Post
Topic
Board Economics
Re: Bitcoin's High Volatility
by
Jennifer_Elam
on 10/08/2018, 16:24:29 UTC
Bitcoin is still classified as a relatively new asset class. Although the level of awareness about Bitcoin among the general population has increased, only a fraction of those who have Bitcoin in large numbers. Moreover, institutional investors also avoid Bitcoin, given its unregulated nature and the risks associated with it. I think high volatility is something that can not be avoided during the growth of bitcoin.
So what if the volatility is high? We have had the volatility high since long and since the start which could not stop the growing graph of investment in Bitcoin. Besides, though important for the price to be stable it is not a very big risk or threat to investment if the price is volatile.

It actually gives chances to people to invest low when the price falls. This is a step towards bright future because the more inflow of the money determines the status of a crypto in the market.
The high volatility of Bitcoin is a basis for investors to consider and make decisions. It is a challenge but also a chance. Just make the right investment decision when Bitcoin is low and predict the high Bitcoin moment, huge profits will come to those investors. This may also be considered as an opportunity for investors to consider and to invest heavily in Bitcoin.

This is what makes it difficult to pick an entry. It's hard to know with so much volatility what the value is at these levels. You think that bitcoin has a stable level and then some news comes out to make it drop like a rock again. That shouldn't be a worry anymore because it can't really get too much lower at this stage. There can't really be anything else negative to drop it down after so many ETF postponings and negative outlooks from major banks. It has greater potential for increase now that there are more uses for it and better transaction speeds. So the volatility can work in our favor, as long as we get on early while it's still low.