Cryptocurrency Volatility: Creeping Evil or Essence of Crypto

[bettercrypto]

Volatility is a distinctive characteristics of cryptocurrency. This might be good at first and for the traders. But, speaking of future and to go mainstream adoption, this volatility might be one of the obstacles. Movements in the prices are good as long as movements are not that huge.

[1713519777]

1713519777

[jcpone]

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.

[Osarman]

Suddenly, banks, the thought front-runners of banking and financial institutions all had an opinion on Bitcoin - many of them thought it was a gimmick, or even rat toxic and far too unstable to take seriously, but conversations about Bitcoin were getting to be held in investment circles.

of course the bank will say like this, because their technology cannot defeat the technology of the blockchain, and they are afraid that someday fiat money that actually comes from the bank will be replaced by Cryptocurrency

Actually, banks will always say whatever they feel like just to make themselves feel good, but in reality, no one actually cares as far as I am concerned. There is really nothing to be afraid of honestly, unless they just want to be afraid for their own pockets, or the fact that cryptocurrency brings competition or will bring huge competition for the banks, but in general sense, it will actually just be an alternative, which is honestly a good thing. The market is decentralized and new, so I expect that volatility is something that is expected. Even when gold hit the market, we all knew how volatile it was, so to me, they really do not have any point at all.

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.

Volatility is even something we cannot hide from at this stage. Cryptocurrency market is a very new one, we all know that we have not even entered the level of mainstream adoption yet, and there is actually more room for growth, and until we probably see a huge level of adoption, greater developments when it comes to real life usage, before we can see any level of volatility subside a little bit.

However, just like you said, whoever wants to complain about volatility is their own choice, but the main reason why a lot of retail traders as well as institutional traders have found this space attractive is as a result of its volatility.

[awik p]

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

[damberg]

Volatility should be at the epicenter of attraction for crypto if there is to end up being a future through which crypto is employed widely in everyday instances. However, it needs a lot of bravery, plus some tactical know-how, to successfully navigate the lows, to retain oneself safe, and sane, along with contributing positively to be able to a burgeoning crypto overall economy.

Patience is the key here to deal with anything that is related to crypto and blockchain. A calm mind will always get maximum output. Cheers.

I only quoted the important part of OP about volatility. Volatility is the most precious and valuable attribute of cryptocurrency markets. There is nothing more destructible for trading accounts than sideways movement.

[FlightyPouch]

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.

[rationotled]

Cryptocurrencies has only made it in to the mainstream media as an apparatus from the dark web when the infamous Silk Road has been turn off. Back then, that was far from getting considered a good investment decision for Wall Street types, nonetheless they soon joined the party.

Suddenly, banks, the thought front-runners of banking and financial institutions all had an opinion on Bitcoin - many of them thought it was a gimmick, or even rat toxic and far too unstable to take seriously, but conversations about Bitcoin were getting to be held in investment circles.

Stories of Bitcoin billionaires in addition to overnight millionaires cropped upwards, plus the individual investors overloaded to be a part of typically the massive wave of Bitcoin mania. This is why volatility was so crucial in establishing cryptocurrencies as a potential asset that will could also be used being a currency in a well-known society. However, this same volatility is additionally what could kill that goal.
A portion of what has cemented cryptocurrencies on the map given that they exploded into the public investor market has already been their volatility. Investors inundated to the likes of Bitcoin when, through Nov and December 2018, the value of the cryptocurrency increased in value tremendously. Conversely, such precariousness is a two-edged rapier, and the cryptocurrency bazaar has shown that in 2018 with Bitcoin’s price trailing more than 50 percent at times from the year finale worth of $13,000. The cryptocurrency market has also felt the ill effects of Bitcoin’s movements because of this of the price drops, Bitcoin’s trading volume, and even interest in the digital money realm also decreases. The danger is that changes can cause a significant exodus of investors to take place which severely dents the hopes of other cryptocurrencies gaining mass adoption standing.

Itai Cohen, CEO of Homelend says,

“The high volatility of crypto-assets is the result of investors’ reliance on the so called ‘adoption syndrome’ - where the perception of an asset’s value is mostly based on expectations about its adoption by the community.”

Volatility should be at the epicenter of attraction for crypto if there is to end up being a future through which crypto is employed widely in everyday instances. However, it needs a lot of bravery, plus some tactical know-how, to successfully navigate the lows, to retain oneself safe, and sane, along with contributing positively to be able to a burgeoning crypto overall economy.

Patience is the key here to deal with anything that is related to crypto and blockchain. A calm mind will always get maximum output. Cheers.

When I come across posts like this I usually feel bad, cause it reminds of the kind of good opportunity I missed in 2009 and the earlier times when Bitcoin was really cheap. I know a friend that bought Bitcoin at that time with just a little money and now this guy is big millionaire. I’m working really hard just wish I could be like him. I pray God bless my hard work here, cause I have seen a lot of people that have been to achieve their dreams through investing in cryptocurrency, and I have also seen others that failed. But the best is what I wish and it takes hard work to accomplish.

[Slow death]

In fact, in the past years when the price of bitcoin was very small, governments and banks did not comment on bitcoin, because they did not look at price and volatility as very dangerous, but when the price began to rise from $ 6,000 to $ 20,000 has aroused the attention of many governments and banks and the argument of banks and governments is that this high volatility is very dangerous. So in my opinion the volatility is Creeping Evil

[nur rochid]

In fact, in the past years when the price of bitcoin was very small, governments and banks did not comment on bitcoin, because they did not look at price and volatility as very dangerous, but when the price began to rise from $ 6,000 to $ 20,000 has aroused the attention of many governments and banks and the argument of banks and governments is that this high volatility is very dangerous. So in my opinion the volatility is Creeping Evil

indeed many people want to get acquainted with bitcoin, when prices soar. with the basis of decentralization and purely from buying and selling to determine the price, then in my opinion high volacity is possible to occur easily, so that is the essence of BTC

[blackhawkeye1912]

In fact, in the past years when the price of bitcoin was very small, governments and banks did not comment on bitcoin, because they did not look at price and volatility as very dangerous, but when the price began to rise from $ 6,000 to $ 20,000 has aroused the attention of many governments and banks and the argument of banks and governments is that this high volatility is very dangerous. So in my opinion the volatility is Creeping Evil

You're right that the attention suddenly pickup last year telling that the constant change is good. One purpose of volatility is to get the attention of the investors and the governments. They succeeded on this. Moreover, the attention is really on it when the bearish market is almoat 10 months already.

[Ozero]

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.

[Theb]

In fact, in the past years when the price of bitcoin was very small, governments and banks did not comment on bitcoin, because they did not look at price and volatility as very dangerous, but when the price began to rise from $ 6,000 to $ 20,000 has aroused the attention of many governments and banks and the argument of banks and governments is that this high volatility is very dangerous. So in my opinion the volatility is Creeping Evil

Well it depends on your point of view, I also know for a fact that the march from 6,000$ to 20,000$ attracted a lot of new investors who most of them don't even know how to trade, these people of course are now either holding crypto assets at a loss or has cut their losses by by now. Of course the government will be concerned about this as also some of their citizens are affected with the sudden correction and it might affect their economy badly. Aside from that their is also an issue about people in the industry who are not paying their taxes right, for people who have gained a lot in the last bull run it will be unfair for the others to see them run away without paying their taxes right, so a government interference is really needed to make some right regulations to work in the crypto market.

[magneto]

There is still relatively little actual merchant adoption to say that bitcoin will stop being volatile any time soon.

But in my opinion, this volatility is absolutely nothing bad. In the long run, we know that bitcoin is going to be a store of value and thus hold up its real value relatively well against the CPI. The volatility is only something that is a short term phenomenon.

What volatility suggests to me is not only is it something that speculators are able to draw upon. That to me isn't really a positive. But rather, the fact that it's volatile means that it's completely separate from the fiat system due to its decentralised nature, which is exactly what bitcoin was initially designed to do. If bitcoin ever became pegged to the USD or move extremely close to it, I think that the adopters will in fact be extremely disappointed as it suggests that fiat has gained a significant influence over prices.

[Big-bigger-bitcoin]

In terms of business view no one ever made the success in just one side. Good side and bad side always together on going whether you like it or not because in everything is risky.
With regards to bitcoin it is not exempted. It means someone can use this to scam and illegal purposes because people have choices what we should do. However, it is joyful to see somebody's success from bitcoin or from crypto.
They are able to help the needy. They are able to build whatsoever they can from bitcoin crypto profit.

I eagerly suggest that we should see more in advantage than disadvantage to have more good points of views.

Everyone who is into investment will always experience some difficult times, but the only thing that matters is how it ends at last. Some people start as failure and at the end they come out as winners, while some start as winners and at the end its something else.

We hear stories of how people succeeded by investing in cryptocurrency but we hardly hear stories about those that failed, cause those ones hardly make it to the news.

[efxtrader]

Bitcoin price always volatile i think because not regulated by government yet. Beside that, as new investment instrument, many investor think its a breaktrough on current economic system and as digital new store of value, it will be good for long term

[jseverson]

Volatility is a distinctive characteristics of cryptocurrency. This might be good at first and for the traders. But, speaking of future and to go mainstream adoption, this volatility might be one of the obstacles. Movements in the prices are good as long as movements are not that huge.

It's characteristic, but I wouldn't go as far as to say that it's distinctive. Volatility should fall under control as the market grows.

Bitcoin price always volatile i think because not regulated by government yet. Beside that, as new investment instrument, many investor think its a breaktrough on current economic system and as digital new store of value, it will be good for long term

I don't think regulations can solve Bitcoin's volatility, unless it's been established that the only factor behind it are manipulators. Regulation can't really influence the way the market moves externally.

[audaciousbeing]

The issue of volatility would continue to be a controversy till the nearest future in which I don't see abating anytime soon. Its has become a situation of two edged sword that while on one hand, its the reason participants are in the market, on the other hand, its the sole reason keeping other intending participants away from the market.

The point is, as much as there are gainers in the currency phenomenon and there would also be gainers should the volatility be ended, there is nothing to worry about the future of the market.

[fauzan Ichsan]

bitcoin is base only in prediction then the price of it can go drops or high in an instant and this is worldwide like we users,traders and investors do buy and sell here another thing this is good already with so volatile market then that's why this run because if this is only stable i think few users only will use this not like this really popular now

with high volume it is a strong characteristic of bitcoin. where people can look for big profits here. but even though it can provide big profits, BTC also has a big risk, because of its high volume

[timerland]

I wouldn't go as far as to say that volatility is something positive.

But clearly, it's not something that is as bad as some exaggerate it to be. Just let me give you an example - I'd rather hold an asset that will retain most of its value and not have its currency supply debased in the long run, compared to something that may seem like it's stable in the short term, but in fact in the long run has always shown the tendency to move down in value.

Honestly, it's what you get with a free floating currency that has no ties to any central authority. With the way things are going, I really see no issue with this even if it's not positive. Merchants accept BTC right now based on their USD value which is not that great, but protects them against any rate fluctuations. And in the future, with more adoption, volatility would lessen by itself.

[bravehearth0319]

Volatility in cryptocurrency is needed for the it to be attracted to investors and to get attention of the people about the potential of cryptocurrency. This is very important especially for the very young technology. However, as soon as these cyrptocurrencies get mainstream, volatility must be reduced, if not eliminated, to sustain its adoption.