Bitcoin’s wild price swings are probably the biggest impediment to mainstream adoption. Many expect BTC to become more stable as it gradually matures, but that not might be the case.
In her latest op-ed article, CoinDesk’s Director of Research Noelle Acheson argues that Bitcoin volatility will not dampen even with an increase in liquidity.
While citing Mervyn King’s book “The End of Alchemy,” she argues that it’s all about the narrative surrounding Bitcoin rather its pure fundamentals.
“Bitcoin is a new technology, and as such, we don’t yet know what its end use will be. Everyone has their theory, but as with all new technologies, no-one can be certain, which makes its narrative changeable.”
Acheson further explains that this narrative will only be dismissed when the coin that started it all manages to establish itself as a viable alternative asset. For now, we should just “accept and embrace” its volatile nature.
However, as reported by U.Today, Fundstrat’s Tom Lee opined that Bitcoin had already established itself as a hedge asset against global economic risks.