In the past few weeks. Bitcoin has undergone tremendous growth in value. Even-thought their hasn't been any significant changes in development. Or neither has a big company announced the acceptance of BTC as a currency. And neither has their been a spike in user adaptation. With user adaptation I mean using it as a currency, not to store it in a wallet and wait until the value has 'increased'.
On the contradictory, BTC has even been under fire from several governmental bodies. Several other institutes has also spoken against BTC. While this might not scare the cryptocurrenncy enthuosianst. The average Joe that doesn't anything about Bitcoin might take these messages from bankers and politicians a lot more serious. And it could make them resistant to get into cryptocurrencies.
Common sense says that when something gets a lot of negative attention. Then this particular asset shouldn't be doing very well in de crypto charts. But this doesn't seem to be the case.
There have been some minor corrections, but not very significant ones. Instead BTC started to behave very volatile. As seen in the below chart, which represents BTC's value of the past week.
The current trend seems to be that currently The price of BTC is swinging between $5200 and $5800. A difference of $600 in just a few hours. If the Dollar, Yen or Euro would behave like this, then everyone would go crazy.
As a result of these extreme price changes, companies that might think of accepting BTC will be a lot more hesitant to make the switch. After all if you need to explain to your clients that the value of the currency has gone up or down with 11%, in a few hours. Then this will causes for headaches then benefits.
This could form a major problem in the future. If speculators destabilize the market too much, then average Joe who runs a grosseries store won't be wanting to use bitcoin as a payment method.