Bitcoin is getting closer to total stability?

Bitcoin is getting closer to total stability?

By derwin25 | Worldinfo | 27 Aug 2019


 

If we look at Bitcoin prices according to Coinmarketcap, during these last weeks, it can be noted that since August 14, 2019, the price of Bitcoin has remained relatively stable at the values ​​of approximately $ 10,000, with small oscillations between 1% to 3 % on a daily basis, noting that when it reached above $ 11,000 or $ 9,000, it was corrected in terms of hours.

Even when analyzing the price variation of the last week, in 7 days only 3.4% varied, with an interdiar variation of approximately 1% on average, considering that there were days with growth and others with falls.

This is more relevant than it seems, when the volatile nature of cryptocurrencies is considered in the analysis, changes between 10% and 1% could easily occur in another period, giving rise to an unstable range. On this occasion, with the existing stability, it can be seen that there is a range for the price of Bitcoin, ranging near $ 10,000.

With this situation the question arises, if this is the natural price of the cryptocurrency ?, being the one that is determined by the pure market, without interventions, or shocks, caused by external market factors, such as political or economic decisions of the countries or financial institutions.

Another way of interpreting this price would be in the financial form, claiming that it is a barrier price, which implies that it would be the limit of the price determined by the associated financial activity, this being each transaction, such as investments, made with Bitcoin.

This type of situation allows users to reflect on the differences between cryptocurrencies and traditional assets, considering whether a volatile token like Bitcoin or a more stable asset is preferred. For these reasons, a concern arises for everyone in this financial market, will we prefer a volatile or more stable Bitcoin like the current one, which would bring more benefits?


derwin25
derwin25

I like to look for new method of passive income.


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