Why Bubbles are GOOD for Cryptocurrency Adoption
Time to address another critique that is commonly aimed at Bitcoin and other cryptocurrencies - that the immense price volatility that we witness is BAD for cryptocurrency adoption, because people want a more stable asset.
This video will explain how it can actually be a GOOD thing.
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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A lot of what you say makes sense, I would imagine traders love the volatility. Thanks mike
The immense volatility of bitcoin and other cryptocurrency make it hard to people to adopt and accept as regular currency. If crypto could be peg to a particular amount of money, I meant in terms of it dip. It will be cool and amazing. But I don't think that is happening at all. Maybe in the coming years, who knows what tomorrow has to unfold.
Higher prices mean less volatility because the higher the price, the more money you're going to need to move the price. So, price volatility is no problem at all in the short or the medium term. Bitcoin is way too small to be used as a payment system at this stage. It has scaling issues, which can be remedied with second tier solutions such as the Lightning Network, but obviously few investors are willing to part with their BTC because they expect further appreciation by orders of magnitude. This is, however, no problem at all because Bitcoin's use case as digital gold will, IMO, ensure its rise to a level of valuation where it will be more stable and where its use as a payment system can make sense.
I love bubbles. 🤣
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I'm buying this theory. This how it has worked for a decade now.
Bubbles will and have attracted developers which will continue to develop blockchain forward despite recent price decreases. Ethereum developers are still in demand and interested to oursure projects which probably would not have occurred if not for the bubble!
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I agree with what you said in the video. I also think the big run ups and downs make bitcoin very attractive. People love to gamble and the chance that bitcoin might run up again makes it very attractive to speculation. Great video. Keep up the good work
The high volaitilty of crypto have pushed people i have tried to advise to invest in crypto world away. They are afraid of the high level of volatility