Entering month of April, we are seeing the gradual increment on bitcoin's value. This leads to me this question, How stable is bitcoin? What are the factors indicating its constant movement aside from the fact that compared from the last years its value was unfathomable in a financial sense but sudden drops oppressing lots of investors. What sort of deem of hope to investors not to become disoriented and eventually selling there btc shares as its value decrease. What do you think guys?
Bitcoin is definitely not a stable currency.
Stability of the value of a currency depends on supply and demand. How many bitcoins are in existence vs. how many people want to use them to mediate exchanges, or to collect them because they might appreciate over time.
The currency tends to be deflationary, assuming the user base will increase. There is a gradually slowing down creation process for the currency, where a fixed final target amount of 21 million bitcoins is approached with increasing difficulty in the creation process. This process is essentially pre-programmed and takes no heed of demand. The user base could increase by orders of magnitude but the amount of coins to work with is not flexible.