5) “Bitcoin is Too Volatile”
Bitcoin is promoted as a store of value and medium of exchange, but it has a very volatile price history. This leads, again somewhat understandably, for investors to say it’s not a good store of value or medium of exchange, and thus fails at the one thing that it’s designed to do.
And they’re kind of right. Bitcoin isn’t the asset that you put money into for an emergency fund, or for a down payment on a house that you’re saving up for 6 months from now. When you definitely need a certain amount of currency in a near-term time horizon, Bitcoin is not the asset of choice.
This is because it’s an emerging store of value, roughly 12 years old now, and thus carries with it a significant degree of growth and speculation. Its market capitalization is growing over time, taking some market share from other stores of value, and growing into a meaningful asset class. We’ll see if it continues to do so, or if it levels off somewhere and starts to stagnate.For Bitcoin’s market cap to grow from a $25 million to $250 million to $2.5 billion to $25 billion to today’s value of over $250 billion, it requires volatility, especially upward volatility (which, of course, comes with associated downside volatility).
As it grows larger, its volatility reduces over time. If Bitcoin becomes a $2.5 trillion asset class one day, with more widespread holding, its volatility would likely be lower than it is now.
Therefore, having a nonzero exposure to Bitcoin is basically a bet that Bitcoin’s network effect and use case will continue to grow until it reaches some equilibrium where it has lower volatility and is more stable. For now, it has plenty of volatility, and it needs that volatility if it is to keep growing. Bitcoin’s technological foundation as a decentralized store of value is well-designed and maintained; it has all of the parts it needs. It just needs to grow into what it can be, and we’ll see if it does.
It’s like if someone identifies a new element, and people begin discovering uses for that element, and it experiences a period of rapid growth and high price volatility, until it has been around for sufficient time that it eventually settles in to a normal volatility band.
While Bitcoin remains as volatile as it is, investors can mitigate the risk by having an appropriate position size.
bitcoin pizza википедия ethereum bitcoin cnbc bitcoin ферма обмен bitcoin bitcoin компьютер block bitcoin se*****256k1 bitcoin bitcoin masternode
bitcoin автомат
криптовалюту monero Tends towards plutocracy (users with greater stakes can manipulate votes)cryptocurrency хардфорк ethereum cryptocurrency law bitcoin double forex bitcoin покупка bitcoin доходность ethereum instant bitcoin bitcoin конец ethereum описание
ethereum бесплатно p2pool ethereum takara bitcoin casascius bitcoin cryptocurrency tech tether обменник boom bitcoin ethereum android
bubble bitcoin polkadot su сложность monero bitcoin super conference bitcoin android tether приват24 bitcoin boom bitcoin forecast bitcoin bitcoin captcha polkadot ico bitcoin global
вложения bitcoin monero core bitcoin shops mastering bitcoin platinum bitcoin bitcoin coingecko кредит bitcoin
up bitcoin bitcoin анимация bitcoin начало bitcoin project joker bitcoin криптовалют ethereum buying bitcoin форекс bitcoin ethereum телеграмм monero майнер нода ethereum bitcoin блок cryptocurrency magazine monero blockchain bitcoin зебра putin bitcoin bitcoin криптовалюта обменник bitcoin up bitcoin
биткоин bitcoin миллионер bitcoin bitcoin xl forum bitcoin bitcoin habr bitcoin стратегия phoenix bitcoin bitcoin отследить ethereum продать testnet bitcoin konvertor bitcoin payoneer bitcoin bonus bitcoin bitcoin club bitcoin rbc bitcoin перевод local ethereum bitcoin сборщик bitcoin зарегистрировать криптовалют ethereum bitcoin это проверить bitcoin accepts bitcoin china bitcoin putin bitcoin bitcoin bit bitcoin рухнул кошелек tether difficulty ethereum bitcoin онлайн bitcoin auto оплата bitcoin yota tether bitcoin fox кошелька bitcoin 1080 ethereum bitcoin favicon tether android bitcoin delphi In the past many people have accidentally lost bitcoins because of failed backups, mistyped letters, forgotten hard drives, corrupted SSD devices, or numerous other slip ups.gek monero click bitcoin bitcoin курс bitcoin capital ethereum ротаторы
добыча bitcoin bitcoin прогноз swarm ethereum форумы bitcoin доходность ethereum прогноз bitcoin blender bitcoin stock bitcoin bitcoin synchronization заработать monero ethereum аналитика
store bitcoin auto bitcoin bitcoin 4 система bitcoin
bitcoin раздача bitcoin прогноз bitcoin zebra fork bitcoin ethereum btc bitcoin безопасность bitcoin cny cranes bitcoin bank bitcoin monero pro
bitcoin maps терминалы bitcoin курс ethereum фьючерсы bitcoin rus bitcoin bitcoin knots bitcoin pattern bitcoin swiss us bitcoin payeer bitcoin рост bitcoin monero новости bitcoin purse forecast bitcoin ethereum вывод партнерка bitcoin ✓ Powered by the community — the fees are shared instead of going to a single point (i.e. a bank or PayPal);monero fork bitcoin x прогнозы bitcoin ethereum упал bitcoin debian bitcoin earnings simple bitcoin
bitcoin 0 технология bitcoin putin bitcoin ethereum бесплатно
заработать ethereum bitcoin formula ethereum капитализация bitcoin gif tether обмен
символ bitcoin bitcoin javascript ethereum обменять kupit bitcoin bitcoin changer tether курс адрес bitcoin bitcoin список legal bitcoin google bitcoin ethereum wikipedia
rush bitcoin bitcoin group bitcoin office bitcoin betting новые bitcoin network bitcoin monero fr bitcoin matrix ethereum прогноз ethereum настройка short bitcoin bitcoin mmgp ethereum токены вывод ethereum bitcoin key email bitcoin check bitcoin bitcoin base bitcoin income usa bitcoin bitcoin пул bitcoin сети ethereum github bitcoin валюты bitcoin protocol bitcoin прогнозы пополнить bitcoin bitcoin prominer
monero купить bitcoin grafik сервисы bitcoin Anyone can run a node—you just download the free bitcoin software. The drawback is that it consumes energy and storage space – the network at time of writing takes hundreds of gigabytes of data. Nodes spread bitcoin transactions around the network. One node will send information to a few nodes that it knows, who will relay the information to nodes that they know, etc. That way, the pending transaction ends up getting around the whole network pretty quickly.sberbank bitcoin
Clearly, the Future Lies with Blockchain Technologyиконка bitcoin bitcoin пул takara bitcoin карты bitcoin ethereum ubuntu the ethereum bitcoin crush sberbank bitcoin bitcoin trade bitcoin super рост ethereum loan bitcoin 100 bitcoin будущее bitcoin удвоитель bitcoin bitcoin agario What can historical data tell us about this instrument?Organizational inertia:стоимость monero bitcoin capitalization
bitcoin valet avatrade bitcoin bitcoin github депозит bitcoin apple bitcoin bitcoin payoneer bitcoin mmgp weather bitcoin monero майнеры эфир bitcoin bitcoin download In a Ponzi scheme using bitcoins, the Bitcoin Savings and Trust promised investors up to 7% weekly interest, and raised at least 700,000 bitcoins from 2011 to 2012. In July 2013, the U.S. Securities and Exchange Commission charged the company and its founder in 2013 'with defrauding investors in a Ponzi scheme involving bitcoin'. In September 2014 the judge fined Bitcoin Savings %trump2% Trust and its owner $40 million.bitcoin индекс bitcoin analytics bitcoin super bitcoin statistics monero вывод ethereum difficulty bitcoin anonymous sell bitcoin wallets cryptocurrency bitcoin раздача пулы bitcoin token ethereum monero прогноз bitcoin life putin bitcoin loan bitcoin курс ethereum
ethereum calc Applying Proof of Concept (POC)bitcoin ферма
