There are many reasons why cryptocurrency markets are volatile. If we look closely, it can be found that there are two sides to any coin — the intrinsic side and the extrinsic side. The intrinsic value of a market is derived from the demand for the asset and the community behind it, which supports price stability. Thus, without wasting any further time, star trading right away and start investing in cryptocurrencies at Bitcoin Loophole.
But if the new currency is launched with lower volatility relative to other cryptocurrencies and becomes popular very quickly, its intrinsic value will increase much more than other currencies in the region. Since Bitcoin was launched in January 2009, its price has risen from $0.008 to $1,200 by mid-December 2017.
To some this sounds like success, but it might have had its drawbacks too — such as fast inflation (13000% per year) for ordinary users who purchased Bitcoins on exchanges without careful study of how prices were formed or an understanding of how Bitcoin works, or even those at large investors may have had issues with their financial security due to them trading highly volatile assets like Bitcoin in unregulated exchanges lacking any guarantee of the preservation of property rights or protection against fraud.
So, let’s talk about bitcoin volatility to help you have an overall better understanding!
- With each transaction having a different address, it’s difficult to track Bitcoin transactions. However, considering the constant fear among the new investors in the crypto realm, the developers and miners working in the bitcoin finance platform have come up with top-notch upgrades at present where you can trace back any transaction taking place in the trade market. The public ledger is the sole source of all the info and hence, anybody and everybody can avail of the knits and bits of transactions. The minimal transaction fee is another great advantage of using Bitcoin as compared to other methods like credit cards. By using bitcoins for your transactions, you can save a lot of money each month. Bitcoin transactions have no fees, so no matter how many transactions you make, you’ll never pay extra. Bitcoin is a great way to save money on transactions all over the world.
- With traditional payment methods, like credit cards, it’s easy for buyers to reverse a payment after they’ve received their goods or services. This puts sellers at a huge risk of loss, but bitcoin prevents this problem because all bitcoin transactions are irreversible. This decentralization offers many benefits over conventional currencies.
- While banks today have a ton of information on their consumers, ranging from financial data to addresses, phone numbers, and money management methods, it’s completely different with Bitcoin. This is because the wallet doesn’t have to be linked to any explicitly identifying data. And although some people might not want their accounts managed and monitored by anyone, others may argue that drug or human trafficking, psychological tactics, and other unlawful activities could take place.
- Banks usually have a lot of paperwork and steps that are needed to start and manage accounts, which can include information about the dealer, credit checks, and different official documents for customer identification; however, you can create a bitcoin address in just a few seconds without needing any official documentation. Although, you should have a strong password that you won’t forget because if it’s lost, there is no way to retrieve it.
- By transferring Bitcoins to someone, the payment is collected and cannot be reversed until the recipient sends them back to the original sender. This function eliminates the chances of being deceived by a fraudulent trader claiming they never received the money in the first place. Essentially, Bitcoin is a very inventive and unique way to manage finances on a global scale. Even though there are many financial risks associated with it, Bitcoin is estimated to be worth $8 billion in the worldwide market. The value is subject to change but if this invention is used correctly, there are limitless possibilities for what could be accomplished in the future.
Conclusion
After going through the above article, things related to the market volatility and all your insecurities related to hacker attacks and cyber thefts in the bitcoin realm must have vanished to some extent.
