Topic: [2014-12-29] How 'Bitbanks' Could Solve Bitcoin's Volatility Problem (Read 532 times)
December 29, 2014, 11:17:01 AM
So, shortly put: Loans are the solution, but can't be made because of anonymity? Bitbanks can't be the solution. Although BTC loans are an attractive concept in certain cases.
December 29, 2014, 12:09:06 AM
http://www.coindesk.com/bitbanks-solve-bitcoins-volatility-problem/
Everywhere in the modern world, money is plagued with political problems. Bitcoin’s success, with no help – and, indeed, much opposition – from political authorities around the world, shows just how valuable it is to avoid these problems.
Nevertheless, as important an innovation as cryptocurrency is, it comes with its own unique problems. Bitcoin in particular has been notoriously unstable in value, making its success all the more remarkable. Since its inception, its exchange rate against the US dollar has frequently jumped or crashed over 20%, and sometimes nearly as much as 50%, in the course of a single day (see the chart below).
Everywhere in the modern world, money is plagued with political problems. Bitcoin’s success, with no help – and, indeed, much opposition – from political authorities around the world, shows just how valuable it is to avoid these problems.
Nevertheless, as important an innovation as cryptocurrency is, it comes with its own unique problems. Bitcoin in particular has been notoriously unstable in value, making its success all the more remarkable. Since its inception, its exchange rate against the US dollar has frequently jumped or crashed over 20%, and sometimes nearly as much as 50%, in the course of a single day (see the chart below).
Jump to: