Five Popular Cryptocurrency Trading Experts Analyze Bitcoin Volatility
Several crypto traders have given their views about the Bitcoin volatility and what could be causing it. Let’s look at the various opinions offered.
Five Crypto Trading Experts Analyze Bitcoin Volatility
Brown is the CEO of the trading platform MARKET protocol and a former crypto hedge fund manager. According to him, Bitcoin is volatile largely because of risk. To him some amount of risk is necessary for any worthy investment. People have different uses for Bitcoin with most starting out as way to store value or as a new way of carrying out transactions.
To achieve these tasks fully, Bitcoin requires maturing just as a child takes time to grow up. To him, Bitcoin is still taking baby steps and hasn’t had time to face the various challenges that lay ahead. People still don’t understand Bitcoin and there’s still not much awareness about it. He believes that when most individuals and governments accept Bitcoin, then it will begin to stabilize.
Omid is a published Blockchain expert and he believes Bitcoin’s volatility is brought about the illiquidity of markets. He believes that to increase liquidity, Bitcoin needs to be less volatile in order to attract more users and investors. There’s too much Bitcoin which is in the hands of a few individuals (crypto whales) and this leads to illiquidity.
Eric is the CEO of Ledger which manufactures cryptocurrency hardware wallets. To him, business enterprises are knocking at the gate of cryptocurrencies and are eager to join the space. Coming up with strategies on how to get them on board will help decrease Bitcoin’s volatility.
Kliine is the co-founder and chief operating officer of BitcoinIRA.com and he believes that Bitcoin will start to stabilize once the various regulatory issues get resolved. He believes that this will happen in the coming few years. To him, if say ETFs are accepted, more institutional investors will adopt Bitcoin and this will lead to increased investment thus less volatility.
Salehpour is a managing partner at Salerpour Legal Consulting which practices Blockchain law. According to him, Bitcoin and other cryptocurrencies will begin to stabilize once their infrastructure improves. The transactions speeds need to be enhanced and the fees lowered in the coming years.
All in all, there are numerous opinions about Bitcoin’s volatility all of which if paid attention to may help resolve the problem gradually.