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RE: Bitcoin’s Innate Problems: Volatility and Mining Centralization

in #bitcoin5 years ago

Very interesting your post, although difficult to digest because there are many things that I find difficult to understand. Apparently, all tokens are affected by the volatility of Bitcoin. If it falls, they all fall and vice versa.

But who determined the value of the Bitcoin? Who decides? Who raises it? Who lowers it? I suppose the same people who make the fiat or the items fluctuate.

But I wanted to ask a question or comment: the volatility of Bitcoin and cryptocurrencies gives me the impression that they could be avoided if they were backed by an asset or by a decentralized project that gives a utility to the crypto active?

I'll explain myself: if someone creates a project with blockchain technology with a specific utility: medical, logistical, social, legal, governmental, whatever it is; obviously supported by its own blockchain cryptocurrency. Then the price of it, could be determined by its usefulness and not by the whim of a few.

Am I wrong?

Cheers!

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Not quite @jadams2k18

The fact that the market is unregulated and trades are not orderly is the reason for volatility. You'll be surprised as to how many tokens have real world utility, but are still volatile. Volatility ≠ lack of utility.

Volatility is the result of a young, unregulated, and infantile market. It is something we must bear in a market so small. It is something we must learn to ignore as the fundamentals grow.

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