Is volatility a must-have in the cryptocurrency market?

[Deleted member 403]

Is volatility a must-have in the cryptocurrency market? Besides stable coins, is there any possibility of having a coin that doesn't fluctuate and keep a stable value? It's something that I'm curious about but never got around to asking. I'm not overly tech-savvy when it comes to blockchain.

https://www.beermoneyforum.com/forums/crypto-currencies.6/post-thread

 

[zagzagi]

It is not possible to avoid fluctuations in the crypto money market. As a result, as in every market, factors other than supply and demand also affect price formations. For this reason, there will always be fluctuations in the crypto money markets. Can you show me anything that has a fixed production, consumption and price?

 

[ahmedo24]

Every commodity both online and offline are volatile except those that are meant to be fixed or stable regardless. The forces of buying and selling is the factor behind volatility, if that force must continue to exist volatility can't be avoided in Crypto currencies.

 

[Suba]

The volatility of cryptocurrency prices is largely based on the hype that continues to increase investors' interest in making profits, but the volatility of crypto prices is the main reason for the fears and worries of newcomers to crypto. at the moment it is impossible for us to have one crypto that does not fluctuate, but I don't know if Bitcoin has been mined (2040), and the distribution is evenly distributed throughout the world, maybe the value of Bitcoin and other cryptos will be more stable or at least low in price volatility.

 

[Patrik]

Although coins with stable value exists, but they are being abondonned as people don't see any purpose for using them, volatile coins on the other hand got pros and cons, you might win or lose, but when you win, the profit is huge

 

[Hasan Raza]

Dear Volatility is the part of cryptocurency. If we define it then it is the statistical measure of dispersion of an asset,s price. But in my point of view there should be a low volatility not high because there is high risk in high volatility and low risk in low volatility. But it must have in moderate form.

 

[MastetG]

Bitcoin volatility is also driven in large part by varying perceptions of the intrinsic value of the cryptocurrency as a store of value and method of value transfer. ... A method of value transfer is any object or concept used to transmit property in the form of assets from one party to another

 

[Erik4150]

Volatility is a must have in cryptocurrency and it is impossible to have a cryptocurrency with stable value. This is because the fluctuation in cryptocurrency market is influenced by different factors that cannot be controlled.

 

[Kamon c4]

The volatility of bitcoin makes investments possible. The fluctuations of its price give investors the ability to make profits from the market. Stable coins are best used to save money provided the wallets are secured and safe from cyber attack

 

[GoldenLady]

Just like every other currency, the forces of supply and demand are responsible for the volatile nature of cryptocurrency.

It is seen as a store and measure of value, so the more people want it, the more expensive it becomes and vice versa, just like gold.

 

[gammarays]

I think that's the inherent nature of crypto i.e. one of the stuffs associated with it. Crypto is like a digital commodity same way we have other tradable commodities like crude oil,stocks and so on. You know their prices can shoot up and fall at will due to issues surrounding them. It's also to our advantage because we trade or profit due to the volatility of crypto.

 

[Josemendez]

Volatility is what makes cryptocurrency exceptional and tradeable . It was recently when people started demanding for a stable cryptocurrency that we saw stable coins like USDt.
Outside this , cryptocurrency needs to be volatile. This is why CBDC won't have much users

 

[Ltherman]

I think the fluctuations in the market is what makes it even more lucrative and attractive to investors. The fact that one can invest with any amount and it goes down in value and can also appreciate to some incredible level.

 

[ahmedo24]

Volatility is what makes cryptocurrency exceptional and tradeable . It was recently when people started demanding for a stable cryptocurrency that we saw stable coins like USDt.
Outside this , cryptocurrency needs to be volatile. This is why CBDC won't have much users

Stable coin and CBDC will still have users because currently USDT which is a stable coin occupy either the fifth or sixth position in the Crypto currency leaderboard because people used it as entry point for trading and used for payment for goods and services. CBDC will take that shape too.

 

[Ehizzy1]

I think its a must and there are obviously stable coins like usdt , busd and others , but crypto currency must be volatile so that people would be able to earn returns and profit from the investment , so its really a must to have volatility i think , and i have a lot of people who is into crypto and are making a lot from it i think

 

[christykemi]

both online and offline are volatile except those that are meant to be fixed or stable regardless. The forces of buying and selling is the factor behind volatility, if that force must continue to exist volatility can't be avoided in Crypto currencies.

 

[WhiteHouse]

In the current period, digital money had overall hype. This is a kind of electronic money with a decentralized type of advanced cash which has no set middle person like the national bank or some other single overseer. It's traded and sold online without the assistance of any intermediates. Despite the fact that it is very unique and flighty and the changes don't actually have a set example because of which it is a significant bet. Bitcoin, bitcoin money, Litecoin, Dogecoin, and Ethereum are probably the most broadly known and top ten types of computerized monetary forms.

Digital currency has no inherent worth at all, because of which financial specialists see themselves in a very weak position. On the off chance that the market vacillates, they will lose enormous money. Other than this as there is anything but a solitary chairman, things can get very capricious because of that also. By and large this whole cycle is very unsafe.

 

[Josemendez]

Stable coin and CBDC will still have users because currently USDT which is a stable coin occupy either the fifth or sixth position in the Crypto currency leaderboard because people used it as entry point for trading and used for payment for goods and services. CBDC will take that shape too.

With respect to USDt I will agree with you ,but for CBDC , I don't think it will be possible , because CBDC presently is only available within the country , no CBDC has gotten international approval ,thus one can't be able to use it for international transaction

 

[Nurudeen]

It is not really possible to have a stable coin in the crypto currency exchange Business. Volatility is part of the business that's why you need to know the technical analysis on how the crypto currency Business works. The technical chart will let you know when a coin is going bearish or bullish so it's a must have knowledge for newbie.

 

[Trojan8]

The volatility index is a very helpful tool in determining the movement of prices. I think it's a necessary to for any trader to have on his Arsenal if he hopes to be a successful trader. Combining it with current market news works wonders in analyzing good trades.