Post
Topic
Board Economics
Re: Cryptocurrency Volatility: Creeping Evil or Essence of Crypto
by
awik p
on 07/11/2018, 06:56:04 UTC
For now, we can say that the large volatility of a decentralized cryptocurrency is its essence. As a rule, it is not provided with anything, and its price is formed solely on the relationship between supply and demand. Demand and supply can never be constant in nature, because hundreds of thousands and millions of buyers and sellers of cryptocurrency are participating in the market at the same time, and all of them proceed from conflicting personal interests.
Cryptocurrency volatility is good for traders and a problem for states.

I agree with you that for now, for investors, for traders, th volatility of cryptocurrency are gold mines for them. Expecting a high risk high income investment. This is the reason why a.lot of people have joined cryptocurrency especially the bubble created last year, the hype was made bigger. However, if the governments are concerned, this volatility made it difficult to accept cryptocurrency. It is not good for the economy.
in the trading market, of course volasitas are essential, many investors enter market, given a bright future, so profits can be obtained. but it is indeed a regulation from government that makes its development hampered, until it has a high risk