Bitcoin being volatile is not only an hinderance and uncertainty in trading it also gives opportunities for enhancing and adoption of new strategies. But how exactly is bitcoin volatile. I know what volatility means but i still don't understand the reason why price is not stable and why its not like othe pegged coins.
First of all, I want to say that this question will never cease to exist, so I believe kindness and courtesy should always be present in the response. However, the problem lies in the context you provide; the basis on which you ask your question is flawed.
And I say this because no matter how much of an expert someone is on the subject, or how many years they have in the field, they will eventually encounter "bitcoin volatility."
We live with it daily; volatility is inherent in financial assets; it is the "soul" of any type of financial asset that faces supply and demand.
Now, bitcoin has the peculiarity that, unlike any other financial asset that faces supply and demand, it loses value almost instantly as it loses percentage value. And that loss is often related to confidence. No other asset since bitcoin's inception has ever lost more than 80% of its value and then recovered so dramatically, even tripling its value after such a dramatic drop.
And that, in essence, is what drives traditional economists "crazy," or those who don't understand that this voracious volatility is an essential part of bitcoin, at least at this stage. This is because more appropriate percentage parameters, or what's called the horizontal base (or 'bed') of an asset, are certainly not yet perceptible in bitcoin.
But this will come, and perhaps neither you nor anyone else logged into this forum today will live to see it (imo
), but it will surely come.But when that happens, a 1% change will be categorized as highly volatile in the future, just as we currently see with double-digit percentage losses, or the most recent drop of more than +30%.
In conclusion, bitcoin volatility is normal.


and predicted the draw, so he didn�t gain another point either. Anyway, after five weeks (Rounds) unbeaten, a humiliating defeat
the hated bet):://::