Bitcoin Price Volatility
One of the main reasons why Bitcoin has hit the headlines consistently for the last couple of years is down to the price volatility. At the start of 2017 BTC was less than $1,000 and at one point nearly hit the $20,000 mark before falling back down to settle between $11,000 – $14,000. Other popular cryptocurrencies such as Ripple and Ether have followed similar tends. This will continue over the next few years due to a number of facts which I will talk about below.
The Blockchain has only been around for the last 10 years and due to its complex nature not many fully understand how Bitcoin works. Until a better understanding of how this new tech works by mainstream investors, the price will be volatile as it makes it extremely hard to put a value on it.
The way that money has been valued and created has been completely changed by the Blockchain and Cryptocurrency. It is not like any other currency or commodity and the purpose of crypto is still a hot debate. Until the regulations have caught up with technological advances, we will continue to see huge price swings on regulatory news that could affect the ability to use cryptocurrencies as they were design for.
Bitcoin Price Stability
One Bitcoin and Cryptocurrencies become mainstream it will help to stabilize the price. It will mean that when a large owner of BTC withdraws, their will be enough money in the pot so that it does not have major effects on the price.
CoinDesk In 2017, Bitcoin ’s value soared from $1,000 to just under $20,000 before dropping down to around $13,000 at the end of the year. Since then, it’s value has risen and dropped sporadically from day to day, dragging smaller cryptocurrencies like Ether and Ripple along with it. If […]