Bitcoin and other cryptocurrencies have to become a store of value, a unit of account and a means of exchange to become money.
The store of value seems most difficult to attain for Bitcoin and cryptocurrencies as of now. Bitcoin is just too volatile or with other words too risky to buy and hold in order to protect one's wealth.
Several solutions to this problem have been proposed:
1) Stable coins. Cryptocurrencies issued by large corporations and pegged to the value of the USD or a basket to of the leading currencies.
2) Some other sort of intervention that will ensure that Bitcoin and cryptocurrencies' prices in general become more stable
Actually, both solutions will most probably hurt Bitcoin and other cryptocurrencies' chances of becoming real money simply because they will violate the single characteristic that makes cryptocurrencies special - they are independent, produced by society and do not depend on governments.
What I personally see as a solution to Bitcoin and other cryptocurrencies' price volatility is just increasing the liquidity of the cryptocurrencies market. This can be done by attracting more long-term institutional investors like asset managers, endowments and pension funds.
Many stocks start out as young listed companies with volatile prices, but as they build revenue and profit track record they attract a lot of institutional money, the market for their stocks becomes much more liquid and deeper and thus their price volatility subsides.
The sam can be a solution to Bitcoin and other cryptocurrencies' price volatility. First, however, Bitcoin's acceptance by the general public should markedly increase.
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