Question

Why has bitcoin had such dramatic fluctuations in value?

Answer 1

This is due to the speculation activity which led to increase in the value of the bitcoin suddenly. The second factor for the rise in bitcoin was the limited supply of bitcoin which is expected to end by 2040 which is making it as attractive investment. Third, the rise in value of bitcoin was led by the lack of intervention as there was no regulation in the market which spurt trader’s interest and led to sharp rise.

After the sudden rise, there was much news in the media related to banning of the bitcoin by Japan and South Korea as well as some other countries leading to sharp decline from high levels. Moreover, many countries are yet to recognize this as a legal tender which feared investors resulting in profit booking.

All these factors led to dramatic fluctuations in value.

above is correct answer