Bitcoin is a much different investment than stock in established companies or national currencies. It is much similar to high risk / high reward investments in uncertain technology ventures, like angel and VC investing. What it also has in common with those types of investments is the potential for very high returns that make taking on a high level of risk completely justified.
This type of risk profile lends itself to volatility. We don't get to see this with startup investments because their stock is rarely traded, and when it is it is done privately. The public doesn't get to see stock fluctuations in high tech companies until after the IPO, at which point the companies are clearly established and much of the volatility has been eliminated.
This type of risk profile lends itself to volatility. We don't get to see this with startup investments because their stock is rarely traded, and when it is it is done privately. The public doesn't get to see stock fluctuations in high tech companies until after the IPO, at which point the companies are clearly established and much of the volatility has been eliminated.