Noelle Acheson is a 10-year veteran of company analysis, corporate finance and fund management, and is a member of CoinDesk’s product team.
The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to our subscribers.
After teasing us for most late 2016, bitcoin *almost* reached a new all-time high in the first week of 2017. That is, before startling everyone with a sharp crash, rally and correction.
The headlines were gripping, and transmitted that edge-of-your-seat feeling that something big was going on.
But was there?
I don’t want to imply that price movements aren’t important. A steady increase sends a message, as does a sharp plunge. But the messages sent mask the real news – bitcoin is becoming a valid alternative to fiat currencies, not because of its price, but because of its relative lack of volatility.
Yes, I do mean “lack of”.
A 20% slump in one day is severe, certainly, and has no doubt caused short-term traders considerable stress. But, in the big picture, it’s not material.
We need to remember that, after the initial slump, bitcoin’s price ended up roughly where it was at the beginning of the week. No one can deny that
Read more ... source: CoinDesk
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