The Solution to Market Volatility is Adoption, Says Jameson Lopp

Whenever we talk about cryptocurrency in general now-a-days, especially keeping in view the performance of the currencies for the past few months, volatility is the word that comes to mind. Recently, the market has kicked it up a notch by dropping $17 billion in valuation. The highly reputed currencies, superior in terms of volumes, like ETH, BTC and XRP have been performing poorly in terms of valuation. People have been selling off their cryptos and are reverting to the old money because of the series of plunges in the past few months.

Jameson Lopp talking to BlockPublisher identified the problem of volatility and linked it to adoption. People instead of moving towards crypto are being skeptical about investing in the space. The manipulative and fraudulent activities are killing crypto which is also the reason why SEC is being skeptical about the ETF approval. The currencies are facing drops in valuation and volumes because of the sell offs. According to Thomas, the plunge in valuation is pushing people to sell their currency because of the mining costs which are exceeding the currency’s valuation. According to Thomas,

Mining is a cold sport. Bitmain and Bitfury are the only two who can mine at that price ($3,000 for BTC -Thomas’ prediction) and still survive. They have the lowest cost operations with mining farms in cold zones.

The key point here is that the crypto space is lacking the adoption that it needs right now. Much like other stores of value, it needs adoption to become stable. Jameson Lopp stated in this context talking to BlockPublisher,

It’s (Elimination of volatility) not something that can be guaranteed, but rather will have to work itself out. If it grows to a similar level of adoption as other common stores of value, I expect the volatility will be similar to what you see between common stores of value today.

Upon inquiry by team BlockPublsiher that if he thought that the ETF could fix the situation of market volatility, he stated,

That may help though I seriously doubt that it will significantly reduce volatility on its own.

Perhaps utility and adoption is the answer to the worries of the investors now a days. Adding the right utility to currencies might be the way to tackle this.

Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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