Post
Topic
Board Economics
Re: Is Bitcoin Volatility A Bad Thing?
by
bit1
on 11/12/2017, 05:19:42 UTC
Being a decentralized currency,volatility is the main feature of bitcoin.It is due to this volatile nature,more countries still don't agree to legalize bitcoin.For a currency to get used in mainstream,it should not be highly volatile.But bitcoin volatility would remain and could not be solved.
Volatility is not a feature from the bitcoin because that was just a nature from the demand meet the supply. The volatility give uncertainty to the price and that's why majority of government consider it as the investment with a high risk. Because there is no actual price to the bitcoin.
Volatility as a nature aspect from the bitcoin.
Understanding traditionally the volatility  as the rise and fall in prices sharply caused effectively when the demand meet the supply without going into details and seeing the example of one  companies that at some point  dropped bitcoin support citing high volatility as a motive or the example of the other whose stock jumped from $18 to $1,200 are two opposite examples of the same thing, I think the high volatility can play for or against a company that is dedicated to the purchase sale of goods and services and indeed accept it as a form of payment even to a highly volatile instrument is not advisable although at first glance it might seem more promising.