price deviations in the spot price of Bitcoin on the stock exchanges due to many reasons. Volatility in the classical market is estimated by the index volatility, which is also called the index of volatility CBOE (VIX). Volatility in Bitcoin is not yet a fully accepted index as cryptocurrency as a real asset class is still in its initial stages, but we understand that bitcoin is capable of variability in the form of a 10-fold price adjustments compared to the US dollar, a relatively short period of time. This article provides a few different factors associated with the variability of Bitcoin:
1. ownership rate affects negative press.
The situation with the news that frighten Bitcoin user, consist of geopolitical incidents and statements of government officials that Bitcoin will most likely be monitored. The first receiver Bitcoin covers many malicious actors, creating a capital news, which caused the greatest fears among investors. Title, which produces the Bitcoin news, provides for the bankruptcy of Mt. Gox in early 2014, and even in the recent exchange for South Korean market Yapian Youbit, and other, similar to the high-profile activities in Bitcoin transactions with drugs through Silk Road, the FBI ended closure of the market in October 2013. All these things, and the general public panic that arose forced Bitcoins costs compared with the rapid development of currencies. Nevertheless polite Bitcoin investors viewed these events as proof that the market is growing, with the result that the value of Bitcoins against the US dollar significantly backed up for a short period immediately after the information events.
2. Bitcoin acknowledged that the need to change.
One of the reasons that Bitcoin may change in relation to the constant capital markets, with a & # 39 is recognized as the cost of store compared to fiat-money. The Bitcoin has elements that make it comparable to gold. It decided to design a resolution developers the core technology to maximize its capacity to a fixed amount of 21 million. BTC. Because it is largely different from the currency exchanges, which involved public authorities, who want to preserve low inflation, high employment and reasonable growth in the investments in capital assets, as emerging economies with fiyatychnymi values, show signs of weakness or power, traders can specify more or less of their assets directly in bitcoin.
3. Too much deviation in the awareness of the store Bitcoin about the cost and value engineering.
Bitcoin is also due to the unpredictability of a huge part, differing perceptions of implicit values cryptocurrency as a cost-saving and value transfer techniques. Values Value – is the action by which the asset in the future, it may be advantageous as a result of a certain predictability. In the future, store valuables can easily save and change a big favor or service. value transmission equipment – is any thing or principle that is used for the transfer of assets by asset type from one entity to another. Currently, Bitcoin unpredictability creates several ambiguous treasury, but it ensures virtually unimpeded transfer of value. As the two drivers of recent spot price of Bitcoin differs from the US dollar and other foreign currencies, we see that the price of Bitcoin can be moved on the basis of news events is very much as we see on the stock exchanges.
4. A small selection account for the huge currency holders.
Bitcoin unpredictability as to the extent caused by the owners of the huge total fine exchange earnings ratios. Bitcoin for traders that recent actions have exceeded about $ 10 million, it is not clear how they will exterminate the position, which is huge moves in a positive position and significant market moves. Since the amount of Bitcoins like a small stock of capital, the currency is not impressive mass market prices to own, you may need to offer huge owner cryptocurrency option value.