JANUARY 15, 2020 / 14:50 UTC
LONDON (Fintech Zoom) – Bitcoin Volatility
All cryptocurrencies combined are currently worth a little under $150 Billion. When comparing that figure to the $8 Trillion Gold market, or the $40 Trillion US Equities market, that is still incredibly small. The minuscule size of the crypto market combined with the fact that most cryptocurrencies are still only thinly traded on small exchanges (akin to penny stocks), makes them highly volatile, with the price of many coins often swinging
over 10% per day.
Needless to say, this brutal volatility makes them a highly unpractical medium of exchange. Cryptocurrencies are mostly used today by speculators as a Store of Value, betting that their price will go up (especially in the case of Bitcoin). The thesis of most crypto investors is that, over time, an increasing number of speculators will decide to store a small portion of their wealth in cryptocurrencies.
As a consequence, the total market capitalization of all cryptocurrencies would increase significantly, to the point where it becomes a highly liquid multi-trillion market, similar to Gold, where big price fluctuations are not possible anymore, and where cryptocurrencies would be a viable currency for the world’s economy.
About Bitcoin Price Prediction:
- Bitcoin Price Prediction 2020: BTC will be around $70,000 by Alexey Ermakov
- Bitcoin Price Prediction 2020: BTC will strongly be influenced by one major event: the Bitcoin – halving, by Moritz…
- Bitcoin Price Prediction 2020: Its best days still lie ahead of it, by Jeff Barroga
- Bitcoin Price Prediction 2020 Ranging Between $8k and $10k by Pascal Thellmann
- My Bitcoin price prediction for 2020 is $20,000 – Eric Brown
- Bitcoin Price Prediction 2020 – Part 1
- Buy Bitcoin Without ID
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- 5 Best Bitcoin Margin Trading Exchange
- Bitcoin: Bull Run has come?