[dtube] Is Bitcoin Too Volatile to Become a Mainstream Currency?
Rory Harrison asks "How can cryptos become mainstream currency when they are so volatile?"
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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Original date of upload: December 28th 2017
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Exactly that’s what I was thinking at first. It’s too volatile because market cap is still too small. Once big money starts to poor in it will raise up but with less volatility. Can’t wait when that happens. Great point, we just have to get there.
Stable currencies like Usdt and TUSD aim to solve this issue but no one trusts them yet because tree projects have been full of shady people and shady dealings but eventually a stable currency will appear where you can properly hedge your money and invest on projects more safely but I think a big part of the fun is the volatility! when it goes your way at least....
The volatility will go down with the growth of both market cap and trading volume.
Yes I think that too. The low market cap does affect the prices more percentage wise.
Our tendency to treat bitcoin as a buy and sell asset contributes towards it's volatility the most. Once people recognize it as a store of value, they would appreciate keeping their wealth in it rather that fiat.
Third factor could be that at large Bitcoin is not treated as legal tender. To buy we cash in the crypto to get fiat and use this fiat for purchase. The idea itself (legalizing it as a tender)would stabilize the value to some extent as well.
Uncertainty, weak hands and small market cap are the main reason for this kind of volatility. In stock market even professionals panic if there is uncertainty. It becomes too volatile at some point. As an example is the recen 1500 point drop in DOW. Once it all stabilizes it will calm down and starts to rise steady. That’s when everyone starts to love bitcoin and other coins that survive. Which could be one the reasons for volatility as well, there are too many cryptos not meant to survive. We just have to stomach it as you said 🤢.
Very volatile, and it liquidity is well appreciable.
Unfortunately we do not currently have a working ecosystem due to scaling issues so I think that we are still in the speculative bubble phase. Once the scaling issues are resolved mass adoption will follow. At that point qualitative speculation will be replaced by quantitative "hard numbers". When this happens the volatility will dissipate
Bitcoin Volatile is base on the excess demand and investor buying in on bitcoin, but i dont think it is too volatile for it not to become a mainstream currencies. because to me it is only the most acceptable and recognized crypto currencies on the planet
exactly,,i agreed with you ,,its volatile of growing or not sometime,,,its really a great effect for market ,,,its a king of all cryptocurrency...but i think bitcoin keep a great future of crypto
For now it is still too volatile. We are going to get there . One thing is for sure, the price will remain volatile in the future.