Is Bitcoin Too Volatile To Be Of Any Use?
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