Bitcoin is widely accepted as a safe haven, two factors to ensure currency price stability
In the actual project, if bitcoin prices continue to be stable if it would be difficult to obtain a dominant position in the financial market.
Since the bit at the end of 2013 currency prices recovered, it put the crypto currency to a new height, then the digital currency entered a period of relative calm. According to the CoinDeskBPI information exchange, in 2013 January, bitcoin prices fell to a two-year low of $214, compared with the highest price the price dropped by about 71.14%.
However, since bitcoin in January fell to the lowest in two years, bitcoin prices rose by 191% to $623.24. This price great fluctuation shows that the price of bitcoin is not stable. Wall Street analysts believe the stock is the highest level of risk assets, but we always think bitcoin more risk than it.
In the actual project, if bitcoin prices continue to be stable if it would be difficult to obtain a dominant position in the financial market. During the great depression, “the most unstable” stocks did not even show much volatility, but bitcoin indeed shows up. For example, in 2007 November 27th, market analysis company Ycharts because of the economic depression of the S & P 500 was down 50% to the lowest point.
So, here are some things that can make bitcoin prices more stable.
Bitcoin based assets of certain financial instruments
If bitcoin is not only a kind of digital currency is a kind of investment products, so the price of bitcoin is certainly stable. Therefore, in addition to being a digital currency, bitcoin investors need to have investment interest in it so as to stabilize the price. If there are no other problems, it will provide the trade volume stability of large demand, this will end bitcoin price instability.
However, with a large number of high-profile bitcoin hackers and theft, which makes people on long-term investment interest is very difficult to put money in the bitcoin. However, with the highly anticipated bitcoin Exchange Traded Fund (ETFs) appears, it will to some extent make long-term investment easier, because the transaction performance can investors only need to invest funds to track bitcoin, they will not have the risk of theft.
As an additional benefit, the underlying assets bitcoin into ETFs or other financial instruments if it will boost the security level of bitcoin. This is because, as more of the world’s rich people standing on the support bitcoin position, then people will make more efforts to ensure the security of encryption currency.
Once a bitcoin safer, more financial products will be linked with bitcoin, which will make bitcoin prices more stable. While bitcoin transactions will be very complicated, you will see the purchase of bitcoin bitcoin for unbelievable process for personal loans, personal loans and then used to enhance the credit rating.
Bitcoin is widely accepted as a safe haven
Gold trade is so prosperous, because of its attractive investments. A large part of its appeal is from it to be treated as a “safe haven asset level”. Bitcoin it is regarded as a commodity is of significance.
The first bitcoin to become an investment tool such as ETFs of the underlying assets, and then to achieve price stability needed. If you do, then the next 10 years bitcoin will be gold for 10 years. On the one hand is the gold in the past 15 years of development over stock. On the other hand, analysts predict the stock over the next twenty years and the bond performance will be greater than before.