Why Bitcoin Is So Volatile - Real Estate and Blockchain

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Why Bitcoin Is So Volatile - Real Estate and Blockchain

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If you've been following crypto news at all in the last five years, you will have likely noticed that Bitcoin is the emergent currency on offer. But it's also well-known for being intensely volatile. Why? In this video, Andrew Baum, Professor of the University of Oxford’s Practice Saïd Business School explains.

From this video:

Andrew: Bitcoin becomes incredibly volatile. People buy Bitcoin. They can make a huge amount of money, they can lose a huge amount of money because the Bitcoin is not underpinned by any intrinsic value at all. So, the value of Bitcoin is completely in the heads of all the people who are interested in trading Bitcoin. If somebody puts the message out that Bitcoin has fallen in value and will fall in value, people start selling it; the word goes around, and suddenly the price crashes.

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