Bitcoin volatility explained

in #news7 years ago

What happens when one can spend their wealth as they like ?

One would spend his Gold on whatever he think is worth his gold.

Does this mean the expenditure of the Gold has has cost it to have lost its value ?

Does this mean that the other guy got a great deal ?

The conclusion would be that both parties agree and are satisfied with the transaction.

We all know that Gold cannot be spent so freely these days.

Bitcoin on the other hand can.

BITCOIN-VERSUS-THE-DOLLAR.png

Why should we make ourselves listen to these bankers telling us that it is too volatile ?

Naturally Gold would be a volatile currency if they did not hoard it all before replacing it with paper.

Bitcoin is now acting naturally as Gold would if we were able to spend gold.

If party "Alice" wants some bitcoin he has to have something to offer up for the bitcoin and party "Bob" in agreement with that what was offered accepts and does the transaction and that's is called the "sell", That volatile area in the market where someone got some bitcoin for cheap or for what it was worth to the seller.

Bitcoin's volatility is the natural order for any real currency to have. If we had been spending gold as our primary currency the exact same thing would be happening.

Fear not of the volatility as the price we see on charts are overrated.

Have you ever tried buying bitcoin before off the exchange markets without charts involved like on Paxful or Local Bitcoins ? The prices there are double and above. Their is no question that bitcoin right now is really undervalued.

If you can get bitcoin at market value or below you should be very happy with yourself and your dealer for being such a honest soul.

My thoughts : The bankers do not want a fair game as they fear they element of fair gain or "laundering / illegal redistribution of wealth" or any other stupid reason such as tax evasion. If they keep a currency steady this mean that they have to completely manipulated it in order for it to always maintain a very high value. This in turns keep them wealthy for a longer period of time whilst keeping the poor out with no fair way of getting in.

If you had your mind bent on the a fake fact that the dollar is valuable just because you have a lot of it, you would be pretty upset if a huge portion of the population on earth is adapting to a new valuable medium that you cannot manipulate, I know I would be.

Any thoughts ? feel free to comment
Helpful/ Interesting ? Hit upvote then resteem

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Volatility is by no means unique to cryptocurrencies. Gold is a safe-haven asset prized by investors for its stability, but only because it is no longer the standard value underpinning national currencies. During the era of the Gold Standard, gold prices were incredibly volatile.

Paper money is no different – between the First and Second World Wars, the value of Weimer Germany's Reichmarks hyper-inflated to impossible proportions, ruining the country's finances. The same thing happened less than a decade ago in Zimbabwe when the farming industry was redistributed.

Importantly, these historical instances of currency volatility occurred because of government intervention – something that cryptocurrencies are pretty well shielded against since they share no central authority. In this sense, cryptocurrencies – especially Bitcoin – are somewhat like gold:

  • Both are durable. Neither gold nor cryptocurrencies "expire" in any meaningful way, like paper money does.
  • Both are fungible. Fungible currencies are ones where a specific unit can be replaced for any other. An ounce of gold is worth an ounce of gold once it is melted and purified. A Bitcoin is always worth whatever the market says Bitcoins are worth at the moment.
  • Both are scarce. There is a finite amount of gold on Earth. Likewise, the Bitcoin protocol stipulates a hard limit of 21 million BTC – the most that will ever exist.
    When it comes to cryptocurrencies, volatility happens for a slightly different reason – speculation.

Thanks for adding , bitcoin as it is right now is something valuable that we have within our grasp and all this volatility we have right now because of whatever reason speculation included could be called a great buy fest as people are being spooked out of their bitcoin .

USDT is a great tool. I have used it a lot throughout the past two weeks and it works well even though the yields aren't that great, it is a necessity when day trading. IT IS NOT TO BE UNDER-RATED .