Author: Jeff Garzik 2013-12-11 01:01:52
Published on: 2013-12-11T01:01:52+00:00
Bitcoin's volatility is due to low liquidity and a small issue, which allows a single big player to move the market easily. Common financial tools like shorting, futures/options are not widely available. This is not specific to bitcoin but common for other small issues as well. Bitcoin's volatility reflects its future acceptance, which is based on sources that are inherently volatile. Proof-of-work is missing from society's end, which adds instability to Bitcoin. As time goes on, laws, regulations, and policies will start to form, adding stability to Bitcoin. Jeff Garzik, a Bitcoin core developer, suggests that this discussion is off-topic for a development mailing list.
Updated on: 2023-06-07T22:19:40.344682+00:00