Bitcoin Value Exhibits Volatility, Like Other Currencies
The Bitcoin price, or to be more precise, the value of Bitcoin in relation to a particular fiat currency, has recently been falling. This may not necessarily be a bad thing. For too long, the ability of Bitcoin to function as a currency, has been somewhat restricted by tales of its success as an investment. The currency has, until recently, been a victim of its own success. Investors had been coming on board with the sole intention of acquiring bitcoins and hoarding them with the intention of selling them in the future at a significant profit. They were encouraged to do this by the almost....
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The Bank of Canada has released a report that uses a prediction model to predict volatility of bitcoin and other digital currencies. Read more... Researchers from the Bank of Canada have developed a model to predict the volatility of cryptocurrencies like Bitcoin and other altcoins. The adoption of Bitcoin and other digital currencies has been slower than expected. The volatile nature of Bitcoin is one of the reasons for slower adoption. People are worried about the possibility of a downward fluctuation, which may result in huge losses. While it is necessary to rein in Bitcoin’s volatility....
Day two of the Inside Bitcoins NYC Conference turned out to be a massive success just as day one. The focus shifted from emerging Bitcoin tech towards the regulatory and start-up side of the industry. Leading off day two was a keynote panel consisting of Barry Silbert, Greg Schvey, Gil Luria, George Samman, and Lou Kerner. Highlights from this include two important quotes from Barry Silbert, in which he claims there is The next notable speaker, John G. Collins, addressed congressional perspectives on Bitcoin and digital currencies. He essentially said that the US government is approaching....
Since its birth in 2008, financial experts and institutional investors have criticized the viability of Bitcoin as an independent currency, due to its highly unstable volatility rate. According to data provided by the Bitcoin Volatility Index, however, the volatility of bitcoin price against major currencies such as US Dollars have declined significantly since 2010. More importantly, the rate of volatility has decreased at a consistent pace, dropping at an average rate of 25% per year. At the beginning of 2011, the standard deviation of daily returns (volatility rate) recorded around 8.5%.....
Bitcoin volatility has fallen since 2011 and compared to the U.S. dollar currently sits at about 3-4 times higher than the Japanese yen, British pound, and euro. High volatility in the digital currency space has long been cited as a reason against adoption. But, as charts and analysis demonstrate, it is very likely that Bitcoin volatility is trending....
One of the things people love to refer to is how the Bitcoin price is relatively unstable. While there is a certain truth to this story, these same people tend to forget how volatile fiat currencies are as well. A currency like the US Dollar, Euro or Pound Sterling is as volatile as Bitcoin, although we are talking about lower volumes here. The question....