What Makes Bitcoin Highly Volatile?
Traders are highly concerned about the volatility of Bitcoin. It’s very important to learn what makes value of this digital currency unstable. Like other things, value of the ‘Bitcoin’ depends on the different rules of demand & supply. Suppose demand for the ‘Bitcoin’ increases, the price also will increase. On a contrary side, decrease in the demand for ‘Bitcoin’ can lead to the decreased demand. In easy words, we will say that price will be determined by amount that trading market has agreed to pay. Suppose many people want to buy ‘Bitcoins, then price will increase. If more people want to sell their ‘Bitcoins, then price may come down. So, it is very important that through Bitcoin news, you keep all the updates.
Bitcoin and Its Growth
Its worth to know that value of the ‘Bitcoin’ is volatile when compared to highly established commodities or currencies. This fact will be credited to the comparatively small market that means that the lesser sum of money will shift the ‘Bitcoin’ price more prominently. And this inconsistency can reduce naturally over passage of time when the currency develops or market size grows.
Bad Press Factor
The ‘Bitcoin’ users are mainly scared by various news events that includes statements by the government officials or geopolitical events that the ‘Bitcoin’ will be regulated. This means rate of the ‘Bitcoin’ adoption will be troubled by the bad or negative press reports. Bad news stories will create fear among the investors and will prohibit them to invest in this currency.