Why the Crypto Market is So Volatile

 

 (photo: girlboss)

 

🤔Ever wonder why the crypto market is so volatile? It’s up, it’s down then it’s WAY up... then way down.


Cryptocurrencies are not much different from other stocks in that their prices are driven by the laws of supply and demand. If people want to buy, prices increase; if people want to sell, prices decrease.


Here a few reasons why cryptocurrencies are volatile:


🔑🔑🔑 Cryptocurrencies have smaller market sizes compared to established firms of currency. Because of smaller markets annnny movements have a huge effect on price.


⚡️⚡️⚡️ Wealth distribution (who owns the majority of the pie - like the 1% in USD) is very skewed. If someone who owns millions of dollars in Bitcoin decides to cash in, the price drop significantly.


❌❌❌ Media and regulatory FUD. The media loves to use scare tactics to influence people’s perception on crypto. This kind of drama influences price often. “It’s for drug dealers!” “FB isn’t allowing crypto ads” or “The IRS is coming after Crypto investors” This kind of journalism is misleading and not educating on a technology (blockchain) that is here to stay.

FB shutting down crypto ads is actually a good thing. Lots of scams out there on ICOs. Regulation is also not always a bad thing - it just sounds scary. Also, the IRS has been coming after USD owners for hundreds of years! 👻 Pay your taxes, ya’ll!!


📍📍📍 Fast moving technology deploys! Lightening network, Segwit, Litecoin Core! Blockchains (the trust database for cryptocurrencies) are constantly evolving and upgrading - like your iPhone!

These updates make transactions faster, more protected, etc., which in turn makes the price - higher! 

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SHE’S INVESTED

NEW MONEY content is to help educate and get women excited about blockchain and crypto. However, we are not financial experts. All content for informational and entertainment purposes

 


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