bitcoin The two faces of volatility on Bitcoin!

[Amiami 1362]

Hello members invited them to reflect their version about the Bitcoin volatility, all opinions count!

From my point of view, the volatility can be exemplified by the two sides of a coin:

 

The face: Is the reflection of the positive that volatility can offer, such as increased capitalization, greater publicity, better investment opportunities or simply making money "easy"

 

The cross: The negatives of volatility as it can be, the deflation of the market, the loss of value in the capital, eliminates the possibility that cryptocurrencies are used as a traditional means of payment.

 

This is my view on market volatility, do you agree?

If not, please leave your analysis, greetings!

 

[Raqeebzy 6456]

8 hours ago, Amiami said:

The cross: The negatives of volatility as it can be, the deflation of the market, the loss of value in the capital, eliminates the possibility that cryptocurrencies are used as a traditional means of payment

What do you think of traditional fiats used as the sole mode of payment? Does it implies there is zero volatility?. 

Yeah, you made an important valid opinion but I would like to correct the point of 'total elimination of the possibility of payment option'. Maybe reduced in some sense. 

[Amiami 1362]

20 hours ago, Raqeebzy said:

What do you think of traditional fiats used as the sole mode of payment? Does it implies there is zero volatility?. 

Yeah, you made an important valid opinion but I would like to correct the point of 'total elimination of the possibility of payment option'. Maybe reduced in some sense. 

I think I was not very clear with the general idea that I wanted to reflect in my message, what I wanted to reflect is that volatility increasingly removes the possibility that currencies like the btc can be used basically for anything, for example a few months ago Public companies in my country received payments in cryptocurrencies, but recently they froze the system due to instability.

 

I refer to those kinds of situations.

[Zafar123 906]

Bitcoin's value has been historically quite volatile. In a three-month span from October of 2017 to January of 2018, for instance, the volatility of the price of bitcoin reached to nearly 8%. This is more than twice the volatility of bitcoin in the 30-day period ending January 15, 2020.

[1qDan 478]

Volatility for years has presented the same advantages and disadvantages, since clearly if volatility were not a serious problem, we would see greater adaptability of the markets around cryptocurrencies, it is true that some platforms promote their use since most opt for a neutral position.

[Raqeebzy 6456]

22 hours ago, Amiami said:

refer to those kinds of situations.

I think in such cases, bitcoin and other much volatile cryptocurrency will have less usage. Stable cryptocurrency can come in for use. 

And also accepting BTC as a mode of payment not necessarily mean the merchant turns to holder of it or other currencies as the case might be. Background trades to fiats or stable currency is applied to avoid loss. 

[tienda 8776]

Yes you are right, there are two faces of Bitcoin volatility, I can name them one as a turbulent volatile and the other is like any other simple volatile. But I think the cause of this turbulent volatile comes from whales when they did a big exchange or a high amount of transfer.

[Cryptpanda 153]

In my points of view the price of bitcoin could to its all time high but never to be volatile at all. 1 to 20% to of wealth are there in cryptocurrency. And it is increasing day by day. Its a powerful future currency 

[bogdanoff 3173]

I see only a rise in demand for months. Volatility will happen again once some investors will sell but I don't see anyone selling lately. Who would want to do that when so many news come for investors that appear to want to invest billions of dollars in the market.

[annayks 2314]

As prices rise it makes volumes higher and volatility less. The Bitcoin market has reached to a point where volatility is lower than previous years and the forces of supply and demand are bringing a better view of equilibrium without very sharp rise or drop in prices. While volatility is important for trading it was also the reason for 90% of traders losing money from tricks played by some whales and manipulation in exchanges like Bitmex.

[pablomarwan 3082]

The reflections that we cite are for various reasons, but the most important is the attempt of some to collect the largest possible amount of Bitcoin as they buy and sell on the same day. This is why many fluctuations arise. This year, we faced several difficulties in dealing with cryptocurrencies due to the crisis that was exposed to it. Things have returned to normal, but overflowed more. It still did not stop, but rather continued in the same pace.

[cryptovlek 2597]

The two faces of the coin are referred in english as heads or tails, it took me some time to understand what was meant by face and cross in this post and got me confused. Each country has different term for the sides of a coin but since we use English here it is more proper to not translate the terms word to word from our language but find the English term in this.

In any event, volatility doesn't mean that if prices drop the possibility of adoption for cryptocurrencies is eliminated or even reduced. Prices represent the sentiment of investors and sometimes they are higher than the real value of an asset while other times they are lower. Trading, derivatives and lending change the price of an asset constantly. Volatility gives the option to traders to bet on which way the price will go. Trading is not adoption and investing is not either in most occasions.

[Dormilon 2183]

On 12/10/2020 at 7:53 AM, Amiami said:

Hello members invited them to reflect their version about the Bitcoin volatility, all opinions count!

From my point of view, the volatility can be exemplified by the two sides of a coin:

 

The face: Is the reflection of the positive that volatility can offer, such as increased capitalization, greater publicity, better investment opportunities or simply making money "easy"

 

The cross: The negatives of volatility as it can be, the deflation of the market, the loss of value in the capital, eliminates the possibility that cryptocurrencies are used as a traditional means of payment.

 

This is my view on market volatility, do you agree?

If not, please leave your analysis, greetings!

@Amiami The volatility of BTC is given by its speculative market where it manifests itself, the fluctuations of sudden rises and falls come from that volatility of which bitcoin has always been a reference through the years, cryptocurrencies for the most part, are anchored in a market speculative and volatile that makes them good or bad for investment depending on the point of view of the person who enters or remains outside of what it means to use them.
Definitely BTC is volatile, it has always been and will continue to be so, it is its market, that should not surprise us, we hope that everything improves for the world of cryptocurrencies in 2021 for the benefit of all of us in this ecosystem.

[zhoutong 2188]

Volatility is usually good thing as it means the market is active and alive. It is better for traders that can make good trades with high leverage although many fail to understand how they should be using higher risk and most traders manage to lose a lot of money from this type of trading. As investors, or holders, we can stay safe of all the downturns as they won't mean anything to us, the average course will be higher profits.

[Syedbesharat 5423]

The BTC is volatile by nature and the price of BTC does shows full force of volatility in 2020 Bull run. But the price increase up down makes other coins price also go up down. Which is good for trading and investors take risk to invest in market. If the market is stable condition then traders, investors wouldn't be Interested in crypto. Their for it's good that the BTC is volatile and price changes of alt coins. Because they follow the BTC movement 

[Whited35 15285]

So you might consider both faces of Bitcoin in term of negative and positive aspects of volatility as the mutually explosive 😁 ! Both impacts can not occur simultaneously in the cryptocurrency markets at the certain point of time. Sometimes investors gain the profits and sometime they lost the amounts in the trade. That's why I am telling to the community, volatility of the cryptocurrency is the beauty. 

[percare 3192]

On 12/10/2020 at 1:53 PM, Amiami said:

The cross: The negatives of volatility as it can be, the deflation of the market, the loss of value in the capital, eliminates the possibility that cryptocurrencies are used as a traditional means of payment.

Very hard to understand what you want to mean by this. Is the lack of volatility making an asset being boring and you can't use it? Tether doesn't have volatility yet there is demand and it keeps minting, and so is USDC. So volatility is not something that helps an asset. Take gold for example, is it deflating or creating loss of value? Volatility means price swings happen, not that you lose value if there is none.

[Serbberq 724]

Thanks for sharing, actually the volatility of the crypto market helps bitcoin to used and promote cryptocurrency than stable currency because we can trade and invest to make profits through bitcoin and other cryptocurrency. 

[Lapulga04 259]

On 12/10/2020 at 12:53 PM, Amiami said:

Hello members invited them to reflect their version about the Bitcoin volatility, all opinions count!

From my point of view, the volatility can be exemplified by the two sides of a coin:

 

The face: Is the reflection of the positive that volatility can offer, such as increased capitalization, greater publicity, better investment opportunities or simply making money "easy"

 

The cross: The negatives of volatility as it can be, the deflation of the market, the loss of value in the capital, eliminates the possibility that cryptocurrencies are used as a traditional means of payment.

 

This is my view on market volatility, do you agree?

If not, please leave your analysis, greetings!

 

Thanks friend for sharing this with the forum, like most financial endeavors I guess it's the positive side and negative sides of transportation are to be  expected too. So I agree with you about the volatile nature of crypto currency, I guess we have to take advantage of what we get

[yonkii 3205]

I thought volatility means very large price upside and downside. A market that rises and drops more than 1% in a given day, is considered volatile according to some investors, and the crypto market is doing that by a very higher percentage, so it is very volatile, more than the stock market. The risk and the rewards are higher, but I think the risk for most of altcoins is what is higher when trading. However this can be countered if buying with a certain plan, and knowing it could always fail and lose all the funds invested.

[abohasnn9 2401]

My dear friend, Bitcoin has a very large volatility, as it rises a lot at times and quickly falls quickly, and that happened in general in 2017 when Bitcoin rose to 20,000 dollars and then suddenly decreased this volatility in 2017 for you to repeat greatly until now it rose to 42,000 dollars and did not fluctuate, but partially stabilized  Thanks

[Guru2050 8284]

On 12/10/2020 at 12:53 PM, Amiami said:

The face: Is the reflection of the positive that volatility can offer, such as increased capitalization, greater publicity, better investment opportunities or simply making money "easy"

 

Bitcoin is currently playing the characters predicted by this relevant post. In present days BTC is rocking $30'000 to $41'250 not even $20'000 dollars that some members were finding it difficult to believe BTC may reach in the first quarter of 2020 to 2021. BTC has proven to be that future currency to save the world economy

[kryptonick 2659]

If we trade correctly volatility doesn't make a difference. It is a problem when we are beginners in this and have to face difficult decisions when holding our trade and have to listen to fud, or when someone buys the top right before a dip. It is difficult then but Bitcoin when in bull run pays back holding. As for volatility I don't mind it as I did when I started. I don't see a problem after watching the market for some time. My main problem is how to profit with alts and make the definite strategy to extract the maximum from the alt seasons.

[Samer1997 715]

Yes, I agree with you, this constant fluctuation in the cryptocurrency market puts us in a confusion. I think that this market is not suitable for long-term investment except in rare cases, but rather is suitable for short daily trading so that large profits can be achieved in a short time but with great danger