Bitcoin volatility is here to stay (Bitcoin Price Prediction 2018)

Many of the people are tired of the increasing volatility in Bitcoin as well as other cryptocurrencies. Some of the people think that this is just temporary as volumes grow, the volatility would decrease but some have a different view. According to some of the investors, Bitcoin volatility is actually a feature of the cryptocurrency rather than just a short-term problem. Also, according to them, it is this volatility which makes it increase many times in just a span of one year as well. Therefore, if the volatility reduces the returns would also be reduced.

Moreover, many of the media outlets are actually hyping up this volatility in order to feature the negative side of Bitcoin. The truth is that, if an asset class rises by more than 20 times in a single year, it can easily halve as well. This is exactly what is happening with the Bitcoin cryptocurrency. Moreover, many of the companies, as well as investors, are stating that Bitcoin is nothing more than a Ponzi scam. This is again not true at all.

Bitcoin determines its value by supply and demand which is same as the equity class as well. Moreover, it is entirely decentralized and therefore it would not be possible for any one individual to control the entire supply.

See the cryptocurrency ticker at the end of article for current prices!  

Volatility hurting people:

There are many stories where people have actually taken a 2nd mortgage on their home in order to invest Bitcoins at the peak. They are actually suffering from depression as well as other such problems due to the enormous losses in the cryptocurrency. The countries in which the number of investors is high like South Korea have several such stories in their media.

On the other hand, there are also stories of investors who had invested in Bitcoin a few years back and now have made over 1000% returns in just a short period of time. Thus, the stories are on both sides of the coin. This is the reason why Bitcoin is actually a volatile asset which cannot just reduce the volatility.

Related:   Llew Claasen: Bitcoin will hit $40,000 and 90% of the cryptocurrencies will fall (Bitcoin Price Predictions 2018) - Bitcoin Price Today

Thus, if you’re thinking of investing in cryptocurrencies, it is important for you to understand that the volatility is here to stay. You need to understand that if you’re investing at inflated valuations, you run the risk of suffering from losses in the shorter term. However, if you’re thinking of holding Bitcoin for a longer period of time, you would suffer no problems at all.

Legal Disclaimer: Smartereum does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Smartereum or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Smartereum makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of cryptocurrency.
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About the author


Adam Web

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

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