Why Crypto-Currency is very volatile
Crypto Currency has become extremely volatile because of its investors.
October 28, 2021
Over the past years, crypto currency has become very famous as a place to invest money into. Crypto currency can go up and down at any time, and is completely fueled by an economy of other people investing. Crypto currency has a company, therefore it is purely based off of investments. In my opinion I think that this is another reason as to why investing in crypto currency is extremely volatile because people can sell at any time they want and it can cause a chain reaction, however, this is the same case as Markets.
When someone buys a lot of crypto currency, it can affect the price of the coin that they are investing in. Big investors, such as Elon Musk, have a big impact on the crypto currency market. Elon Musk has a lot of Bitcoin and Eth, and may also have a lot of other crypto currency that we do not know of. But if he were to sell all of his crypto currency, he would severely impact the crypto currency economy.
This follows up on my statement as to why Crypto currency is extremely volatile. Crypto can go up or down at any time without any specific reasons. It could simply go down by people just selling their crypto currency. With stocks, a business can make an announcement, which can make their investments shoot up, or go down. Crypto currency is very different as there is no real backing and it is all just investments. The investors are the backing of crypto currency.
Volatility is a thing in all markets, but it is a huge thing in the crypto world. — Jordan Luzzi (10th)
Meaning, if you were to invest an amount of money into a crypto coin, you would be (BARELY) increasing the overall price of the coin that you are investing in. I personally think that investing in crypto currency gives you a better chance of making money than investing in a stock due to the reasons listed prior to this information. I am investing in lots of crypto currencies and am pleased with the results I am getting on a day to day basis. I also prefer to invest in crypto over a stock due to the market being open 24/7 rather than the stock market only being open for a few hours a day. In my opinion, bitcoin and crypto currency will only go up, and it is hard to say for stocks due to the businesses being their main shareholders. I prefer crypto due to the freedom you get. “Volatility is a thing in all markets, but it is a huge thing in the crypto world,” Jordan Luzzi (10), a student at YLHS states.
