Volatility has become one of the core issues that are linked with the world of cryptocurrencies. Huge price spikes and drops occur within a matter of minutes. As the market was seeing a recovery from the major downfall it had recently, in the past couple of days, things have turned back again and the market is back on the downward hill. Major reds are being shown by some major cryptocurrencies in the game on CoinMarketCap. What does this volatility mean for this nascent world?
In order to get a perspective on this situation, BlockPublisher got in touch with a very famous name in the world of blockchain, Thomas Power. Thomas is a member of the board of directors at BICRA (Blockchain Industry Compliance and Regulation Association). Upon being inquired about any remarks that he might have had regarding the market showing major reds, Thomas replied:
Not really. It’s a real market get used to volatility. Volatility is a good thing as it makes markets work.
Thomas suggested that it’s about time we accept the volatility associated with the world of cryptos as it is a real market. As stated by him, volatility makes markets work so maybe, the problem might not be that big as it is considered.
Volatility is one of the reasons why an ETF has not been approved by the United States Securities and Exchange Commission (SEC). Owing to the sudden price fluctuations, it also becomes natural not to use cryptocurrencies as a source of making payments. Within a matter of hours, the market is seen going in a totally different direction. A negative image has somewhat been established in the media owing to these price shifts as people start to question the credibility and worth of these digital assets. But as suggested by Thomas, it might not be that big of an issue. It might even help push this market to grow and mature.
The world of cryptos is still pretty nascent right now. A lot of developments need to be made. A lot of issues need to be solved, with volatility being one of them. Moving into 2019, it will be very interesting to see how things turn out for this market as improvements are made.