Reasons behind the Volatile Values of Bitcoin

But have you ever thought about why is this volatility so rapid? Well, if you have not then here are some reasons that will inform you about the volatility of Bitcoin.

Since the future of crypto currency or virtual money is yet unpredictable so the question arises if Bitcoin is a good thing to store as an investment and for the transaction of money or not.

Moreover, the news about the virtual currency being used for illegal activities is drowning its image as an incident was reported where a group was arrested by the FBI as it was trading illegally through the Bitcoin transactions for drugs.

The bad point here is that they need to withdraw within a short time period o twenty-four hours and it becomes really stressful to do so.

On the contrary, the fiat currencies are managed by the government who then regulate the monetary and economic policies and decided if they have to control inflation or spend the money somewhere else if they want high employment and more flow of money or less flow of money in the market but the case of Bitcoin is comparatively different.

The older firms who were operating the system at the time of thefts are often replaced with the new ones who were suggested to learn from the mistakes of their seniors to avoid such losses by their foolishness.

The more threats of the virtual currency being banned in the future because of its involvement in illegal activities give goosebumps to the investors.

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