Post
Topic
Board Economics
Re: Cryptocurrency Volatility: Creeping Evil or Essence of Crypto
by
Ozero
on 08/11/2018, 17:52:57 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

Volatility is not important, it is not essential since Crypto currencies are volatile as it is even in the beginning since they are decentralized and that is the reason why most of the investors are investing on Crypto currencies is that of because of the volatility of it. The important here is the continuity of the profits it is giving to the investors making their demand higher and higher through time.
The continuity of profits is perhaps the most attractive moment in cryptocurrency, allowing you to make large profits over a long period of time. However, it can not last long. Any type of cryptocurrency will reach its highest price point, after which it will no longer grow in price. Therefore, it will be necessary in time to switch to the retention of new young and promising coins.