Quote from: Sitipxz on April 18, 2018, 01:25:02 AM

Quote from: Zaggeta on February 10, 2018, 10:48:42 PM

I don't buy that argument that Bitcoin is volatile because it has no intrinsic value to be backed upon. Nothing is backed by anything substantive! Fiat is backed by the monopoly power of the state, gold is backed by the social capital given to it. If Bitcoin's lack of physical asset backing was a problem, all currencies would be volatile.

Bitcoins volatility is not new in financial history. Earlier forms of currency like tobacco used in the early American colonies were much more volatile. Bitcoin's instability is just a demonstration of the market. Hype led to speculators buying up the supply, and scares by regulators and panic sellers caused price drops.

There is nothing intrinsic in Bitcoin, besides maybe slow and expensive transactions coming to the fore, that makes it volatile. It is a commodity, and like any commodity, is a slave to market forces - let it be euphoria or panic.

I feel that false statement and some government decision are the reasons for volatility in bitcoin price. You are right that bitcoin is not back by anyone but some people wants to hold a large quantity of bitcoin and for that they regularly attack the image of bitcoin, so that people sell their holdings and they found the opportunity to buy them on low price.