Is Bitcoin Too Volatile To Be Of Any Use?

Bitcoin Volatile

The trend of this cryptocurrency is indeed highly unpredictable. There have been instances when it was written by some people. This has led to Bitcoin companies to allow users to store their wealth in the currency of their choice. They can store it in dollars, for instance, and then convert it to bitcoins whenever required.

This way, the problem of volatility is avoided. The present price trend of the bitcoins is towards a stable value and steady market transactions unlike the starting days in 2009. People are beginning to trust the bitcoin more.

Bitcoin has no value since there is no backing for it

This type of thinking is present among the hardliners who consider gold and other commodities like oil as the best and only thing in the world. The ability to understand the value of a decentralized currency that does not have any sort of government restrictions is understood only by those who are actively using it.

While it is true that a certain amount of computer processing knowledge alongside the centralized ledger is needed, the thought that this helps add value to bitcoin is false. The scarcity does make people want it more but that aspect does not add to the value again. It shares the common aspect present in all valuable holdings that it is something people want.

This gives it its value. On the plus side, since there is nothing to compare it to, the problem of inflationary pressures forcing its value up or down is not present.

Become Well-Read On the Subject of Bitcoins

One can read and gather all the knowledge required about Bitcoin from responsible sites. Online currencies will cease to amaze you and help your transactions smoother when you become familiar with it.

Also Read – Bitcoin Has Several Concerns, Fiduciary Currency Isn’t One

Bitcoin Advice

All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

You may also like...

4 Responses

  1. May 20, 2016

    […] and Silk Road has been linked so intimately that the public tend to think that they are one and the same. When the operations at Silk Road was shut down by the police, the […]

  2. May 23, 2016

    […] years ago, there were very less bitcoins users who used it extensively to transact. Over 100,000 companies now accept BTC payments. Looking at the growing list of bitcoin-friendly […]

  3. May 23, 2016

    […] is high time government makes use of technology like blockchains to manage their data as the volumes of data handled by the government is increasing year after year. The existing data management […]

  4. May 23, 2016

    […] images on cloud platform or banking credentials. June 2012 data theft history is repeating and the victimized data of 6.5 million encrypted passwords of LinkedIn accounts back then has returned to kick on their […]

Leave a Reply

Your email address will not be published. Required fields are marked *

Herro