Why is bitcoin so unstable?

[Walterhank]

There are a lot of reasons why this is the case. Gold has been regarded as the best store of value for a long time and bitcoin was introduced not more than a decade ago. Gold is regarded as the stable source of income while bitcoin isn't, the market is also not properly regulated. The most important point according to me is that people still don't treat bitcoin as a currency but is being treated as a trading source and the profit is then converted back to fiat currency or other resources.

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[catur123]

If you ask why?
This affects several existing problems, for example gold has a physical form and bitcoin does not. And one more thing gold and bitcoin have different markets.

[talshachar]

bitcoin is unstable because it's a stock behavior and not a coin, it's not a currency like everyone thinks. It's just like any stock in the stock market, in bitcoin you invest in computer power, that is the energy of the bitcoin. This is why Bitcoin has the highest value of all cryptocurrencies, because computer processing power is what backing it up, that computer processing power is sold secretly to governmental agencies as a cloud super computer. 

[Banulit]

I think the main reason why bitcoin is so unstable not like gold is because of the market wherein it is being sold and traded. Crypto-market is very volatile that makes cryptos and most especially bitcoin to be more unstable not like gold. Also, bitcoin is an online asset and not tangible not like gold which makes potential investors to still have doubt and fear whether it is really worth to invest in bitcoin that also makes it stability so fluctuate unsteadily.

[cheezcarls]

It’s pretty simple. No one can control Bitcoin. Market is unpredictable and the volatility is very high. Unless if you want something stable, you can go with stablecoins that are backed by real assets such as gold, etc.

[FlightyPouch]

Bitcoin is still in its early stage which means there will be more volatility, but with time and wide adoption it will be come more stable.

I disagree. I think the wider the adoption is, the higher the volatility will become. We never know what will happen but I hope that the wide adoption that we are talking about is already starting with Paypal accepting bitcoin. With a lot of users and transactions happening in the future, the price could fluctuate more hence making it more volatile.

[Tingtong]

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 go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

[FlightyPouch]

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 go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

Gold is not as stable as you think. Gold is also volatile even in the past but the thing is that bitcoin is much more volatile than Gold. It will not always go up, it has its times when it is going down. It could also be affected by certain situations like what happened this year with the pandemic affecting millions and millions of people and businesses. You could lose some with Gold and you could also lose huge with bitcoin.

[sayaya17]

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

Because we use it as an investment asset of speculation, the increase in the price of Bitcoin is indeed remarkable, but when it declines, the fall is also very deep.
So daily fluctuations in hundreds of dollars are common in Bitcoin. In contrast to the price of Gold, the most severe daily fluctuations are only a few tens of dollars.
Demand for Gold from thousands of years ago until now is very much. Besides individuals, a lot of demand from the industrial sector as well.
While Bitcoin is still new, and so far they have only used it as a means of payment and investment assets of speculation. Then the selling action against bitcoin is very high. It’s only natural that the value becomes very volatile. Thus, gold price movements are more stable than Bitcoin.

[fauzan123]

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 go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

This instability is due to the amount of supply held by several large investors, so that the movement of bitcoin can rise very high and fall rapidly. Of course this is different from gold, where the value is taken from the price of mining oz, so that the movement is not too far away.

[fishbonez11]

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 go back 50 years gold price always stable. It price Don't changes huge. If you go back 5 years bitcoin price huge increase. Yes it price can be huge down but not it possible 500$ cause today world economy effected in bitcoin price. Today if you buy gold after years you get some profite but bitcoin can give you huge profits.

This instability is due to the amount of supply held by several large investors, so that the movement of bitcoin can rise very high and fall rapidly. Of course this is different from gold, where the value is taken from the price of mining oz, so that the movement is not too far away.

The price is all dependent to the supply and demand from the holders. There are also whales who can easily manipulate the price. Bitcoin also is still at its early stage to we can't expect a stable value. Bitcoin is volatile and thats how it works over the year. There are lot of available stable coins in the market if anyone need. Bitcoin's volatility is actually what other holders are taking advantage, they profit a lot from playing the price.

[Tingtong]

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 price can not huge Increase in a day but bitcoin price can be moon in a day. Bitcoin and gold currency is different. When you need gold you buying but a trader regularly trade pump or dump.