Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Monday, February 12, 2024

Bitcoin And Volatility


Bitcoin investing risk can be measured by Bitcoin's price volatility.

Bitcoin price's high volatility is one of the main reason Bitcoin has not become mainstream by now.

Since Bitcoin's price volatility prevents to an extent the store of value function of money Bitcoin is striving for. 

The main thing preventing US pension funds, the largest institutional investors from investing in Bitcoin is it's high volatility, which is mainly due to Bitcoin's low liquidity.

Hedge funds and limited number of asset managers invest in Bitcoin. But this is not enough to start the liquidity begets liquidity virtuous cycle.

Involving the public into investing in Bitcoin is the thing that could grease the wheels of cryptocurrencies trading liquidity. Much like with common stocks. When the general public in the USA started investing in stocks en masse in the 1930s, stocks market liquidity went up a lot giving broader rise to institutional investing. 

General public investing not only in cryptocurrencies, but in cryptocurrencies stocks could increase cryptocurrencies liquidity.

The media could help in this regard. But first, the cryptocurrencies system has to be cleansed from bad actors.

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