand for it increases, its price also increases correspondingly. Gold miners are incentivized to extract more gold because of increased demand and price. They want their business profitable, after all. What it means is they increase supply in response of increased demand, they satisfy that demand and make gold price stable again. Equilibrium is found relatively quickly. However, it doesn't work with bitcoin, because miners simply can't produce more bitcoins in response of demand. In this case, it is harder to find equilibrium because demand is changing fast, but it doesn't affect supply in any way.

[Altryist]

The bitcoin is more active and unstable because there are a lot of users, member, investors, and business are using the bitcoin for their transaction. Also because of the demand. The same with the gold why it becomes expensive.

It is true that higher demand will cause an increase of the price of both bitcoin and gold, but their prices will fluctuate differently. Given that gold is relatively scarce asset, if demand for it increases, its price also increases correspondingly. Gold miners are incentivized to extract more gold because of increased demand and price. They want their business profitable, after all. What it means is they increase supply in response of increased demand, they satisfy that demand and make gold price stable again. Equilibrium is found relatively quickly. However, it doesn't work with bitcoin, because miners simply can't produce more bitcoins in response of demand. In this case, it is harder to find equilibrium because demand is changing fast, but it doesn't affect supply in any way.

At the same time, the price of gold is more stable. In March, due to the pandemic, the price of bitcoin fell by almost half, which we did not see in the price of gold. And gold reserves are larger than a stable amount of bitcoin. Based on this, we can assume that the price of bitcoin in the future will grow faster than the price of gold, but the price of bitcoin will probably remain unstable due to large speculations.

[ReiMomo]

Simple answer?because this is volatile currency and at any chance it will go up or down depend on the demand from the people
 who uses this.

Exactly, because we in a bitcoin community who had bitcoin will make bitcoin becomes fluctuate the price because of the demand and supply circulating on the community who holds bitcoin. Just because of the fixed amount of bitcoin, it becomes high volatile price in the market and it is impossible to have stable price. I guess it's already answered of what the reason bitcoin fluctuate against fiat currencies.

It's a store of value assets just like gold or even investment in stock market.

[claire_lovely]

Actually I think that Bitcoin and larger cryptocurrencies to most degree are pretty stable. What you have to remember is that when using fiat as a base to compare to, there will be fluctuation, but that fiat is also fluctuating against other goods. As usage goes up and BTC is constantly traded, than stability will increase, but currencies are constantly in change. Forex trading is based on this idea and is very popular with daily volume of 5 trillion.

[Blackrain13]

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?

Volatility of bitcoin is the best feature of it. That's why many people want to invest in bitcoin to earn much bigger than a gold in just one night if they are lucky. But Gold is a safe investment compared to bitcoin that you can earn big but if you don't have knowledge about it you will also loss big.

[blckhawk]

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.

I agreed that Bitcoin and all of the other crypto were volatile but I think gold as well. However, unlike Crypto, gold is less volatile. What makes Bitcoin volatile is that because it is decentralized meaning no individual or company can totally manipulate the market besides supply and demand.

[Tamim121]

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?

Bitcoin is a volatile coin. But potential coin. If anyone want to make money by investing on Bitcoin then you need to hold for a long time. You need to wait for price rising.

[matchi2011]

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.

I agreed that Bitcoin and all of the other crypto were volatile but I think gold as well. However, unlike Crypto, gold is less volatile. What makes Bitcoin volatile is that because it is decentralized meaning no individual or company can totally manipulate the market besides supply and demand.

Is that the opposite? volatility of bitcoin is due to early holders who have the chance to have more bitcoin inside their wallets. They are capable to influenced the market.
That so called whales are more dominant as they really have a good control over the directions of the possible trends. unlike gold where there are many holders that makes it less vulnerable to manipulation.