How does Bitcoin compar e?The volatility of cryptocurrencies, including Bitcoin, is undeniable. For instance, Bitcoin doubled in value and hit an all-time high of $64,000 in the first half of 2021. Nevertheless, it dropped back to less than $30,000 during the summer. The price of Bitcoin then increased once more in November. In January 2022, the price dropped below $35,000, this time to $68,000 (another all-time high).
And that’s only one instance. Bitcoin has had a remarkable price history since its inception in 2009, with numerous noteworthy declines.
Because of the broad climate of legal, political, institutional, and technological uncertainty that surrounds cryptocurrencies, volatility is practically a guarantee for all of them. The first cryptocurrency ever made was called Bitcoin. It is not only the priciest cryptocurrency. It is also arguably the most well-known and has taken center stage in the whole blockchain and cryptocurrency industry. Bitcoin may have been the coin that made established financial services firms, the public, and the government take cryptocurrencies seriously. Bitcoin is becoming more and more popular among millions of regular people as a trading, saving, and investing instrument. An investor should, however, carefully assess a cryptocurrency’s volatility before investing.
Volatility is neither good nor bad.
Additionally, cryptocurrency traders, holders, and investors may experience FOMO, or the fear of missing out, if this volatility results in a sharp decline in the price of Bitcoin. Crypto aficionados can find it difficult to choose between buying and holding more cryptocurrency or giving up their hard-earned money.
Bitcoin traders and owners, particularly those who are holding substantial quantities of the cryptocurrency at the time, may become highly thrilled if the price increases. In the meantime, the situation can seem appalling to individuals who do not have enough cash on hand.
On the other side, owners of substantial quantities of Bitcoin can potentially regret not selling their coins sooner if the price declines sharply. Instead, it is a phenomenon that occurs for various reasons in all financial markets. The volatility of cryptocurrencies may be seen by those who are skeptical about them as a warning sign and an excuse to avoid. But occasionally, a new, high-growth asset like a cryptocurrency might profit from volatility.
That’s what’s going on right now, with rich venture capitalists swarming to cryptocurrencies and traders hoping to make money. Technical innovation and the establishment of new start-ups can both benefit from venture capital funding. Additionally, fresh capital entering the market frequently results in more liquidity, which supports sound financial markets.
Simple curiosity and the FOMO factor
We discussed before that both can benefit from cryptocurrency. For instance, a few sizable traditional financial services firms (TradFi), who previously opposed cryptocurrencies, are now expressing interest in the space.
Disclaimer: As of right now, cryptocurrency items are not regulated in India. They might be very erratic. Given that there are hazards associated with this type of trading and investment that customers might not be aware of, we recognize the need to safeguard their interests. Customers who purchase cryptocurrency products are encouraged to DYOR (Do Your Research) to make sure they are not duped.
