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RE: Why Are Cryptocurrencies So Volatile? When Will Prices Stabilize?
Unlike tulips, you can spend Bitcoins and Ethereum tokens on goods and services. The reason that prices are volatile right now is because people can't spend their cryptocurrencies on any good or service.
Back to back sentences that seem to contradict each other. Which idea to you want to keep?
STEEM On!!
Dave
Am i the only one seeing a bubble brewing with the cryptos?
With ICOs springing up all around and attracting the attention of gamblers as against investors (the difference is one places his fund baased on evaluation while the other just wants to cash in with the boom) and once there is a little blip in the ride there would be moves to either take profit or cut loses which would further depress the prices as there would be more sellers than buyer (law of demand and supply kicks in). This would result in the demise of most cryptos but a few would bounce back stabilise and be there for the long haul.
Good risk/reward consideration and funds management is advised in the coming months .
But hey! while you can make as much as you can.
prices are arguably in a bubble right now. no one should be surprised by a drop of 50%