In it, the regulator openly worries
about cryptocurrency volatility and whether future potential listings have done enough to protect investors.
Most immediately, authorities seem to be worried
about cryptocurrency volatility impacting traditional markets.
Markets for ether, the cryptocurrency linked to the ethereum distributed computing platform, were rocked yesterday by a huge flash crash that saw prices fall from over $ 365 down to as low as 10 cents on one exchange before bouncing back shortly afterwards — an event that is mildly worrying for anyone concerned
about cryptocurrency volatility, but has had devastating consequences for some professional traders who have seen their holdings wiped out.
Not exact matches
Given bitcoin's notorious
volatility, some have raised questions
about whether
cryptocurrency derivatives are ready for traditional financial markets.
By launching LitePay, Litecoin is delivering a system whereby businesses can accept
cryptocurrency without having to worry
about slow transactions or price
volatility.
Others worry
about the
cryptocurrencies»
volatility — among other things.
Security, convertibility,
volatility and other considerations users need to understand
about bitcoin and
cryptocurrencies.
They are working with banking institutions to blend traditional fiat currencies with the emerging crypto world to benefit both businesses and customers by offering smart contracts and blockchain transparency, without having to worry
about the
volatility of traditional
cryptocurrencies like Bitcoin and Ethereum.
On Thursday, the U.S. Securities and Exchange Commission's investment management division director, Dalia Blass, published his concerns
about cryptocurrency market
volatility.
Even though the world's most well - known
cryptocurrency has grown by over 1000 % in 2017 alone, it is still plagued by bouts of
volatility and unpredictability, making some potential investors still a bit apprehensive
about it.
It also reminded investors
about the potential risks in trading
cryptocurrencies including insufficient liquidity and price
volatility.
Collaterals are used to secure loans however
cryptocurrencies have been subject to much
volatility in the past which is making general consumers wary
about its use as a collateral.
Despite the significant levels of
volatility and price fluctuations, our research reveals many financial professionals remain optimistic
about the future for
cryptocurrencies», he added.
As bitcoin prices suffer their deepest one - day decline in a month, Russia's economic development minister is issuing a timely warning
about the
cryptocurrency's infamous
volatility levels.
«Daily BTC / USD
volatility is around 5 %, which is
about 5 - 7 times the
volatility of a major forex cross,» points out Robert Sams, a
cryptocurrency economics consultant with 11 years of experience in hedge funds.
Where other countries like China and India express their concern
about the
cryptocurrency craze, citing worries
about security, regulation,
volatility and a speculative bubble, same Switzerland embraces the
cryptocurrency culture.
Since the price is difficult to ascertain, one thing I am pretty confident
about is that
volatility will be high once this
cryptocurrency is introduced.
One would expect Bitcoin to drop drastically in price as the fork approached and even more once the fork went live, however BCH has mined its first block more than 5 hours after going live as Bitcoin is more than 30 block ahead, the price of Bitcoin has remained stable, only dropping
about 2 % which is negligible considering the historic
volatility of
cryptocurrencies.
Recent
volatility has left many crypto investors not only bloodied and bruised but concerned
about the overall future of
cryptocurrencies as a safe haven asset like Satoshi Nakamoto envisioned.
It should be noted that both the SEC and CFTC have issued warnings
about the
volatility of
cryptocurrency and that they may not be able to protect investors from crypto scam artists.
«Since investors have only one brain to process risk, they will make similar decisions
about cryptocurrencies and stocks when they see price
volatility in the latter.»
Investors are warned
about the
volatility of
cryptocurrencies, this quick recovery is proof of how quick it can change.
Indeed it is also quite ironic that Nigerians should be warned
about the risks of
cryptocurrency volatility while the risks of losing money to an infamous Nigerian 419 scam are almost certain.
Experts are speculating
about the future of
cryptocurrencies and what can be done to reduce the
volatility.
These predictions come packaged in the usual caveats
about short term
volatility coupled with an overall understanding that
cryptocurrency is an experiment, not a risk - free investment opportunity.
Teaching the next generation
about cryptocurrency's potential, though, should also include a word of warning
about its risks, both in terms of
volatility and security.