The ups and downs of Bitcoin? It's totally a feature, not some flaw like a lot of folks suggest.
Right now, the market's looking pretty rough, but with that mess comes chances, especially for those who really get it.
This volatility is exactly what keeps pushing us to new all-time highs. It's what brings fresh opportunities to the table. It’s also why Bitcoin is still seen as a solid investment choice.
If we just kept climbing without ever dipping, people would lose interest, and all those saying Bitcoin is overpriced would end up being the real winners, but that's just not how it works.
This volatility is what makes it possible for me to hold 0.3BTC one day. If we only go up and never down, there's no way I could reach that amount unless I struck it rich.
Volatility is a feature, not a flaw
19 replies 302 views
This just all about mindset there are people that see volatility as an opportunity to buy more., whenever the market dips. This is not how others see it, there are people that don't see the opportunity that volatility actually presents. They are stuck with the idea that the market should always be on a bull season.
If the price of bitcoin is always going up there people that won't have the opportunity to buy because they will think it is too expensive and if the market should always remain stable then there won't be possibility of potential returns.
ryanwizardSenior Member
Posts: 334 · Reputation: 1694
#3Jan 24, 2020, 07:24 AM
Bitcoin was so perfectly built to be volatile, which means that there is going to be a time for it to fall and rise, which is why we have several opportunities to see its volatility appearing at each stage of the market circle and we tend to buy or sell as it may applies to us, but its something that we have to correct form the public narratives, whereby they make others fear when there is a market fall as if that is the end, when the market is only responding to its seasonal reactions, in volatilities lies the abilities of buying and selling to make profit.
I'm more curious to find who calls volatility a bug. Are you looking at social media or the newspaper? If it's the former, then you should ignore most of them. People can say many terrible conclusions there; it's not worth your effort to try to argue with them most of the time. Not to mention some of them deliberately post rage bait comments to get views.
You should avoid fighting with ghosts, too. No need to make up some phantom to argue against. Just argue directly with someone who made the points you disagree with. Roasting comments posted on another forum where the OP is easily reachable is like a waste of time, too imo.
Everything has value and it is never constant. So over time, that value changes even for the things we consider to be completely safe to invest in.
Volatility can be scary especially considering the fact that you could lose most of your money overnight in cryptocurrency but Bitcoin is a different story. Once people gain confidence in it, that volatility will shrink.
So I say take advantage of it while we can.
If we go up and never come down, we simply defy the laws of gravity. Its just surprising that people today simply don't understand the idea behind bitcoin being volatile..
It's not some bug, but bitcoin was designed to follow the same principles of demand and supply which other assets use as well.
We can't just have a contact level of demands in the market and a low supply rate. It simply won't be good for price..
Only the smart ones are using this feature to their advantage. While others remains in fear, the smarts ones are stacking up BTC at every lower point..
If, is conditional and I don't see that happening because the need for volatility is why the price of bitcoin will go up and go down, that is fluctuation and that is the volatility you talk about. So long there is interaction between demand and supply then price will be created and volatility will keep appearing which is the price movement for up and down. Again, the trading and volume that is created through whales and small traders or hodlers also help to create volatility. So volatility will not stop since demand and supply interacts with the 21 million supply of bitcoin.
Bitcoin may never be complete without being volatile because in this lies the opportunity to buy and sell and we can also make our own profiting at the same time, it is expected that we know when to buy or sell as well as understanding the season that could helps in achieving any of these, when the market is volatile it shows the readiness to create an opportunity for us to set in or an exit route for us to sell and literally invest back into the market when there is a fall, we shouldn't be scared of seeing the market being volatile, because it's part of what we look unto before we could make any move about selling or buying.
Who are they? From SocMed?
I think these people are the ones who didn't really know how Bitcoin would work, they didn't know that Bitcoin works on the demand and supply, and that's how the volatility works, not just by a bug. That's right, you can actually accumulate as much as you want when there's strong volatility in the price, especially when it goes down. Using a DCA method to buy Bitcoin and ride the volatility trend is the best idea.
Remember that there are many factors that cause volatility in the market.
But since it has a fixed supply of 21 million Bitcoin, even a small change can still affect the market and make the price go up or down.
HumbleC01nFull Member
Posts: 41 · Reputation: 360
#10Jan 26, 2020, 04:50 PM
I agree with you that the volatility of bitcoin is not a bug but what some individuals perceive as a bug is the rate of volatility of bitcoin, notice that they are two different things. The price of bitcoin can be 100k today and next month its down by 45%, this kind of scenario creates a lot of panics amongst light minded investors and newbies, next they sell in panic and come to the conclusion that volatility is a bug.
Bitcoin is barely 15 years, I would say it has performed better than expected and I think with time its fluctuation in price will be more stable than it is today in the nearest future.
its_cipherSenior Member
Posts: 190 · Reputation: 1319
#11Jan 26, 2020, 06:07 PM
Of course, volatility is an indispensable attribute of a market economy, especially an economy where financial speculation occupies a huge market share. Any product has price volatility. As for bitcoin itself, the claims about its volatility usually consist in the fact that high volatility contradicts the simultaneously proclaimed thesis about a safe haven asset. So this is a purely subjective view.
In fact, there is no contradiction. If you evaluate bitcoin over a long period of time, then it really is a safe haven asset. It's all about a different approach: short-term or long-term. Bitcoin is primarily an asset for long-term investment. Another issue is that not everyone has the luxury of a lot of time. Hence the disappointment of some.
HumbleP1x3lFull Member
Posts: 53 · Reputation: 292
#12Jan 26, 2020, 08:58 PM
You Should be thankful that bitcoin is volatile. Cause if bitcoin loses its popularity then we wont see any more volatile towards bitcoin. Bitcoin is volatile and its a sign that bitcoin is never getting old and never getting forgotten by people.
I dont know why You are comparing volatile with a bag and relating it with a feature. I think its not a bug nor a feature, but a system created by people for bitcoin.
If tomorrow bitcoin loses its popularity, and no one is buying no selling then you wont found bitcoin volatile again.
cryptolordFull Member
Posts: 88 · Reputation: 316
#13Jan 29, 2020, 05:03 AM
Anyone who says volatility is a bug in Bitcoin doesn't understand how the Bitcoin market works. They think volatility is something artificially created in Bitcoin, like a product whose price can be changed by a centralized system. But volatility is part of Bitcoin, generated by supply and demand in the market --- and that's what makes it attractive to investors because it creates opportunities and drives liquidity.
So, volatility can seem scary to those who don't understand it. But to those who do, they'll assume it's a normal part of Bitcoin.
When it comes to buying Bitcoin you can buy at all seasons while increasing the chances of being profitable demands that you hold for a longer period of time as an investment, I agree with you that there is no Bitcoin without volatility and while new investors are tripping in to the market, volatility makes the market very interesting, traders are looking for how best to maximize short term profit and the investors are looking for what they can get over the long term this are because Bitcoin is volatile, anyone being scared about the market volatility doesn't really understand the basics of Bitcoin.
mark_stakeMember
Posts: 2 · Reputation: 104
#15Jan 29, 2020, 10:40 AM
I think volatility is a feature that gives everyone who embrace Bitcoin an opportunity to make money out of it. I mean it's a never ending mine that allows us to build financial freedom. For some it is a trash but you know someone's trash might be aomeone's treausre as well so yeah it only depends on how we see it and how we exploit it for our own good.
I'm wondering who is the guy that telling you if volatility is a feature. I guess you clearly misunderstand what volatility is. Afaik, Volatility is neither a bug or feature. It's basically a magnitude of price movement as a reaction from the demand and supply. It's the spread created by the intention from the buyers and sellers in the market. The spread is the output from sellers who wanna sell high and buyers who wanna buy low.
humblefarmSenior Member
Posts: 378 · Reputation: 1571
#17Jan 29, 2020, 08:04 PM
Without volitility Bitcoin might not be attractive to investors. Most people are not using Bitcoin because of itsdecentralised nature, which promotes privacy. They are in the Bitcoin market for profit. Volatility is the reason why Bitcoin could be a hedge against inflation. I am keeping my money in Bitcoin because, unlike fiat, its value increases.
ryan_orbitFull Member
Posts: 137 · Reputation: 649
#18Jan 29, 2020, 09:55 PM
Yes, and that's how the market works in the growth of one asset because it is impossible for one asset to continue to experience a significant increase without a decrease occurring. Some people say gold tends to be stable because its growth is slow even though that is true, but even though this asset is stable we also see a pattern of decline every time it enters several periods. Volatility does have an important role in Bitcoin's growth and I think this is an activity that can cause quite a significant increase based on its performance even if there are other forces that also influence it.
Imagine how many people can take advantage of this volatility in accumulating bitcoin because we have the best opportunity to buy it during a sharp decline like the one that occurred in the near future. Without us realizing it, this volatility makes us profitable and it might be a little more difficult to achieve financial freedom if Bitcoin were not as volatile as it has been so far.
Whether people like it or not volatility must occur since people always buy or sell at different times, it's the driving force that determines whether the price would go up or down and they should start getting used to it and take advantage of the opportunities it comes with. Yes every side of volatility has own opportunities just that sone people are just focused on Bitcoin going higher.
I've noticed that some traders are beginners are always the people that worry about volatility especially when the market is down but why they worry, complain or chicken out, real holders use the opportunity to build their portfolio.
yield_moonFull Member
Posts: 102 · Reputation: 297
#20Feb 1, 2020, 07:57 AM
Absolutely agree that the volatility we see so often in Bitcoin is a feature and not a bug. You can use it to your advantage if you play it smart too. Buy when we are in a bear market and sell some when we are in a bull market and there is hype around Bitcoin.
What I would say is that we are seeing diminishing returns as time goes on in bull markets and bear markets arent dumping as deep. Its natural that a new asset will be extremely volatile but as time passes and adoption grows, it becomes more mature and volatility isnt as high.
?Reply
Sign in to reply to this topic