The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

5 Crypto Insiders Weigh in on Bitcoin Volatility

by Christina Comben
September 12, 2018
in Trading

The CEO of decentralized trading platform MARKET Protocol Collins Brown is a former financial trader and cryptocurrency hedge fund manager with years of experience trading (both crypto and real world alike).

He asks,

“Why is Bitcoin volatility bad? Volatility is risk. Some risky things are good… The problem arises when there is too much volatility or risk relative to their desired use. People have different use cases for Bitcoin. Many start at a store of value or a new transaction method as the most popular. If the volatility of the price is too high, it’s difficult for either of these to be accomplished. What to do?”

Bitcoin Needs Time to Mature

As with any 9-year-old, Bitcoin needs a little more time to mature. Blockchain technology is still going through its paces and one of the key factors in Bitcoin’s volatility is that it’s still taking baby steps. It hasn’t had the chance to overcome many of the factors that lead to its sudden devaluation or appreciation yet.

Being unlike any other technology we’ve ever seen, part of the battle that Bitcoin faces is increasing awareness–and understanding. When more people adopt Bitcoin and governments worldwide accept it, the volatile cryptocurrency should start to stabilize.

The Market Needs More Liquidity

“Volatility of crypto assets is a sort of chicken and egg problem,” says published blockchain author and consultant Omid Malekan. “One reason why Bitcoin is so volatile is that its markets are illiquid, and the best way to make the markets more liquid is by making Bitcoin less volatile.” Indeed, the fact that we need more people to get on board in a risky market to lower the risk is quite the conundrum.

One of the main problems that cause Bitcoin’s volatility right now is that there’s simply too much of it held in the hands of too few people. Large crypto whales can create massive swings in prices by selling off big quantities.

Echoing this sentiment is Registered Investment Adviser from Digital Asset Investment Management (DAIM), Bryan Courchesne, who says, “Low liquidity at times results in bigger moves and higher volatility for Bitcoin. I believe adoption by more investors would increase liquidity and make the market more resilient to random volatility.”

Mainstream Institutional Interest

Eric Larchevêque CEO of Ledger, a cryptocurrency hardware wallet manufacturer, exclaims, “Enterprises are really at the gates of cryptocurrencies. They are waiting to invest as much as they can.” It seems to be a general consensus in the crypto world that 2019 will be all about institutional investors. Getting them on board will give the public the vote of confidence it needs to follow suit. The more players, the more Bitcoin’s volatility decreases.

Chris Kline is co-founder and COO of BitcoinIRA.com. When asked about overcoming Bitcoin’s volatility, he says, “I believe we will see Bitcoin continue to stabilize over the next couple of years as both regulatory uncertainties get resolved and mainstream institutional interest in the crypto space expands.”

When the first decision to delay the Cboe ETF sent the Bitcoin price spiraling, we clearly saw how important these decisions are to market confidence. Yet Kline believes that ETFs will be accepted and, once they are, will give many institutional investors, who have previously stayed away, the peace of mind they need to invest in the crypto space. “In doing so, I believe the flood of institutional traffic will work to boost Bitcoin’s stability in both the short and long term,” he says.

[the_ad id="42537"] [the_ad id="42536"]
Improved Infrastructure

Morvareed Salehpour, managing partner of law firm Salehpour Legal Consulting, whose practices include blockchain law, says that to make Bitcoin more stable, the technology and infrastructure need to be improved.

“Cryptocurrency transaction speeds need to be increased and transaction fees decreased in the next few years. This would allow for cryptocurrency to become more widely accepted by traditional vendors… and cryptocurrency wallets more widely used,” she says. “It’s the widespread usage of Bitcoin as an actual currency is what will lead to stability.”

Overcoming Bitcoin’s Volatility

Bitcoin’s volatility remains one of its main barriers to mass adoption – if we’re looking to use it as a form of payment. If we want to keep speculating and trading on Bitcoin exchanges, perhaps the massive fluctuations are a good thing. Maybe stablecoins or another of the interminable list of cryptos will emerge as the safest and most legitimate way of exchanging value instead.

This article by Christina Comben was originally published by CoinCentral, our media partner.

Christina Comben
Christina is a B2B writer and MBA, specializing in fintech, cybersecurity, blockchain, and other geeky areas. When she’s not at her computer, you’ll find her surfing, traveling, or relaxing with a glass of wine.

 

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Peer Acquires Elite Team of Engineers Behind Zenly’s Popular 3D Maps
    February 1, 2023
  • Sign Up Today for the TRON Grand Hackathon aka HackaTRON Season Four
    February 1, 2023
  • MegaWorld Land Gameplay on BNB Chain Starts February 15, 2023
    February 1, 2023
  • Web 3.0 Hackathon on Astar Sponsored by Toyota Motor Corporation
    February 1, 2023
  • Match-Trader White Label by B2Broker Gives Brokers a Comprehensive Online Trading Platform With B2Core Integration
    February 1, 2023
  • Addressable Raises $7.5 Million To Enable Web 3.0 Companies To Acquire Users at Scale
    January 31, 2023
  • SIMBA Chain Awarded $30 Million US Air Force STRATFI
    January 31, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,840.39
$23,840.39
3.65%
Ethereum
$1,671.26
$1,671.26
6.31%
Cardano
$0.401191
$0.401191
5.31%
XRP
$0.41534
$0.41534
3.43%
Dogecoin
$0.093948
$0.093948
2.2%

Spotlight

  • Top Crypto Trader Says One Ethereum Rival Could Erupt by 100%, Updates Outlook on Bitcoin and Altcoins
    January 26, 2023
  • DOJ Seeks To Cut Off Sam Bankman-Fried’s Communication With Key People Involved in Fraud Trial
    January 29, 2023
  • ARK Invest’s Cathie Wood Details Massive 2,000% Bitcoin Rally Prediction After Crypto Market Bounce
    February 1, 2023
  • U.S. SEC Once Again Rejects ARK Invest’s Proposal for a Spot Bitcoin (BTC) ETF
    January 27, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl