Anything of value created ex nihilo is going to be volatile, in that it has to start from zero and go through price discovery--with a very small initial number of users in Bitcoin's case. Bitcoin's volatility in dollar terms looks both healthy and like what one ought to expect from a market trying to price something novel.
Take, for instance, the sharp dips whenever something 'goes wrong'. Weaker hands panic, while those whose confidence in Bitcoin endures pick up the wealth transfer.
VogueBlackheart14 karma
Anything of value created ex nihilo is going to be volatile, in that it has to start from zero and go through price discovery--with a very small initial number of users in Bitcoin's case. Bitcoin's volatility in dollar terms looks both healthy and like what one ought to expect from a market trying to price something novel.
Take, for instance, the sharp dips whenever something 'goes wrong'. Weaker hands panic, while those whose confidence in Bitcoin endures pick up the wealth transfer.
View HistoryShare Link