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Why is bitcoin and similar currencies more volatile than other currencies?


Bitcoin and similar units are more volatile than other currencies.

This is because these currencies do not have the backing of an institution or government and cannot be exchanged for any other commodity or currency. Thus, their value is directly affected by the amount of demand, and therefore their “volatility rate” is higher than other currencies.

Why is bitcoin and similar currencies more volatile than other currencies?

In other words, the nature of bitcoin, which does not rely on any institution, has led the market to treat it as an asset rather than as a currency.

Thus, like other commodities, Bitcoin’s “volatility rate” is directly correlated with its trading volume. Fugitive means the fluctuation of each currency pair over a period of time.

Source : Iran Blockchaink Laboratory

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