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April 25, 2018, 08:41:10 PM |
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Many people are bored with the increased volatility in Bitcoin as well as other crypto currencies. Some people think that this is only temporary when the volume grows, volatility will decrease but some have different views. According to some investors, Bitcoin's volatility is actually a feature of cryptocurrency not just a short-term problem. Also, according to them, it is this volatility that makes it rise many times over a span of one year as well. Therefore, if the volatility reduces the return will also be reduced.
Moreover, many media actually put this volatility to the negative side of Bitcoin. The truth is that, if the asset class rises more than 20 times in a year, it can easily be split in two as well. This is exactly what happens with Bitcoin cryptocurrency. In addition, many companies, as well as investors, claim that Bitcoin is nothing more than a Ponzi fraud. This is again not true at all.
Bitcoin determines its value with the same supply and demand as the equity class as well. Moreover, it is entirely decentralized and therefore it is impossible for any individual to control the entire supply.
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