The volatility of cryptocurrencies in four questions.

  • Cryptos are less widespread: there are fewer buyers and sellers in the crypto market and therefore less liquidity than traditional financial markets. As a result, prices fluctuate more when there are large transactions.
  • The crypto market is accessible to everyone and never closes, unlike stock markets which are subject to opening hours. The crypto market reacts instantly to all news, good or bad, sometimes even true or false. We are often tempted to make hasty decisions, without taking enough time to analyze news, to make a decision with hindsight and reason.
  • Some cryptos, like Bitcoin, do not have a central authority to intervene and stabilize their prices. Note that the fact that cryptocurrencies are beyond the control of banks and states is what constitutes a large part of their value.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
ART CAN DIE

ART CAN DIE

A web3 ecosystem connecting artists, collectors and the public to collectively produce physical and digital art. www.artcandie.com