Volatility serves in multiple purposes as the entire crypto ecosystem matures and something to remember in this industry and technology that it is only a decade old, thus the volatility is good for the crypto. New an upcoming industries are by their nature itself volatile as they move forward towards the main stream adoption. This volatility attracts the clients, investors and technologists and the ones who drive the speed of adoption forward and as it flourishes, the volatile approach naturally decreases. In the case of Bitcoin, the volatility has swiftly been decreasing over time and the latest sharp moves have not seen such a big risk in volatility compared to the past times. As it is unquestionable in our genes to be attracted to assets which are subjected to the rapid price appreciation, therefore the volatility continues to attract participants. Through the history there has been many asset bubbles that has been burst. The Durch tulips of the 1600s is one of the most compared theory in reference with relation to crypto assets. Many crypto assets provides one or the other kind of purpose unlike the tulips which has no purpose than smelling good and looking good. They serve as a utility, serve as the backbone to the new technology protocols on which the useful applications can be built. This is the reason for an increased growth and adoption as the whole market continues to grow, we are also seeing the institutions embrace Bitcoin by diversifying into it as an alternative store of value. This one another reason as to why the Volatility is good for crypto. But there is a harsh reality that it allows the people to learn about the risks along with the rewards of getting involved. It is better if this is done with the assistance of their chosen broker or an agent or even through the educational webinars, videos and other collaterals.
There can be many instances where is people fall in prey and incur a loss, especially if they leverage into their trades without having a disciplined approach to manage the risk. The same applies to the internet boom and bust in the 1990s and early 2000s which witnessed many of the websites go down. There was leverages in those days too, and unfortunately most of the people learnt the hard way as it was a necessity for the industry to become even more established. For Bitcoin, we have seen numerous bubbles burst, with 2017/18 being the last cycle and soon after the doubters were signifying the end for crypto-assets was imminent. But those who see the technologies prospective were keeping their heads down and constructing the amazing platforms and presentations. If we take a look at Bitcoin today, it’s clear that the finish line is nowhere near. Volatility also appeals the attention of regulatory establishments, another natural development of budding productions. Multiple choices to “ban” crypto reversed as establishments comprehend that people simply avoided it by using a VPN or other means to buy Bitcoin. But bans certainly don’t help liquidity and are truly counterproductive. Regulation is very important, but it wants to find the equilibrium that defends customers, yet also nurtures implementation of what is a truly ground-breaking technology and strength period. So, for those individuals that criticise about crypto arcades being too unstable, we NEED unpredictability in order for the entire bionetwork to thrive.
