Why is bitcoin very volatile?

bitcoin is volatile
Bitcoin is an innovative payment network which was invented by satoshi nakamoto. It is also an advanced cryptocurrency in today’s market. However, there are some studies show that bitcoin is so volatile. Based on the currency method, the price fluctuation is more volatile than any other currencies such as USD, GBP, AUD, JPY, etc. Aside from that, bitcoin is generally an asset class and it is not yet accepted around the world.
Many investors are afraid to invest their money in bitcoin currency because of the following reasons. Firstly, the prices or exchange of bitcoins are unpredictable and still volatile. Second, the bitcoin is vulnerable for breaches or other scam sites and lastly, the foreign bitcoin exchange has high inflation in the market. There is nothing wrong with bitcoin. It is just the process on how we can manipulate and prove it to the market itself. I think that bitcoin has a capacity to change the world of currency.

The main reason is that we are very meticulous and we don’t know how to understand the essence of bitcoin in the past. Therefore, the consequences are very high. As time goes by, the variety of opportunities will do exist and many people will prefer to convert their money to bitcoin. Bitcoins are created because I think it will make an impact to the foreign currencies. If you are not yet convinced then, read the following reasons why is bitcoin volatile?

4 reasons why bitcoin is volatile:

The adoption rate is really bad – There are some reports that the bankruptcy is one of the major issues in the U.S. That’s why they rejected the use of bitcoins in the market.
Little option value compared to other currencies – Many investors are afraid to invest more due to the floating status of their money in the bitcoin bank.
The demand of bitcoin is very high – Many people are buying bitcoins as their money. According to the statistics, bitcoin has been widely used in the market in the past 2 years and it’s still increasing by the end of 2030.
The market for bitcoin is very small and thinly traded assets – The supply of bitcoins are limited and unpredictable and also many inexperienced traders are not knowledgeable in bitcoin which they tend to panic.

We all know that bitcoin is not yet accepted globally. However, it should be noted that the main problem is the volatility of it. Considering the fact that many investors are afraid to try and invest to the cryptocurrency of bitcoin. Aside from that, the market falls every month so that the prices are fluctuating. We have to be mindful that our economy is continuously rising and there are a lot of inventions that will make our life easier.

So, there is nothing wrong with that, as long as we are responsible with our innovations. Moreover, bitcoin is fast pacing and the productivity of its market is spontaneously growing. Meanwhile, it is more of an analysis on how we can adopt the currency of bitcoin and the sudden exchange of bitcoin will increase in the future. For those of you that have BTC and are just too scared to hold it, then we suggest you withdraw Bitcoin to cash.

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