Research Says Bitcoin Price Is Not As Volatile as Suspected
According to a recent study conducted by the American Institute for Economic Research (AIER) Bitcoin is one of the least volatile cryptos in the market. The study has also been analysing other virtual currencies that registered higher levels of volatility than BTC.
The research has been focused in Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC). The results show that Bitcoin is the least volatile of all of them. According to the AIER, they use the average daily percentage change in price and averaged them.
The AIER explained about it:
“We choose a relatively simple metric: the average daily percentage change in price. We average the absolute value of daily percentage returns for each cryptocurrency and year.”
Several individuals have been complaining that Bitcoin is too volatile to be used as a currency for daily payments. This research shows that it may not be as volatile as thought compared to other currencies but it is far from being a stable coin.
Some experts believe that the spikes that we see in the cryptocurrency market are related to holders that to not want to spend their currencies. As there is a limited amount of coins traded, it has a significant impact on the price.
In the future, Bitcoin can lose its position as the most important cryptocurrency in the market and other coins may take the place. Something similar to what happened to Litecoin in the past, that moved from the 2nd position to the 6th.
At the moment, Bitcoin has 41% of the total share of the market and is still the most important currency. Currently, it is being traded around $6,200 and has a market capitalization of $105 billion dollars.