The Beautifully Boring Behavior of Bitcoin
For the past 3 months, Bitcoin traded within a very close range, one that spanned between $6,200 (current level) and $6,800. That means the maximum variation, within 3 months, was 10%.
Oh, gone are the days when Bitcoin swings were 100% in just a month.
Gone are the solid green candles that stormed the world in December.
Also, gone are the solid red candles that saddened all those "I sold my house for Bitcoin" investors, this spring.
Gone is the volatility.
Gone is the drama (well, most of it).
Bitcoin is behaving boringly.
And I think this is beautiful.
You see, growth is a very nice thing to witness. Especially in trading and especially if it happens fast, for an asset that you already own. But growth cannot go on for ever.
Just like you cannot expect to live off of adrenaline your entire life (you'll be dead in a matter of hours, btw, your kidneys will fail you first), you can't expect the value of an asset to keep spiking for ever.
Stability is good. Predictability is good. And, in this case, boring is nice.
Oh, you had expectations? Plans, maybe? Made some predictions and organized your life around your own imaginary events that should happen, because you know how the market is working, and you need that money for your mortgage?
Well, sorry to hear that. Like, really sorry, I know how it feels and I've been there many times, until I finally learned for good that markets can behave boringly more than you can stay solvent. (I know, the real quote is "markets can stay irrational longer than you can stay solvent", but I like my version better).
And with that, I'm wishing you a pleasantly boring and relaxing Saturday.
Steem on!
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Yeah we need the speculative hype to subside, we can then get more merchants using crypto. A second side effect of the crazy changes in value is the strain it places on development, LN and BCash are really justified by December 2017, but rushed solutions to emergency situations mostly dont work out well.
Those who still need adrenaline during the boring markets can go play betdice for a while and try to get some profit. Anyone who's been in the traditional economy trading for a while knows stability is your friend in the long term.
Haven't really been watching it, but indeed, very stable! Maybe now it can gain use for what it was intended.
The lower the percent between highs and lows the higher the risk compared to potential reward for the short term traders. I'm curious if this reduces the unexplainable price swings we have occasionally.
Sage advice. One of my favorite old cliches is "trees don't grow to the sky".
The truth of the matter is that Steem has been mostly boring lately also. I'm not a trader, so candles and little bitty moves don't mean much to me.
What does mean something to me is stability where a platform like Steemit is involved. Changes have been incremental but happening and mostly positive, which I think will lead to a (hopefully) long, slow up trend.
Thanks. I'll just go back to boring now.
I loved this part... It looks like a poem:
I still think 6,500 is very low for Bitcoin in long term. I can say one thing for sure: that volatility days are pretty much gone as you said... So even when it moons, it will do that slowly~
Price stability is an essential feature of money.
Bitcoin is gaining jt's stand as a volatile means of exchange
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Indeed. I wrote a similar — somewhat in satire — piece the other day, pointing out precisely that the punters who talk so much about their hopes that BTC will become like a new gold standard... are they HAPPY now that the currency does seem to have become more of a "stable store of value?"
Because I don't think you can have it both ways: A stable store of value doesn't fluctuate 300% month-to-month.
Precisely.