4 objections to: “Bitcoin is too volatile!”
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2 min readNov 27, 2020
- Bitcoin is not the only cryptocurrency. So, a criticism one of cryptocurrency is not necessarily (nor probably) a criticism of another cryptocurrency.
- Volatility is only one aspect of an asset. It’s not like one can cite volatility and then (rationally) say “CHECKMATE!”. As we learned as children, one has to weigh all the pros and cons of something before forming a final conclusion or making a decision. And nobody ever said Bitcoin wasn’t volatile, but if someone is going to say “too volatile” then they are going to have to be more specific. Too volatile for what? And does anyone disagree that Bitcoin is too volatile for x?
- Just because it’s volatile now does not mean it will be as volatile in the future. Just think of large cap stocks; when they were small cap stocks, they were a lot more volatile. It’s not as if volatility is something that is set in stone.
- The U.S. dollar loses value every year due to inflation (the Federal Reserve printing money). But I would never pretend that this fact alone is a conversation stopper. After all, in addition to money being a store of value, it also functions as a medium of exchange and unit of account.
