Post
Topic
Board Bitcoin Discussion
Re: Why is bitcoin so unstable?
by
btc-facebook
on 08/10/2020, 05:41:56 UTC
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?
Bitcoin volatility occurs because bitcoin has a maximum supply of around 21 million bitcoins, if the maximum supply of bitcoins is not there, I am sure bitcoin volatility will not be large,
But it also will not happen when market demand is unstable, because bitcoin price is affected by market demand, when demand is high there is a possibility of great volatility.
If you want to be more secure, you can buy a stable coin, the price will always be stable around 1 usd.