In bitcoin rally making bitcoin unusable? The problems of speculative market
Yesterday steam announced that it will no longer support Bitcoin. Here you can find reasons
December 2017 is showing An Incredible bitcoin rally.
This is a great thing for bitcoin holfers, that are having huge gains And spamming The net with #tothemoon and #lambo hashtags.
But there are some Greta trade-off: bitcoin is becaming a pure speculative asset And is losing its monetary value, becaming unusable as payment method.
In fact, as more emotional and low-skilled or simply speculative traders enter into the market, price volatility is greatly increasing. So bitcoin is more difficult to use for payment, because value chages too fast.
By the other hand, if BTC price rises, also the fees needed to move BTC will rise too, reducing the advantages of using bitcoin.
So, this speculative market is compromising bitcoin's value as an alternative to fiat money for payments.
See, for example, the recent steam announcment about bitcoin payments
In conclusion, considering that as bitcoin grows we are observing in last days
- increasing volatility
- higher fees
I believe that using bitcoin as money will continue to became harder day by day.
Other similar announcementsfrom other companyes will probably follow.
Have a nice day and be careful with your bitcoins!