Different people with different ways of viewing things. Our individual differences make us to be able to make judgement over issues, challenges or anything differently. When the cryptocurrency volatility is being discussed, we know it's related to cryptocurrency and cryptography. Volatility is the constant and unpredictable appreciation and depreciation of cryptocurrency at a steady rate. Cryptocurrency volatility should be totally condemned, castigated or criticised because no matter how bad something can be,it will surely have one or two advantages.
Why must cryptocurrency rate be volatile?
- Demand and supply
One of the reasons why cryptocurrency will always be volatile is because of demand and supply. Demand and supply base is on how people want to show interest to invest on a particular coin which is demand,while on the other hand how holders of the particular coin are willing to sell to supply those who are willing to invest is supply. That's why cryptocurrency and volatility can't be separated.
To give room for reinvestments.
Another reason is, the other part of cryptocurrency volatility is the dip systematically known as the bear market gives room for reinvestment. It's suitable and palatable to take advantage of cryptocurrency depreciation for an impending appreciation. If the cryptocurrency rate doesn't depreciates or volatiles to it bearish or dip state or nature the space to reinvest will be minimal.Introduction of the newbies.
Moreso,when the cryptocurrency volatility is also at the dip state,it gives room for newbies(new Investors) to come into the scene of cryptocurrency investment.
