Is volatility a good thing?
UNO has very low inflation, but as price rises there should be a fair share of miners selling at market spot (say 5kg/day).
So that is the only real supply at any price.
The ASKS will be high. (hodlrs)
The wall/large BIDS will be conservative based on MA.
This leaves for a wide spread and constant volatility.
And this trend would likely widen as rewards drop to near zero.
UNO maybe perfect for both traders and investors.
In finances the risk is determined with volatility. The more volatility there is the riskier instrument. Funny that an investment that only goes up, let's say 1000 yrs. a row every single day with some high percentage, it is considered as a risky investement because it moves so much. So, volatility is not probably the best measure for risk, but it is "official" in the textbooks.
Volatility, if it is both up and down is not necessarily a good thing and it is a sign of immature markets. The traders who sells high and buys low make the market more mature ie less movements. In general despite some occasional pumps and dumps UNO looks very stable in pricewise (or stably growing I would say).
However, at some points there must be breakthroughs - even without pumps. It is due to the fact that there is only a few coins mined daily and there is more buying pressure than 15 coins a day. When there is more demand than supply, the price is forced to go up. And at some point the heat for sellers is so high that they need to give up and let it rise. This makes the large pumps... We need some bitcoins in sidelines to waite for dumps, too. To give support for the price whenever it is needed the most.
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