"Rosenbluth suggested that more funds would invest in bitcoin if there was an exchange-traded fund (ETF) which held the digital currency. Shares in the ETF could then be easily bought and sold or used as hedge allowing investors to speculate on bitcoin's price movement without needing to directly own the digital currency."
ETF can be helping along this line and this can be the reason why there are those who are really pushing and applying the license needed to operate an ETF but the SEC is still having a hard time deciding on the applications. We are wishing that finally the government would give a green approval for ETF to be a part of the Bitcoin ecosystem so that it can help tame the wild volatility we are seeing right now on Bitcoin and other cryptocurrencies.
Topic: [2017-09-21] How bitcoin could overcome its wild reputation (Read 5811 times)
I think the volatility only exists in bitcoin because is still something very new. I know it exists since 2009, but only from the past 2 or 3 years people start really investing in it. Also right now, most people use BTC for trade, and not to buy things with it. If mass adoption ever occurs, the volatility will just go away. Right now if we want to use bitcoin, we actually don't have those many options, and since the price is increasing we also prefer to keep it, or trade it for profit. If we have a good offer from merchants, and we can buy cars, houses, or anything we like, we will stop trading BTC, and it's volatility will go away.
Volatility is a problem for currency that is widely accepted. Bitcoin is more like gold at this point. There are other coins that should be used as currency (have better technology) but Bitcoin is just too integrated into markets at this point.
Basically every crypto currency is subject to a heavy load of volatility, so nothing will change there. The only thing that could succeed is something like Tether that is tied to whatever fiat currency, but then in a much better way. Tether has proven to be untrustworthy when it comes to maintaining a 1:1 value ratio with the USD -- its value has gone well below the $1 level, and that directly trashes its entire purpose of existence. To add, it's extremely centralized as well....
The volatility of the crypto currency can not be reduced. It will always be very large. This attracts traders and enables many people to earn money. It is just necessary to get used to this and accept it as an obligatory feature of the crypto currency
First, I don't think that volatility is a problem for investors, Bitcoin is a high risk high reward type of investment, so if you have to invest smaller amounts to avoid risking more than you can afford to lose. For example, with gold you can expect that it will crash maximum 5 to 10% over some long period of time, while with Bitcoin you can expect 20-30% crashes, 50% crashes or even higher. But at the same time Bitcoin offers extremely high returns and at this point it's pretty clear that the technology is sound, it's not some future promise or prototype, Bitcoin is working flawlessly. People who suffer from volatility the most are merchants, and I think that volatility will be solved naturally as its adoption grows, because right now the future of its adoption is what driving the speculation.
Volatility is a problem for currency that is widely accepted. Bitcoin is more like gold at this point. There are other coins that should be used as currency (have better technology) but Bitcoin is just too integrated into markets at this point.
Basically every crypto currency is subject to a heavy load of volatility, so nothing will change there. The only thing that could succeed is something like Tether that is tied to whatever fiat currency, but then in a much better way. Tether has proven to be untrustworthy when it comes to maintaining a 1:1 value ratio with the USD -- its value has gone well below the $1 level, and that directly trashes its entire purpose of existence. To add, it's extremely centralized as well....
Bitcoin trade at $3610 right now and looks like they have succeed to spread the word against bitcoin, right?
Bitcoin has attracted a lot of criticism in recent weeks from big names including JPMorgan's Jamie Dimon and Bridgewater Associates founder Ray Dalio. A common criticism is that bitcoin is too volatile to be an effective store of wealth, unlike gold.
The only thing that matter here; how people react with this kind of statement, they know it's wrong or they think it's make sense.
Bitcoiners won't influenced by their words, but bitcoin price indicate the other side as it continue to decline toward $3500.
Well, we can't compare bitcoin with fiat currency, it's wont equal at this time, give bitcoin another 15 years and we'll find it differently.
Bitcoin has attracted a lot of criticism in recent weeks from big names including JPMorgan's Jamie Dimon and Bridgewater Associates founder Ray Dalio. A common criticism is that bitcoin is too volatile to be an effective store of wealth, unlike gold.
The only thing that matter here; how people react with this kind of statement, they know it's wrong or they think it's make sense.
Bitcoiners won't influenced by their words, but bitcoin price indicate the other side as it continue to decline toward $3500.
Well, we can't compare bitcoin with fiat currency, it's wont equal at this time, give bitcoin another 15 years and we'll find it differently.
Volatility is a problem for currency that is widely accepted. Bitcoin is more like gold at this point. There are other coins that should be used as currency (have better technology) but Bitcoin is just too integrated into markets at this point.
A major problem for bitcoin is its extreme volatility, which is a cause of concern for many investors. A lack of liquidity may be to blame for the cryptocurrency's volatile nature, an expert tells CNBC.
"The high volatility I think is due to the low liquidity we have on exchanges today," Cedric Jeanson, CEO of BitSpread, told CNBC's Street Signs on Thursday.
Bitcoin has attracted a lot of criticism in recent weeks from big names including JPMorgan's Jamie Dimon and Bridgewater Associates founder Ray Dalio. A common criticism is that bitcoin is too volatile to be an effective store of wealth, unlike gold.
The digital currency is currently trading at $3,883.76 per bitcoin. Year to date its value has risen by 289 percent, according to data on CoinDesk, but bitcoin also fell from a record high of around $4,991 at the start of September to as low as $2,989 by the middle of the month. That's a loss of 40 percent over less than two weeks.
Jeanson suggests that having more market makers, such as his company, can help to improve this liquidity problem.
"The important thing is to add market makers on these exchanges and have the appropriate rules, (such as) anti-money laundering and Know Your Customer, around those exchanges," he said.
Bitcoin's liquidity problem has repelled investors from the market for some time. Data from Morningstar published in May revealed only four out of 10,000 mutual funds in the U.S. held bitcoins in their portfolio. This aversion to bitcoin was attributed to the lack of liquidity.
"From a mutual fund perspective, liquidity is paramount," Todd Rosenbluth, director of ETF and mutual fund research at CRFA, told Reuters.
Rosenbluth suggested that more funds would invest in bitcoin if there was an exchange-traded fund (ETF) which held the digital currency. Shares in the ETF could then be easily bought and sold or used as hedge allowing investors to speculate on bitcoin's price movement without needing to directly own the digital currency.
For instance, many investors trade shares in the $34.32 billion SPDR Gold Trust ETF in order to gain exposure to gold.
Make way for market makers
BitSpread is a cryptocurrency wealth manager. One of its investment strategies, called Blockchain Wealth Active Growth, has grown 1,218 percent since its inception in June 2014, according to the company's website.
Jeanson says its funds are adding liquidity to some exchanges around the world. These exchanges are selected based on due diligence and whether they have the right rules.
"We are quoting at the moment something like half a billion dollars of bitcoin or digital currency every month. We became, I think, the biggest market maker on those selected exchanges," he said.
One other factor that may help to reduce volatility is greater regulation. Several countries, including Japan and China, are making moves to regulate crypto currencies. Market watches see these regulations as helping the market to mature and become more mainstream. Jeanson called this "great news" for digital currency.
https://www.cnbc.com/2017/09/21/bitcoin-volatility-how-digital-currency-can-overcome-wild-reputation.html
"The high volatility I think is due to the low liquidity we have on exchanges today," Cedric Jeanson, CEO of BitSpread, told CNBC's Street Signs on Thursday.
Bitcoin has attracted a lot of criticism in recent weeks from big names including JPMorgan's Jamie Dimon and Bridgewater Associates founder Ray Dalio. A common criticism is that bitcoin is too volatile to be an effective store of wealth, unlike gold.
The digital currency is currently trading at $3,883.76 per bitcoin. Year to date its value has risen by 289 percent, according to data on CoinDesk, but bitcoin also fell from a record high of around $4,991 at the start of September to as low as $2,989 by the middle of the month. That's a loss of 40 percent over less than two weeks.
Jeanson suggests that having more market makers, such as his company, can help to improve this liquidity problem.
"The important thing is to add market makers on these exchanges and have the appropriate rules, (such as) anti-money laundering and Know Your Customer, around those exchanges," he said.
Bitcoin's liquidity problem has repelled investors from the market for some time. Data from Morningstar published in May revealed only four out of 10,000 mutual funds in the U.S. held bitcoins in their portfolio. This aversion to bitcoin was attributed to the lack of liquidity.
"From a mutual fund perspective, liquidity is paramount," Todd Rosenbluth, director of ETF and mutual fund research at CRFA, told Reuters.
Rosenbluth suggested that more funds would invest in bitcoin if there was an exchange-traded fund (ETF) which held the digital currency. Shares in the ETF could then be easily bought and sold or used as hedge allowing investors to speculate on bitcoin's price movement without needing to directly own the digital currency.
For instance, many investors trade shares in the $34.32 billion SPDR Gold Trust ETF in order to gain exposure to gold.
Make way for market makers
BitSpread is a cryptocurrency wealth manager. One of its investment strategies, called Blockchain Wealth Active Growth, has grown 1,218 percent since its inception in June 2014, according to the company's website.
Jeanson says its funds are adding liquidity to some exchanges around the world. These exchanges are selected based on due diligence and whether they have the right rules.
"We are quoting at the moment something like half a billion dollars of bitcoin or digital currency every month. We became, I think, the biggest market maker on those selected exchanges," he said.
One other factor that may help to reduce volatility is greater regulation. Several countries, including Japan and China, are making moves to regulate crypto currencies. Market watches see these regulations as helping the market to mature and become more mainstream. Jeanson called this "great news" for digital currency.
https://www.cnbc.com/2017/09/21/bitcoin-volatility-how-digital-currency-can-overcome-wild-reputation.html
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