The price of bitcoin is highly volatile today and that is one of the most often stated criticisms held against bitcoin.
- Bitcoin can never be used as money, it's to volatile!
However, I think the #volatility of bitcoin will go down as it becomes a larger part of the economy. In fact, I'm certain it will.
In a future with bitcoin as the primary currency in the world, I believe the volatility of bitcoin will be less than the current volatility of the largest currencies (CNY, USD, EUR, JPY) today.
Infact some interpolation of data suggests that to be the case already in a few years. This might be a couple of years to soon I think, but really if it's 2022 instead of 2019, does it make much difference in the grand scheme of things?
Whats Special in this Article
Bitcoin was created in 2009 by a mysterious character who claimed it to be a payments network. But unlike most other payment networks like PayPal and Visa, it screwed with our minds by having its own token.
A token that had a price that floated against other currencies. In basic terms, this means if you fund a bitcoin wallet to buy something, it may be worth less (or more) by the time you come around to spending it.
This is the story of bitcoin volatility, we’ll be studying its personality over its short and notorious history.
It was partly inspired by Vinny Lingham who calculated Bitcoin will achieve the necessary price stability to be a store of value at $3000 per coin (~$50b market cap), and estimated that to be two year away. We shall see if the data backs this up.