Bitcoin Price Volatility Effects
Bitcoin Price Volatility
Bitcoin price is a roller coaster ride. It can change in a span of an hour and can really be so unpredictable. Bitcoin price will give you a whirlwind emotional experience just within a day and if you are into a challenge of investing, this is right for you. It can drop and increase in an instant even as fast as your heartbeat.
Is it a good thing or a bad thing? What are the effects of this price volatility in the market? Does it affect the investors? What about the everyday users of the said coin?
Bitcoin Price Volatility Effect to Investors
Bitcoin price can affect investors in many different ways. Some traders love volatility and accept the risk and gain money out of it. Others on the other hand find it too risky. This is especially if they are fund managers and long term investors. This can give them uncertainty and can make them lose their money.
Bitcoin Price Volatility Effect to Regular Users
If you are a regular Bitcoin user, this volatile price can give you a headache. This goes as well for businesses who use Bitcoin in their transactions. Stakeholders don’t know if you are giving them a fair price if one time the price is high and on your next transaction it drops down. How much are you going to pay? Where can you rely for an actual bitcoin price? How much are you going to charge that you will not lose any money and that your customer wouldn’t feel cheated. These are the agony of the common users of the digital currency who are using the coin in day-to-day operations.
To ease the risk and confusion to the businesses and ordinary people who are using bitcoin, they are seeking for a benchmark rate. This way, companies can give a fair price to their customers strategically without losing money. On the other hand, the consumers are being saved from the hassle of converting and predicting the bitcoin price every time they need to buy something. Securing bitcoin is risky enough for them, evaluating the bitcoin trading is just another burden for them.
Bitcoin is not your ordinary currency, which you can trade for services and goods without noticing or paying much attention to fluctuation rate. It is the type of currency that you can seriously think as an investment which you can play with the market.
Experts know that not all people are investors and some can’t take the hassle and the risk of Bitcoin price, thus, they create algorithms to secure the public that the bitcoin price volatility is manageable and they can continue with their everyday operation without thinking too much about the price, just like your ordinary fiat currency. However, what is great about Bitcoin is once you have it, you have a choice. Either you join the risk of investing or to remain a satisfied user.