Bobby Lee: low volatility of Bitcoin is a sign of his maturity
Bobby Lee (Bobby Lee), one of the founders and the head of a major Chinese cryptocurrency exchanges BTCC, said recently that the declining volatility of Bitcoin is a sign of maturity, showing that the store of value can really be digital in nature.
Last year, the volatility of Bitcoin has dropped considerably, down from 4.97% at mid-year to 1.41% in December. Greater stability Bitcoin has achieved in 2016, when he is overtaken in the market capitalization of a reserve and national currency.
In the second half of this year, the cryptocurrency sector enjoyed great attention from the media, since Bitcoin was less volatile than the British pound, which today is considered one of the world's major reserve currencies.
There is no doubt that in 2016 the Bitcoin has proved its value as a store of value and global currency, demonstrating the low volatility and strong performance in terms of price, trading volume and market capitalization.
Approving the decrease of volatility of Bitcoin, Li said: "Low volatility the price of Bitcoin is very good; it is a sign of maturity, that the means of accumulation can have a digital character."
However, some investors, professionals and traders are questioning the benefits of volatility to users, in particular, to assets or currencies like Bitcoin, the cost of which is growing exponentially. However, Andreas Antonopoulos and other leading experts of cryptocurrency industry explain that for the functioning of Bitcoin as currency is needed to maintain a low level of volatility.
In the middle of 2015, when the price of Bitcoin has demonstrated a sharp increase in demand, Antonopoulos stated:
"Don't get too excited about the recent "short squeeze" and rapid rise of prices. Volatility is bad, even if the price goes up".
Most experts of cryptocurrency and the financial industry agree with the statements of Antonopoulos. As Bitcoin is constantly evolving both technological and economic level, the basic contingent of sellers and regular users considering Bitcoin as a truly global currency that can replace alternative assets will grow.
Thus, to continue the growth and stability of Bitcoin are very important for the low level of volatility.
For example, improving the stability of Bitcoin becomes profitable for traders who rely on transactions and payments in bitcoins for the sale of its products and services on the Internet and beyond. Prior to this, most sellers used the function-blocking cryptocurrency payments up to a certain amount to protect themselves from the highly volatile price of Bitcoin.
Over time, as stabilnosti and recognition of Bitcoin as a global store of value will increase, will increase its price, the number of active users and the coverage of the audience, and he will establish itself as a decentralized and efficient means of preserving the value of the broad masses of consumers.