Could Bitcoins Volatility Be The Reason For It's Long-term Success?

in #cryptocurrency6 years ago (edited)

This may not be such a weird idea after all!

bitcoin.jpg

We're starting to see more and more "financial professionals" getting involved with the Crypto-Craze, why?

Because It's So Volatile

It's obvious when you think about this...

The RICHEST traders are those who have the skills, knowledge, money and balls the size of small planets to invest in markets that can take massive up and down swings in a matter of minutes.

So it makes sense that investing (gambling) in Cryptocurrency is an ideal vehicle for these traders to bank BIG!

wallstreet.jpg

A recent article from the express.co.uk backs up my point quite well.

Here's an excerpt, see what you make of it...

David, who use to work at one of the world’s top hedge funds who is currently on leave before starting a new role at another company is filling in his spare time by trading bitcoin.
David said: “It’s something to fill my days. I need to keep my skills sharp.”

He explained that keeping up with the volatility of bitcoin is a worthy intellectual challenge.

This also included comments from Danny Aranda, Ripple (XRP) Managing Director

Speaking to Express.co.uk, the Ripple MD said: “We actually look at the volatility as, personally, a good thing.
“Volatility brings an interest. For traders, volatility can mean a lot of profit.

As some of who have a vested interest as well as a fair chunk of our cash invested in Crypotcurrency this is music to our ears.

However, this is not the time for complacency and emotional "gambling".

No, this is the time for due diligence!

There's a LOT of buzz around right now and some of that is clouding the judgement of the lesser experienced Crypto-trader.

Money will be made...

However, money, a LOT of money will be lost!

Kristjan Dekleva states:

BTC investors face at least a decade of wild value fluctuations similar to the dot.com boom of the 1990s before it stabilises to become a serious rival to international finance, an expert has warned.

Kristjan Dekleva, financial specialist at crypto currency project Hedge, said that bitcoin was likely to face considerable challenges before it can establish itself as a legitimate commodity.

Positively though he also stated ... "Now is the time to buy!"

Despite large fluctuations in the value of crypto this year, Dekleva, based in Switzerland and Slovenia, says that now is still the time to buy.

bitcoin_buy.jpg

He said: “In the short-term, falls have been driven by emotion and in many cases disinformation – a small rumour can have a big impact.

“A lot of new projects have a stop-start phase and this is to be expected, but it is certainly not something that is normal is a traditional market place.

“Demand is driven by market speculation, but the absence of institutional investors means the market is unstable.

“You could compare this to the state of the internet in the 90s, it needs to grow people’s acceptance of it. We are not there yet.

“In my opinion, it will be at least ten years before we see stability. By then, more useless coins will have been fished out, and there are quite a few out there."

So there we have it.

Financial Professionals are getting in on the Gold Rush, this means we will continue to see the massive volatility as they "Pump & Dump" and "play" the Crypto game for fun!

Remember, these guys and gals know how to trade without emotion and not chase their losses.

So if you're going to invest be sure to do so with money you can afford to lose and please DO NOT use OPM, Other People's Money AKA, Credit Cards or Loans to gamble on something so wild!

I hope you enjoyed this post, if so I'd love to hear your comments

Thanks for reading

Phil

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