Post
Topic
Board Economics
Re: The Risks and Rewards of Cryptocurrencies
by
deisik
on 03/01/2020, 08:44:32 UTC
People will never be satisfied with the stability of crypto currencies because they were attracted to it because of its volatile nature. This is the reason why this market appeared unique to rest of the regular investment markets. If there would have been any way of making this market stable, people would have already done so. I personally feel that whales would not let it happen by any means

I for one don't think it is so much about volatility itself

On regular markets you can get comparable volatility as there are a multitude of investment instruments that are specifically designed to be volatile (for example, so-called volatility indexes, abbreviated as VIX). The difference between regular markets with their volatility tracking indexes and cryptocurrencies is twofold, and neither aspect or factor has anything to do with volatility as such

First of all, cryptomarkets are easily available to regular folks which is not the case with regular markets (the ironic pun seems to be inevitable here). And then, the instruments that such markets offer have a rather short life span as they quickly expire forcing you to liquidate, no matter whether you are in the red or in the green. With crypto, you can just sit on your hands and patiently wait out the bad times (not always helps, but the option is available at all times anyway)