The volatility of Bitcoin — the main problem of cryptocurrency. And she’s not planning to disappear

One of the main problems when using Bitcoin — its price. It is so often changed that cryptocurrency can not perform the basic functions of money. The rate of change in value is called volatility. It’s supposed to decline significantly in the future — when the number of users of the coins will increase significantly. However, whether this will happen in reality?

Today Bitcoin is trading at 10 288 dollars. Over the past week, its price has risen nearly 10 percent since the beginning of this year, BTC is risen several times. After the first of January for the coin they gave 3746 dollars.

Why pay bitcoins profitable?

Those outlets which have started to accept BTC as payment for their goods, faced many challenges. Business for the crypt is very complex because of the relatively long transaction high volatility and exorbitant fees for microtransactions. If the technical problems can be solved by using Lighning Network, then the problem of volatility and remains open.

Read on: How business can start accepting bitcoins? The full guide.

Initially it was assumed that with the growing adoption of cryptocurrency around the world the rate of change of its price will gradually fall. This happens with the shares: once the firm grows to the proper level, its securities become less volatile.

However, this does not work inside of the stock market. Even the high capitalization of the coins cannot be a guarantee of its low volatility (if it is not stablein, of course). For example, the capitalization of the Bitcoin is almost thirty times higher than the same indicator of Litecoin. The prices of both cryptocurrencies still changing with similar speed.

On the chart below shows the average volatility of Bitcoin and Litecoin in percent for the period from November 2013 to may 2019. The first cryptocurrency marked in gray, the second in red.

Source: Twitter

The positive trend is still there — for the past couple of years volatility has declined somewhat. However, it still remains at a high level.

Source: Bitvol

As you can see, the peak of this metric peaked in 2011. Then the 30-day change in the value of Bitcoin against the dollar amounted to 15.91 percent.

While the price of Bitcoin is still changing very quickly, it is possible to earn. However, have “a little” wait — analysts portal BitcoinEconomics found that even in the worst case, captainvalor definitely make a profit through the 1335 days of their investment. 110-day hodl will bring income of 70 percent probability.

Source: BitcoinEconomics

1335 days — so much will have to wait to get a plus once you purchase the cryptocurrency at its peak bullrun. For example, in 2013, the price reached $ 1,150. Again to that point, she returned only in 2017.

The conclusion is the following: while the variability of prices of exchange rate of Bitcoin and other major cryptocurrencies has no plans to evaporate. Obviously, with this in mind, wait for the transformation of the coin into the world a means of payment is not necessary. Ordinary people do not want their savings fell (and growing) every day, so for now Bitcoin will remain a target for investment.

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