The substantial amount of volatility in Bitcoin (available on Coinbase) price (BTC) is arguably the biggest factor hindering its potential for global acceptability. Retailers, restaurants, and even credit card companies refuse to support cryptocurrencies due to this price volatility.
As a more-than-apt example, the cryptocurrency market cap gained $30 billion in the last twenty-four hours alone, after wiping off $150 billion in the previous three weeks.
Source Image: coinmarketcap.com
Important investment figures such as Warren Buffett have refused to invest in cryptocurrencies due to the speculation surrounding price movement. Fed Officials and other influentials have also rejected Bitcoin (available on Coinbase)’s potential to work as a viable medium of exchange, as it has no backing from real assets and is, as previously mentioned – very volatile.
Mr. Greenspan Says it Needs Decades for Stabilization
Mr. Greenspan, a senior market analyst at eToro, believes Bitcoin (available on Coinbase) price could take decades to achieve complete stabilization.
Mr. Greenspan said: “I don’t think the volatility is going to go away any time soon, especially since we still have a lot of Bitcoin (available on Coinbase) ‘whales’ or people who are involved in Bitcoin (available on Coinbase) early on who have amounted a massive amount stockpile.
Source Image: twitter.com
Market participants, on the other hand, are also blaming regulators for the price volatility. They believe regulators could kill the price volatility if they imposed hard rules that reduce unfair practices and price manipulation activities. But then the point of crypto was to be decentralized, so is this not a complete contradiction? Wasn’t an ideology of “no regulation” part of the thrill of Bitcoin (available on Coinbase)?
Combined with price volatility, increasing competition from other market players, including Bitcoin (available on Coinbase) Cash (BCH) and Ripple (available on Binance) (XRP) is making it hard for Bitcoin (available on Coinbase) to achieve global acceptability.
Answering the question of “how long Bitcoin (available on Coinbase) price takes for complete stabilization?”, Mr Greenspan said, “Over time, if we are looking at decades into the future, once the adoption rate of Bitcoin (available on Coinbase) is normal and has reached full market penetration, which we are nowhere near at the moment, and once you see more distribution and more liquidity in the market, I believe we can then have a much more stable price fluctuation,”
Featured Image: Depositphotos/© Tzido
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