While the huge reach and endless benefits of Bitcoin are undisputed, it’s the cryptocurrency’s volatility that has kept it from enjoying a greater global take-up.
Last month saw another massive drop in Bitcoin that saw $4 billion wiped off the cryptocurrency’s value. And although the price of Bitcoin has rallied in the following weeks, it provides sceptics with another reason why to be hesitant over implementing the Bitcoin into their financial operations.
The drop in value was all the more startling as it went against trends that suggested that Bitcoin was starting to become more accepted by large government and financial institutions.
With the likes of Japan legalising Bitcoin for digital payments, and investors in other Asian nations like Korea helping to boost liquidity into the cryptocurrency, it seemed that Bitcoin was poised for another record-breaking year.
This has been an issue with Bitcoin ever since I can remember as many are really saying that volatility is that big hindrance for its massive adoption especially by businesses. Volatility can significantly disrupt financial planning (especially long-term). For now, there seems to be no answer as to how contain Bitcoin's volatility so this is something we have to endure for some time. But I don't know with traders (both human and robot) because there are those who are taking advantage of its volatility so they can make good profits.
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