One of the innate feature of the crypto market has been its instability. Volatility and manipulation are some of the major issues that are associated with cryptocurrencies. General public and investors hold back from entering this market owing to these problem. But is volatility going to be a reason behind the demise of this market or its just an evolutionary process through which it is going? Crypto analyst Eric Thies shares his views.
Upon inquiry by BlockPublisher about how the issue of volatility and manipulation can be solved, Eric stated:
With time. Emerging markets are always less than stable and once there are enough hands in the pot, the price typically stables out. BTC volatility is a great example. 2011-2014 charts are much more explosive (both up and down) and have enormous wicks on the price. That is becoming less and less evident now b/c there are more interests in holding it stable. Same should happen with alts.
The market itself is nascent as a whole right now. Just like every technological innovation, it is going to take time before it gains flight and matures. The acceptance shown by the public and institutional investors is also low as of yet. One day the crypto market is seen going through the roof and the next day, it comes crumbling down. No one wants to invest in something that possesses so much uncertainty and instability.
In order for the market to grow and mature, there are a lot of developments that need to be seen before it can be called even mildly stable. The establishment of a crypto-linked exchange-traded fund (ETF) and platforms like Bakkt will help improve the overall situation of the market. Some also suggest that a market crash is going to drive crypto towards more acceptance.
Talking to BlockPublisher regarding this scenario, Thomas Power, a board member at 9 Spokes, stated:
Crashes make markets. Crashes create new asset classes like cryptos. Crypto is a new payment mechanism for people’s attention.
Thomas also suggested:
The global economic crash of 2020-2022 will drive crypto trust.
Also, there are a lot of issues that are linked to this emerging market as of yet such as lack of regulations, prevalence of illegal activities etc. In order for this market to mature, these issues need to be solved first. But as is the case with any other technological innovation, time is needed for this world to grow. As Thomas previously stated:
…for sure you must always wait 15 to 18 years for a new technology to be hyped challenged accepted adopted
#crypto is no different people are just hoping for this exponential everything’s speeded up thing which is total nonsense humans are humans and we need time to grasp.