2017 saw a big rise in Bitcoin, with the cryptocurrency becoming the talk of the town, but recently it has taken a bit of a dip.
TheStreet contributor David Yoe Williams shared his thoughts on why why Bitcoin is so unpredictable and why that volatility could be useful for investors.
According to Williams, Bitcoin is so volatile because it has such a small international presence. “That is in large measure why a great deal of traders have gotten involved with it. Because they can make money off the volatility,” Williams said.
Williams also noted that it is extremely interesting to compare Bitcoin to more established commodities like gold. With gold, Williams said the volalitity is far less because gold has been around for thousands of years, it’s part of the banking system and people hold it.
In the next thousand years, will Bitcoin be held to the same standard as gold or is it a passing fad?
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