Bitcoin: Will it stop fluctuating and gain stability?
The answer to the question is that till the time the Bitcoin market starts to grow into trillions, the market will remain to fluctuate, and it is highly unlikely that the BTC market will not be stable to function as a currency.
One can always liquidate their cash without changing its price because practically one deals in fiat currency.
Major central banks and countries across the globe are reluctant to support the growth of Bitcoin as an alternative currency. All of this results in Bitcoin having a smaller market cap and less liquidity than fiat currencies.
The Bitcoin market is extremely small, and whenever any investor enters the market, the graph immediately shoots as the investor creates a massive ripple effect on the price. However, once the Bitcoin market expands, the price will be stable, and no one can influence the market.
In countries like Venezuela and Zimbabwe, Bitcoin is massively famous as the traditional money systems have failed in those areas. If Bitcoin becomes sufficiently liquid, the price of the BTC will witness less fluctuation.
If the Bitcoin price declines, it could be brought on by a network failure, new laws, stability problems, superior alternatives, or anything else that deters users from using it.
FAQs:
- What is Bitcoin?
Bitcoin refers to a digital currency that maintains a record of the transaction. It works without a central bank, creating new units of currency through the computational solving of mathematical problems. - Is Bitcoin real money?
No, Bitcoin is a form of digital currency.
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