Are Bitcoins truly as unstable as the media portrays them?
Cryptocurrency
Asked by Question Bot05/Dec/20131 answer
1 Answer
F
Faisal Khan
Answered 05/Dec/2013
Think of the US Dollar newly minted for the very 1st time today.
Think that there will only be 21 Million US Dollars into the system.
What do you think will happen in the early days when the news spreads? People will flock towards it like wild fire no? That is exactly happening with Bitcoins.
It will eventually settle down... give it time. All currencies are unstable, as are all economies, given the total "life" of this new currency, I'd say it is being target unfairly by a media that just doesn't understand it.
Oh, have no doubt, the US Dollar is used more in crime a lot. Is that a crime (no pun intended) of the currency? or the user?
The price gets to be unstable when speculators enter and exit quickly. Once more merchants start accepting Bitcoins and more and more people start trading with these merchants using Bitcoins, the speculative influence will be reduced significantly, hence reducing the volatility swings as we have seen with the currency lately.
Think that there will only be 21 Million US Dollars into the system.
What do you think will happen in the early days when the news spreads? People will flock towards it like wild fire no? That is exactly happening with Bitcoins.
It will eventually settle down... give it time. All currencies are unstable, as are all economies, given the total "life" of this new currency, I'd say it is being target unfairly by a media that just doesn't understand it.
Oh, have no doubt, the US Dollar is used more in crime a lot. Is that a crime (no pun intended) of the currency? or the user?
The price gets to be unstable when speculators enter and exit quickly. Once more merchants start accepting Bitcoins and more and more people start trading with these merchants using Bitcoins, the speculative influence will be reduced significantly, hence reducing the volatility swings as we have seen with the currency lately.