Quote from: shinchan123 on April 03, 2018, 06:37:56 AM

Quote from: biascoin on February 10, 2018, 04:38:53 PM

https://www.forbes.com/sites/jayadkisson/2018/02/09/why-bitcoin-is-so-volatile/

Worth the reading.

I think bitcoin is so volatile because of the fact that there are many factors contributing to it, such as demand from the people the other cryptocurrencies that it beats. The more there are competitors for bitcoin, the more its value rises. In an economics class there are theories for this scenarios, although I have forgotten the exact term for it.

There are a lot of factors that would make bitcoin volatile. Few are as follows:

1. Rate of adoption is hampered by bad press
2. Bitcoin's perceived value fluctuates
3. Too much variance in perceptions of Bitcoin's store of value and method of value
4. Little option value to large holders of the currency
5. News about security breaches make investors react
6. Bitcoins high profile losses at are another driver of volatility
7.Bitcoin and foreign direct investment in countries with high inflation
8. Tax treatment of Bitcoin also affects the volatility

In the near time, much of the volatility will be driven by investors perception of the ability of gateways to safeguard individual holdings and provide for a reliable store of value as adoption increases.