Volatility and its effect

[LittleBitFunny]

Almost the majority of the community here in the bitcoin space knows that it is volatile, in short most are aware of it. So it's not new. The level of aggressiveness of volatility only varies depending on the movement of demand supply and news in the bitcoin industry.

But the volatility that Bitcoin has is a good feature of Bitcoin for any traders to make money, depending on the understanding of each individual who will carry out the trading activity. And it is also possible to lose or lose the capital investment natib if we are careless.

The volatility of Bitcoin is like a double edge sword and can move in both directions. Its volatility that took BTC price from 26k to around 28k yesterday and anyone who has bought Bitcoin on 26k or below has already good adequate benefit. To me price volatility has done more harm to Bitcoin then good, its good for day traders but to achieve BTC mainstream adoption we need to have stable BTC.

Bitcoin is becoming known and attracting people's attention because of its volatility, they can make profits from it. If bitcoin becomes stable and ceases to be profitable, will it still be as attractive as it is today? I also know that in addition to profit, bitcoin has many other useful uses such as being able to become our own bank, transferring money across borders without spending too much time or incurring other costs...But obviously, we are focusing on its profitability more than any other feature. So if it stabilizes, I'm afraid it will lose its appeal.

[gunhell16]

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

[Minor Miner]

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

[beerlover]

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

I think investing is not something that requires volatility, trading is. When you are investing that means you are going to hold for a while and it can grow slowly and you would still make a profit and you would be happy about it and that's fine however when we are talking about trading that's going to be different and you may want to see some volatility so you could make a profit.

In order to make a profit from trading, you need to end up with a up and down constantly to make that profit, otherwise you are not going to make that profit easily. I get that it is not that simple, but it should not be, that's not the point and you should be making some profit that would make more sense on the long run whenever you can.

[Unbunplease]

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

Agreed. Volatility is what attracts traders. But the main question is why volatility occurs. If the trading volume is low, even a small buy or sell can lead to major price changes, i.e. volatility is there, but you can't capitalize on it. Therefore, you need to have a good understanding of the nature of volatility

[posi]

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

I think investing is not something that requires volatility, trading is. When you are investing that means you are going to hold for a while and it can grow slowly and you would still make a profit and you would be happy about it and that's fine however when we are talking about trading that's going to be different and you may want to see some volatility so you could make a profit.

In order to make a profit from trading, you need to end up with a up and down constantly to make that profit, otherwise you are not going to make that profit easily. I get that it is not that simple, but it should not be, that's not the point and you should be making some profit that would make more sense on the long run whenever you can.

What you're talking about is short-term volatility, but volatility also has long-term effects. As you know during the off season bitcoin is dumped very severely but during the bull season it also increases in price wildly and that can also be called extreme volatility. You won't see that volatility with gold or real estate, so when it comes to bitcoin volatility it can be used either long term or short term. Don't think that bitcoin's volatility will only happen in the short term.

[Republikcoin.com]

What you're talking about is short-term volatility, but volatility also has long-term effects. As you know during the off season bitcoin is dumped very severely but during the bull season it also increases in price wildly and that can also be called extreme volatility. You won't see that volatility with gold or real estate, so when it comes to bitcoin volatility it can be used either long term or short term. Don't think that bitcoin's volatility will only happen in the short term.

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

[Texac]

It can be said that volatility is essential when it comes to investing because it is through it that we can make a profit. But whether we can make a profit or whether it will be harmful to us depends on our own abilities. Like @Watche said, volatility is like a double-edged sword, if someone knows how to use it, it will have very good effects, but if someone doesn't know how to use it, it will harm them.

Cryptocurrency is famous for its volatility, I know many gold and stock investors turn to bitcoin because they like its high volatility. The more volatile the market, the higher your chances of making money.

Agreed. Volatility is what attracts traders. But the main question is why volatility occurs. If the trading volume is low, even a small buy or sell can lead to major price changes, i.e. volatility is there, but you can't capitalize on it. Therefore, you need to have a good understanding of the nature of volatility

I believe that market volatility is intentionally created by someone, not volatility according to market demand.  in addition to macro news that affects market sentiment, sometimes we can also see fluctuations that occur unexpectedly and there is no explanation for it.  market makers know we like volatility, and perhaps that's their way of making us care more about the markets.  every time the market fluctuates, people are very eager to long/short and the result is known to everyone, many long/short orders are liquidated afterward.

[MFahad]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

[fzkto]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Crypto has a much higher volatility than the stock market. In rare cases, the price of stocks or gold can rise or fall as much as in crypto. If the price changes by more than 10%, trading on the stock market stops. And in crypto, this is a common thing. That's why people are more worried about crypto than gold.

[Mate2237]

What is happening to bitcoin volatility is not a new thing in the field of economy, even the the fiat currency is also unstable level and that caused the inflation in some countries in the world. In most of the countries in the world, dollar control the price of goods and services. So the fluctuation of dollar also determine the price of things in my country. And the fluctuation of bitcoin price is depending on the market inflow of the whales, that is, the number of whales buy and sell in the market cause the volatility of bitcoin.

If bitcoin users use p2p transaction system then the government regulations would not affect it but whereby users of of bitcoin make their transactions through exchange then the regulation from the government policies would affect the asset.

[milewilda]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Crypto has a much higher volatility than the stock market. In rare cases, the price of stocks or gold can rise or fall as much as in crypto. If the price changes by more than 10%, trading on the stock market stops. And in crypto, this is a common thing. That's why people are more worried about crypto than gold.

And that what makes it interesting for most traders is that when it comes to volatility then crypto does have that very huge movement on which you could really be able to play with those movements at your advantage to make profits in a short time as possible which this is something that you cant really be able to get or see on traditional markets like forex and stocks which it would really be just that normal on having that kind of reaction
on which you would really be looking for this market to be really that interesting just because you've seen about those probabilities on making profits in shortest time as possible but of course you shouldnt really neglect
nor really that ignore the probabilities about getting losses as the risks is really that much higher on which it is really that understandable on this way. The hardest part on dealing within this market is that it is really
that too hard on predicting on where prices could go on which it do sometimes getting that significant movement came from technicals but sometimes in getting in line with fundamentals too.

[Odohu]

I believe that market volatility is intentionally created by someone, not volatility according to market demand.  in addition to macro news that affects market sentiment, sometimes we can also see fluctuations that occur unexpectedly and there is no explanation for it.  market makers know we like volatility, and perhaps that's their way of making us care more about the markets.  every time the market fluctuates, people are very eager to long/short and the result is known to everyone, many long/short orders are liquidated afterward.

While there is sense in what you are saying, there is something I want to draw your attention to. First thing you need to understand is that volatility is like a response of the market to speculations, news, human emotions, panics and other factors. If you have ever traded the currency market, you will notice  that there is always high volatility during periods of high impact news such as NFP or FOMC. I like the fact that you acknowledged the market makers as key players in controlling price movement... they indeed create these false narratives that lead people to panic and shocks and this is what reflect on the market as volatility.

[Aanuoluwatofunmi]

The volatility in the market can bring opportunity for other investors in this field of Bitcoin or crypto. And for others, it can cause them bad things if they don't have a deep understanding of this industry. But do you know that volatility also teaches us to balance the assets we have here and decide if we should buy or sell? Because this is the beauty of volatility, actually.

That's why others say that this is an opportunity because it gives us a signal to have income, or else we will be even more prudent in what we do here as investors or holders.

The earlier the better for us as many as possible to understand the needs for volatility, why there must be volatile bitcoin market always and the price cannot be stable, we need a proper understanding that bitcoin is so designed such a way that this volatility is what create an entry and exit point for bitcoin investors, either they are on a long or short time investment plan, because of this same volatility, some have the reason to make profits from their investment from this same view.

[_BlackStar]

-snip-

The earlier the better for us as many as possible to understand the needs for volatility, why there must be volatile bitcoin market always and the price cannot be stable, we need a proper understanding that bitcoin is so designed such a way that this volatility is what create an entry and exit point for bitcoin investors, either they are on a long or short time investment plan, because of this same volatility, some have the reason to make profits from their investment from this same view.

Without price volatility – what's the point of putting money on the market then?
Money means absolutely nothing when you get nothing out of it in the market - meaning the volatility of crypto prices is to be expected for the money used in the market to be useful.

Exchange developers, traders, investors and the government expect volatility. The higher the price volatility, the more transactions take place - meaning exchanges can accumulate profits from trading fees, traders and investors profit and governments also benefit from taxes.

[posi]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.

[Hamphser]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.

You cant really compare a digital currency or something that in build with codes into a natural resource or mineral that could be seen physically and its true that it is been known for thousand of years and it does have that supply which could really be dig and extract out on this world compared to something which it is that built by a human. We can compare out numbers but it would really be just that good on that way and i dont know on why they are really that a fan off on trying out to compare both things knowing that they are really that totally different to each other. Bitcoin as digital gold? I dont think so but if they do have that kind of impression then so be it but comparing about their value then its obvious on whose volatile and who do have that potential on rising up even more in the future.

Market volatility is always been that present or something in default. If this market turns out to be stagnant then there would be no investors that would really be loving on hanging out
on this place but rather finding out some place on which they could really be able to make money.

[pawel7777]

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Profit from investing in gold (or any other commodity) is not anymore physical than profit from investing in bitcoin. But if you meant that gold is physical, while Bitcoin only exists online - that's true, but the majority of those invested in gold would not hold physical gold anyway (but rather be invested online, i.e. via ETFs), as it's very inconvenient to store, so the difference is just theoretical.

[posi]

Volatility in Bitcoin is indeed unique and different from the volatility that exists in other assets. Because volatility in Bitcoin can indeed be seen in every term, be it short term or long term because it is always affected by sharper and bigger levels of price changes. Meanwhile, in gold or real estate assets, this kind of thing is very rarely seen and almost non-existent because the increase in prices for gold or real estate itself is also very slow even though the level of price durability itself can be very good.

volatility is present in every assets but people get worried with Bitcoin's volatility I don't know what the reason but whenever the becomes dip in gold price then people says that it will recover back soon but in most of the cases people are in fear when they see volatility in crypto.

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

If judged fairly, bitcoin cannot be compared to gold or other tangible assets in terms of safety. An asset that is not yet widely accepted and is only 15 years old, while gold is over a thousand years old and recognized worldwide. Obviously bitcoin is less secure than gold, we need to accept that and that's why people trust gold more than bitcoin. But the opportunity is always covered by the risk, so those who are willing to take the risk will have a higher chance of getting the reward.

You cant really compare a digital currency or something that in build with codes into a natural resource or mineral that could be seen physically and its true that it is been known for thousand of years and it does have that supply which could really be dig and extract out on this world compared to something which it is that built by a human. We can compare out numbers but it would really be just that good on that way and i dont know on why they are really that a fan off on trying out to compare both things knowing that they are really that totally different to each other. Bitcoin as digital gold? I dont think so but if they do have that kind of impression then so be it but comparing about their value then its obvious on whose volatile and who do have that potential on rising up even more in the future.

Market volatility is always been that present or something in default. If this market turns out to be stagnant then there would be no investors that would really be loving on hanging out
on this place but rather finding out some place on which they could really be able to make money.

Because gold is one of the most valuable assets we have and people think that just by comparing bitcoin with what is considered the most valuable, bitcoin will become more valuable than anything else. Those who are comparing gold to bitcoin just want to say one thing, bitcoin is the best and nothing can compare.

I have also said that before, we only care about bitcoin's volatility, I believe that if it becomes as stable as gold, people will no longer care about bitcoin. It can be said that volatility is what makes people more interested in bitcoin than any other investment.

[Juse14]

I think bitcoins profit is online whereas that of gold and other asset are physical so may be people feels its risky as they have no access towards it. There is achievement in every assets but one should be familiar with the advantageous time and strategies to get the prize in the form of enhanced price.

Profit from investing in gold (or any other commodity) is not anymore physical than profit from investing in bitcoin. But if you meant that gold is physical, while Bitcoin only exists online - that's true, but the majority of those invested in gold would not hold physical gold anyway (but rather be invested online, i.e. via ETFs), as it's very inconvenient to store, so the difference is just theoretical.

Yes, most commodity investments today use ETFs or sheets of paper which are also done online, while people who buy gold directly might be a different story, but that's rarely encountered.

Returning to the topic of the impact of volatility because of some of the influences that the OP mentioned, it is scary because volatility is very high, and because of that bitcoin is also very difficult to use as a standard of value, because it is too volatile and moves based on sentiment.
If bitcoin's price had a stable movement, I think there would be many people who would use it as a currency, but bitcoin would not be a place to invest if it moved as a stable value standard.