Re:U.S. Secret Service Launches Cryptocurrency Awareness Hub
by kravens_last on Wednesday February 23, 2022 @03:34PM
(#30446055)
> I personally believe that bitcoin's volatility is not by design and will not last forever.
If the entire premise of bitcoin's valuation is an open market exchange based on supply (finite and fixed) and demand (variable), then logically, the outcome is perpetual volatility.
There will be zero cases where demand will flatline because this has never in human history occurred organically. For unforseen reasons (a business deal gone bad, a divorce, etc) a btc whale may decide to liquidate, causing a cascading effect of running out of USDT, bringing the entire market crashing down. Bezos may decide to add 4B worth of liquidity to BTC as a speculative portion of his portfolio. Shit like this will happen and only add to more volatility in valuation.
If the entire premise of bitcoin's valuation is an open market exchange based on supply (finite and fixed) and demand (variable), then logically, the outcome is perpetual volatility.
There will be zero cases where demand will flatline because this has never in human history occurred organically. For unforseen reasons (a business deal gone bad, a divorce, etc) a btc whale may decide to liquidate, causing a cascading effect of running out of USDT, bringing the entire market crashing down. Bezos may decide to add 4B worth of liquidity to BTC as a speculative portion of his portfolio. Shit like this will happen and only add to more volatility in valuation.